We are excited to be back in growth mode after focusing on reducing our operating costs at our three mines during the four-year bear market for precious metals. This week’s announcement shows that even though the mineral resource is small and high grade the PEA provides robust economic returns. With the low capital investment of US$10 million funded by existing cash, and the short timeline of six months to initial production, El Compas mine has the near-term potential to become a healthy contributor to our consolidated cash flow. Small can be beautiful, and our philosophy is to develop a profitable mine first, then see how we can expand it to become a core asset. We expect all-in sustaining costs to be less than $10 per oz silver equivalent, so El Compas not only expands our metal production, it will help reduce our consolidated operating costs. The operation is scalable so when we discover or acquire additional mineral resources in the Zacatecas district then we can refurbish the second ball mill to double the plant capacity to 500 tonnes per day. Our exploration program will continue in 2017, with a plan to drill 8,000 metres to test new targets on the property and look for opportunities to consolidate land holdings in the district. Stay tuned for more developments as we advance this exciting new project to become our fourth mine.

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