As at January 31, 2010, the Company had $71,732,000 of cash on hand and
a working capital position of $71,361,000. During and subsequent to the
quarter ended January 31, 2010, the Company completed two equity
offerings. These transactions were completed to fund the purchase of the
Morelos Gold Project and to raise sufficient working capital to fund
future exploration and development programs and corporate costs.

On March 1, 2010, the Company reactivated two key land access agreements
at the Morelos Gold Project with Rio Balsas Ejido and Puente Sur Balsas
Ejido. The signing of these agreements will allow immediate access to
the highly prospective lands that are the focus of the Company’s
upcoming exploration program.

—  Also subsequent to the quarter ended January 31, 2010, the Company
entered into exploration related contracts to enable drilling to begin
on property-wide targets outside the existing resource areas and the
commencement of various other exploration activities. The first drill
rig has been mobilized to site with drilling expected to begin by the
middle of April 2010. The Company’s intention is to mobilize additional
drill rigs at a rate of one every two months to reach a total of six
drill rigs actively drilling on the property. The first results from
this drill program should be available by the end of July 2010. In
addition, the Company began updating its pre-feasibility study for the
Morelos Gold Project.

March 31st, 2010
Categories: General . Author: admin