This newly producing location is 100 kilometers west of Mina Real. Rochester just recently acquired 100 percent ownership by paying $1,500,000.

The exploration at the Lluvia de Oro area continued with the development of face 1600. Results are inconsistent due to a parallel fault to the structure that affects it lengthwise.

C/P 22 was developed with NW and SE direction from the face 1600 SE.

At 1570 level, face 1570 SE was developed with average grades of 3.25 g/t Au and 427 g/t Ag over a width of 2m, while in the NW side grading is negligible. In the same level, C/P 1570 is being developed towards the SE and NW.

At Agua Negra area, exploration and infrastructure are developed to be positioned over the projection of the DDH NG-07-001 and NG- 07-002.

At San Mateo area, exploration over the structure started from the ramps 1590-465 SE and NW.

At Cholita area, development of the main service ramp restarted, reaching elevation 1615, to initiate another level.

1600 Level, Lluvia de Oro area, face 1600 advanced towards the SE end, in order to continue preparing it as extraction General Haulage level for this system. The development of the overall service RAMP reaches the 1575 elevation and starts the development of other level over the structure. - 5 -

1620 Level, Cholita area, the loading area NBo 2 was built on the ramp at level 1590 and the development of the second level over the structure started.

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.