• Your Questions, Our Answers

Q:Now that you have made the decision to continue operating the El Cubo mine and not wind it down to care and maintenance later this year, what are your plans for bringing production back up to 1,500 tonnes per day and how will you extend its mine life?

A: We were successful in reducing all-in sustaining costs at El Cubo down to the $18 per oz range by Q1 of this year, and with the recent resurgence in the silver price to $20 per oz, we can once again make money at El Cubo. Therefore, we revised our guidance to produce at about 1,000 tonnes per day (tpd) for the remainder of this year, but we have already refined our mine plan and we now expect to be back producing at 1,500 tpd this quarter. We can do this with a modest $1.6 million investment in underground development to push the main access ramp in ore rather than waste at the V-AsunciĆ³n orebody down to the lowest mine level. Beyond 2017, we have additional resources, but El Cubo will require significant investments in exploration and development in order to bring them into the mine plan and continue operating. We also have exploration targets that with luck can become discoveries and future mine developments at El Cubo.

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