San Francisco Project (this is new mill feed)

With the exploration works carried out in the 1600 level in the Lluvia de Oro area, there is a body 125m long, with 66,200 tons of mineralized material with average grades of 1.71 g/t Au and 252 g/t Ag over a width of 1.43m.

Estanzuela Area and San Francisco Project, Mineralized Material

A summary of mineralized material that includes the San Francisco Project is shown below:

 

AREA

Tonnes

Average Width

(mts)

Au

(g/t)

Ag

(g/t)

Equivalent Au

(oz)

Eatanzuela project

437,646

4.10

2.08

190

77,549

San Francisco Project

82,659

1.54

2.95

266

20,603

TOTAL

520,305

3.70

2.22

202

98,153

 

The newly producing San Francisco mine site (100 kilometers west of mill) increased the gold and silver production grades as wll as the mill feed. Roughly 17 percent mill feed increase from the previous reporting quarter from San Francisco mine.

Mine Operations

17,622 tones were produced during June through August with average grades of 1.81 g/t Au and 214.32 g/t Ag. Tajos Cuates Mine contributed with 49% of total production, SE Florida with 19% and San Francisco with 32%.

1,124 tones were milled during the first week of September with average grades of 1.42 g/t Au and 237.35 g/t Ag.