Page 27 Contd from pg 26 production growth that is inline with tar geted levels The El Chanate Mine is locate d 37 km northeast of Caborca in Sonora State Mexico The mine consists of an open pit crusher heap leach pads and process plant located on 3665 hect ares encompassed within 19 mineral concessions Since being acquired in April 201 1 El Chanate has consistent ly delivered solid results During the year El Chanate reported production and cash costs results that were inline with guidance levels Throughout 2013 El Chanate is ex pected to deliv er another year of solid operational performance within ex pected production and cash costs esti mates The 2013 exploration program will focus on three mineralization tar gets along the Chanate fault with a goal to increase resources and poten tially extend mine life The company s major development is the Kemess Under ground Project located approximately 55 km north of the past producing Kemess South Mine in northcentral British Colum bia During its minelife Kemess South produced close to three million ounces of gold and over 300 million pounds of copper The results from the Kemess Under ground feasibility study outline the development of an under ground block cave operation with average annual production of 105000 ounces of gold and 44 million pounds of copper at cash costs of 213 per ounce of gold net of byproduct credits over a minelife of approximately 12 years using base case commodity price as sumptions of 1300 per ounce for gold 3 per pound for copper and 23 per ounce for silver and an ex change rate of USCDN100 The envisaged Kemess Under ground block cave operation would leverage the existing infrastructure and mill facilities at the Kemess South Mine currently on care and maintenance including a permitted area for tailings storage in the Kemess South open pit Over the next two years the com pany intends to pursue strategies at Kemess that enhance intrinsic value such as permitt ing and additio nal ex ploration outside existing reserves to further develop the optionality of this asset Kemess Undergr ound has 12 year life