From the news release:

"The largest impact to this change was due to a $1,706,504 fluctuation in foreign exchange. Before changes in foreign exchange, a net loss of $2,496,439 was realized in Q2 2010, which is a 6% enhancement in net loss versus the comparable net loss for Q1 2010."

It's really quite simple as pointed out in the press release, the US dollar was strong in Q2 having peaked in early to mid June. Plus the company has been spending money on mine and mill development and personnel and opening new production stopes, etc., with the outlook of increasing production and mine output. This is also how they have had some of the new assay news that has been reported. I know they also were spending money on the new ramp to the lower levels of the mine which is critical to future growth and any new mill development.