The El Oro Hard Rock Project in Mexico remains our flagship asset as it is a district scale gold project encompassing a well-known prolific high-grade gold-silver epithermal vein system. The project covers 20 veins with past production and more than 57 veins in total, from which approximately 6.4 million ounces of gold and 74 million ounces of silver were reported to have been produced from just two of these veins (Ref. Mexico Geological Service Bulletin No. 37, Mining of the El Oro and Tlapujahua Districts. 1920, T. Flores*). Modern understanding of such systems indicates that several of the El Oro district's veins hold excellent discovery potential.
Kappes, Cassiday and Associates has signed a Letter of Intent to enter a Purchase Agreement on the El Oro Tailings Project in Mexico. Latest test work indicates excellent potentail for 75% recover of the gold and silver.
The Company has launched a comprehensive growth strategy to acquire rights to gold and silver projects in Western Mexico with near surface exploration potential and previous mining histories. The acquisition of the SDA Plant, suitable for treating high grade gold and silver mineralization, was the initial step in this strategy. The Company is currently evaluating other properties complementary to the SDA plant.