Ann: Quarterly Activities Report , page-13

Dollarfast, for me, it's nothing to do with the management of the company - I think they have done an OK job - their strategy was to get the mine producing with minimal dilution for shareholders and had a plan that was working well. Delays were incurred but these are par for the course for any mining venture.

If the Price of Silver hadn't plummeted from $30+ to the ~21-22 it is today we wouldn't be having this conversation. When this happened Magna stepped in again and helped the company out, with I assume some level of expectation that the price of silver would recover.

So it all comes down to the underlying metal price.

Champ has calculated a per ounce cost of ~$22 - well the current POS is less than that. The project won't be the first or the last that has to shut up shop because the underlying mineral price tanked. What the project needs now is someone with deep pockets who is willing to help the company get through until lead credits can be established, which will drive the coast of production down again.

The avenues open to the company as I see it now (in decreasing order of preference to shareholder now)

1. Do a big cap raise - big enough to pay out debts and keep the mine running until the POS recovers and/or costs can be driven down to the point where the company is profitable.

2. Do an issue of 25% (which they can do) to some people with deep pockets. At a discount to the current market cap of $33mil this might yield 6 million dollars.

3. Hope that someone with deep pockets sees enough long term value in the company, it's current assets and prospects to launch a takeover and then pay out the liabilities, perhaps even put the project on care and maintenance.

4. Go into voluntary admin, sell the company for a song (probably enough to pay out the liabilities and put the mine on care and maint.