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Silvercrest Mines Update...

May 3, 2006

The purpose of this update is to draw readers' attention to the performance of Silvercrest and its future upside potential. Silvercrest was recommended on the site back in January at the optimum moment a few hours before it broke out from the 2-year long Handle of a giant Pan & Handle base formation. However, it is yet to break out of the entire Pan & Handle base pattern, and thus upside potential - and leverage on capital - remains large.

On the 1-year chart we can see the point at which the stock was recommended in January, and the breakout which was followed by a period of nearly 2 months consolidating, after which it has moved ahead more strongly from mid-March. This is now a very robust picture, with the price advancing smartly on good volume, and On-balance Volume rising strongly.

The long-term chart shows exactly where we are in the lifecycle of this stock. On this chart we can see that Silvercrest has completed an exceptionally fine example of a Pan & Handle base and that a “breakout drive” out of the entire base area is just getting underway. As we have observed it has already broken out of the downsloping Handle of this pattern, but it has yet to break out of the entire base area, an event which will be signalled by it breaking clear above the resistance in the area of the early 2004 high approaching C$2. Once it breaks clear above C$2 the rate of rise can be expected to accelerate significantly, and here it should be noted that the resistance arising from trading at higher levels before mid-2000 is not expected to prove to be much of an impediment, as it is so old.

Silvercrest is rated a strong buy at this point in anticipation of a major uptrend that should follow the expected break above C$2.

The following two example charts showing what happened following breakouts from Pan & Handle bases should make abundantly clear the bullish potential of this formation.

We bought ECU Silver long before it broke out, and made large gains…