CERRO BLANCO

The Cerro Blanco property is located in southwestern Guatemala and is considered to be a classic hot springs gold deposit with typical bonanza type gold mineralization. The project focus has changed to a potential development as an underground deposit with possible operating synergies with the Marlin Mine.

As of December 31, 2009, the deposit contains 1.3 million ounces of measured and indicated gold resources at an average grade of 15.64 grams per tonne and 0.67 million ounces of inferred gold resources at an average grade of 15.31 grams per tonne.

During 2009, mining of the two declines advanced to a total of 643 meters, with a further 672 meters remaining until they connect at teh centre of the ore body. 
Construction of a water treatment plant commenced in late 2009 and is on schedule for completion and operation by mid-2010.

Geophysical studies to determine the potential for a geothermal power generation plant were conducted in 2008 with positive results and the decision to conduct a deep drilling exploration program was made. Exploration drilling of the geothermal resource commenced in late 2008 and the fourth well was completed in the third quarter of 2009.  Analysis of the test results will be used during 2010 to determine the feasibility of producing geothermal power from the resource.