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Gold Recovery Plant

The Company has installed and commissioned a 150-tonne per day crushing, milling and flotation gold recovery plant in the Manganeso area to process bulk samples from the underground development on an advance-by-advance or batch basis. The plant and bulk sampling program operate under a 500 tonne per day environmental permit that was granted from the Bolivian government, thus leaving room for expansion on the existing plant configuration.

The gold recovery plant produces high grade flotation concentrates in the vacuum filter which are sold to Penoles of Mexico. The plant was designed and is supervised by Mineral Processing Consulting Engineer Gary Hawthorn, P.Eng. (B.C.).

The company has produced and shipped almost 1,000 ounces of gold and the last batches of bulk sample run through the mill in late 2007 averaged 5 grams per tonne gold and had an average gold recovery of 88%. Thus, the simple process or crushing and milling, then floating the gold to a concentrate has demonstrated a simple, productive metallurgy for the gold-bearing rocks in the Trinidad area.

The plant tailing is transferred to the adjacent tailing pond. Originally, it was intended to operate a recycled water system from the pond to avoid having to discharge accumulated water. In practice, evaporation and exfiltration have resulted in very little accumulation, even during the current rainy season, so recycling is neither necessary nor feasible.

The Doña Amelia gold mineralization is highly oxidized, and both the ore and the plant tailing contain virtually no sulphides. The tailing therefore has no potential to become acid generating.