Location: El Salto lies directly northeast of the Estrella Pit and west of the historic workings at Mina Vieja.

The El Salto resource area is located west of the Mulatos drainage, whereas Mina Vieja is directly to the east and includes most of the historically mined area.

Geology: Gold mineralization at El Salto and Mina Vieja is hosted within strongly silicified coarse-grained volcaniclastic fragmental rocks and underlying rhyodacite porphyry. There are three recognized gold controls: northeast structural zones, stratigraphy, and late sheeted fractures and fault zones. Stratigraphy appears to have been the dominant control, with the majority of mineralization stratiform in nature. The deposit is offset to the west by the Mulatos fault and does not continue to the north due to lack of favorable host rock. El Salto mineralization is contiguous with Mina Vieja.

High-grade gold was mined at Mina Vieja as predominantly stratiform mineralization occurring directly below an intensely argillized fine-grained volcaniclastic unit that apparently acted as an impermeable seal to gold-bearing solutions. Historic reports indicate approximately 250,000 ounces of gold production prior to 1905 in the 15 g/t to 60 g/t range. The deposit is bound to the east by the Escondida fault.

Activity: Drilling at El Salto and Mina Vieja in 2005 resulted in a 55% increase in resource ounces. Measured and indicated gold resources now stand at 527,000 ounces at a 0.5 g/t cut-off grade compared to 339,000 ounces in January 2004.

A reverse circulation program, consisting of 79 infill and step-out holes (13,319 m), was completed in June 2005.

The program was expanded beyond original projections to follow up on new intercepts along the western margins of the El Salto resource and a near-surface zone of higher grade mineralization at the historic Mina Vieja deposit.

The resource model is currently undergoing independent reserve estimation. Once resources are converted to proven and probable reserves, El Salto and Mina Vieja have the potential to make significant contributions toward mine life extension.