Potential to expand further

While Q2 was good, it is apparent that the company is looking to increase throughput beyond

current and forecast year-end levels and our discussions with management on site kept

coming back to the potential of the operation to increase throughput to upwards of 2,250 tpd

. With the recent and pending revisions to the mill (including the aforementioned crusher

and this summer's installation of additional flotation cells), the company believes that a

sustainable processing rate of 1,800 tpd will likely be achievable by year-end.