HIGHLIGHTS FROM THE QUARTEROperational Highlights: Production+...

HIGHLIGHTS FROM THE QUARTER
Operational Highlights: Production
+ Tonnage mined underground at Cinabrio increased to 246,743 tonnes,
a 64% improvement over the previous quarter.

+ The average head grade of ore mined during the quarter averaged 1.17%
copper. Grades increased during the quarter with June production averaging
1.33% copper.


+ Mill throughput increased by 32.6% to 225,502 tonnes milled.


+ Copper in concentrate production increased by 38.2% to 1,818 tonnes.


+ Sales of Metal in concentrate increased by 37.6% to 1,714 tonnes copper.

+ Sales of Silver
in concentrate increased by 87.7% to 33,436 oz’s Silver.

+Development of the Cinabrio decline by independent contract mining
continued during the quarter with the decline being developed to below the
245 RL level.

+ Underground development for future mining, which is capitalized, increased
by 87.7% to 1,113 metres for the quarter, while development of mining
areas, which are expensed as current mining costs, increased by 78.8% to
819 metres. Total development for the quarter of 1,932 metres,
demonstrated an increase of 881 metres or 83.7 % over the previous
quarter.


+ Average operating cash costs of US$2.25/lb payable copper were achieved
for the quarter. Operating cash costs of US$2.15/lb payable copper were
achieved in the June 2008 production month.