In May 2009 the Board approved development of the Don Mario UMZ, following completion of a detailed operational study that incorporates a feasibility summary based on an updated mine model. The UMZ mine plan contemplates a flotation plant with a mill throughput of 1,900 tonnes per day over a nine year mine life. The goal is to achieve production towards the end of fiscal 2010.

Based on the 2006 pre-feasibility report dated December 19, 2008, Kappes, Cassiday & Associates completed a detailed operational report, which report was updated on May 15, 2009. Economics were favorable using conservative forecasts of metal prices, but for a flotation-only scenario. The modified mine plan requires stripping and stockpiling the Porous and Oxide Zone mineralization and mining and processing the Transition and Sulphide Zone mineralization in the early years. The stockpiled oxide and porous mineralization will then be floated to recover the gold and silver in the later years. During the study, 31 holes were drilled within the pit design to collect samples for further metallurgical testing. AMEC (Peru) S.A. completed a National Instrument 43-101 compliant resource estimation of UMZ mineralization that included these 31 drill holes. This resource estimate supercedes the 2006 resource estimate used for the detailed operational study.