Quimsacocha, Ecuador

Recent Developments & Outlook

Recent Developments

• In November 2009, detailed Mining and Environmental Regulations relating to the Ecuadorian Mining Law, which were passed in February 2009, were completed and approved by President Correa.  The issuance of these regulations is a necessary step allowing the Minister of Mines to authorise the resumption of activity at the project site.  The other step required is the review and confirmation of water permits for the project area.
• The Company maintains regular contact and dialogue with senior government officials in an effort to expedite the resumption of work at the Quimsacocha project. 
• During the first quarter of 2010, the Company advanced the engineering for the concentrator.  The Company intends to resume drilling and other feasibility work at Quimsacocha once the necessary authorization is received. 

Outlook

• A final feasibility study, at a cost of $14 million, is expected to be completed within 15 months of the mining regulations being in place, providing significant upside exploration potential.
• Estimated annual production is 202,000 ounces at a cash cost of $272 per ounce.