Some additional language from the 2008 MD&A which gives a more reassuring impression:
YEAR –IN- REVIEW :
2008 was a pivotal year for the Company in terms of substantially increasing the
exploration asset base of the Company. A very significant growth in mineral resources
was confirmed for the San Diego property as total mineral resources have increased
almost five fold from the previous Resource Estimate in December, 2007. Results
confirm that the San Diego property hosts a large new silver-lead-zinc deposit on trend
with two mines in the Velardena District in Mexico. The new discovery appears to
represent a third mine on this mine trend. It is the Company’s intention to continue work on the property later in the year. A detailed work proposal will be developed at the next joint venture management meeting where we anticipate formulating a plan to advance this new discovery towards an initial scoping study focusing on the most cost-effective manner in which to advance the project towards production. The study will identify selected areas which would be the focus of further delineation drilling programs in order to improve the quality of the current Resources.
Exploration on our Aquilon Main Gold Property continues to provide encouraging results
as the 2008 winter drilling program resulted in over twenty gold-bearing intersections
with composite assay values of greater than 2.0 g/t gold, including a spectacular 3,230 g/t gold over 0.80 metres. Based on these and previous results, management made a decision to exercise the second portion of the option agreement, whereby the Company can earn an additional 20% interest in the property. We have not at this time received all assay results from the laboratory for the recently completed March-April 2009 drilling program but the Company continues to be optimistic for the potential of this project. It is anticipated that a press release on this matter will be issued within the very near future. The Company cannot comment on future work on the property until all results are known, reviewed and made public to shareholders.
The stock market over the recent past has been brutal to equity prices in general and to junior exploration companies in particular. The Company has been very active in its
exploration projects utilizing funds from its private placement that took place almost two years ago. The Company has been very frugal in the management of funds to avoid undue dilution of shareholder stock value. The Company will evaluate required
financing when exploration programs and related expenditures for the immediate future have been finalized
