We have good recovery rates with -80 mesh grind (84%).

Test phase finished and now in "startup test mode", which is the final step before start of commercial production.

First dore bar about to be produced. Will be interesting to see, what the grades will be.

The trick will be to "fine tune" the operation, depending on the feed material.

The daily capacity of the 250 tpd mill will depend on the grind/mesh size:

bigger mesh = less grinding = higher capacity = lower recuperation rates ///

smaller mesh = more grinding = lower capacity = higher recuperation rates.

If this mill is run with -30 mesh, you could produce 500tpd, if you run -80 mesh, you get to the nominal 250tpd, and if you run with -150 mesh, you might end up with 150tpd.

Good to see, that the water permit has been granted, with only the explosive permit now outstanding (final inspection in June).

We´re really heading towards commercial production in 2012, just 20 months after signing the JV agreement and just 6 months after receiving the construction permits.

Good progress ! Well done, Tim and Don !

FANTOMAS

Link to press release:

http://www.excaliburresources.ca/s/NewsReleases.asp?ReportID=527287&_Type=News-Releases&_Title=CATANAVA-PLANT-IN-STARTUP-TEST-MODE