Total Q1 revenue from metal sales was $3,186,266. The company had a loss for the quarter of $1,852,350. Total operating costs were $3,883,721. Based on our recent news release the sales in April exceeded $2 million, we should now be profitable. The company is assigning no value to the pyrite concentrate it has been generating and put generating revenue from the pyrite 2nd on its priority list with no. 1 being operating the mine and mill and no. 3 being further exploration drilling. Since we appear to have vastly improved the oxide mill recoveries, once we add revenue thru sales of the gold pyrite, we will be very profitable.

For the quarter ECU milled 52,182 tonnes of oxides grading 3.07 g/t Au and 81 g/t Ag. The contained metals in this ore was 5151 oz gold and 135,908 oz silver. The metal output in the ore for the quarter though was only 1,632 oz gold and 70,819 oz silver. This means the recovery rate for the gold was only 31.7% and for the silver was 52.1%. To say that there is room for improvement in the gold recovery is an understatement. Since sales went from an average of $1,062,088 per month in the first quarter to over $2 million in April, it appears the gold oxide recovery has more than doubled to maybe 70%.

The sulphide mill processed 14,022 tonnes of sulphide ore in the quarter grading 2.95 g/t gold and 104 g/t silver. The contained metal in this ore was 1330 oz gold and 46,890 oz silver. The metal output in the lead and zinc concentrates and the gold pyrite was 764 oz gold and 34,054 oz silver. This means the gold recovery was 57.4% and the silver recovery was 72.6%.

Since there were 89 days in the first quarter, the average rate of the oxide mill was 586 tpd and for the sulphide mill was 157.5 tpd.

The gold contant in the pyrite averaged 240 oz per month which is almost $300,000 at current prices. If we obtain 2/3 value for this gold it is an added $200,000 per month. I also understand that a significant amount of this gold pyrite concentrate has been stockpiled. This issue becomes much more important once we grow to the proposed 1500 tpd sulphide mill. Regards.