BALTIMORE, MD-Major precious metals continued a four day slide as the dollar continued to recover from heavy declines, after some better-than-expected US service sector data helped dissipate concerns that the world's largest economy is heading for recession.

By about noon today gold prices have lost $19.50, or 3% while silver is down $0.49, or 3.5%, since the beginning of the week. But a quick look at 90-day gold and silver charts shows significant momentum.

So despite the week's losses, we're still in good shape.

Much of this recent action has come on strong weakness in the U.S. Dollar.

For the year the Dollar has shed 6.8% against a Federal Reserve index of seven major currencies. Specifically, the greenback has fallen 11.6% against the euro this year, about 5% in the past two weeks alone. This year's decline against the euro is the biggest since a 16.7% loss in 2003.

Similarly, the U.S. dollar index, which is currently weighted according to the graph to the right, has lost 5.1% since mid-October.

At last look, the index was sitting at 82.74. A drop below 80.50 would represent a multi-decade low.

A continuing slowdown in the U.S economy, in tandem with oil-driven inflation and current housing woes, will keep eroding the dollar's value. As this happens we'll see much bigger jumps in both precious and base metals.

We believe that gold is currently trading at a discount in relation to the U.S. dollar. And we expect the yellow metal to continue to rise over the next few weeks.

To investors, this means we should be buying mineral stocks like crazy right now.

Now I'd like to quickly update you on Firestone Ventures (TSX-V: FV) and Marifil Mines (TSX-V: MFM).

Firestone Ventures (TSX-V: FV)

Hot on the heels of drilling commencement at the company's Torlon Hill zinc project in western Guatemala, Firestone Ventures (TSX-V: FV) reported promising news from the first 14 core drill holes that have been completed the at the project site.

As part of the $1.2 million 2006 winter exploration program for zinc, Firestone will conduct diamond drilling-which will involve drilling 2,200 meters over 25 to 30 holes-detailed geological mapping, sampling and prospecting of prospective terrain and the continuation of ongoing environmental baseline studies.

Firestone recently reported results from the first 14 holes. These suggest that the prior zinc mineralization is lengthened over 150 meters to the northwest of the drilling area.

Of the 14 holes already completed, three are in-fill holes in the northern bulge area of high-grade zinc mineralization. Highlights of results from previous holes drilled in the area include 33.0 meters of 22% zinc, including 17.1 meters of 31.9% zinc, and 39.5 meters of 5.7% zinc.

The last 11 holes are step-out holes that were drilled with 25 to 50 meters of spacing in between, extending 150 meters northwest. So far, 595.8 meters have been drilled vertically, ranging between 21.3 meters to 67.1 meters.

The encouraging news has prompted the company to move the drilling to the southwest area, in which rests the Cincos Hermanos zone containing high-grade lead-zinc-silver mineralization. Results from these assays are expected next month.

[You can find a very detailed map of the project area here.]

Marifil Mines (TSX-V: MFM)

In accordance with the company's business model, Marifil Mines (TSX-V: MFM) announced on Monday that they have entered into a joint venture with ATW Venture Corp. (TSX-V ATW) at Marifil's Amarillo property in San Juan province, Argentina.

According to their letter of intent, ATW will pay Marifil $57,500 over an unreported period of time and the final terms for the joint venture will be determined after ATW completes a property review.

The Amarillo project, of which Marafil has full ownership, rests inside the Veladero-El Indio gold belt in the Andes Mountains. This area is home to several large deposits, including 12.6 million ounces of gold at Barrick's Veladero property and also Pascua Llama's 18.3 million ounces. So far, the company has found promising gold anomalies over an area of six.

As you know Marifil does not want to become a traditional mineral firm. The company's plan is to add value to the properties already in hand through comprehensive exploration programs.

Once a property is explored-and hopefully found to have sizable resources-Marifil will then bring in joint-venture partners that are better funded to carry out drilling programs. After their JV partner begins production at a given property, Marifil will earn an interest in any operating revenue.

Even though Monday's news was not met with much enthusiasm in the market, the partnership represents a success for Marifil's business model.

- Luke Burgess