Inventory

Gold inventory, which includes gold bullion, gold contained in the milling circuit and in stockpiled ore on surface, is valued at the lower of cost and net realizable value. Costs include labour, equipment costs, and operating overhead.

Material and supplies inventory is valued at the lower of cost and net realizable value on a first-in first-out basis.

Gold inventory is made up of an ore stockpile valued at $171,936 (December 31st, 2008 - $49,842), in process inventory of $2,636,352 (December 31st, 2008 - $3,282,297) and finished product inventory of $5,841,476 (December 31st, 2008 - $1,327,419).