FAQs

1. How many ounces of gold do you plan to produce in 2008?
   We are on-track to produce approximately 50,000 ounces of gold in calendar year 2008.
   
   
2. Where does the company stand in terms of production expansion?
   The leach pad expansion is complete, and will give us sufficient stacking capacity for the next four years. The construction of the new ADR plant is near completion and is expected to be operational during our first fiscal quarter of 2009. The carbon regeneration plant should be on-line at the end of 2008, so that by the beginning of the calendar year 2009, we should achieve a production rate of 70,000 ounces of gold annually, with an equivalent amount of silver.
   
   
3. How much silver do you produce?
   We produce approximately one ounce of silver for every ounce of gold.
   
   
4. Why do you refer to production totals based on a calendar year and your financials are based on a different fiscal year?
   We report production totals based on a January to December calendar year as that is what is mandated in Mexico. It also makes it easier for investors. Our corporate fiscal year ends July 31st. Going forward, we hope to change this so that both our production and fiscal follows a Jan-Dec calendar year.
   
   
5. How do you keep your costs low?
   We are able to keep our costs low and profit high for several key reasons. First, we mine in a relatively populated area of Sonora, Mexico, with a good skilled workforce from which to choose. We have no need to furnish housing or meals for the crew as they can go home at the end of the day. In addition, our mining staff, from the general manager down, is entirely Mexican. We also employ a good local mining contractor and diesel fuel costs are lower in Mexico. All of these factors have combined to make us one of the lowest cost gold producers in North America.
   
   
6. Do you plan to declare any dividends for shareholders?
   There is no plan for any dividends in the near future.
   
   
7. Is the company looking to lists its share on a recognized exchange in the US?
   We are currently looking at options for an American Stock Exchange listing.
   
   
8. Is there potential to further drill and develop El Chanate?
   Yes. El Chanate is still open to the east, south and at depth to the existing pit.
   
   
9. Does the company have any properties beside El Chanate?
   Yes. We currently have three additional property packages in Northern Sonora, Mexico. They are all early stage exploration properties. Currently we are conducting geochemical work on one of them.
   
   
10. How are you looking to grow the company?
    We have been looking at a number of potential acquisitions and purchase targets in northern Mexico. They include both late-stage development projects as well as producing mines. Our plan is use the synergies created at El Chanate to develop another lost-cost gold mine in Mexico.