Yes gb the mexico trip was very revealing. For me it was a once in a lifetime trip. We got to stay with the villagers high up in the mountains (Sierra Madre) and experience the subsistence life that they have carved out for themselves.

Just as an asside, I found the people in these remote locations to be most gracious and eager to assist us in any way they could. I did not get the sense that this was because we could bring employment etc to their communities but that it was indeed genuine. I found they all had a quiet confidence about them inspite of the fact that they were obviously poor from a monetary point of view.It brought back memories of my own childhood where I would visit my grandfathers farm on the shores of the Bay of Quinte near Napanee.

As for LA Yesca, I was surprised to see how close to production Jim Voisin and his management team are. In speaking with Jim yesterday he assures me that he will be producing Dore sometime in April. He expects the new mill to be delivered to the site from Guadalajara withinn 2 weeks, as long as the rain holds off.

The road from Guadalajara is a long treacherous ride through the mountains and must be done when there has been no rain. The rain will wash down bolders and debree onto the narrow twisted roadway that leads from Tequilla to La Yesca.

Yes this is the town some 1 hour from Guadalajara where most of the Tequilla production occurs in Mexico. The hillsides surrounding the town are filled with "agave" plants. This is the blue agave cactus plant that Teqilla is made from. It is also being studied as a possible compound that carries drugs to the intestines for treatment of disease.

Believe me the road is narrow, twisted and dangerous. We travelled through the mountains for 4-5 hours, passing through the clouds and eventually above the clouds on roads that were once the peaks of very steep mountains. The roads were formed by shaving off the tops of the peaks and there are no guard rails. We were warned not to travel these roads at night as there are bandits that steal your money and identification. We travelled in a convoy.

On the journey we passed a major construction project complete with a small town of temporary housing that was set up to house the construction workers. We were told that this hydro electric project is the largest construction project in Mexico.

Sorry I got carried away with the details of the trip. Back to the mill at La Yesca. Karl Trudeau is the site manager and Arturo Garcia is the CFO of UC Resources. Both these gentlemen appear to be very competent. We were treated like royalty.

As I said the new mill will be delivered within 2 weeks. While we were there the welders and mechanics were busy manufacturing and installing a base for the new mill.

In 2009 there was an attempt to start the process that failed. The reason for the failure was 2 fold. The ore was not being ground fine enough by the existing ball mill and the tailings being processed were not rich enough. The second ball mill will improve the grind. I can't remember what mesh is required.

The existings tailings have been sitting in the elements since 1910 and the top 30 feet have been leached out. After much testing and assay Jim has determined that the top 30 feet will be set aside and the feed for the mill will be taken from below 30 feet. Judging by what I saw, there is at least another 60-100 feet of tailings. Jim estimates that it will take 4-5 years to use up the tailings at a rate of 220t/day.

The sysyem of recovery being used is the Merrill-Crowe recovery system. Since my experience, as limited as it is, is in the nickel-copper industry using froth flotation, electrowinning etc, I can not speak knowledgeably about this system. Suffice to say that it is a very common recovery system and Jim has consulted with experts in this field in setting up the system. It is not a complicated system as recovery systems go and it is a small 220t/day operation. There is lots of information on the internet about this system for those that are interested.

Karl assured us that all of the pumps and equipment have been thouroughly tested and other than a motor that is on order and the installation of the ball mill, the plant is ready to go. We witnessed the bulldoser and shovel in operation to excavate a new tailings holding pond. Jim tells me that construction of this pond is well underway and all the necessary approvals have been acquired. Since this is a cyanide process it is essential that there are no leaks from the holding pond. Therefore a liner will be installed once the excavation is complete.

Jim has just announced that he will be drilling on an adjacent set of claims in the near future. This is the Xora property that we visited via mule. This was a 1400 foot assent that took us about 2 hours. We visited 2 of the old workings from 1910 and were able to see visible mineralization at these workings. These were crude mines that were simply made with a chissel and a hammer. There was no timbering and there was evidence of loose in the tunnels. Most of the tunnels were no deeper/longer than 60 feet. Most were horizontal as opposed to vertical. Clearly they were simply high grading and following the visible seams. The remaining adjacent rock was highly mineralised.

At Xora there are 3 existing mine sites, El Mirador, La Colorada and Las Cuatas. Knowing of my fear of heights, Jim was kind enough not to take us to Las Cuatas as the grade of the mountain at this point is much steeper than the terrain we visited. After seeing how sure footed the mules are, I regret expressing my initial concerns.

Your question related to the economic viability of the project. From what I saw La Yesca will be producing a gold/silver Dore in the first half of 2010. This is a conservative estimate that considers Murphy's Law and the tweaking of the process. The plant could start as early as April. From what I saw they have a good team at La Yesca. They are a dedicated bunch that are very loyal to Jim.

The grades of the tailings are very good...180g/t silver and 1.8 g/t gold. There will be no mining costs for the first 4-5 years. Jim's conservative estimate is $1-2M profit annually. This will give him the money he needs to map and drill the adjacent property and prepare for future mining. He plans to build a new road at Xora in the coming months. (No more mule rides). At 8 cents the sp looks very low based on what we saw on this trip.

Another observation worth considering is how easily Jim is able to raise funding for this project. This suggests that lenders are sufficiently impressed with the project that they are lined up to lend him money. There have been many offers but Jim is very reluctant to dilute the company by issuing more shares. He caved in to the most recent PP simply because he knows that the drilling results at Xora will be outstanding.

I hope this helps.

SN