DRILLING  INCREASES  AT  URUACHIC  CAMP

Mr. Paul Sorbara, President, is pleased to announce that the second drill rig is now at work in the San Timoteo area of the Uruachic mining camp in northwestern Mexico.  This new rig is working on deeper holes in the vicinity  of the old San Timoteo and San Martin mine workings.  The San Martin mine was one of the largest producers in the Uruachic camp with production grades of 1,038 gms silver/tonne ( 30.10 oz silver/ton) and 7.80 gms gold/tonne ( 0.23 oz gold/ton) from a structure 800 metres long and 2.2 metres wide.

The original drill continues to work on shallower holes in the vicinity of the old Las Animas mine, which had production grades in the past of about 200 ounces of silver per tonne.

The Company is still actively searching for more rigs and a proposal from a large Mexican drill company indicates that another machine may be available later this month.   Construction of drill access roads and drill pads is now completed at the Las Bolas area, some five kilometers south of San Timoteo.  Drill roads and pads are now under construction at the La Reforma area, about three kilometers west of San Tmoteo.

The overall drilling program at the Uruachic camp will now include more than 15,000 metres of drilling in the San Timoteo, La Reforma and Las Bolas areas. More drill rigs and personnel will be added as they become available.