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Choco 10 Mine
Located in the historic El Callao District within 5km of the Company's Isidora Mine and 4km from Increible 6 project the Choco 10 mine and mill facility is currently producing 8000 - 10,000 Au ounces per month and is on pace to produce 100,000 Au ounces in 2008. Production from the Isidora Mine will be approximately 10,000oz Au to the end of 2008 and will ultimately be subject to a 50/50 joint venture with the Venezuelan Government which will go into affect before the end of the year. The logistics and a timeline for production expansion are currently being formulated along with an aggressive plan for ore development. It is the Company's goal to double production over the next 36 months. The project has excellent access via well maintained roads from the town of El Callao and a current NI 43-101 compliant resource of 243,000 Au ounces measured, 4,435,000 Au ounces indicated and 3,020,000 Au ounces inferred. The current 43-101 compliant resource numbers are based on more than 224,000m of drilling in 2058 drill holes. All of the mineralized zones which make up the current resources are open to depth with only approximately 50% of the mineralized areas having been drill tested to date. The Company has also identified numerous untested targets within 25,000 hectares of prime exploration ground in the El Callao District which will be drilled in 2008. Drilling is on-going and the Company expects to drill in excess of 100,000m in 2008 to expand and upgrade the current resources and test new targets. The Choco 10 resources were estimated using three-dimensional computerized models containing geological data and kriged estimated grades at a cut-off of 0.5 g/t Au. They are un-constrained and are classified into measured, indicated and inferred categories. They were also broken down by individual deposits and material types. The Mineral Resources are reported in-situ, and are inclusive of the Mineral Reserves Measured resources have been defined in Rosika and Pisolita where sample spacing is at a minimum of 25 mE by 25 mN, the geology of mineralization is well understood, the deposits are in part exposed in open pits, grade continuity is demonstrable and estimation quality is high. Indicated resources have been defined at RCP where sample spacing is at a minimum of 25 mE x 50 mN and at VBK where sample spacing is at a minimum of 50 mE by 50 mN. In areas classified as Indicated the geological controls on mineralization are well understood, good grade continuity is evident, and estimation quality is considered reasonable. Inferred resources have been defined in RCP and VBK where sample spacing is at a minimum of 100 mE by 100 mN, geological confidence and grade continuity is moderate and estimation quality acceptable. The Mineral Resources and the Mineral Reserves were estimated in accordance with the SAMREC code and in Micon's opinion, they also comply fully with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) standards on Mineral Resources and Reserves -- Definitions and Guidelines, developed by the CIM standing committee on reserve definitions, as adopted by the CIM Council on December 11, 2005. In Micon's opinion the resource estimation methodology and procedures developed by Gold Fields are very thorough and provide an excellent basis for the resource and reserve estimates. Micon's review of the Choco 10 mineral resource also included a review of the mineral reserve estimates. Gold Fields, using the mineral resource model, developed a reserve estimate using Whittle 4X pit optimization software at a US$500 per ounce gold price and cut-off of 0.5 g/t. The results of this optimization were used to develop an ultimate pit design which was then scheduled for the remainder of the mine life. The reserves were updated to a mining surface dated September 30, 2007 by Gold Fields using the US$500/ounce pit shell. Within this pit shell, reserves were determined using a gold price of US$550/ounce and are based on industry standard design practice and represent an economic, mineable design for the proven and probable reserves.
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