Metallurgical testing to date has focused on the investigation of comminution, rougher flotation and cyanide leaching flow sheet options utilizing material from the gold/silver zone. Metallurgical testing was carried out by SGS Lakefield Oretest Pty. Ltd. (“SGS”) in Perth Australia. A second phase of testing has also been completed at SGS utilizing copper zone material to evaluate both flow sheet options and comminution and flotation parameters to determine if pay metal recoveries can be improved and a saleable copper concentrate produced.

Initial metallurgical testing of Cerro del Gallo gold-rich material characterized the mineralisation’s response to crushing, grinding and recovery of pay metals in three different cyanide leaching flow sheets (whole ore cyanidation, gravity separation cyanidation and flotation cyanidation).

Metallurgical results indicate:

• Grinding finer generally improves leach recovery

• Gravity separation and cyanidation of products provides similar recovery to whole ore cyanidation process

• Whole ore and independent treatment of a flotation concentrate and tail with cyanide also yields similar recovery

• Flotation to a concentrate has the potential to significantly reduce the mass treated in the leach step and potentially a saleable copper concentrate could be produced.

Preliminary analysis of the variability tests indicates that weathered material yields lower gold, silver and copper recovery but does not impact negatively on the recovery of unweathered material when combined in a composite.