SAN MARTIN MINE SELECTED INFORMATION OF MINE PRODUCTION STATISTICS
Actual results for Actual results for six months ended year ended (Unaudited) Unit of measure July 31, 2008 Jan. 31, 2008
Production of gold in dore thousand ounces 9.1 24.1 Production of silver in dore thousand ounces 72.1 213.1 Equivalent ounces of gold(*) thousand ounces 10.45 28.2 Milled thousands of tonnes 132.4 258.1 Operating cost per equivalent ounce U.S. dollars/tonne $460 $301
(*) Assuming a 52:1 silver:gold equivalency ratio
Overall equivalent gold production was lower at 9,100 ounces, compared with the prior year's six-month average of 14,100 ounces due to lower ore grades. In the current quarter, however, ore grades have improved to 2.73 grams per tonne (g/t) gold and 24 g/t silver over the prior quarter amounts of 2.17 g/t and 24 g/t, respectively, as the company was able to fully exploit orebodies 29 to 31, which contain higher ore grades.
The company expects to maintain or increase the current ore grades over the next quarter and continues exploration efforts to increase reserves of resources and to find higher-grade deposits. Management also continues efforts to cut mine and administration costs, where possible, to improve earnings and cash flow.