Don Roman and Lourdes Concession

The Don Roman and Lourdes concession is 331 hectares in size. Preliminary evaluation of the property identified an abandoned mine and extensive sulfide mineralization within a complex suite of volcanic-granitic and sedimentary rocks. Detailed surface sampling and road 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 substation which will supply power to operate the Plant. Two circuits

capable of producing a minimum of 200 tonnes per day have been completed and are under going test runs in order to make final adjustments. Work continues on the third ball mill, which will add a minimum of another 100 tonnes of production capacity, and also the addition of a fourth ball mill, which will be used as a regrind 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. Negotiationswith these buyers 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."