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To: jackjc who wrote (1885)	11/10/2006 6:55:13 AM
From: Madharry	Read Replies (1) \| Respond to of 3270

I own both. Obviously SIL basically has a mine that will be producing in 2007. I dont know when MMG will get into production. Do you? MMG has many more hurdles to overcome to get to production than SIL so of course they will be valued differently.

To: jackjc who wrote (1885)	11/10/2006 9:05:52 AM
From: Mr. Aloha	Respond to of 3270

SIL also owns only 65% of San Cristobol vs. MMG's 100% ownership of Sierra Mojada, plus SIL has hedged significantly at much lower prices. I agree the choice is clear. I had assumed SIL had other projects in production to justify its over $1 billion market cap, but as I reviewed their financials, I found that they didn't. You're right that given the market cap ratio and country risk, MMG is clearly a much better investment for me, though if SIL can get the bulk of the profits out of San Cristobol, it could be a very good value with its nearer-term production.

To: jackjc who wrote (1885)	12/15/2006 10:15:13 AM
From: Mr. Aloha	Respond to of 3270

Despite the fears, it looks like water won't be a problem for MMG. That was the last big remaining hurdle, so if confirmed, feasibility should be a breeze, IMO: Metalline Mining Company Updates Results of Water Exploration Program Friday December 15, 9:21 am ET COEUR D'ALENE, Idaho, Dec. 15 /PRNewswire-FirstCall/ -- Metalline Mining Company (AMEX: MMG - News) announced that during its 2006 water development program, Metalline Mining Company has drilled 15 exploration holes in the vicinity of Sierra Mojada, Coahuila, Mexico. Two borings are incomplete for technical reasons. The water production rate of the remaining holes was estimated by air lift testing, and six of them yielded tests in excess of 50 gallons per minute from depths of 200 meters or less. One hole was selected for completion using an open hole completion technique recommended by our consulting hydrologist, David Hawkins of Barranca Group LLC. As explained in the attached memo, the completed well tested at a rate of 152 gallons per minute during a 24 hour pump test. The water produced from the well is brackish with a temperature of 30 C, as is water from many nearby exploration holes. Our consulting engineers state that the water quality is adequate for process use, but the quality is too low to meet standards for human drinking water. From the perspective of sustainable use of resources, such water is ideal for use in mining applications. Our water exploration holes in another area, to the north of the town of La Esmeralda, show excellent potential to provide high quality drinking water. We are working with local authorities to find ways to cooperatively develop a reliable supply of water to meet present and future needs of our work force and other inhabitants of the towns of Sierra Mojada and La Esmeralda. Mining and ore processing requires large volumes of water. Our engineers have identified location of an adequate water supply as a critical milestone in the feasibility study process. The current results suggest that a suitable water supply can be identified. Memo from David B. Hawkins, consulting hydrogeologist, to Metalline Mining Company management, dated 10 December 2006. "Over the past 4 days we have installed a test pump in water exploration well R3A and we have conducted a pump test. A 30 HP submersible test pump was installed to a depth of 945 feet. After pump installation a step test was conducted to determine a sustainable rate for the constant rate test. The step test determined that there was very limited drawdown pumping at the maximum rate that the pump could deliver. Therefore the constant rate test was conducted at approximately the maximum rate that the pump could deliver. During the constant rate test, the well was pumped at a rate of 152 gallons per minute (gpm) for a period of 24 hours. The static water level was approximately 495 ft. below land surface. The maximum drawdown produced during the pump test was less than 7 feet, and this was produced during the first three minutes of pumping, after which the pumping water level did not change for the duration of the test. After the pump was turned off, the water level recovered virtually instantaneously. The exploration drilling and test pumping of R3A indicate the following: (1) Fractured carbonate rocks are a viable water exploration target in the El Rey Basin. (2) The well was constructed with an "open-hole" completion, i.e. the well was not cased below the conductor casing at 84 ft, i.e. the well was uncased from 84 ft. to 1140 ft. There were no caving problems during the casing installation and test pumping, therefore this offers the possibility of being a very economical well construction method. (3) The pump test indicates that the well would be capable of sustained pumping at a rate of 150 gpm. Based on the very limited drawdown experienced, it is likely that the well can produce significantly more than 150 gpm. Therefore, it is recommended that the well be tested with a larger capacity pump in order to determine its maximum sustainable capacity."