DANIEL

Reported the completion of an RC drill program totaling 4,934 meters of drilling for disseminated shear zone hosted gold mineralization. The final drilling resulted in numerous short intervals with gold mineralization, but not mineable grades or widths.

Reported that its initial drill test was underway. Geological mapping and trench sampling at Daniel has established a trend of at least 4 km length in which gold is associated with quartz-carbonate vein and stockwork zones with minor sulphide minerals. This trend is along the sheared contact between rhyolitic and overlying dacitic volcanic units. The initial drill phase will be a 5,000 metre program of 30-40 large diameter reverse circulation holes, focused on testing broad areas of gold anomaly in trench sampling at the Coronela and on-trend Sierrita showings.

Provided further results from continuing surface sampling and geological mapping of the Coyote target. The Coyote zone was originally identified by a gold-in-soil anomaly. On Apri11/07, a number of new trenches were completed and sampled at Daniel, which have extended the mineralized trend by several hundred metres. Detail mapping has also been completed in the trenches and surrounding area. Mapping has revealed a strong correlation between gold grades in the trenches and areas of high silicification present either as silica flooding or as veins, stockwork and fracture. The system has an overall northwesterly trend as expected. Planning is being carried out for the next phase of exploration which could include both drilling and additional sampling in pediment covered. areas to the east of the trenched areas.