FAQs
How many ounces of gold do you plan to produce in 2010?
We estimate that we will produce approximately 70,000 ounces of gold in calendar year 2010 as we slowly increase production.
Where does the company stand in terms of production expansion?
In 2008, we expanded the leach pad, installed additional solution pumps and built a new, larger ADR plant. In early 2009, we installed an additional crusher that increased our production of crushed ore from 11,000 tones per day to 14,000 tones per day. In early 2010, we began stacking ore an additional leach pad. We anticipate that all of these upgrades will enable us reach our production target of 70,000 ounces in 2010. All upgrades and additions were financed through operating cash flow.
How much silver do you produce?
We produce approximately one and one half ounce of silver for every ounce of gold.
Why do you refer to production totals based on a calendar year and
your financials are based on a different fiscal year?
We report production totals based on a January to December calendar year as that is what is mandated in Mexico. It also makes it easier for investors. Our corporate fiscal year ends July 31st. Going forward, we hope to change this so that both our production and fiscal follows a January to December calendar year.
How do you keep your costs low?
We are able to keep our costs low and profit high for several key reasons. First, we mine in a relatively populated area of Sonora, Mexico, with a good skilled workforce from which to choose. We have no need to furnish housing or meals for the crew as they can go home at the end of the day. In addition, our mining staff, from the general manager down, is entirely Mexican. We also employ a good local mining contractor and diesel fuel costs are lower in Mexico. All of these factors have combined to make us one of the lowest cost gold producers in North America.
Do you plan to declare any dividends for shareholders?
There is no plan for any dividends in the near future.
Is there potential to further drill and develop El Chanate?
Yes. El Chanate is still open to the east, south and at depth to the existing pit.
Does the company have any properties beside El Chanate?
Yes. We own and lease mineral concessions near the town of Saric in Northern Sonora, approximately 60 miles from El Chanate. These concessions are currently undergoing preliminary exploration for gold and silver mineralization.
How are you looking to grow the company?
We have been looking at a number of potential acquisitions and purchase targets in northern Mexico. They include both late-stage development projects as well as producing mines. Our plan is use the synergies created at El Chanate to develop another lost-cost gold mine in Mexico.
