Qtrly outHIGHLIGHTSContinued excellent progress with development...

Qtrly out
HIGHLIGHTS
Continued excellent progress with development & construction
activities at the Engenho Gold Project, Brazil.
Engenho on track for initial gold production in March 2008, with
capital expenditure well within budget.
Exploration potential of the Engenho tenements enhanced following
a review of historic stream sampling data.
Dedicated Engenho exploration budget approved with initial focus
on the priority Mazoca anomaly, 1km north of Engenho.
Exploration decline and development program commenced at
Torrecillas Gold Project, Peru.
RAB drilling extends the mineralization at the Conceição target
(Tocantins Gold Project, Brazil) over a 3km strike length.
Outstanding intercept of 1.2m @ 203.3g/t Au returned from RAB
drilling at Conceição.
Diamond drilling commences with a second diamond rig also
commissioned to the target.
$27M in cash reserves with the Company totally ungeared and
unhedged ahead of the commencement of gold production.