Ann: Company Exploration Activities Update , page-2

There are some very juicy points made in todays annoucement. Sounds like we are siting ona very large gold mine, those grades just keep getting better not to mention what has previuosly been found on the other leases we are about to drill. This company is shaping up better and better and we are in the 2 right industries, gold and drilling and its profitable does it get any better?

My 2 stand out parts of the annoucement are below...

"In recent weeks, underground workings at the Ze Vermelho Gold Prospect has focused on the development of an up-dip drive (45_220) to link the -74 level to the -54 level and the development of down-dip drive to link the -74 level to the -84 level (-45_40). The -54 level was reached at the beginning of August and a horizontal drive to -54SE was immediately commenced.
On 13 August 2011 the -54SE drive reached a one (1) metre wide mineralised zone containing up to 85 cm of massive pyrite (see Figure 6 below). Gravity processing of the drive returned grades of 120 g/t of gold with a waste/ore ratio of 3:1. Channel samples from all advances have been collected and dispatched for assay."

"The Company has undertaken a series of metallurgical tests, all of which have indicated a recovery of greater than 80% of the gold contained in the gravity plant tailings at Ze Vermelho. The gold grades calculated during the test work confirm previous centrifuge overflow assay results, indicating a tailings head grade of approximately 33 g/t of gold.
The cyanide leaching infrastructure is nearing completion. Leaching and solution vats have been prepared and waterproofed with 1,000 micron membranes and it is expected that loading of the first vat will commence during the first week of September. The first batch to be leached is to be limited to 500 tonnes, with subsequent batches being varied in size according to results obtained.
The electro-winning and associated gold smelting circuit is nearing completion and is expected to be installed by mid-September. The set up and fine tuning of the system is expected to take up to 1 week. The first gold to be recovered from the Cyanide Leaching Circuit is expected in the last week of September'