Q: And my final question would be on the use of cash flow. If half of it is used for dividends, would the remaining half be only spend on Catanava or are there plans to use some of that cash for exploration at Silver King/Cariboo or Sturgeon Lake?

TG:Currently, we think the most leverage and investor interest is in Catanava and particularly in expanding the plant size, given the signficant impact on cash flow. There is no compliant 43-101 resource so more drilling and sampling needs to be done, especially to explore depth potential, since historic workings are very shallow, down to the water table of 100 meters. It is also our goal to increase our ownership and explore the rest of the Pinos District - a 1994 suggests there is potential for 3-4 bulk ton targets for example. Regarding Silver King, it has only been drilled to a 70 meter depth so the primary gold target below the old mine should be drilled this Summer. Sturgeon Lake's best targets closest to the old Mattabi mine should also be drilled but we would like to do that with an experienced VMS partner in a better Zinc market.

Lar, it looks like Tim favours the production scenario to get cash flow positive. Up to half of the free cash flow he wants to dividend to the shareholders. The other half will be spent on the Catanava project, drilling and expanding the mill from 250tpd to 750tpd.

The implications on this money spent could be massive: for drilling potential, there are at least 12 known high grade veins on the property that haven´t been explored properly so far. And the impressive implications on cash flow by expanding the mill capacity to 750tpd can be seen on p.19 of the recent company presentation (see President´s DD link on top right hand side of this page).

FANTOMAS