Ann: Results of first Reconnaissance Drilling at La Victoria, page-15

The key catalyst will be the decision to exercise the option. The next round of drilling will test several of the separate targets and they now have a very good idea of which section to target. They are going after the high tonnage, low grade core of the deposit. That's what makes economic sense in this area. What we don't want is high grade, narrow systems.

For me, the big indicator of success will be the width of intersection, not necessarily grade. if you look at Tahoe's La Arena mine, the grade is way below 1g/t. its about the overall resource and ease of mining.

Here's hoping some of those big EM anomalies give the goods. The phase 1 drilling will help them calibrate the geophysical responses and understand where they are in the overall system. The alteration halos are just as important as the gold itself at this stage of exploration, so all in all, i regard the phase 1 drilling as extremely successful.

If EHX go to 25%, june/july will be very exciting, and will be make or break for this project. But i think we'll see other projects coming into the pipeline too, because no smart explorer gets themselves into a binary situation where failure means no obvious future.