The proposed drilling program will initially target shallow, silver-rich mineralization discovered in late 2010 drilling.

Multiple centers of this type of high-grade mineralization were discovered throughout the Pinguino property in veins including Tranquilo, Marta Norte, Tranquilo Sur and Luna.

These discoveries remain wide open in all directions and have excellent potential for expansion.

The earlier results in these areas include Hole P349-10 that returned an intersection of high-grade silver mineralization containing 6.0m of 2,428 grams per tonne (g/t) silver and 0.22 g/t gold.

Hole P358-10 contained 4.6m of 313g/t silver and 0.16 g/t gold, and Hole 308-10 returned 6.40m of 486.6 g/t silver and 1.91g/t gold.

Drilling will also target a potential new zone of mineralization believed to occur throughout the Pinguino district-scale mineralized vein system.

This zone is represented at the transition point above the contact between oxide and primary mineralization.

Additionally, drilling will target numerous areas with well-defined drill targets to expand the existing mineral resource at depth.