The Puerto del Aire zone is contiguous with mineralization in the Mulatos Pit and extends a minimum of 500 metres to the northeast from the current pit margin. The zone is a combination of structural and stratiform gold mineralization parallel to the Escondida-El Victor trend. In 2007, the Company initiated resource definition drilling at Puerto del Aire. A total of 35 surface RC holes (7,713 metres) were drilled. Drill hole intercepts defined a concealed mineralized zone that is up to 150 metres wide and over 300 metres in strike length. Ore-grade intercepts extend a minimum of 200 metres beyond the current project pit margin, indicating the potential for a pit lay-back.

In 2008, the Company completed an additional 13,500 metres of definition drilling with 54 RC and core holes. During the fourth quarter of 2008, the Company completed an initial resource estimate at Puerto del Aire, located immediately adjacent to the Mulatos Pit. The initial resource estimate at Puerto del Aire showed indicated resources totaling 8,907,000 tonnes grading 1.09 grams per tonne of gold (“g/t Au”) for a total of 311,000 contained ounces at a 0.5 g/t Au cut-off. Approximately 260 metres of the zone has been drilled at sufficient density for classification as indicated resources, whereas another 300 metres of drilling was sufficient only for classification as inferred resources. Inferred resources are 5,935,000 tonnes grading 1.03 g/t Au for a total of 197,000 contained ounces at a 0.5 g/t Au cut-off. This resource is in close proximity to the existing mining operations and has resulted in a pit layback that extends the life of the existing Mulatos Mine. At December 31, 2008, a portion of the Puerto del Aire resource was upgraded to proven and probable reserves classified in the Company’s reserve statement within the Mulatos Pit.

The zone remains open to the north and northeast, where step-out drilling with two drill rigs was performed in early 2009. A supplemental 4,300 metres of drilling in 17 holes was completed to evaluate the extension of the zone. Higher-grade mineralization has been encountered in the area, with the best reported intercept being 21.3 metres of 6.27 g/t Au.