Huldra Silver Inc is an old-fashioned exploration junior with only 6,924,519 shares fully diluted and a management team which is determined to put the high grade silver-lead-zinc Treasure Mountain deposit into production and nothing else.

The Treasure Mountain play, which would go into production at 200 tpd or less, is of limited interest to the brokerage establishment because of its small scale. But it is ideally suited as a leveraged bet on silver for speculators who believe that silver prices will end up substantially higher than $5.50. Although the proven and probable reserve has a recoverable gross value of only US $28 million at $5.50 silver, and would be depleted within two years at 200 tpd, this narrow vein system has sufficient strike and depth to conceivably host over 1 million tonnes of ore. An analogy would be the old Beaverdell Mine in southern British Columbia, which operated for 89 years with nary more than a couple years of reserve and eventually produced 46 million ounces of silver.

Treasure Mountain presently has a reserve of 3.7 million ounces of 25.37 opt silver outlined through about $5 million worth of underground development and drilling done in the late eighties. About $200,000 worth of permitting work related to the tailings pond is still required for a mining scenario that falls under the 75,000 tonnes per year or less permitting regime.

Overview:
We hold the view that the structural supply deficit in silver, as evidenced by the ever diminishing known inventories, will eventually lead to substantially higher silver prices. Until there is such a breakthrough, there can be no major work programs at Treasure Mountain. To finance such programs at low share prices would entail massive equity dilution - which would not be in the best interest of present shareholders. The better course is to pursue modest work programs while awaiting higher silver prices.

Website: http://www.huldrasilver.com/