All hail the mighty silver bugs…

Bloomberg reports Grupo Mexico must return $1.3 billion to Southern Copper Corp. for forcing the unit to overpay for Minera México, a Delaware judge ruled. The court found that the terms of the 2005 merger was unfair to Southern Copper which mines copper and silver in Peru and Mexico. The court determined that Minera Mexico, at the time the second richest copper miner after Chile's Codelco, was only worth $2.43 billion and not the $3.75 billion Southern Copper paid.

China's state news agency reports all production at Freeport McMoran's Grasberg mine in a remote province of Indonesia has been halted after a pipeline was sabotaged, access to the pit and underground operations were blocked and three miners were killed in an ambush. The latest attack follows an incident last week when Indonesian security forces fired on striking workers after a protest turned violent, killing one and injuring a dozen other. Some 12,000 Workers at Grasberg began a strike on 15 September and has vowed to shut down the mine if hourly wages of $1.50 is not upped 8-fold. The local police chief said between 500 – 600 policemen are now billeted at the mine.

New Gold Inc. ("New Gold") (TSX:NGD)(NYSE Amex:NGD) and Silver Quest Resources Ltd. ("Silver Quest") (TSX VENTURE:SQI) today jointly announce a binding letter agreement whereby New Gold will acquire, through a plan of arrangement (the "Arrangement"), all of the outstanding common shares of Silver Quest. Under the terms of the Arrangement, Silver Quest shareholders will receive 0.09 of a New Gold share (the "Share Consideration") for each Silver Quest share held and one common share in a new Yukon-focused precious metals exploration company, McIntyre Minerals Inc. ("McIntyre") for every three Silver Quest shares held (the "Spinco Consideration").

Hong Kong’s Chinese Gold & Silver Exchange Society, a century-old bullion bourse, will start trading gold quoted in yuan today, boosting the city’s status as an offshore hub for the currency.

Europe's biggest mining project may be approaching the finish line after a dozen years of opposition and delays, and could enter its final stage late next year, a Rosia Montana Gold Corp executive told Reuters on Friday. Rosia Montana is majority-owned by Gabriel Resources which have spent more than $500 million under no fewer than seven different CEOs advancing the project since the Canadian firm first obtained the concession in 1999. It is believed the be one of the richest deposits in Europe with 314 tonnes of gold and 1,500 tonnes of silver and where mining activity dates back to the 1st Century.

After launching its eBay bullion center in May, the online retailer published a handy infographic this summer to look at buying trends. Looking at absolute number of items sold, California leads the way, probably due to the size of the state, but on a per capita basis, Alaska comes first. The study also found that silver items were the most popular, followed by gold. Platinum was a distant third.

Chad Venzke, who was profiled by Bloomberg, has posted some how-to videos on how to bury gold in your backyard. "If you don't own it physically, in your hand and easily accessible, it's a high percentage chance that you don't own it," says Venzke in his YouTube video. The recent market turbulence and the general fear regarding the economic outlook is causing some people to cling to gold more tightly. Venzke's video has had over 8,000 views.

Hecla Mining Company ("Hecla") HL +3.79% announces that it has reached an agreement with its lenders to increase the amount available under its undrawn secured revolving credit facility to $100 million from $60 million. The amendment is effective immediately and represents a new three-year term on the facility. The financial covenants and interest rate at LIBOR plus 2.75% to 3.5% depending on the leverage ratio of the Company, remain unchanged. The lenders for the credit facility are Scotia Capital and ING Capital LLC.

First Majestic (TSE:FR) announced that its Q3 silver production was 4% lower from the prior quarter and 6% lower from the same quarter in 2010. The company produced 1,708,865 silver ounces in Q3 compared to 1,780,379 in Q2. In early morning trading, the company's stock was up 20 cents to $17.69 a share. The company believes that silver production should increase due to operational improvements at La Parrilla, its Mexican mine. First Majestic completed a new 1,000 tpd flotation circuit, which will replace an old 425 tpd flotation circuit and will allow silver production to ramp up in the fourth quarter.