news out, page-4

Hi Loki,

My understanding (and I could be wrong) is that the Grimstone buyout will be done in 3 x tranches. The second two coming from the cashflow of LL. Thus the recent share issue for +$7m will go to pay the first tranche of Grimstone and the balance into drilling at Pinglio and Papercorp.

Also, upon reading the Scoping Study a little slower, there is further upside for the Azuay project if San Gerardo proves economic.

Note that the gold plant is being completely depreciated over the life the Pinglio/ Papercorp project ($77.5m over 10 years). Thus, if San Gerardo does hold gold then there is a "free" gold plant thrown into the mix...

Cheers
John