Despite making our first purchase in High River Gold Limited in the middle of the summer doldrums we are pleased to see that this junior gold company is holding up well.

We purchased this stock for $2.49 on the 11th May 2007 and as you know this is a volatile market where you can buy a gold stock one-day and the very next day it falls out of bed only to recover a few weeks later. If you have done the work then all you need is nerves of steel to hold on through the ups and downs confident in the knowledge that you have made the right investment. High River Gold Mines Limited is a new addition to our portfolio so we had braced ourselves for a stormy honeymoon period. However this investment has held steady and closed last night at $2.52, which pleases us just because we don’t like to see red in our portfolio.

We think that we can attribute the stocks steadiness to the recent news flow, which has been good and helps to eliminate the air of uncertainty that surrounds some investments. On the 15th May 2007 we saw the publication of their first quarter results, which we read and without going into detail concluded that they had a positive flavour. This was followed on the 30th May 2007 with reports of positive Economics for Recovering Zinc and Lead at Berezitovy.

Finally, on the 12th June 2007 they announced agreements with two strategic investors for a non-brokered private placement financing for gross proceeds of $C18, 200,000. No matter how good the story if you cannot convince investors to part with their cash then your project is dead in the water. So, by demonstrating that they the ability to entice the money market into making an investment our confidence in company improves.

It is early days for our investment to perform but do remember that HGR has been around for a few years and has a market capitalisation of around $631 million.

High River Gold Limited trades as HRG on the TSX.