ll = cash cow azuay = company maker, page-3

Hi SeamFiend,

In regards to the 10-12 g/t you are correct; a typo I guess. They are hunting for + 1m oz @ 10-12 g/t, not 100k oz 1.0-1.2 g/t(thinking they may get +1.5m oz).

In terms of the ownership arrangements there are lots of subsidiary companies but as I understand it the effect is:

(1) EVGLL - Las Lagunas Project will be 100% owned by EVG once minority partner is bought out

(2) EVG Azuay - Encompasses the Pinglio and Papercorp properties. EVG will have a 65% stake for spending USD$6.5m. There will obviously be more money required to develop these mines/ plant ($77.5m). How this will be done (loans/ equity/ etc) I am not sure, but some speculation could include:

(a) EVG create a new company to build the plant and contract process ore from Pinglio and Papercorp (thus keeping it clean/ separate for ore processing of San Gerardo).

(b) EVG invests more equity into EVG Azuay and takes a bigger stake than the 65% (ie Dec-11 Options for $31m and then debt funding for the rest. On a like-for-like basis this would give EVG a 91.4% stake in EVG Azuay assuming that the other shareholders do not contribute additional capital, which I believe would be out of their ability to do so).

(3) San Gerardo - The property has been optioned in EVG's name alone, thus a 100% interest for EVG. If successfully purchased, I would imagine another subsidiary, say 'EVG San Gerardo', would be created to accommodate this property and keep it separate from the Pinglio and Papercorp assets.

Either way I can see how EVG is creating a pipeline to become a mid tier gold miner over the coming several years.

Just my thoughts

Cheers
John