1. Vein 1 has continuity along strike and grade.
2. The structural setting - faulting and displacement - complicated the interpretation but offsets were small and veins could be followed across faults.
3. Prospecting established continuity of the structure to the north for an additional 400 m with areas of quartzstock work and veins up to 4 m wide disappearing under the basalt.
4. The structure was traced south past Mina Santa Gertrudis for an additional 500 m giving a total strike length of about 3 km.
5. At Dos Hornos North, an additional 3 vein structures, showing gold - silver values, were identified but have not been explored in detail.
6. The north and south segment of the structure requires additional exploration to establish a mineral resource.

1. Diamond drill holes DDH 03 - 02, DDH 09 - 03, DDH 06 - 03 and DDH 12 -03 and assays from surface trenches, adits, shafts and old Spanish stopes located the presence of a high-grade ore shoot within a breccia zone which was mined along 2 veins. The stopes are 40 m long, 4 to 6 m wide and over a vertical distance of about 50 m. the lower workings are filled with water. A quartz stock-work zone up to 100 m wide is indicated on surface and within DDH 12 - 03.
2. Old Spanish workings follow two of the veins outcropping. These were intersected by DDH 03 - 02 and DDH 09 - 03 at depth.
3. The stopes are 30 m long and shafts up to 50 m deep following the vein structures. where they stop against a fault zone which explains the discontinuity countered in DDH 09 - 03. Apparent displacement is in the order of 15 to 25 m.
4. The section south of the creek was drilled by DDH 06 - 03, DDH 12 - 03, DDH 04 -02 and DDH 08 - 03 which is re-drilling hole DDH 07 - 03 which was lost.
5. These drill holes define a zone of quartz veining and stock work about 200 m long.
6. About 75 m south of DDH 12 the South extension of the high-grade vein structure was found to have been displaced about 25 m to the SW. The quartz zone is at least 10 m wide.
7. The estimated strike length of the detailed work is 300 m. The Once Bocas Zone has a known strike length of 1.3 km.

CAUTIONARY NOTE TO U.S. INVESTORS

Cautionary Note to U.S. Investors concerning estimates of Measured and Indicated Resources.
This website may use the terms "measured resources" and "indicated resources." We advise U.S. investors that while such terms are recognized and permitted under Canadian regulations, the U.S. Securities and Exchange Commission does not recognize them. U.S. investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves.

Cautionary Note to U.S. Investors concerning estimates of Inferred Resources.
This website may use the terms "inferred resources." We advise U.S. investors that while such term is recognized and permitted under Canadian regulations, the U.S. Securities and Exchange Commission does not recognize it. "Inferred resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. U.S. investors are cautioned not to assume that any part or all of an inferred resource exists, or is economically or legally mineable.

S.E.C. Industry Guide	National Instrument 43-101
Reserve: That part of a mineral deposit which could be economically and legally extracted or produced at the time of the reserve determination. The United states Securities and Exchange Commission requires a final or full Feasibility Study to be completed in order to support either Proven or Probable Reserves and does not recognize other classifications of mineralized deposits. Note that for industrial mineral properties, in addition to the Feasibility Study, "sales" contracts or actual sales may be required in order to prove the project's commerciality and reserve status.	Mineral Reserve: The economically mineable part of a Measured or Indicated Mineral Resource demonstrated by at least a Preliminary Feasibility study. This study must include adequate information on mining, processing, metallurgical, economic and other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified.
Proven Reserves: Reserves for which a quantity is computed from dimensions revealed in outcrops, trenches, workings or drill holes; grade and/or quality are computed from the results of detailed sampling and measurement are spaced so closely and the geologic character is so well defined that size, shape, depth and mineral content of reserves are well established.	Proven Mineral Reserve: The economically mineable part of a Measured Mineral Resource demonstrated by at least a Preliminary Feasibility study. This study must include adequate information on mining, processing, metallurgical, economic, and other relevant factors that demonstrate, at the time of reporting, that economic extraction is justified.
Probable Reserves: For which quantity and grade and/or quality are computed from information similar to that used for proven reserves, but the sites for inspection, sampling and measurement are farther apart or are otherwise less adequately spaced. The degree of assurance, although lower than that for proven reserves, is high enough to assume continuity between points of observation.	Probable Mineral Reserve: The economically mineable part of an indicated, and in some circumstances, a Measured Mineral Resource, demonstrated by at least a Preliminary Feasibility Study. This study must include adequate information on mining, processing, metallurgical, economic and other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified.

Using definition Standards for Inferred Mineral Resources as published and adopted by the CIM Council on December 11, 2005: "An Inferred Mineral Resource is that part of a Mineral Resource for which quantity and or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits workings and drill holes."

Noted uncertainties inherent in the definition are clarified by the CIM definition standard "Due to the uncertainty that may be attached to Inferred Mineral Resources, it cannot be assumed that all or any part of an Inferred Mineral Resource will be upgraded to an Indicated or Measured Mineral Resource as a result of continued exploration. Confidence in the estimate is insufficient to allow the meaningful application of technical and economic parameters or to enable an evaluation of economic viability worthy of public disclosure. Inferred Mineral Resources must be excluded from estimates forming the basis of feasibility or other economic studies."

We advise U.S. investors that while these terms are recognized and permitted under Canadian regulations, the U.S. Securities and Exchange Commission does not recognize it. "Inferred mineral resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. U.S. investors are cautioned not to assume that any part or all of an inferred resource exists, or is economically or legally mineable.