New Addition to the Portfolio

I'm sure this is the moment you've all been waiting for. I liquidated all my old stocks switched my account over to Charles Schwab and begun anew. Well, almost.

I held on to two of my old stocks.

Oil Sands Quest Inc. (BQI)

This is still one of my favorite companies. Their outlook continues to get better and better as the keep drilling off the HUGE amount of land that they own. They keep hitting potential reserves and their drilling is ahead of schedule. I will continue to hold and have high hopes for this company. Side note: Mexico has announced a drastic decline in their offshore Cantarell reserve. This is one of the 3 largest reserves in the world and is now in sharp decline. This partially because they had injected nitrogen into the reserve to keep us pressure. This had limited success and now the reserve is filling up with sea water. They have dropped an approximate 400000 barrels of oil production per day. After this news, I believe that it's safe to get back into the oil market.

U.S. Gold Corp. (UXG)

I still love this company. I think that they have massive potential drilling off the Cortez trend. I continue to have strong confidence in Robert McEwen, their CEO. He did wonderful things with Gold Corp. If you wonder why I love Rob McEwen, all you have to do is Google the Colorado Gold conference and click on the key note speaker.

The New stocks:

Fortuna Silver (FVITF)

Fortuna Silver Mines is a silver producer focused on Latin America. Their primary assets are the Caylloma Silver Mine in southern Peru, and the San Jose Silver-Gold Project in Oaxaca Mexico. The 100% owned Caylloma Mine contains an NI 43-101 compliant estimate of 7 million ounces silver (777,630 tonnes at 9.2 oz/t Ag) in Proven and Probable Reserves, plus 14 million ounces silver (1,146,599 tonnes at 12.4 oz/t Ag) in Inferred Resources. The acquisition also includes a 300 man camp, a 600 tpd mill and all associated infrastructure. The mine was temporarily closed in 2003, but produced 2.6 million ounces of silver in 2002. As of September 2006 Caylloma has reopened and is currently producing.

When it comes to silver mines, there's no place I'd rather have my money than Latin America, specifically Mexico. They have been mining there for hundreds of years and have barely scratched the surface. Fortuna, as well as Impact silver (soon to be mentioned) are companies that are sitting on top of huge potential. They are currently modernizing their mining equipment. As this happens expect the amount of silver produced to increase as well as their earnings. This will show in their stock performance. Even if silver prices were to remain rather subdued, they will still increase their value. Just think what might happen when silver goes through the roof.

Impact Silver (ISVLF)

Impact Silver Corp. is a profitable junior silver producer and explorer striving to become an intermediate silver producer focused on economic projects in mining friendly and politically stable parts of the world. At the Royal Mines of Zacualpan project in Mexico, Impact owns and operates a 500 ton per day mill and mines. Production has been profitable in every quarter of operation since it started in January 2006. Impact plans to scale up the production volume to the full capacity of the mill. Huge exploration potential in 100% owned under-explored 125km2 silver district. This historic district has never been explored with modern methods. Impact is working diligently to unlock the value of its assets.

Pacific Rim Mining (PMU)

Pacific Rim is a growth-oriented and revenue-generating gold exploration company with operational and exploration assets in North, Central and South America. The Company is exploring and developing its advanced-stage high-grade, low cost El Dorado gold project in El Salvador and is actively exploring a pipeline of grassroots gold projects. The Company is well-financed and benefits from continuing cash flow from gold production at its 49%-owned Denton-Rawhide residual leach operation.

SXR Uranium One Inc. (SXRFF)

SXR Uranium One Inc. is engaged in the exploration and development of uranium and gold resource properties in South Africa, Australia and Canada and is actively pursuing growth opportunities in the western United States. The Corporation's principal assets are the Dominion Uranium Project in South Africa, the Honeymoon Uranium Project in Australia and, through its majority-owned subsidiary Aflease Gold Limited, the Modder East Gold Project in South Africa. Through a joint venture with Pitchstone Exploration Ltd., the Corporation is also engaged in the acquisition and development of uranium exploration properties in the Athabasca Basin in Saskatchewan, Canada.

There they are folks. SXR, BQI, and Impact are definitely my 3 favorites here. They have some great properties, and great management to go along with them. You might notice some common things in these companies. First, all either have some sort of production, or are near term producers. All of them are conducting large amounts of exploration with some positive outlooks.

Another thing you might notice is that, it looks like I have a lot of eggs in one basket. I own physical gold/silver, and I have a lot of money tied up in the mining of precious metals. This goes against all basic investing principles. I have some strong beliefs backed up by stronger data. I'm dealing with a high risk/reward scenario her. You also might notice that not all of these companies are on the ticker provided. First off, I might be one of the least computer savy persons that you have ever met. Some of the symbols were just not available through the ticker I use. I will look into it and get something better up there for you.

I have recently written a short thesis regarding how the U.S. monetary/fiscal irresponsibility has insured a grim future for the U.S. and a great future for gold/silver. If you would like a copy of it please email me and I'll send you it. (jones973@tc.umn.edu) It's too long to post on the web site not that's its a book or anything (2.5 pages single spaced), but it's quite interesting.

I guess I'm not your basic investor. If you are looking to do some investing on your own, please do your own due diligence. I am not a financial advisor or anything close. I don't want my money in a CD, mutual fund, or money management fund. At this point, it's not for me. Happy Investing!