The Carnero Vein.: The Carnero Vein is exposed in outcrops covering a 1,600 meter strike length over 150 vertical meters, with widths from 40 centimetres to 2 meters, which pinches and expands over short distances of seven to eight meters. Eight high grade shoots have been discovered to date and assays from samples collected ranged from 0.24 to 143.51 grams of gold per tonne. (up to 4.12 oz of gold per tonne) Limited mining carried out on level 3 resulted in 1.36 metric tonnes grading an average of 51.4 grams of gold per tonne.

In June 2002 work began on the necessary infrastructure required to put the first block of reserves into production. The block has been assessed to hold 23,000 tonnes grading 17.g/t gold. (.55 oz of gold per ton)

To date,adits have been completed on 4 levels with almost 2,000 meters of drifts and stopes completed in preparation for full-scale production. Future development efforts will include adits,drifts and raises to permit access, ventilation shafts and mining of the gold ore shoots.

The total inferred resource on the Carnero Vein is 483,840 tonnes at an average grade of 17 grams of gold per tonne. (266,034 oz. of Gold) This is based on the dimension of 1,600 meters horizontally and 800 meters vertically. The real extent of the vein is likely to be greater.