Here is a reply to a request I made that TechnoMine readers pick their 2007 favorites.

Let me explain to you why I chose these two companies Jack:

Breakwater Resources Ltd. is a company that currently ownsthree zinc producing mines; El Toquizinc mine in Chile (acquired from Barrick and operated by its wholly owned subsidiary SCM EL Toqui), El Mochito lead, zinc, silvermine in Honduras (acquired from American Pacific Mining Co.), and the Myra Falls zinc mine in British Columbia. Zinc is a commodity that was on the rise for most 2006 and is still pointing towards price increases according to most of the market analysis available in 2006.

Besides these three mines currently in production, Breakwater Resources Ltd, has an interest on the East Amphi mine, a former open-pit with 7 months in production in 1999, currently producing goldin Quebec since February 2006, and in the Laronde mine, an old -but still high in reserves- gold, silver copper, zinc producer in the Ryun-Noranda mining district of north-western Quebec. With interest in another 20 properties located in Canada, USA, Honduras and Tunisia, Breakwater’s position is secured and its continuity as a producer is strongly supported.

Breakwater also has a good financial record. The company has been reporting solid profits since 2003. Its market to book value stands at 0.90 and its Current Ratio is slightly above two. With all this in mind, 2007 will be a good year if the company considers that no additional properties are needed and acquisition expenses are neglected.

Dia Bras Exploration Inc. is a company with a strong record of mining exploration. It has ventured in diamond, gold and more recently in zinc, copper and silver exploration. The company currently owns two producing mines in Mexico; the Bolivar zinc-copper mine in Chihuahua, and the Piedras Verdes Copper open-pit mine in Sonora. Its operations at Piedras Verdes began in October 2006 and will increase the company’s profit margin in 2007. Its other projects include one past producer in the Cusi silver district of Chihuahua near its current Bolivar mine operation, and four other properties in the exploration stage.

Although Dia Bras numbers do not show positive net profits, the company has a Market to Book Value of 0.80 and a Current Ratio of 6.69, which should reflect its ability to turn non-liquid assets into cash.

Breakwater’s stock price might have reached a peak this month and its moving slowly towards its previous value around CAN$ 1.5 per share but might gainstrength back once the company releases the next quarterly results.On the other hand, Dia Bras stock price is following a steady upward trend that can slowdown but might still make a decent capital gain by the end of 2007.

Let’s see what 2007 brings to these two prospects.

Marco A. Murillo

Geo-Analyst