Don Roman and Lourdes Concession

TheDon Roman and Lourdes concession is 331 hectares in size.Preliminaryevaluation of the property identified an abandoned mine andextensive sulfidemineralization within a complex suite ofvolcanic-granitic and sedimentaryrocks. Detailed surface sampling androad construction have been completed atcost of approximately $172,000.

Permits needed to move towards active mining, assessing exploitation options,and costs associated with the design of various mining and recovery systems have been obtained. Mining and processing equipment have been purchased and the plant, which will be capable of processing a minimum of 200 tonnes per day, has begun test ore runs on one of three circuits. Water rights for the property have been acquired and a well to supply water to the plant has been completed..
High voltage electrical service has been supplied to an electrical substationwhich will supply power to operate the Plant. Two circuits

capable of producing a minimum of 200 tonnes per day have been completed and areunder going test runs in order to make final adjustments. Work continues on the third ball mill, which will add a minimum of another100 tonnes of production capacity, and also the addition of a fourth ball mill, which will be used as are grind circuit. When the plant has been completed, it is expected to operate at a minimum throughput rate of 400 tonnes per operating day. Initial discussions have been held with no less then four different concentrate buyers. Negotiations with thesebuyers are ongoing and proposed sales terms are being reviewed. It is anticipated that a sales agreement will be in place before the end of May, 2009.