San Francisco is going to provide a for a second processing facility down the line when they hook San Francisco (mine 3) to the power grid.

I'll be happy with the 400 grams per tonne of silver or myself with the higher recovery from the San Fran ore with less manganese. And those gold grades would be an increase to the current grades as well.

The third mine is San Francisco Project is 100km west of the Mina Real mine and mill.

The construction of a dirt road of approximately 2km has started to connect the San Francisco Project with the Ejidal Community of "Los Fortines"; and 10km of roads will be rehabilitated to reduce by 30% the haulage distance to the plant.

The procedure to bring power to the project from the grid (CFE) has commenced.

At Lluvia de Oro area, exploration works show good results. With the development of ramp 1585, FT 1570 and the CP´s 1572 SE and NW, blocks LLO-05, LLO-09, LLO-10 and LLO-11 have been extended to the NW end and at depth.

At Agua Negra area, activities resume through the cross-section near the drillholes cuts NG-07-001 and NG-07-002 with average grades of 7.81 g/t Au and 815 g/t Ag over a width of 2.28m and 7.35 g/t Au and 433 g/t Ag over a width of 1.03 m respectively. There are about 50m more to reach the area.

At Cholita area, level 1615 is being developed with good results.

At the Lluvia de Oro area work continued at the 1600 Level working face with its advance towards the south east end. The objective of this development work is to develop this level as the main access to surface for this system. In addition a C/P is being developed as infrastructure to improve ventilation in the mine. Construction of loader No 3, in level 1570, was completed.

In March 2013, construction started on a road from the yard of the San Eduardo Tunnel, elevation 1520, with a bulldozer with the objective to increase in the short term the mineralized material in blocks LLO-10, LLO-11 LLO-15 and LLO-16. This will also serve as ventilation and drainage infrastructure for the upper levels, as well as the main access point from where all parallel works of the Lluvia de Oro - Cholita system will integrate in the medium term.

At the 1620 Level, Cholita area, construction of loader No 2 was completed over general services ramp