with the q2 numbers, the production is growing to an annualized rate of over 47,000 ounces of gold. just heard from the company; apparently we will get even better results noting that the grade in q1 was averaging .70 oz/t, in q2, the grades are averaging .88 oz/t! you know what that means.......a much higher profit margin at the mill in q2! i am expecting at least around $230/oz this time around resulting in changes to the numbers from the previous post.

back of the envelope estimate for q2:

$230 oz X 11,000 oz = $2.5 million cash flow from operations. plus throw in the extra for the silver at $40/oz, looking good.

the increase in cash flow kills any shareholder dilution and the company can still expand its exploration at tumipampa without any financing! i suspect we are going to hear something soon on the new underground development of the 15 high grade gold and silver veins plus the ongoing exploration of the skarn deposit. hearing that dynacor is currently reviewing the plans to start their new underground crosscutting campaign on its 15 high-grade veins previously discovered just south and below the skarn deposit.

two separate campaigns at tumipampa, exploration and future production from crosscutting, cash flow growing from custom milling and holding at 35 million shares outstanding!

expecting to see more insider buying before too long. it's good to see one of the directors started buying on friday.