In Part 2 of our Gold Mining in Mexico, report we'll take a look at the rest of Rochester's gold mining prospects, which are numerous and conclude with specific details regarding my recommendation.

Gold Mining in Mexico: Rochester Expands Land Holdings

Tajos Cuates Mine and Area

Tajos Cuates currently comprises five vein systems and is located just one kilometer southwest of the Florida gold mine site. Tajos Cuates is a primary target in the near-term for outlining additional potential ore sources for the existing milling operation.

The mineralization at Tajos Cuates is silver-rich compared to the Florida vein system, which is why the company is waiting until they increase silver recoveries at the Mina Real facility before processing the ore from these veins. Silver grades have been found as high as 1,300 g/t silver across a 1.70-meter-wide sample.

Three drill holes completed in 2006 provided confirmation that the mineralized vein structure continues to depth and established a base for the mineralized horizon. Drill hole 800-7-04 intersected 2.42 meters (estimated true width 1.5 meters) of mineralization that assayed 4.9 g/t of gold and 310 g/t of silver.

As I mentioned yesterday, Candian gold producer Rochester Resource (TSX-V: RCT) is currently drilling 2,000 meters at the Tajos Cuates target to further delineate the lateral and vertical extent of the system.

Drift development activities are also currently underway to supplement more extensive trenching and surface sampling activities. In December 2007 the company began a 600 meter drift development program at Tajos Cuates.

Dating back to the summer of 2007, Rochester has been conducting drift development at the Tajos Cuates vein system. The average grade from samples taken along the drift was about 4 g/t gold and 400 g/t silver. Higher grade silver from drift samples includes 1,140 g/t silver, 758 g/t silver and 833 g/t silver.

Like drift development at Florida, the current 600 meter drifting program will provide bulk sample - such as information and assistance in generating an NI 43-101 compliant reserve report.

Macedo Area

The Macedo area at Mina Real is a reconnaissance exploration project that was recently initiated. Four primary vein structures have been identified to date in the area, with follow-up work planned for later this year.

To date Rochester has discovered three main vein systems at Macedo. The most prospective of the three at this point is the El Gringo vein system. Sample results from the El Gringo vein include 0.70 meters grading 14.2 g/t gold and 235 g/t silver and 0.80 meters grading 1.57 g/t gold and 200 g/t silver.

The Santa Fe Property

Rochester Resources holds a 70% interest in the Santa Fe gold/silver project comprising 3,823 hectares of exploration and mining concessions. To date the company has identified an impressive 26 vein structures on the project across three main areas, Clavellinos, San Jose and Samuel.

Below you can see the three main areas outlined in blue and mineralized veins in red.

The Santa Fe project has seen only very limited exploration until now. The project, specifically the Clavellinos area, is the primary target of gold exploration and development for the company for 2008.

Clavellinos Area

Work to date at the Clavellinos area has defined three main vein systems as the initial exploration target. From west to east, these are the Clavellinos, Tajitos and Jonas systems.

Surface sampling highlights from the Clavellinos system include 1.40 meters grading 2.94 g/t gold and 271 g/t silver and 1.90 meters grading 2.29 g/t gold and 234 g/t silver. Surface sampling from the Tajitos and Jonas System includes 1.20 meters grading 3.52 g/t gold, 1.50 meters grading 0.23 g/t gold and 425 g/t silver, and 1.20 meters grading 3.56 g/t gold and 796 g/t silver.

A 3,000 meter Phase 1 diamond drill program has recently been initiated at the Clavellinos area of the project. The program is slated to test each of the three major vein systems. Results from this drilling will also be reported within the next few months.

Drift development has begun at Clavellinos. Rochester recently kicked off a 600-800 meter drift development campaign. The company is targeting a 40-meter-wide mineralized zone at Clavellinos. The results of the campaign will help define the average grade of the vein system and will assist in calculating an NI 43-101 compliant reserve report.

Samuel Area

To date Rochester has identified five epithermal veins at Samuel, all of which have historic workings—a good indicator for a strongly mineralized vein system.

Until the company began a systematic and detailed exploration program at Santa Fe to assess its potential there had been no modern exploration techniques applied to this project. Now there are a total of 1.7 kilometers of epithermal vein strike length traced from outcrops.

Rochester will continue exploration efforts and expects to significantly increase its understanding of the extent of these mineralized vein systems. The company says that "this area [Samuel] is highly prospective and is a high priority for exploration follow-up in the near term."

San Jose Area

The San Jose area comprises five vein systems identified as San Jose vein systems numbers 1 to 5. San Jose is currently a reconnaissance-stage project where the company is following up on previous work by past companies.

No assay results have been published to date. But all the veins have been traced at surface with strike lengths close to one kilometer. There are more than five kilometers of strike length noted at the San Jose area. This area will be aggressively explored over the coming months, with assay results to follow.

Other Gold Mining Properties

Several weeks ago Rochester announced that it has staked and now holds a 100% interest in an additional 13,164 hectares contiguous to the Mina Real and Santa Fe properties.

The El Cora property comprises 1,568 hectares contiguous to the northwest of Santa Fe. The company additionally staked the El Cora II claims, which comprise 11,596 hectares and are contiguous to the north and west of both the Santa Fe and Mina Real properties.

With the addition of these claims, Rochester's total land package in Mexico covers over 24,000 hectares.

Rochester Resources (TSX-V: RCT): Conclusion and Recommendation

Rochester is a very attractive stock buy, especially at current levels of about C$1.00.

By producing cash flow in an ever-rising gold and silver spot price market while increasing production and mineral recovery rates, Rochester helps protect shareholders from the potential downside risk of a negative stock market. With this model, the company can contribute to development and exploration programs from cash that will not be needed from the dilutive equity market.

Meanwhile Rochester continues to add value to its properties through drift development programs at Florida, Tajos Cuates and Clavellinos. This is progressing daily, further defining a larger and larger resource while supplying early feed for the mill. This in turn contributes to positive operating cash flow every month and an extensive database for compiling a thorough NI 43-101 reserve report.

The company also offers shareholders exploration upside, as drilling has just commenced at both the Mina Real and Santa Fe projects. This is the first extensive drill program ever to take place in the area. I have high expectations that the drill program will add substantial growth to the company in the coming year.

While implementing these strategies for growth, Rochester will continue to look at acquiring additional strategic mining projects that will add substantially to our overall growth-producer model.

The company is expecting to become a short- to mid-term, mid-tier player in Mexico's silver/gold production market through acquisition and internal growth. From the way it looks now, it's all just a matter of time. After that the sky's the limit. Rochester's most recent corporate presentation says that there is a potential of up to 10,000 tonnes per day. But for now the next major milestones will be the increase of gold and silver production at the Mina Real facility and drift development and exploration drill programs on the company's four properties.

For more information on Rochester Resource, visit the company's website at: www.RochesterResourcesLtd.com

Good Investing,

Luke Burgess
Editor, Gold World