In the year(and slightly before) I have been here, I have seen the property go from several low grade skinny vein mines that were barely economic at $750.00 gold. To the discovery of the hinge. Then cohiba and L13, then 007. They were simultaneously finding new high grade veins in the RLM that appeared similar to the surface discoveries. They then came to the conclusion that the surface deposits extended to depth(proof still needed) and now as they drill east and up from the 26 and 28 levels they are realizing that there are multiple veins all throughout the volcanics leading to the one massive deposit theory. After accessing the 007 and putting in some more exploration drifts it will be not too much longer before the markets will have the proof they need.

As far as production goes, I am quite happy with 63,323 tons in the quarter. If they were running 12 gram ore we would have seen close to 25000 ounces. I am guessing why they had so much developement ore, however when the D shaft was down, perhaps they got busy developing the new high grade veins above 26 level. The L13 and Cohiba are both over 12 grams per ton and the hinge and the 007 are over 15 gpt. Many of the new discoveries in the RLM are also over 12 and 15 gpt. They are getting their act together and IMHO Q2 will be much better on the number of ounces, price of gold and new discoveries.