Site development is moving rapidly toward our goal for commencement of mining ore during the next reporting period. The southwest end of the existing leach pad is ready to receive new ore and the first area for ore mining was blasted last week. Construction of the base for the new SW-1 and SW-2 leach pads is nearing completion with geomembrane installation expected to commence within two weeks. Plastic for the new leach pads has arrived at the mine and it will be installed after the geomembrane is laid down.

New ramps have been constructed in the southwest Creston Pit to access the ore blasted in the previous week. Rock blast #6 was conducted Monday 13 September at the Northeast Extension to the Creston Pit, with a larger blast of 156 holes scheduled for later this week.

Exploration drilling with the Company’s core drill continues at Lluvia de Oro in the Southeast Lobe of Creston Pit and the area immediately to the southeast. Drill core from holes L10-033 and L10-035 through L10-041 have targeted a new lithology not previously encountered in the drilling at Lluvia. The rocks appear to be igneous rocks (volcanic rocks or high-level intrusive rocks) with exotic rock fragments, disseminated sulfides, and locally intense sericite alteration. The importance of these new lithologies has not been determined to date, as sampling of the drill holes is currently in progress and sample results are still a week to two weeks away.

Commencement of an additional 7,000 meters of resource definition and exploration drilling with the reverse-circulation drill is scheduled to start in the next reporting period.