Mineral Processing

The first metal extraction tests were conducted for La Sabila in October, 2009. These tests were necessary as a proof of concept prior to mining on larger scales. The ore collected from a vein exposed on the surface was previously assayed at 0.062 ounces per ton gold, 17.3 ounces per ton silver and 7.16% copper. The ore samples are believed to contain the copper minerals chalcocite and chalcopyrite, the silver mineral acanthite, native gold and gold bearing pyrite. In addition, copper oxides are present.

A silver bar produced in the laboratory was assayed by Chris Christopherson, Inc. of Kellogg Idaho ("CCI") for gold, silver and copper. The four inch long bar assayed by CCI ran 5.425 ounces per ton gold, 199.8 ounces per ton silver and 76.0% copper. American Analytical Services, Inc. of Wallace, Idaho completed the 41 element scan.

Metallurgical testing conducted at the Company's Morelia laboratory is under the direction of Carlos Becerra, a 25 year veteran of the mining industry in Mexico. Mr. Becerra, a chemist and metallurgist, is using industry standard techniques to concentrate the metals and create the bars.

Different types of bars have been produced in the Company's laboratory: a copper sulfide bar which contains silver, gold and copper as well as bars of silver with copper and gold. This metallurgical testing and production of metal bars confirms to the Company that gold, silver and copper can be extracted. The Company intends to produce gold, silver and copper in its laboratory and duplicate the processes at the project site on a production scale.

The Company is continuing to analyze the resources at the La Sabila property to confirm the findings of the economic potential of this area.