EX-99.1 2 avino_ex991.htm TECHNICAL REPORT
EXHIBIT 99.1
Report to:
Technical Report: Tailings
Retreatment Process Option Update
Document No. 1151920100-REP-R0001-02

Report to:
TECHNICAL REPORT: TAILINGS
RETREATMENT PROCESS OPTION
UPDATE
EFF E C T I V E DA T E: MA R C H 12, 2012
Prepared by Hassan Ghaffari, P.Eng.
AO/jc
Suite 800, 555 West Hastings Street, Vancouver, British Columbia V6B 1M1
Phone: 604-408-3788 Fax: 604-408-3722 E-mail: vancouver@wardrop.com

REVISION HISTORY

REV. NO | ISSUE DATE | PREPARED BY AND DATE | REVIEWED BY AND DATE | APPROVED BY AND DATE | DESCRIPTION OF REVISION
00 | December 2, 2011 | Hassan Ghaffari | Andre De Ruijter | Hassan Ghaffari | Draft issue for Client review
01 | February 28, 2012 | Hassan Ghaffari | Andre De Ruijter | Hassan Ghaffari | Final issue for Client
02 | March 12, 2012 | Hassan Ghaffari | Andre De Ruijter | Hassan Ghaffari | Final issue to Client

TABLE OF CONTENTS

1.0 | SUMMARY | 1
| 1.1 | INTRODUCTION | 1
| 1.2 | ECONOMIC ANALYSIS | 3
2.0 | INTRODUCTION | 4
3.0 | RELIANCE ON OTHER EXPERTS | 5
4.0 | PROPERTY DESCRIPTION AND LOCATION | 6
5.0 | ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY | 7
6.0 | HISTORY | 8
7.0 | GEOLOGICAL SETTING AND MINERALIZATION | 10
8.0 | DEPOSIT TYPES | 11
9.0 | EXPLORATION | 12
| 9.1 | MMI 2003 SAMPLES | 12
| 9.2 | MMI 2004 SAMPLES | 12
10.0 | DRILLING | 13
11.0 | SAMPLE PREPARATION, ANALYSES, AND SECURITY | 14
| 11.1 | SAMPLE METHOD AND APPROACH | 14
| 11.2 | SAMPLE PREPARATION | 14
12.0 | DATA VERIFICATION | 16
13.0 | MINERAL PROCESSING AND METALLURGICAL TESTING | 17
| 13.1 | A METALLURGICAL REVIEW | 17
|  | 13.1.1 | A H ISTORICAL E VALUATION OF THE O XIDE T AILINGS | 17
|  | 13.1.2 | HISTORICAL METALLURGICAL TEST RESULTS | 17
| 13.2 | THE MMI TECHNICAL REPORT – PREAMBLE | 19
|  | 13.2.1 | I NTRODUCTION TO THE M M I 2 0 0 3 M ETALLURGICAL T EST P ROGRAM | 20
|  | 13.2.2 | I NTRODUCTION TO THE M M I 2 0 0 4 M ETALLURGICAL T EST P ROGRAM | 20
|  | 13.2.3 | EVALUATION AND REVIEW OF METALLURGICAL TESTS | 21
| 13.3 | PROCESS ENGINEERING EVALUATION | 34
|  | 13.3.1 | GRAV ITY CONCENTRATION | 34
|  | 13.3.2 | FLOTATION | 35
|  | 13.3.3 | CYANIDE LEACHING | 35
|  | 13.3.4 | COLUMN LEACH TEST | 36
|  | 13.3.5 | PRECIOUS METAL RECOVERY | 37
14.0 | MINERAL RESOURCE ESTIMATES | 38

| i |

15.0 | MINERAL RESERVE ESTIMATES | 40
16.0 | MINING METHODS | 41
| 16.1 | SCHEDULE | 41
| 16.2 | EQUIPMENT | 41
| 16.3 | MODIFYING SITE CONSIDERATIONS | 41
17.0 | RECOVERY METHODS | 42
| 17.1 | INTRODUCTION | 42
|  | 17 .1 .1 | POTENTIAL REVENUE ESTIMATIO N | 42
| 17.2 | SUMMARY | 44
| 17.3 | MAJOR DESIGN CRITERIA | 46
| 17.4 | PLANT DESIGN | 46
|  | 17.4.1 | OPERATING SCHEDULE AND AVAILABILITY | 46
| 17.5 | PROCESS PLANT DESCRIPTION | 46
18.0 | PROJECT INFRASTRUCTURE | 50
19.0 | MARKET STUDIES AND CONTRACTS | 51
20.0 | ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR COMMUNITY IMPACT 52 | 52
| 20.1 | ENVIRONMENTAL STUDIES | 52
| 20.2 | PERMITTING | 52
| 20.3 | MINE CLOSURE | 52
21.0 | CAPITAL AND OPERATING COSTS | 53
|  |  |  | 53
| 21.1 | CAPITAL COSTS | 53
|  | 21.1.1 | PURPOSE AND CLASS OF ESTIMATE UPDATING | 53
|  | 21.1.2 | INTRODUCTION | 53
|  | 21.1.3 | PRICING AND CURRENCY | 53
|  | 21.1.4 | CONSTRUCTION LABOUR RATES | 54
|  | 21.1.5 | INFLATION RATE | 54
|  | 21.1.6 | DIRECT COSTS | 54
|  | 21.1.7 | INDIRECT COSTS | 55
|  | 21.1.8 | CONTINGENCY AND RISK | 55
|  | 21.1.9 | ASSUMPTIONS AND EXCLUSION | 55
|  | 21.1.10 | CAPITAL COSTS SUMMARY | 55
| 21.2 | OPERATING COSTS | 57
|  | 21.2.1 | PROCESS OPERATING COST ESTIMATE | 57
| 21.3 | COMMENTS REGARDING THE COST ESTIMATES | 62
22.0 | ECONOMIC ANALYSIS | 63
| 22.1 | INTRODUCTION | 63
| 22.2 | PRE-TAX MODEL | 63
|  | 22.2.1 | MINE/METAL PRODUCTION IN FINANCIAL MODEL | 63
|  | 22.2.2 | BASIS OF FINANCIAL EVALUATIONS | 64
| 22.3 | SUMMARY OF FINANCIAL RESULTS | 65
| 22.4 | SENSITIVITY ANALYSIS | 66

| ii |

| 22.5 | ROYALTIES | 67
| 22.6 | SMELTER TERMS | 68
| 22.7 | TRANSPORTATION LOGISTICS | 68
|  | 22.7.1 | INSURANCE | 68
|  | 22.7.2 | OWNERS REPRESENTATION | 68
|  | 22.7.3 | LOSSES | 68
23.0 | ADJACENT PROPERTIES | 69
24.0 | OTHER RELEVANT DATA AND INFORMATION | 70
| 24.1 | REFURBISHED EQUIPMENT | 70
| 24.2 | ASSAY LABORATORY EQUIPMENT | 70
| 24.3 | SULPHIDE TAILINGS | 70
25.0 | INTERPRETATION AND CONCLUSIONS | 72
26.0 | RECOMMENDATIONS | 74
| 26.1 | PROCESS | 74
| 26.2 | PROJECT SCHEDULE | 74
27.0 | REFERENCES | 76
28.0 | CERTIFICATE OF QUALIFIED PERSON | 77

LIST OF APPENDICES

APPENDIX A | OVERALL SITE PLAN
APPENDIX B | PROCESS FLOW DIAGRAMS
APPENDIX C | ELECTRICAL SINGLE LINE DIAGRAM
APPENDIX D | PROCESS DESIGN CRITERIA
APPENDIX E | CAPITAL COSTS ESTIMATE REPORT
APPENDIX F | EQUIPMENT AND ELECTRICAL LOAD LISTS
APPENDIX G | SCOPING STUDY FOR THE RECOVERING OF SILVER AND GOLD FROM TAILINGS – PRELIMINARY ECONOMIC EVALUATION
APPENDIX H | MINESTART MANAGEMENT INC. REPORT – A TAILINGS RESOURCE, JULY 2005
APPENDIX I | PROCESS RESEARCH ASSOCIATES LTD. REPORT – METALLURGICAL TEST WORK ON AVINO TAILINGS DURANGO, MEXICO, MARCH 2005
APPENDIX J | CIA MINERA 1990 SAMPLING PROGRAM

| iii |

LIST OF TABLES

Table 13.1 | Oxide Tailings Dam Data | 17
Table 13.2 | Cyanidation Test Results | 18
Table 13.3 | Flotation Test Results | 18
Table 13.4 | Test Procedures MMI 2003 Test Program | 20
Table 13.5 | Test Procedures – MMI 2004 Test Program | 21
Table 13.6 | Moisture Content of Samples | 23
Table 13.7 | Head Assays | 25
Table 13.8 | Bulk Density and Specific Gravity | 26
Table 13.9 | Summary of Results of Gravity Concentration Tests | 28
Table 13.10 | Summary of Results of Flotation Tests | 30
Table 13.11 | Summary of Results of PRA Cyanidation Tests | 31
Table 13.12 | Summary of Cyanidation Test Results Used by the MMI Reports | 32
Table 13.13 | Summary of Results of Column Leach Tests | 33
Table 13.14 | Cyanide Leaching Parameters | 36
Table 14.1 | Oxide Tailings Dam Data | 38
Table 17.1 | Inherent Value of Oxide Tailings | 43
Table 17.2 | Summary of Cost Estimates – Four-Year Treatment | 43
Table 17.3 | Major Design Criteria | 46
Table 21.1 | Currency Exchange Rate | 54
Table 21.2 | Inflation Rates in Mexico | 54
Table 21.3 | Capital Cost Estimate – Summary | 55
Table 21.4 | Operating Cost Summary | 58
Table 21.5 | Process Plant Manpower Requirements | 58
Table 21.6 | G&A Requirements | 59
Table 21.7 | Power Supply Required for Process | 60
Table 21.8 | Maintenance Supplies | 60
Table 21.9 | Plant Operating Supplies | 60
Table 21.10 | G&A Expenses | 61
Table 22.1 | Metal Production from the Avino Mine Tailings Retreatment | 63
Table 22.2 | Summary of Pre-Tax Financial Results | 65
Table 24.1 | Estimated Inherent Value of Sulphide Tailings | 71
Table 25.1 | Cost Summary | 72

LIST OF FIGURES

Figure 1.1 | Property Location | 2
Figure 17.1 | Simplified Process Flowsheet | 45
Figure 22.1 | Undiscounted Annual and Cumulative Net Cash Flow | 65
Figure 22.2 | NPV Sensitivity Analysis | 66

Figure 22.3 | IRR Sensitivity Analysis (Tetra Tech Prices) | 67
Figure 22.4 | Payback Period Sensitivity Analysis (Tetra Tech Prices) | 67
Figure 26.1 | Tailings Retreatment Project Suggested High-Level Schedule | 75

| iv |

GLOSSARY

UNITS OF MEASURE

Above mean sea level | amsl
Acre | ac
Ampere | A
Annum (year) | a
Billion | B
Billion tonnes | Bt
Billion years ago | Ga
British thermal unit | BTU
Centimetre | cm
Cubic centimetre | cm3
Cubic feet per minute | cfm
Cubic feet per second | ft3/s
Cubic foot | ft3
Cubic inch | in3
Cubic metre | m3
Cubic yard | yd3
Coefficients of Variation | CVs
Day | d
Days per week | d/wk
Days per year (annum) | d/a
Dead weight tonnes | DWT
Decibel adjusted | dBa
Decibel | dB
Degree | °
Degrees Celsius | °C
Diameter | ø
Dollar (American) | US$
Dollar (Canadian) | Cdn$
Dry metric ton | dmt
Foot | ft
Gallon | gal
Gallons per minute (US) | gpm
Gigajoule | GJ
Gigapascal | GPa
Gigawatt | GW

| v |

Gram | g
Grams per litre | g/L
Grams per tonne | g/t
Greater than | >
Hectare (10,000 m2) | ha
Hertz | Hz
Horsepower | hp
Hour | h
Hours per day | h/d
Hours per week | h/wk
Hours per year | h/a
Inch | "
Kilo (thousand) | k
Kilogram | kg
Kilograms per cubic metre | kg/m3
Kilograms per hour | kg/h
Kilograms per square metre | kg/m2
Kilometre | km
Kilometres per hour | km/h
Kilopascal | kPa
Kilotonne | kt
Kilovolt | kV
Kilovolt-ampere | kVA
Kilovolts | kV
Kilowatt | kW
Kilowatt hour | kWh
Kilowatt hours per tonne (metric ton) | kWh/t
Kilowatt hours per year | kWh/a
Less than | <
Litre | L
Litres per minute | L/m
Megabytes per second | Mb/s
Megapascal | MPa
Megavolt-ampere | MVA
Megawatt | MW
Metre | m
Metres above sea level | masl
Metres Baltic sea level | mbsl
Metres per minute | m/min
Metres per second | m/s
Metric ton (tonne) | t
Microns | µm
Milligram | mg
Milligrams per litre | mg/L
Millilitre | mL
Millimetre | mm

| vi |

Million | M
Million bank cubic metres | Mbm3
Million bank cubic metres per annum | Mbm3/a
Million tonnes | Mt
Minute (plane angle) | '
Minute (time) | min
Month | mo
Ounce | oz
Pascal | Pa
Centipoise | mPa∙s
Parts per million | ppm
Parts per billion | ppb
Percent | %
Pound(s) | lb
Pounds per square inch | psi
Revolutions per minute | rpm
Second (plane angle) | "
Second (time) | s
Specific gravity | SG
Square centimetre | cm2
Square foot | ft2
Square inch | in2
Square kilometre | km2
Square metre | m2
Thousand tonnes | kt
Three Dimensional | 3D
Three Dimensional Model | 3DM
Tonne (1,000 kg) | t
Tonnes per day | t/d
Tonnes per hour | t/h
Tonnes per year | t/a
Tonnes seconds per hour metre cubed | ts/hm3
Volt | V
Week | wk
Weight/weight | w/w
Wet metric ton | wmt
Year (annum) | a

ABBREVIATIONS AND ACRONYMS

Acid Base Accounting | ABA
atomic absorption | AA
Avino Silver and Gold Mines Ltd. | Avino Mines
Canadian Securities Regulatory Authorities | CSRA
capital expenditure | CAPEX
carbon-in-pulp | CIP

| vii |

copper sulphate | CuSO4
cumulative net cash flows | CNCF
Continues Vat Leaching | CVL
dO2 | dissolved oxygen
Electrometals Electrowinning | EMEW
General & Administrative | G&A
gold price | AuP
gold | Au
Inductively Coupled Plasma Spectroscopy Method | ICP-M
inductively coupled plasma | ICP
internal rate of return | IRR
International Organization for Standardization | ISO
International Plasma Labs Ltd | IPL
material take-offs | MTOs
London Metal Exchange | LME
MineStart Management Inc | MMI
National Instrument 43-101 | NI 43-101
net cash flows | NCF
net present value | NPV
operating expenditure | OPEX
over-the-road | OTR
potassium amyl xanthate | PAX
pounds per square inch (gauge) | psig
preliminary economic assessment | PEA
process flow diagram | PFD
Process Research Associates | PRA
Qualified Persons | QPs
silver price | AgP
silver | Ag
sodium carbonate | NACO3
sodium cyanide | NaCN
Wardrop, a Tetra Tech Company | Tetra Tech

| viii |

1.0 SUMMARY

1.1 INTRODUCTION
Avino Silver and Gold Mines Ltd. (Avino Mines) requested Wardrop, a Tetra Tech Company (Tetra Tech) to produce a scoping study update based primarily on the Wardrop NI 43-101 F1 Technical Report:Tailings Retreatment Process Options dated March 2006 and the MineStart Management Inc. (MMI) Technical Report dated October 2005 addressing the Companie Minera Mexicana de Avino, SA de CV property in the Durango mining district of Mexico. Figure 1.1 shows approximate location of the property.
Avino Mines wished to determine if there was sufficient financial justification to develop the property by way of processing some, or all, of the tailings material deposited over the years that the mine was in operation. The principal asset of the company is the Avino Mine where about 497 t of silver, 3 t of gold and 11,000 t of copper as well as an apparently undocumented amount of lead were produced between 1976 and 2001.
The project is a re-treatment of oxide tailings from previous milling operations. The tailings grade averaged 95.5 g/t silver (Ag) and 0.53 g/t gold (Au), with the particle size of the tailings material ranging from minus 37 µm to plus 210 µm. The valuable minerals found in the oxide zone during the mining operations have been reported to be argentite, bromargyrite, native silver, and native gold. Other potentially economic minerals included chalcopyrite, chalcocite, galena, sphalerite, bornite, and native copper. The gangue minerals included hematite, chlorite, quartz, barite, pyrite, arsenopyrite and pyrrhotite. Malachite, anglesite and limonite were common accessory minerals in the quartz zones of the weathered parts of the oxide material.
Tetra Tech reviewed all available data and developed different mining and processing flowsheets during the evaluation of the property. Much of the previous data could not be validated and, therefore, could not be used in the review. The MMI Technical Report indicated that an economic evaluation of the tailings deposit could not be completed at this stage since the deposit could only be classified as an inferred resource. MMI had arrived at this conclusion based on their acknowledgement that their study was limiting with respect to the sampling of the tailings dam and incomplete metallurgical characterization.
However, a conceptual financial model was developed by Tetra Tech using the estimated grade values and test work results as reported by MMI and Process Research Associates (PRA), who conducted the metallurgical tests.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 1 |

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 2 |

Tetra Tech investigated gravity separation, flotation, cyanide leach, carbon-in-pulp (CIP), and heap leach processing options. Using the recoveries and process conditions resulting from these tests, the capital costs to construct a processing plant using selected process options were developed while the operating costs associated with each option were determined and a financial model compiled. A heap leach operation with a four-year minelife indicated the best financial alternative.
1.2 ECONOMIC ANALYSIS
Tetra Tech prepared an economic evaluation of Avino Mine tailings retreatment scoping study based on a pre-tax financial model.
The pre-tax financial results were as follows:
• 60% internal rate of return (IRR)
• 1.5-year payback
• US$38.2 million net present value (NPV) at 8% discount rate.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 3 |

2.0 INTRODUCTION

As part of the completion of the Avino Mines tailings recovery study, a review and validation of the metallurgical test program previously undertaken by others, was conducted. The test results obtained were also assessed and the conclusions drawn reviewed and validated. This information was subsequently used to establish process plant design criteria for the flowsheet and subsequent conceptual mass and water balances of the selected recovery process, namely heap leach operation with a project duration of four years. For the heap leach recovery process selected to treat the tailings material, a mechanical equipment list was compiled. The infrastructure design was outlined and included the sizing of the main items of equipment required for the treatment of the tailings dam material. Some financial information was collected to compile the capital cost estimates and equipment quotations and selection, to the level of ±35%. A financial model was drawn up incorporating the main variables such as metal price and recoveries and the estimated operating costs.
Hassan Ghaffari (P. Eng) visited the site on behalf of Tetra Tech on March 30, 2011. The following constitutes the review of the test data obtained and the validation of the
processes selected for treating the tailings dam material.
The source of reference for this review is almost exclusively the following report since it is intended to form the basis for use by Avino Mines for any further financial dealings. This report, titled "Avino Silver and Gold Mines Ltd, A Tailings Resource", dated July 2005, and submitted as a National Instrument 43-101 (NI 43-101) document by MMI was used as the source of information. This document was subsequently revised and re-issued during October 2005. The MMI report based their conclusions on the results obtained from the metallurgical test work program conducted by PRA but directed by MMI. The PRA report reviewed was titled "Metallurgical Test Work on Avino Tailings, Durango, Mexico", Project No. 0406407, and dated March 28, 2005. The metallurgical results obtained by PRA were reviewed and assessed and these are discussed in the following sections of this report. The implications of the reviewed results and the effect on the conclusions reached in the MMI report are discussed in this report.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 4 |

3.0 RELIANCE ON OTHER EXPERTS

See the report “A Tailings Resource” dated October 2005 by Bryan Slim of MMI and similar reports from the same author in Appendices H and I.
Tetra Tech has relied upon information contained in the above-mentioned report, “A Tailings Resource”. Tetra Tech has used the information in this report under the assumption that it has been prepared by Qualified Persons (QPs).

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 5 |

4.0 PROPERTY DESCRIPTION AND LOCATION

See the report “A Tailings Resource” by Bryan Slim in Appendix H.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 6 |

5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY

The mine site, which lies between the towns of Panuco de Coronado and San Jose de Avino, is at an elevation of about 2,200 m. Relief is estimated at 100 m. The vegetation is typically sparse.
The climate is temperate and arid/semi-arid. Mean monthly rainfall range is from over 120 mm/mo in July and August to less than 20 mm/mo in March and April.
As a result of the extensive history of previous mining activity at Avino Mine since 1976 and prior to 1976, there is a complete infrastructure for the area. The national grid supplies power from a line capacity quoted at 4 MW.
(See the report “A Tailings Resource” by Bryan Slim in Appendix H.)

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 7 |

6.0 HISTORY

Silver and gold was discovered in 1555 by Juan de Tolosa, a member of the Spanish Army, at what eventually developed into the Avino Mine. Mining operations commenced seven years later. Miners were encouraged to settle in this area and what would become the Durango district, thereby providing protection for the settled families from the indigenous Indian inhabitants. The Avino Mine is considered to be first operating mine in the Nueva Vizcaya area, later re-named Durango. In 1880, the deposits were merged into a larger scale mining operation with new technology and equipment, and named Avino Mines Ltd. Operations were abandoned in 1912 as a result of the Mexican Revolution.
In 1968, the Ysita family and Avino Mines of Vancouver, British Columbia, Canada, jointly formed the Companie Minera Mexicana de Avino, SA de CV, which acquired the property rights and the mineral rights, including the mine. The new company implemented an exploration company resulting in the re-opening of the mine with limited open-pit production commencing in 1970. A lead flotation concentrate was produced with silver and gold content credit received from the lead smelter. From 1974, open-pit production was continuous with a total of approximately 2 Mt of oxidized ore treated until 1993 when the underground mining of sulphide ore commenced. A copper concentrate was then recovered by flotation with silver and gold credit received from the copper smelter. The mine was closed in November 2001 as a result of the closure of the copper smelter treating the Avino Mine concentrates. About 3 Mt of sulphide ore had been treated during the period from 1993 to the time of the mine closure in 2001.
Avino Mines recently increased its ownership of Cia Minera Mexicana de Avino, SA de CV, from its previous holding of 49%, held since 1968, to almost 100%. The company now intends to resume exploration and possibly re-start mining at the Avino Mine, while recovering metals from the existing tailings deposited over the years that the mine was operating. The principal asset of the company is the Avino Mine where about 497 t of silver, 3 t of gold and 11,000 t of copper, as well as an apparently un- documented amount of lead, has been produced from 1976 to 2001. No mention has been made of zinc being recovered or receiving credit from the smelters. No metal production records appear to exist for the period 1970 to 1975.
A metallurgical test program was designed and implemented by MMI in 2003 and 2004, and the results were used in the Technical Report submitted to the Canadian Securities Regulatory Authorities (CSRA) for Avino Mines. This report was originally titled Preliminary Feasibility and was dated May 2005, and referred to the oxide tailings as an indicated resource. A subsequent version of the MMI report appeared in July 2005 titled “A Tailings Resource”. Several deficiencies were noted by the CSRA and the report was returned to MMI for clarification. These deficiencies were subsequently addressed by MMI and the report dated October 2005, and in its final version as reviewed by the CSRA, refers to the oxide tailings as an Inferred Resource.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 8 |

(See the report “A Tailings Resource” by Bryan Slim in Appendix H.)

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 9 |

7.0 GEOLOGICAL SETTING AND MINERALIZATION

The orebody is epithermal and made up of veins and stockwork structures as reported in the MMI May 2005 report. The structure was normally weathered and leached in the upper section as a result of contact with the atmospheric waters. The oxide tailings material under consideration in this study is primarily from this source.
(See the report “A Tailings Resource” by Bryan Slim in Appendix H.)

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 10 |

8.0 DEPOSIT TYPES

A study by MMI investigated the potential for recovering the contained silver and gold from the Avino Mines tailings deposit. This MMI study identified an Inferred Resource of 2 Mt of oxide tailings with a grade of 95.5 g/t Ag and 0.53 g/t Au. The sulphide tailings were excluded from this MMI study, which delineated only the oxide tailings deposit as the (Inferred) Resource.
(See the report “A Tailings Resource” by Bryan Slim in Appendix H.)

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 11 |

9.0 EXPLORATION

Avino Mines supplied the information in this section.
The valuable minerals found during the period of mining of the oxide zone were reported to be argentite, bromargyrite, chalcopyrite, chalcocite, galena, sphalerite, bornite, native silver, gold and native copper. The gangue minerals include hematite, chlorite, quartz, barite, pyrite, arsenopyrite and pyrrhotite. Malachite, anglesite and limonite are common in the quartz zones of the weathered parts of the oxide material. Although the above description was extracted from the MMI Technical Report, the reference literature citing the origin of this information was not recorded. It is anticipated that the minerals listed above would be present in the oxide section of the tailings deposit.
Two specific mineralogical assessments were conducted by MMI on samples arising from the MMI metallurgical test work programs, one during 2003 and the other in
2004. The results and implications of these findings are discussed below.
9.1 M M I 2 0 0 3 SAMPLES
A flotation test tailings sample was submitted for mineralogical evaluation. No silver minerals were identified, and no gold particles were observed. Therefore no silver and/or gold associations with other minerals were observed. The report concluded that the silver present in the sample was probably occluded in, or adsorbed onto, secondary iron or silver minerals, such as argentojarosite. The minerals identified in the study included those already listed above.
9.2 M M I 2 0 0 4 SAMPLES
MMI requested that a mineralogical examination was to be conducted on sample material taken from specific sample bags shortly after these samples had been received by PRA. The rationale for selecting these samples was not disclosed to the PRA staff. The results of the investigation were not made available to PRA either, even though this may have assisted in the understanding of the nature of the material being tested, and assisted with the design of the metallurgical test program. The results of this examination were not disclosed in the MMI Technical Report.
(See “A Tailings Resource” by Bryan Slim in Appendix H.)

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 12 |

10.0 DRILLING

This section is not applicable.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 13 |

11.0 SAMPLE PREPARATION, ANALYSES, AND SECURITY

11.1 SAMPLE METHOD AND APPROACH
The sampling method and approach adopted by Bryan Slim/MMI is described in the MMI report "A Tailings Resource" (Slim 2005d). Essentially this incorporated the following steps:

1. | A backhoe was used to excavate sample pits to a depth of 4 meters. Hand samples were taken at 1 meter vertical increments from the sidewalls of each pit.

2. | The sample mass collected from each sampling point generally amounted to between 2 and 5 kg.

3. | The MMI sampling program was ostensibly based on the 1990 Cia Minera sampling program. The Cia Minera sampling program was based on the results of 34 holes drilled to bedrock/soil level and generated 461 samples, which were submitted for silver and gold assay. The MMI sampling program actually excavated 14 sample pits to a depth of 4 m and generated 86 samples.

Tetra Tech did not independently verify nor compare the results of the sampling programs.
11.2 SAMPLE PREP RATION
The samples collected by MMI from the Avino Mines tailings dam in 2004 were airfreighted to PRA in Vancouver, BC, from Durango, Mexico. The samples had been bagged and sealed with identification tags attached, as soon as each had been taken. This was done under MMI supervision. The samples were unpacked at the PRA facility in the presence of MMI personnel. The samples were then allotted new identification numbers by Bryan Slim of MMI, and were subsequently un-bagged and dried. The dry samples were individually mixed and blended, and then split into four one-quarter fractions as directed by MMI. One fraction was used to determine the head grade assay, while another quarter was used to create composite samples used for the subsequent metallurgical test work program. MMI instructions were followed with the compositing of the samples, and the test work program. Excess sample was archived for future test work or analyses.
For analytical techniques employed during the test work program, the standard fire assay (with atomic absorption (AA) spectrophotometric finish) was initially used for the silver analyses. However, this method is not very accurate for silver values of less than 100 g/t Ag. Subsequently, the Inductively Coupled Plasma Spectroscopy Method (ICP-M), which uses multi-acid digestion, was used for silver. This method also resulted in analyses being obtained for other elements of interest, e.g. copper, zinc, lead, etc.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 14 |

The standard fire assay method was used for gold analyses. Cyanide and lime concentrations were done using standard titrametric methods. Total sulphur was measured using a standard Leco furnace, and sulphide sulphur assays were done using the standard wet chemical gravimetric analysis.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 15 |

12.0 DATA VERIFICATION

MMI substantiated the quality of the results of the various assays obtained by utilising the laboratory International Plasma Labs Ltd (IPL) in Vancouver, BC. This laboratory utilizes a standard system of duplicate samples, standards and blanks for all their analytical determinations. Also, IPL are registered under the International Organization for Standardization (ISO) with an ISO 9001:2000 registration.
As part of the initial set up of the project, the results of different analytical methods for silver were compared. This indicated that the fire assay method was not suitable for analyzing solids samples for silver with grades below 100 g/t Ag. The AA method was also checked for reliability, but deemed less accurate when compared with the ICP-M. The ICP-M was subsequently used for silver determinations from solids samples throughout the metallurgical test work program. Another unidentified analytical laboratory was also reportedly utilized for comparison of silver assays from specified samples submitted by MMI. However, the outcome of this exercise was not made available by MMI to PRA staff, and the results were not published in the MMI report "A Tailings Resource”.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 16 |

13.0 MINERAL PROCESSING AND METALLURGICAL TESTING

This present section will review and validate the metallurgical characterization and study which was generated by MMI, and review all the previous test reports and comments to establish the treatment process and the design criteria required for the recovering of silver and gold from the tailings resource.
13.1 A METALLURGICAL REVIEW
As mentioned above, the MMI report titled "Avino Silver and Gold Mines Ltd, A Tailings Resource", dated July 2005 (Slim 2005c), used the metallurgical results obtained and conclusions drawn by PRA (Huang, 2003 and Huang and Tan 2005) in their NI 43-101 document. The revised and final MMI document was dated October 2005.
This study will initially review the available historical information and this will be followed by a review of the more comprehensive test program conducted by MMI at PRA, in 2003 and particularly in 2004.
1 3 .1.1 A HISTORICAL EVALUATION OF THE OXIDE TAILINGS
In 1990, Cia Minera sampled the oxide tailings dam and calculated the tonnage and overall grade to be as given in the table below. No metallurgical characterization tests were conducted on these samples. In their report, MMI have concluded that the Cia Minera data constitutes a reasonable estimation of this tailings material as a resource, and have reported the following tonnages and metal grades in Table 13.1. These values are based on their calculations. (See also Section 17.0.)
Table 13.1 Oxide Tailings Dam Data

Source | Tonnes | Assays (g/t) | Bulk Density (g/cm3)
Ag | Au
Cia Minera, 1990 | 2,092,178 | 93.0 | 0.50 | 1.605
MMI, 2005 | 2,091,074 | 95.5 | 0.53 | 1.605

1 3.1.2 HISTORICAL METALLURGICAL TEST RESULTS
A number of metallurgical evaluations have been made on various samples from the oxide tailings dam, according to the MMI report (Slim 2003). Apparently the first cyanidation tests were conducted during 1982, and this was followed by further tests

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 17 |

performed over the years. The summarized cyanidation test results are reproduced in the following table (Table 13.2) taken from the MMI report, while the reported flotation test results are given in Table 13.3. The MMI results obtained from the test work program initiated by MMI in 2003 and 2004 and which have been reported in the MMI Technical Report, are included in the table for purposes of comparison. The results will be discussed in greater detail later in the report.
Table 13.2 Cyanidation Test Results

Author | Date of Test | Extraction (%) | Leaching Time (hr) | Particle Size (µm)
Ag | Au
Denver Equipment | 1982 | 69.3 | 66.7 | 24 | 66.6% < 149
Penoles | 1987 | 78.3 | 88.9 | 24 | 87% < 74
Maja | 1990 | 85.9 | 80.9 | 24 | 100%<105
Chryssoulis | 1990 | 85.9 | 80.9 | 24 | no data
Rosales | 1996 | 83.9 | 76.9 | 23 | 75%< 74
MMI | 2003 | 77.1 | 71.4 | 24 | 86%< 74
MMI | 2003 | 88.8 | 88.4 | 48 | 86% < 74

No details have been provided regarding the location nor the manner in which the samples for any of the above tests were taken, why these particular samples were taken, the test parameters employed, the assay techniques used, etc. The first set of results for tests conducted on MMI samples from the 2003 sampling campaign indicate a silver extraction of 77.1% and gold extraction 71.4%. However, these results cannot be verified since the origin of this set of numbers as quoted in the MMI Technical Report is not known. The second set of results was reported in the PRA report titled "Flotation and Cyanidation Scoping Tests and Specific Gravity", Project No. 0302303, dated 28 March 2003 (Huang 2003). Considered in general terms, it would appear as if the cyanidation test results over the indicated period of time are reasonably consistent. However, no specific conclusions should be drawn since nothing is known about the head grades of the samples, nor the samples used, nor the test and assay procedures used at the time that these tests were conducted.
Table 13.3 Flotation Test Results

Author | Date of Test | Recovery (%) | Particle Size (µm)
Ag | Au
Penoles | 1987 | 60.2 | 47.1 | 87% < 74
Rosales | 1996 | 69.4 | 66.9 | 75%< 74

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 18 |

The flotation results vary widely for similar particle sizes with recoveries ranging from
60 to 69% for silver and 47 to 67% for gold. However, since the test details of these reported cyanidation and flotation tests are unknown, any further discussion will be meaningless.
13.2 THE M M I TECHNICAL REPORT – PREAMBLE
MMI was commissioned by Avino Mines to produce a document that was NI 43-101 compliant with respect to detailing the indicated oxide tailings resource (subsequently referred to as an Inferred Resource) and to define the metallurgical characterization and assay results for this material. The proposed economic processing of this tailings material could then be used to form the financial basis for restarting the mine.
The first report prepared by MMI was titled "Tailings Valuation" and was dated November 2003 (Slim 2003). Two further reports were subsequently prepared by MMI. One was titled "Preliminary Feasibility" and was dated May 2005 (Slim 2005a), while the second report was titled "Tailings Valuation" and was also dated May 2005 (Slim 2005b). This report (Slim 2005b) was subsequently revised and re-titled "A Tailings Resource" and dated July 2005 (Slim 2005c). This July 2005 MMI report (Slim 2005c) was reviewed by the CSRA and returned to MMI for revision. The revised MMI report was subsequently re-issued as "A Tailings Resource" and dated October 2005 (Slim 2005d), and this was re-submitted for reviewing by the CSRA. This revised document (Slim 2005d) was titled "A Tailings Resource", dated October 2005, and was produced for Avino Mines, Cia Minera Mexicana, Durango, Mexico, by Bryan Slim, of MMI, North Vancouver, BC, Canada. The document was submitted as a Technical Report to the CSRA.
A review of the assaying methods and the metallurgical test work, as directed by MMI and conducted by PRA, will now be carried out. This review will detail the processing techniques applied and comment on the test procedures used and validate the results obtained. It will then use the test data obtained to develop the proposed process flowsheet and the plant design criteria to establish the treatment process for the economic recovery of silver and gold from the Avino Mines tailings resource.
Two sets of test programs were directed by MMI and conducted at PRA. One was conducted during 2003, for which no sample origin can be determined (Huang 2003), and the other, more detailed test program, was conducted during 2004 (Huang and Tan 2005). The 2004 test work and assaying program was designed and supervised by MMI. It was conducted on samples collected from the tailings dam by MMI during 2004, while also using the results from the preliminary metallurgical scoping tests done during 2003 as a guide. PRA staff at their facilities in Vancouver, BC, conducted all the test work from both MMI test programs.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 19 |

1 3.2.1 INTRODUCT ION TO THE MM I 2 0 0 3 METALLURGICAL TEST PROGRAM
The 2003 test program consisted of the following tests as summarized in Table 13.4. The cyanidation extraction results obtained were used in a preliminary report by MMI titled "Tailings Valuation" dated November 2003 (Slim 2003). MMI considered using a 2000 t/d vat leaching process to recover the silver and gold from the oxide tailings.
However, this treatment process option was revised when the results of the 2004 test program became available.
Table 13.4 Test Procedures MMI 2003 Test Program

Process/Procedure | Details of Test | Sample Identify
Sample Preparation | No details documented | Sample L and Sample U
Head Assays | Fire assays, AA, and inductively coupled plasma (ICP) multi-acid | Composite of L and U
Specific Gravity (SG) | Standard pycnometer test | Composite of L and U
Cyanidation Leach | P80 = 68 µm; 40% solids; pH 10.5; 1.0 g/L sodium cyanide (NaCN); 48 h; dO2 > 7.9 mg/L 0.4 kg sample | Composite of L and U
Flotation | Rougher and 2 scavenger stages; P80 = 85 µm; 35% solids; pH 5.5; PAX & A208 with MIBC; 1 kg sample | Composite of L and U
Mineralogical | Examination of flotation tailings | Composite of L and U

Note: dO2 = dissolved oxygen, PAX = potassium amyl xanthate
The exact origin of Sample L and Sample U is not known, and does not appear to have been documented. The manner that each of the samples was collected by MMI has apparently also not been documented. The size of both samples, namely 0.8 kg for Sample L and 0.9 kg for Sample U, is small and its representation is questioned. Also, there appears to be no documentation relating to the arrival and receiving of these samples at PRA. There is no Receiving Log in the PRA Report No. 0302303 (Huang 2003). Also, no assay certificates have been recovered to date. Even though the above tests were considered to be scoping tests only, the results cannot be validated. When considering all the above factors, it is apparent that these results cannot be used with any degree of validity for the reviewing of process options for the recovery of silver and gold.
1 3.2.2 INTRODUCTION TO THE MM I 2 0 0 4 METALLURGICAL TEST PROGRAM
The 2004 test program was a better structured program, which included the pre- concentration processes such as gravity concentration and flotation, both with and without regrinding, in an attempt to upgrade the material into a smaller mass for the subsequent treatment for the recovery of silver and gold. Also, cyanidation leach tests were conducted on as-received samples as well as samples that were reground in order to attempt to improve the liberation of silver and gold from the associated minerals. A single column leach test was also performed.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 20 |

Additional work done included the establishing of the SG and Bulk Density of the material, determining the Bond Mill Work Index on an oxide sample from the open pit, settling and filtration tests following cyanidation tests, and electrowinning tests using Electrometals Electrowinning (EMEW) technology. All the different test procedures are summarized in the following Table 13.5.
Table 13.5 Test Procedures – MMI 2004 Test Program

Process/Procedure | Details of Test | Sample Identify
Sample Preparation | Individually numbered ; dried; weighed; subsequently composited | Composites A, B and C
Head Assays | Fire assays, AA and ICP multi-acid | Individual samples, and Composites A, B and C
SG | Standard pycnometer test | Composites A, B and C
Bulk Density | Standard volume displacement test | Composites A, B and C
Mineralogical | Examination of as-received samples | Selected Samples
Test Product Assays | Fire assays, AA and ICP multi-acid | All test products
Bond Mill Work Index | Six cycles; closing screen size 150 µm | Oxide sample
Size-Assay Distribution | Screened and assayed the size fractions | Selected samples
Gravity Concentration | Various test conditions | Composites A, B and C
Cyanidation Leach | Various test conditions | Composites A, B and C
Flotation | Various test conditions | Composites A, B and C
Column Leach Test | Agglomerated feed; 81 d duration; 0.5 to 1.0 g/L NaCN; pH 10.5; 0.05 mL/s | Composite of A and B
EMEW | Various test conditions | PLS from leach test
Acid Base Accounting | Acid generation tests | Composites A, B and C

The results obtained from this test program led MMI to include the heap leach process as the recommended treatment option in their report "Preliminary Feasibility" dated May 2005 (Slim 2005a).
1 3.2.3 EVALUATION AND REVIEW OF METALLURGICAL TESTS
The metallurgical tests conducted according to the MMI 2004 test program will now be reviewed. The process implications of the procedures and processes investigated, and the results obtained, will be discussed below. The most promising process option will be selected as the recommended process treatment route based on the evaluation of the results obtained from the test program. This process option will then be evaluated with respect to capital and operating cost estimates.
SAMPLE PREPARATION AND CHARACTERISTICS
Bagged samples carrying the MMI identification tags were prepared at Avino Mine under the direct supervision of MMI personnel. These samples were then transported from the mine-site to Durango, Mexico, and shipped via airfreight to Vancouver, BC. The samples were delivered to the PRA facility, and unpacked in the presence of MMI personnel to ensure that no tampering had occurred to the samples en-route. The samples were subsequently renumbered by MMI prior to PRA staff un-bagging and drying the samples. These details are shown on the PRA Sample Receiving Log (Huang and Tan 2005). The individual samples were initially air-dried, followed by a low-temperature of less than 50°C, of oven drying.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 21 |

The individual samples were subsequently homogenized, and riffled, and split into four one-quarter fractions. One of these fractions was used for head assay determinations. A second fraction was used for compositing selected individual samples to create the sample Composite A, representing the oxide material of the lower bench of the tailings dam. Similarly, Composite B, representing the oxide material of the middle bench of the tailings dam, was prepared by compositing selected individual samples, as was Composite C, representing the sulphide tailings of the upper bench.
Although the samples had arrived at PRA from Avino Mine without any indication of tampering, it is the sampling regime itself, which is considered to be deficient. Firstly, the sampling of the oxide section of the tailings dam was incomplete. The sampling did not replicate the 1990 Cia Minera program, and certain parts of the tailings dam were not sampled. Secondly, the samples that were taken by MMI only represent the first 4 m of depth of the tailings dam. Indications are, however, that the overall depth of the oxide section of the tailings dam varies between 7 and 27 m. These two major deficiencies were also recognized by the CSRA as deficiencies during their review. Both these items were addressed in the final MMI report "A Tailings Resource" dated October 2005 (Slim 2005d). The October 2005 report recommended a more detailed program of sampling of the whole tailings dam up to bedrock or ground soil level, as well as conducting metallurgical characterization tests using representative material from this more detailed sampling process whenever this is to be performed. However, since the MMI Technical Report, as reviewed by the CSRA, subsequently referred to the oxide tailings as an "Inferred Resource" (Slim 2005d), this and other sampling discrepancies noted in the MMI test program, will not be discussed any further.
MOISTURE CONTENT
The moisture contents of the samples as received from the Avino Mine tailings dam were found to vary widely, namely from a low value of 5.12% to a high value of 28.25% moisture. A frequency distribution for moisture content of all the oxide tailings samples as received by PRA is given in Table 13.6 below. The bi-nodal distribution is apparent.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 22 |

Table 13.6 Moisture Content of Samples

Frequency Distribution
Moisture Content – Range (%) | Number
5.00 – 7.50 | 9
7.51 – 10.00 | 14
10.01 – 12.50 | 19
12.51 – 15.00 | 16
15.01 – 17.50 | 5
17.51 – 20.00 | 5
20.01 – 22.50 | 12
22.51 – 25.00 | 5
25.01 – 27.50 | 0
27.51 – 30.00 | 1

The particular presence of these high moisture content values in the tailings dam apparently confirms the high moisture content values found during the 1990 sampling program conducted by Cia Minera. Although the precise sampling procedure and drying conditions are unrecorded, a data sheet provided by Avino Mines as ostensibly related to this sampling program, provides assay values and moisture contents obtained during the program. The moisture values obtained varied from a low moisture value of 13.89% to a high value of 29.4% and a calculated average of 22.87% moisture. This data sheet, titled 'Bloque de Reservas, Presa de Jales', together with the individual assay values recorded during the 1990 drilling program, is included in Appendix J.
A possible reason for the high moisture content of the tailings material is that the mine was operational during this period when the sampling program was undertaken, i.e. 1990, and that routine tailings deposition was still in progress.
The specific reason for the relatively high moisture contents found during the 2004 MMI sampling program, is not apparent. The MMI Technical Report has referred to the possibility of the original manner of deposition of the tailings which has resulted in the localized areas of high moisture content. Also, the presence of artesian springs under the tailings dam has also been mentioned as a possible reason. It was also observed that any rain water run-off from the higher levels above the tailings dam would collect at the head of the tailings dam and subsequently seep through the dam exiting at the foot of the dam. Whatever the reason(s) may be, areas of high moisture content do exist and will influence the method of recovery of the tailings and the subsequent agglomeration process.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 23 |

HEAD ASSAYS AND TEST PRODUCTS ASSAYS
Gold assaying was done using the standard fire assay procedure. Initially the silver was also analyzed by the fire assay procedure followed by an AA spectrophotometric finish. However, this fire assay based method for silver is not very accurate in the low concentration range of less than 100 g/t for silver. Assaying for silver was then done using ICP-M preceded by the total digestion of the sample in a suite of mineral acids. A further method was also investigated, namely that of total acid digestion followed by an AA finish. The results obtained with this acid digestion and AA method were similar to the ICP-M. The assay method selected for all the silver assays was therefore the ICP-M method preceded by the total digestion of the sample in a suite of mineral acids (ICP-M). All the other analyses for the various products arising from the metallurgical tests were done by the standard and universal methods using titration, ICP-M or AA methods.
All the various head sample analyses conducted during the test program have been listed in Table 13.7. The reference to the Test Number relates to the stage of the test work that the sample was submitted for analysis. The average values for the four different composite samples tested, namely Composite A, Composite B, Composite C and the Composite A + B blended sample, have all been calculated and are given in the table together with the respective standard deviation values. The standard deviation of the head samples representing Composite A and Composite B are shown to be within 10% of the deviation from the average value. This is considered to be reasonable.
However, the average silver value of all the head assay analyses assayed as head samples representing both Composite A and Composite B together is only 86.8 g/t Ag. This average value of 86.8 g/t Ag is less than the 95.5 g/t Ag as given in the MMI Technical Report as being the overall silver grade of the material of the whole oxide tailings dam (Slim 2005d). Similarly, the average gold value of all the head assay analyses assayed as head samples representing both Composite A and Composite B (i.e. representing the oxide tailings dam) taken during the test work program, is 0.44 g/t Au which also is less than the 0.53 g/t Au as quoted in the MMI Technical Report. For silver, this amounts to a difference of about 9% based on the MMI quoted head grade of 95.5 g/t Ag, while for gold the difference is larger at 17% based on the MMI quoted gold value of 0.53 g/t Au. It is of interest that the average head assay for the Composite A + B sample is closer to the calculated average for Composite A and for Composite B, namely 89.6 g/t compared with 86.8 g/t for silver, and 0.41 g/t compared with 0.44 g/t for gold. The above discussion assumes that the tonnages of the tailings dam labelled Composite A (lower bench) will be mixed in equal proportion to the area of the tailings dam designated as Composite B (middle bench). In the absence of specific tailings dam volumes, or tonnages, this assumption may be an oversimplification and may therefore not be entirely valid. However, the assay values representing the tailings area (Composite B) will lower the overall average head grade of the tailings being treated.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 24 |

Table 13.7 Head Assays

Test No. | Composite A Assays(g/t) | Test No. | Composite B Assays (g/t)
Ag | Au | Ag | Au
SA9 | 99.8 | 0.37 | SA10 | 88.3 | 00.55
Ave. 1 | 103.4 | 0.34 | Ave. 1 | 82.6 | 0.68
Ave. 2 | 105.3 | 0.36 | Ave. 2 | 88.4 | 0.51
C1 | 95.2 | 0.35 | C4 | 76.3 | 0.52
C2 | 94.3 | 0.35 | C5 | 70.6 | 0.49
C3 | 94.1 | 0.36 | C6 | 71.4 | 0.50
C7 | 88.7 | 0.36 | C9 | 70.3 | 0.52
C8 | 88.7 | 0.36 | C10 | 70.3 | 0.52
C13 | 95.9 | 0.28 | C15 | 77.2 | 0.49
C14 | 98.9 | 0.37 | C16 | 78.3 | 0.52
C17 | 95.2 | 0.35 | C18 | 77.2 | 0.49
Average Value: | 96.32 | 0.350 | Average Value: | 77.35 | 0.526
Standard Deviation | 5.27 | 0.025 | Standard Deviation | 6.72 | 0.054

Test No. | Composite C Assays (g/t) | Test No. | Column Composite A+B Assays (g/t)
C11 | 39.8 | 0.34 | C4 | 87.4 | 0.42
C12 | 39.8 | 0.34 | C5 | 90.1 | 0.40
Ave. 1 | 31.7 | 0.29 | C6 | 91.4 | 0.42
Ave. 2 | 39.8 | 0.39 | C9 | - | -
Average Value: | 37.78 | 0.340 | Average Value: | 89.63 | 0.413
Standard Deviation | 4.05 | 0.041 | Standard Deviation | 2.04 | 0.012

A further comment regarding the assay results above relates to the methods employed for the assaying techniques for silver from these samples. The MMI Technical Report states that for the Cia Minera 1990 tailings drilling program, the silver assaying was done using the mine standard practice of fire assay followed by acid digestion and AA finish. The PRA metallurgical test work program used multi- acid digestion followed by ICP assay method for silver analyses. It is anticipated that there will not be a significant difference between the silver assays as reported in 1990 and those from the MMI test program as conducted by PRA, but the extent of this difference cannot be quantified in this review. Similarly, no comment can be given as to the accuracy of the assays conducted by Cia Minera since the standards of precision of sampling, sample preparation and detailed methodology of the assaying methods are unknown. However, a summary sheet containing assay values has been provided by Avino Mines as being the silver and gold grades obtained from the 1990 Cia Minera sampling program. The summary sheet is attached in Appendix J. No calculations have been performed using these assay values and it is only included in this report since it is part of the Cia Minera sampling program. The MMI report “A Tailings Resource” (Slim 2005d) provides a grid map identifying the various sample holes.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 25 |

MINERALOGICAL EVALUATION
At the start of the 2004 metallurgical test program, MMI requested that a sample from some of the individual samples be submitted for mineralogical analysis. The mineralogical findings have not been reported in the PRA Report No. 0406407 (Huang and Tan 2005), and also were not alluded to in the MMI Technical Report (Slim 2005d), nor in any of the preceding reports. The reason(s) why these results have apparently not been communicated to Avino Mines or to the investigators of the test program at PRA, is not known.
BOND BALL MILL WORK INDEX
Although this information was not required for the treatment of the oxide tailings dam material, a Bond Ball Mill Work Index determination test was done on an oxide material sample. The work index was determined to be 12.3 kWh/t using a closing screen size of 74 µm (200 mesh) with convergence of the specific energy input (grams of product per revolution) found after five cycles of testing. This makes the sample tested a moderately hard rock type. The details regarding the origin of this sample have not been documented and its relevance as data is therefore questioned.
BULK DENSITY AND SPECIFIC GRAVITY
Bulk density and SG determinations were conducted on samples specifically identified by MMI. The SG measurements were done using the standard pycnometric method, while the bulk density values were obtained by measuring the volume of dry solids in a measuring cylinder. The values obtained are reproduced in Table 13.8 below.
Table 13.8 Bulk Density and Specific Gravity

Location/ Bench | Sample Identify | P80 Size (µm) | Bulk Density (g/cm3) | SG
Upper Bench | S2 | 226 | 1.66 | 2.74
Lower Bench | S10 | 326 | 1.73 | 2.62
Lower Bench | S22 | 367 | 1.73 | 2.76
Middle Bench | S45 | 254 | 1.60 | 2.76
Middle Bench | S50 | 201 | 1.63 | 2.74
Upper Bench | S74 | 301 | 1.57 | 2.72
Average | - | - | 1.653 | 2.723

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 26 |

The bulk density values determined for the oxide tailings material were found to vary between 1.57 and 1.73 g/cm3 with an average of 1.653 g/cm3. This average value is in reasonable accord with the bulk density of 1.605 g/cm3 as quoted in the MMI Technical Report. The SG values obtained were generally consistent with an average value of 2.723.
PARTICLE SIZE– ASSAY ANALYSIS
A particle size – fraction analysis was done on the same samples as were used for the bulk density and SG determinations. These tests were conducted to determine whether the silver and gold were predominantly occurring in a particular particle size range. The size-assay analyses indicated that the metal distributions were varied according to the location, but that all displayed the bi-nodal distribution for silver, gold and mass to varying degrees.
Sample S10 from Composite A from the Lower Bench of the tailings dam indicated one maximum metal distribution occurring in the size range 149 to 210 µm, and another in the minus 37 µm size range. The maximum mass distributions are generally similar although it occurs over a wider size range in the coarse size, namely 105 to 210 µm. The second sample from this bench, Sample S22, was similar but with a shifted maximum metal and mass distribution in the 210 to 297 µm size range, and a secondary maximum metal and mass distribution in the minus 37 µm size range.
Sample S45 from the Middle Bench of the tailings dam, and part of Composite B, indicated maximum metal distribution in the 149 to 210 µm size range with maximum mass distribution in the 105 to 149 µm size range. The secondary maximum metal and mass distribution was found in the minus 37 µm size range. The second sample from the Middle Bench, namely Sample S50, had the maximum metal and mass distributions in the 105 to 149 µm size range as well as the minus 37 µm size range.
The two samples from the Upper Bench of the tailings dam of Composite C displayed totally different particle size distributions. Sample S2 was bi-nodal with one maximum for metal and mass distribution in the size range 105 to 149 µm and the second maximum occurring for the size range of minus 37 µm. Sample S74 displayed only one maximum metal and mass distribution over the relatively wide coarse particle size range of 105 to 297 µm. This sample was almost entirely devoid of slimes, or minus 37 µm material.
These samples reflect the operating discharge conditions and history at the time of plant operations and tailings deposition. The results typify the use of a tailings cyclone situated on the tailings dam wall discharging the coarse undersize material onto the wall area with the finer cyclone overflow material flowing downstream and settling within the tailings dam. Changes in the size distribution would be anticipated with downstream distance from the point of discharge by the cyclones at the tailings dam wall. This is typified by the size distribution of Sample S74 which purports to be a cyclone underflow sample taken at the point of discharge and which was found to be almost totally devoid of fines, or minus 37 µm material.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 27 |

GRAVITY CONCENTRATION TESTS
Pre-concentration tests using the centrifugal gravity concentration method were conducted to evaluate the potential upgrading of silver and gold. The laboratory size concentrator used was the Falcon Model SB40 centrifugal concentrator. The tests were conducted on samples from Composites A, B and C. MMI dictated the test parameters used for these tests, including a set of tests where the samples were reground prior to conducting the gravity concentration test. The results from the gravity concentration tests are summarized in Table 13.9 below.
Table 13.9 Summary of Results of Gravity Concentration Tests

Sample Identify | Head Grade | Concentrate Grade | Recovery (%) | P80 (µm) | Remarks (Note: All tests are 3-pass tests)
Ag (g/t) | Au (g/t) | Ag (g/t) | Au (g/t) | Mass | Ag | Au
Comp. A | 93.8 | 0.35 | 124.7 | 0.52 | 24.1 | 32.1 | 36.5 | 269 | Pressure 1.5 psig; no regrind
Comp. B | 70.3 | 0.50 | 96.9 | 0.71 | 23.6 | 32.5 | 33.3 | 180 | -
Comp. C | 39.7 | 0.33 | 58.0 | 0.65 | 24.1 | 35.2 | 47.0 | 254 | -
Comp. A | 92.1 | 0.33 | 126.1 | 0.71 | 19.7 | 27.2 | 42.1 | 76 | Pressure 1.0 psig; reground
Comp. B | 70.5 | 0.56 | 96.5 | 1.29 | 22.4 | 30.7 | 51.5 | 77 | -
Comp. C | 40.7 | 0.38 | 65.5 | 0.98 | 24.8 | 39.9 | 64.3 | 79 | -

Note: psig = pounds per square inch (gauge)
The mass recoveries varied between 20 and 25% indicating that the tests were performed in a uniform and consistent manner. The highest silver recovery obtained was 40% (after regrind) for Composite C and decreasing to 31% for Composite B (after regrind) and about 27% for Composite A, also after regrind. The gold recoveries were higher than the equivalent silver recoveries, particularly after regrind, indicating that the liberation of the precious metals could be incomplete.
However, the upgrading factor for both silver and gold is very low, namely about 1.4 for silver and up to 2.3 for gold. No further upgrading or silver and gold recovery tests were conducted on the gravity concentrates produced possibly as a result of the relatively low grades and recoveries obtained. Also of interest is the fact that no historical test work was documented by MMI where gravity concentration was used to produce a saleable high-grade concentrate.
FLOTATION
Different scoping flotation tests were conducted on samples from Composite A and Composite B using various reagent schemes and conditions as dictated by MMI. The results of the flotation tests are summarized in Table 13.10. The test results reported led to the following conclusions.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 28 |

For Composite A, a regrind from a P8 0 size of 238 µm (as received particle size) to a P8 0 of 72 µm, improved the flotation recovery of silver from 18 to 23%, and that of gold from 18 to 39%. The standard suite of reagents was used for these tests (Tests F1, F3 and F4). For Composite B, a regrind from a P8 0 size of 173 µm (as received particle size) to a P8 0 of 74 µm, improved the flotation recovery of silver from 22 to 33%, and that of gold from 12 to 32% (Tests F2, F5 and F6). A particle size fraction analysis distribution conducted on the tailings of Test F4 (Composite A) indicated that the major proportion of the mass and the silver and gold is present in the slimes, or minus 37 µm, size fraction. However, significant losses of silver, and particularly gold, occurred in the coarser sizes, namely the size range 53 to 105 µm. This indicates that the degree of liberation could be improved and that some metal appears to be occluded in the coarser particle sizes. Some silver may also be adsorbed onto secondary oxide minerals and be unrecoverable by flotation. A similar mass and metal distribution was obtained in the case of Test F9 (also Composite A) which was a flotation test performed using a sulphidization reagent.
In testing the various flotation reagent suites, variable mass and metal recoveries and concentrate grades were obtained. However, the maximum silver grade obtained for a rougher concentrate was 909 g/t Ag, while the overall recoveries for silver could not be improved beyond about 40%. This indicated that mineral surface alteration or oxidation, or occlusion of precious metals in gangue, was inhibiting the flotation process. Since the silver recoveries obtained were deemed low and unsatisfactory, no further flotation tests were conducted and no extraction tests were performed on flotation concentrates.
The head assays obtained during the flotation testing stage gave inconsistent results. Table 13.10 shows the actual head assays obtained for each flotation test compared with the head assay obtained for silver for the composite samples. For Composite A, the individual silver head values for each flotation test conducted are all higher than the assay for the composite sample, except in the case of Test F11. The gold (and silver) values obtained for Tests F7, F8 and F9, are known to have been the result of poor sampling technique adopted for these three tests. The composite head assay gold value of 0.36 g/t Au is probably a reasonably representative assay value for Composite A. For Composite B, the silver head value for the composite sample is slightly lower than the assays for the individual flotation tests. For gold, the composite sample value is higher at 0.52 g/t Au than the assays for the individual tests.
The historical results of the flotation tests reported in Table 13.3 are significantly higher at 60 to 69% recovery for silver and 47 to 67% for gold. However, in the absence of information regarding the origins of these samples, the lack of head grade data and the absence of sampling and flotation procedures involved, these results will not be taken into consideration in selecting of the processing options for the oxide tailings dam material.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 29 |

Table 13.10 Summary of Results of Flotation Tests

Sample Identify & Test No. | Head Grade | Concentrate Grade | Recovery (%) | P80 (µm) | Remarks
Ag (g/t) | Au (g/t) | Ag (g/t) | Au (g/t) | Mass | Ag | Au
Comp. A/F1 | 112.2 | 0.35 | 908.7 | 3.17 | 2.1 | 17.8 | 18.4 | 238 | 3-stage ro., pH 8;
Comp. A/F3 | 119.2 | 0.39 | 734.6 | 3.88 | 2.6 | 21.0 | 30.4 | 103 | Conditioning NaCN +
Comp. A/F4 | 104.6 | 0.40 | 630.9 | 3.36 | 3.8 | 22.6 | 38.6 | 72 | Na2CO3; A404, PAX
Comp. A/F7 | 111.9 | 1.39 | 654.6 | 5.56 | 2.3 | 16.3 | 34.9 | ~75 | 2-stage ro., nil NaCN
Comp. A/F8 | 108.5 | 2.38 | 887.2 | 11.91 | 0.9 | 7.8 | 30.7 | ~75 | 2-stage ro., nil NaCN
Comp. A/F9 | 114.5 | 1.67 | 723.9 | 5.86 | 2.7 | 20.8 | 45 | ~75 | 2-stage ro., NaS2, PAX
Comp. A/F10 | 103.5 | 0.58 | 401.3 | 1.62 | 8.9 | 34.6 | 39.8 | ~75 | with NaCO3, CuSO4
Comp. A/F11 | 99.6 | 0.34 | 484.8 | 1.83 | 8.8 | 42.2 | 48.3 | ~75 | with CuSO4, A208
Comp. B/F2 | 88.4 | 0.42 | 695.4 | 2.65 | 2.6 | 22.0 | 12.2 | 173 | 3-stage ro., pH 8
Comp. B/F5 | 89.7 | 0.47 | 806.1 | 4.18 | 2.9 | 27.0 | 24.6 | 92 | conditioning NaCN +
Comp. B/F6 | 89.9 | 0.51 | 867.1 | 5.45 | 2.9 | 32.5 | 32.1 | 74 | Na2CO3; A404, PAX
Comp. A: Head | 99.8 | 0.36 | - | - | - | - | - | - | -
Comp. B: Head | 88.3 | 0.52 | - | - | - | - | - | - | -

Note: CuSO4 = copper sulphate; NaCO3 = sodium carbonate
CYANIDATION TESTS
Cyanide leaching tests were conducted on samples from Composite A, Composite B and Composite C using different leaching conditions. The first set of tests were to determine the effect of regrinding the tailings samples prior to leaching while subsequent tests determined the effect of cyanide concentration in the leach solution.
For Composite A, the silver extractions varied from 66% for the un-milled (as received) sample to 80% for the samples that were reground, while the gold extractions varied from 82 to 89% respectively. For Composite B, the silver extractions ranged between 69% for as-received material, to 77% for samples that were reground. The corresponding gold extractions varied between 82 and 87%. Although the cyanide consumption increased with the regrinding of samples tested for both Composite A and Composite B, the increase in extraction may compensate for the additional cost of cyanide reagent and regrinding provided that the filtration characteristics are not detrimentally affected. Higher cyanide concentrations in the leach solution tended to improve the extractions of silver and gold, but increased the cyanide consumption significantly as well.
The results from the sulphide tailings, namely Composite C, indicate that between 73 and 87% of the silver can be extracted, with between 77 and 85% of the gold. However, the cyanide consumption values were higher than the results from the oxide tailings. Two leach tests only were conducted on reground samples from Composite C, each having a P8 0 of about 69 µm. A summary of the cyanide leach test results is given in Table 13.11 below.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 30 |

Table 13.11 Summary of Results of PRA Cyanidation Tests

Sample Identify & Test No. | Extraction (%) | Reagent Usage (kg/t) | NaCN Concentration (g/L) | P80 (µm)
Ag | Au | NaCN | Lime
Comp. A+/C1 | 66.4 | 81.5 | 1.8 | 1.4 | 1.0 | 269
Comp. A+/C2 | 79.3 | 85.7 | 1.6 | 1.8 | 1.0 | 103
Comp. A+/C3 | 80.4 | 89.1 | 2.6 | 1.6 | 1.0 | 78
Comp. A+/C7 | 78.6 | 82.7 | 2.2 | 1.8 | 0.5 | 74
Comp. A+/C8 | 89.7 | 85.5 | 5.1 | 0.8 | 2.0 | 74
Comp. A*/C13 | 79.7 | 86.8 | 1.5 | 1.3 | 0.5 | 74
Comp. A*/C14 | 83.1 | 82.1 | 3.7 | 0.8 | 2.0 | 74
Comp. A*/C17 | 79.4 | 90.9 | 1.0 | 1.2 | 1.0 | 74
Comp. B+/C4 | 69.1 | 82.0 | 2.6 | 1.8 | 1.0 | 180
Comp. B+/C5 | 77.1 | 88.3 | 1.7 | 1.8 | 1.0 | 100
Comp. B+/C6 | 77.3 | 86.9 | 1.7 | 1.9 | 1.0 | 84
Comp. B+/C9 | 73.2 | 86.0 | 2.6 | 1.2 | 0.5 | 84
Comp. B+/C10 | 79.5 | 86.4 | 4.5 | 1.0 | 2.0 | 84
Comp. B*/C15 | 72.9 | 82.6 | 1.6 | 2.0 | 0.5 | 84
Comp. B*/C16 | 75.4 | 83.4 | 3.8 | 1.0 | 2.0 | 84
Comp. B*/C18 | 67.7 | 78.6 | 0.9 | 1.3 | 1.0 | 84
Comp. C+/C11 | 73.8 | 77.3 | 4.0 | 2.8 | 1.0 | 69
Comp. C+/C12 | 86.6 | 85.0 | 7.3 | 2.6 | 2.0 | 67

Note: “+” indicates Original Composite Sample.
“*” indicates New Composite Sample.
Tests C17 & C18 = 24 h leach duration; other tests + 72 h leach duration.
During the cyanide leach test program, a new Composite A and Composite B sample had to be prepared since the original composite samples had been exhausted. Comparison of results from the two composite samples indicated similar behaviour patterns, although there are some noticeable differences in the extractions. Also, the cyanide and lime consumption values as recorded are inconsistent. This indicates that absolute numbers cannot be assigned to a single test although any observed trends would be valid. The averages of similar tests would more likely predict the overall responses more accurately. It is also apparent that non-systematic variations in the assay results could have arisen from subtle variations in mineralogy, sample preparation, the sample regrinding process and possibly daily variations in temperature.
The cyanide leach extraction results quoted by MMI in Table 13.2, and the averaged results from the present test program, are summarized below in Table 13.12, and will be discussed in the following section.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 31 |

Table 13.12 Summary of Cyanidation Test Results Used by the MMI Reports

Sample Identify & Test No. | Extraction (%) | Remarks
Ag | Au
Comp. A/C1 | 66 | 82 | As-received; 1.0 g/L NaCN
Comp. A/C7 & C13 | 80 | 85 | Average; reground; 0.5 g/L NaCN
Comp. B/C4 | 69 | 82 | As-received; 1.0 g/L NaCN
Comp. B/C9 & C15 | 73 | 84 | Average; reground; 0.5 g/L NaCN
MMI 2003 | 77 | 71 | Results from 2003 test program
MMI 2003 | 88 | 88 | Origin of results unrecorded
MMI 2004/C8 & C10 | 85 | 86 | Average; reground; 2.0 g/L NaCN

The average extraction results obtained from samples from Composite A and Composite B in the present study are generally lower than the results from the historical test work as detailed in Table 13.12. However, in the absence of details, these historical results cannot be used in the overall evaluation of this process. The MMI claim of a 77% silver extraction, based on the MMI 2003 test program, cannot be considered an acceptable result since only one test was done. The sample origin is purported to be four holes dug at approximately 25 m intervals with samples scraped into a bag, one for the lower bench and one for the upper bench of the oxide tailings dam. Clearly, a sample collected in this manner cannot be considered to be representative. Also, the other MMI 2003 claim for an extraction result of 89% silver and 88% gold cannot be validated. All these test results can therefore not be considered as valid and will not be used in any further discussions or evaluations.
The MMI 2004 results, as claimed in the Technical Report and listed in Table 13.12 above, are also considered unusable. The reasons for this statement are that these results were obtained with a reground sample and leached at a high cyanide concentration of 2.0 g/L NaCN, whereas the other tests were done using 1.0 g/L NaCN. Both these conditions, that is, the regrinding of the tailings material and a high cyanide concentration leach condition, will not be implemented in a recovery process and these results are considered to be unrealistic.
The extraction results from the cyanidation tests obtained using as-received samples from Composite A and Composite B, namely 66 to 69% for silver and 82% for gold, were encouraging.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 32 |

COLUMN LEA CH TEST
One column leach test was conducted on a 30.9 kg sample being an equal mix of material from Composite A and Composite B. The sample was mixed with water, Portland Cement and lime and then agglomerated to a P8 0 size of 2,614 µm. After curing, the sample was put into a column with a diameter of 102 mm and a height of 3 m. The column test was run for a total of 81 days after the solution flowrate and pH had been stabilized. The silver extraction obtained was 73.0% while the gold extraction was 78.9%. These results compare very well to the average extraction values calculated from the cyanidation tests of the individual composite samples leached in the as-received condition, namely 67.8% for silver and 81.8% for gold. The cyanide consumption values are also comparable. The results obtained from the column test, as well as the calculated average extraction values obtained from the tests conducted on the as-received samples of Composite A and Composite B, have been summarized in Table 13.13.
Table 13.13 Summary of Results of Column Leach Tests

Sample & Test No. | Extraction (%) | Reagent Consumption (kg/t) | NaCN Concentration (g/L) | P80 (µm) | Remarks
Ag | Au | NaCN | Lime | Cement
Column Test, Comp. A & B | 73.0 | 78.9 | 2.32 | 13.73 | 21.8 | 0.5 & 2.0 | 2,614 | pH 11; flowrate 0.05 mL/s
Comp. A & B Average, Tests C1&C4 | 67.8 | 81.8 | 2.18 | 1.59 | - | 1.0 | 225 | pH 10.5/11; bottle roll

The kinetics of leaching had slowed down significantly by Day 81 when the test was terminated, although there was evidence that some leaching was still in progress.
A particle size - assay analysis of the leach residue of the column test found that the highest unleached (undissolved) silver grade was in the coarsest size range of plus 210 µm, while the highest gold value was found in the minus 37 µm size range. This suggests both inadequate liberation of the silver grains and/or minerals, and occlusion of gold possibly by clay minerals, or the presence of tarnished/coated mineral surfaces, or the presence of refractory minerals. The subsequent leaching of de-agglomerated column leach test residue resulted in a negligible extraction of silver and gold. This indicates that the column leach test had virtually reached its maximum potential extraction, which confirms the observation that the leaching rate had slowed down.
Only one column leach test was conducted. Also, the material tested was a mixture of samples from Composite A and Composite B, that is, a mixture of material from the lower and the middle benches of the oxide tailings dam. During the test, flow problems were encountered which resulted in the column having to be unloaded and the material having to be re-agglomerated with the test subsequently re-started after filling the column. In general terms, the results from one test only cannot be regarded as representative of the whole oxide tailings dam. However, despite these limitations and problems encountered, the encouraging results obtained and the close comparison with the bottle-roll tests, implies that the results are relatively reliable. The extraction values obtained from the column test, namely 73.0% for silver and 78.9% for gold, will therefore be used in the evaluation of this treatment process. The reagent consumption values also appear to be very high, namely 13.73 kg/t for lime, 21.8 kg/t for cement and 2.32 kg/t for cyanide. However, lime and cement consumption values obtained in laboratory tests generally approximate commercial operations although, in this case, they seem to be unrealistically high. The cyanide consumption of a commercial operation would typically only be 30 to 50% of that measured in a laboratory test.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 33 |

ACID BASE ACCOUNTING
The Acid Base Accounting (ABA) results predict the overall acid generating potential of selected samples. A net acid general potential was found for the sulphide tailings but not the oxide tailings. The processing of the sulphide tailings for silver and gold recovery could modify the ABA and increase the stability of the ultimate residues. Alternatively, the sulphide tailings would require the addition of lime during the process of relocating this material. This would ensure that the sulphide tailings would not cause acid-generating environmental problems.
ELECTROWINNING
Electrowinning metal recovery tests were conducted using EMEW technology (from the Electrometals Electrowinning company), specifically designed for the electrodeposition of metals from dilute solution tenors. The tests were carried out using filtered cyanide leach pregnant solutions. Although the test results were favourable, it appears unlikely at this stage that this technology could be applied in this situation given the high solution volumes generated and the very low silver concentrations anticipated in the pregnant solution from the heap. However, further test work using the EMEW metal recovery system should be undertaken if the project advances to the feasibility level because the potential for savings in capital cost and operating cost needs to be investigated.
13.3 PROCESS ENGINEERING EVALUATION
This section will review the process engineering options based on the results of the metallurgical tests conducted and will set the metallurgical design criteria for purposes of estimating the operating costs and capital costs. The costs of the processing options selected for review will be estimated based on conventional plant layouts. The design criteria, layouts and cost estimates will be kept on a general basis and will be based on the knowledge gained from the site visit and the interpretation of conditions and the availability of existing plant equipment, manpower and infrastructure for this Technical Report.
13.3.1 GRAVITY CONCENTRAION
REVIEW OF RESULTS
As indicated in Table 13.9, the upgrading for silver from the as-received oxide tailings was poor with a maximum concentrate grade of 125 g/t Ag with a mass recovery of 20%. The upgrading of gold is similarly poor. The re-grinding of the samples prior to gravity concentration leads to an almost negligible improvement in the upgrading of silver to 126 g/t Ag, while for gold a maximum concentrate grade of 1.29 g/t Au was obtained. The sulphide tailings response to gravity concentration is equally poor with even lower grade gravity concentrates being obtained despite slightly improved recoveries being observed for both silver and gold.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 34 |

CONCLUSION
The poor results obtained in that no high-grade metal concentrate could be produced, coupled with the fact that no extraction tests for silver and gold were conducted on the gravity concentrates produced, has resulted in the gravity concentration treatment option not being selected for further consideration.
13.3.2 FLOTATON
REVIEW OF RESULTS
The flotation results have been summarized in Table 13.10. The results indicate that the overall recoveries for both silver and gold are low, namely between 8 and 42% for silver and 12 to 48% for gold. The re-grinding of both tailings samples (Composite A and Composite B) are seen to improve the recoveries, while the testing of various reagent regimes also resulted in improvements to the overall recoveries of both silver and gold in some cases. However, the overall recoveries are generally considered to be low at less than 40% for silver and less than 48% for gold, and this is coupled with a very low grade concentrate being produced. This poor flotation response is probably the result of surface alterations and/or inadequate liberation of the silver and gold. No extraction tests were conducted on any of the flotation concentrates produced and so the total extent of extraction is not known. No tests were conducted on the sulphide tailings material (Composite C) and its response to flotation as a pre-concentration process is therefore not known.
CONCLUSION
Flotation will not be considered as a treatment option for the recovery of silver and gold from the oxide tailings dam material. For the reasons specified above, namely a generally low recovery of silver and gold, the option of using flotation to recover silver and gold will not be considered as a processing method in the treatment of the oxide tailings dam material.
13.3.3 CYANIDE LEACHING
REVIEW OF RESULTS
Cyanidation leach tests were done on samples from Composite A and Composite B under different conditions of particle size and solution cyanide concentration. The results have been summarized in Table 13.11. The results generally indicated that cyanidation was still occurring after 72 h of the leaching time used for the laboratory tests, but at a much reduced rate. The base metals copper and zinc also dissolved during the cyanide leach and will contribute to the overall consumption of cyanide. Increasing the cyanide concentration in the leach solution generally improved the extraction of silver and gold, but also increased the overall cyanide consumption. The extraction of silver and gold from Composite A increased with fineness of grind, while Composite B did not improve the extraction for finer grinds than P8 0 of 100 µm. The cyanide consumption figures are inconsistent in some cases although trends are apparent. Although limited test work was done on material from Composite C, namely the sulphide tailings, a set of results have been included in Table 13.14 below for purposes of comparison.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 35 |

Table 13.14 Cyanide Leaching Parameters

Sample Identify | Head Grade | Extraction (%) | Reagent Consumption (kg/t) | NaCN Concentration (g/l) | P80 (µm) | Remarks
Ag (g/t) | Au (g/t) | Ag (g/t) | Au (g/t) | NaCN | Lime
Comp. A | 94.7 | 0.35 | 66.4 | 81.5 | 1.8 | 1.4 | 1.0 | 269 | As-received sample
Comp. B | 95.9 | 0.28 | 69.1 | 82.0 | 2.6 | 1.8 | 1.0 | 180 |
Avg of A & B | 95.3 | 0.32 | 67.8 | 81.8 | 2.2 | 1.6 | 1.0 | 225 |
Comp. A | 94.7 | 0.35 | 79.3 | 85.7 | 1.6 | 1.8 | 1.0 | 103 | Reground sample
Comp. B | 70.3 | 0.52 | 77.1 | 88.3 | 1.7 | 1.8 | 1.0 | 100 |
Avg of A & B | 82.5 | 0.44 | 78.2 | 87.0 | 1.7 | 1.8 | 1.0 | 102 |
Comp. C | 39.8 | 0.34 | 73.8 | 77.3 | 4.0 | 2.8 | 1.0 | 69 |

CONCLUSIONS
As-received (unmilled) and reground tailings dam material will be expected to show the following extraction results under normal leaching conditions of about 68% for silver and 82% for gold. The reground material will give higher extractions at about 78% for silver and 87% for gold (see results in Table 13.13). Although the regrinding of tailings material is considered to be an expensive treatment method, cyanidation with and without regrinding as a treatment option will be reviewed and discussed in Sections 17.1.
1 3.3.4 COLUMN LEACH TEST
REVIEW OF RESULTS
One column leach test was conducted using a blend of equal proportions of as- received (unmilled) Composite A and Composite B oxide tailings material. Despite interruptions in the leaching cycle as a result of the de-agglomeration of material in the column and the resultant percolation of fines, the overall extraction of silver was 73% and 79% for gold (see Table 13.13 for the results). Although the test was terminated after a total leaching time of 81 d, indications were that the leaching process was nearing completion but had not finalized at that stage. The above extraction results compare very well with the average extraction results obtained from the bottle roll leach tests, namely 68% extraction for silver and 82% for gold. The cyanide consumption of 2.3 kg/t for the column test was also comparable with that obtained for the bottle roll leach tests, namely 2.2 kg/t. The lime consumption for the column test was significantly higher probably as a result of the two repeated agglomeration exercises.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 36 |

CONCLUSIONS
Although only one column leach test was performed, the extraction results are in keeping with those obtained from the bottle roll tests. The results as given in Table 13.13 will be used for developing the process design criteria.
13.3.5 PRECIOUS METAL RECOVERY
REVIEW OF RESULTS
Only one technology was tested for recovering precious metals from cyanide leach solutions. The pregnant solution arising from leach tests performed on oxide tailings material was used to conduct electrowinning tests. Three tests were conducted using the EMEW technology. These tests indicated that silver could be electrowon from solutions with a starting concentration of about 58 mg/L Ag to a depleted electrolyte with about 3 mg/L Ag. The deposition was also shown to be very selective with respect to the co-deposition of base metals. However, the pregnant solution from a leaching heap is expected to be significantly less than 58 mg/l Ag, possibly as low as 16 mg/L Ag. It is unclear whether the EMEW technology could operate efficiently under such low silver tenors.
The alternative process options for the recovery of precious metals would likely be either activated carbon, or the zinc precipitation method. No tests were conducted on these two process options. The use of an activated carbon circuit to recover silver is not recommended because of the added operational complexity. Also, the relatively high grade of the silver in solution will result in the treating of relatively large amounts of carbon, which will add to the cost of the project.
CONCLUSIONS
No other historical test work results were reported by MMI, nor are any alternative technology results known to have taken place, which tested the recovery of silver from the Avino Mine tailings material. The Merrill-Crowe process will therefore be the preferred technology to recover the silver and gold from pregnant leach solutions.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 37 |

14.0 MINERAL RESOURCE ESTIMATES

During the period from 1976 to 2001, the Avino Mine was in continuous operation and a nominal 5 Mt of ore was treated by the mill during that period of time. Ore production prior to 1993 (1992 has also been mentioned) was described as "oxide" and was mined from the open pit. As indicated in the MMI report dated May 2005, and the subsequently revised reports (Slim 2005a, 2005b, 2005c, 2005d), just over 2 Mt of oxide ore was apparently treated.
From 1993 to 2001, ore described as "sulphide" was mined and processed. MMI records indicate that a nominal 3 Mt of ore were treated. Since the sulphide tailings material was not a part of this technical study, no values have been assigned to the sulphide tailings during this study except in the section where a conceptual economic value was required for purposes of demonstration. In this case, the head grade values used were those originating from the samples used for the limited metallurgical test work program undertaken at PRA under the direction of MMI (Huang and Tan 2005). These assay values should in no way be construed as representing the assay values of the entire sulphide tailings deposited in the tailings dam. An independent and detailed sampling campaign would be required to evaluate the metal assays and content of the sulphide tailings.
As reported in Section 13.1.1, MMI estimated the volumes/tonnages, as well as the silver and gold grades of the oxide tailings (the Inferred Resource) to be as given in Table 13.1. This table is reproduced here as Table 14.1 for purposes of discussion.
Table 14.1 Oxide Tailings Dam Data

Source | Tonnes | Assays (g/t) | Bulk Density (g/cm3)
Ag | Au
Cia Minera, 1990 | 2,092,178 | 93.0 | 0.50 | 1.605
MMI, 2005 | 2,091,074 | 95.5 | 0.53 | 1.605

Of interest is that the tonnage of oxide tailings material available for treatment and given by the MMI reports as arising from the Cia Minera sampling program of 1990 is 2,092,178 t. This is the exact tonnage number given from a data sheet provided by Avino Mines and purporting to summarize the data from the 1990 sampling program. This summary sheet has been included in Appendix J and is titled “Bloque de Reservas, Presa de Jales”.
If the data presented on this sheet “Bloque de Reservas, Presa de Jales” was generated from the 1990 sampling program, then it would have excluded the oxide tailings deposited during the rest of that year (1990), as well as 1991, 1992 and the part of 1993 until the sulphide material became available. That would render the Cia Minera 1990 data as incomplete with respect to both tonnage calculations and tailings grade. The methodology adopted by Cia Minera to establish the values given in the data sheet, namely using a simplified block model, is also considered to be not technically valid but probably provides a reasonable estimation given the drilling pattern used for this exercise.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 38 |

Estimated tonnage calculations by MMI, using string traverse and an assumed triangular plan, as well as an arithmetic check of the 1990 data using block volumes, gave reasonable confirmation that between 2.0 and 2.3 Mt of oxide tailings were present in the tailings dam (Slim 2005d). However, no indication has been provided in the MMI reports as to the methodology used by MMI to establish the MMI 2005 value of 2,091,074 t of oxide material present in the tailings dam.
Tetra Tech did not independently verify the tonnage or grade of the tailings deposit. (See the report “A Tailings Resource” by Bryan Slim in Appendix H.)

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 39 |

15.0 MINERAL RESERVE ESTIMATES

Because the Mineral Resource is classified as “Inferred”, no mining criteria were applied to convert the resource to reserves.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 40 |

16.0 MINING METHODS

This Mineral Resource will be mined through surfaces methods. A truck/shovel arrangement is described below.
16.1 SCHEDULE
The plant will operate on a 24 h, 365 d basis with an overall utilization of 90%. For an oxide tailings treatment rate of 0.5 Mt/a, this would be equivalent to a throughput rate of 1,370 t/d or 63.4 t/h. This will give an overall project duration of four years. This four-year period will exclude the time required for site establishment and remediation of the heap after the leaching process has been completed.
16.2 EQUIPMENT
The mining equipment will operate on a different schedule than the plant. Loading operations will be conducted one 8 h shift per day, 5 d/wk. A four m3 front-end loader will be used to load three 20 t over-the-road (OTR) dump trucks that will either deliver the sulphide tailings to the sulphide stockpile or the oxide tailings to the 160 t oxide tailings hopper. Once the hopper is filled, excess tailings will be stockpiled around the hopper to be loaded by the process plant group on the weekends.
Because an old tailings dump is being mined, there are no blasting considerations, no pit will be excavated and no crushing will be performed by the mining group.
16.3 MODIFYING SITE CONSIDERATIONS
Certain areas of the tailings contain high amounts of moisture that can lead to equipment getting stuck. To mitigate this potentiality, wider, oversized tires with chains will be installed on the front-end loader. Also, the front-end loader bucket will be downsized. This will lighten the load on the front tires preventing them from sinking into saturated material. The trucks will not enter the soft zones so there will be no modifications to the trucks.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 41 |

17.0 RECOVERY METHODS

17.1 INTRODUCTION
It is assumed that only the approximately 2 Mt of oxide tailings will be reclaimed from the tailings dam for re-treatment for the recovery of silver and gold. The approximately 3 Mt of sulphide material will be moved from its present location and dumped at a new site near the proposed site of the heap leach plant. The sulphide tailings will therefore be loaded separately into trucks and dumped in a suitable
newly created sulphide tailings deposit facility. Although it has been estimated that there is approximately 3 Mt of sulphide tailings, it is not certain how much of this material will be moved to the new sulphide tailings dam site. Some of the sulphide tailings could be used in the building of the heap leach pad and its facilities, but no quantities have been estimated at this stage.
17.1.1 POTENTIAL REVENUE ESTIMATION
PREAMBLE
A very preliminary economic view has been taken in eliminating the process options discussed in Section 13.3. The only purpose of conducting this revenue estimate exercise is to determine order-of-magnitude costs, which can be compared in order to eliminate the obviously unrealistic process options. The only potential process
options that will be developed are those selected from the discussion in Section 13.3. The inherent value of the precious metals in the oxide tailings material of the Avino Mine tailings dam will now be calculated using the three process treatment options discussed previously. These treatment options are:
· cyanidation of the oxide tailings material without regrind
· cyanidation of the tailings with regrind
· heap leaching of the tailings without regrind.
Table 17.1 compares the estimated potential revenue of the three process treatment options for the oxide tailings only. The sulphide tailings are discussed in a later section in this report. Note that all references to costs are in US dollars.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 42 |

Table 17.1 Inherent Value of Oxide Tailings

| Process Treatment Options | Remarks
Cyanidation As-received | Cyanidation Reground | Heap Leach As-received
Tailings Dam (t) | 2,091,074 | 2,091,074 | 2,091,074 | MMI Technical Report
Available for Treatment (%) | 100.0 | 100.0 | 100.0 | -
Head Grade (g/t, Ag) | 95.5 | 95.5 | 95.5 | MMI Technical Report
Head Grade (g/t, Au) | 0.53 | 0.53 | 0.53 | MMI Technical Report
Metal Available (kg, Ag) | 199,697.57 | 199,697.57 | 199,697.57 | -
Metal Available (kg, Au) | 1108.27 | 1108.27 | 1108.27 | -
Extraction (%, Ag) | 67.8 | 78.2 | 73.0 | Data ex Tables 13/14
Extraction (%, Au) | 81.8 | 87.0 | 78.9 | Data ex Tables 13/14
Precipitation (%, Ag & Au) | 96.0 | 96.0 | 96.0 | Assumed value
Metal Recovered (kg, Ag) | 129,979.15 | 149,916.96 | 139,948.05 | -
Metal Recovered (kg, Au) | 870.30 | 925.63 | 839.45 | -
Metal Recovered (oz, Ag) | 4,178,959.73 | 4,819,980.10 | 4,499,469.91 | 1 kg = 32.151 oz
Metal recovered (oz, Au) | 27,981.07 | 29,759.82 | 26,989.07 | -
Silver Price ($/oz) | 20.59 | 20.59 | 20.59 | -
Gold Price ($/oz) | 1,271 | 1,271 | 1,271 | -
Silver Income Potential ($) | 86,044,781 | 99,243,390 | 92,644,085 | -
Gold Income Potential ($) | 35,563,940 | 37,824,731 | 34,303,108 | -
Total Potential Income ($) | 121,608,721 | 137,068,121 | 126,947,193 | -

CAPITAL AND OPERATING COST ESTIMATES
The estimated capital and operating costs of a standard layout cyanide leach plant will now be compared with the estimated capital and operating cost of a heap leach plant. A throughput of 1,370 t/d will be assumed for each option based on a four- year treatment period. These basic treatment costs specifically do not include the reclamation and relocation of the sulphide tailings dam material. The costs of the treatment options are summarized below in Table 17.2. These estimated capital and operating costs are based on data from Western Mining Engineering 2010 Handbook.
Table 17.2 Summary of Cost Estimates – Four-Year Treatment

Process Option | Capital Cost (US$ million) | Operating Cost (US$/t)
Cyanide Leach – no regrind | 37.93 | 11.18
Cyanide Leach – with regrind | 40.3 | 15.14
Heap Leach – Estimate I | 17.07 | 5.03
Heap Leach – Estimate II | 19.16 | 6.81

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 43 |

The cost estimates figures in Table 17.2 indicate that the estimated cost of a cyanide leach plant, without or with a regrind circuit, amounts to almost 40% of the total potential income for the metallurgical parameters while this amount for the heap
leach plant will be less than 20% of the total potential cost. These numbers are as determined by the MMI Technical Report and for the metal prices as quoted above. Both cyanidation process treatment options will therefore not be pursued any further. It should also be noted that this estimate is based on a treatment rate of 1,370 t/d.
HEAP LEACH PLANT
The capital cost for a 1,370 t/d (500,000 t/a) heap leach plant has been estimated to be between $17 million and $19 million with an estimated operating cost of between about $5/t and $7/t treated based on information available on similar operations. On the assumption that these numbers are reasonable estimates, it is seen that the potential net revenue is about $85 million over the four-year period of operation plus the time required for the project to be established, and project closure.
HEAP LEACH LAYOUT
The heap layout, heap lift height, and number of lifts, have been assumed for purposes of this report, and are detailed in Section 17.5 of this report. The maximum height has been restricted to 26 m as a result of the proximity of the proposed heap leach facility to the community of San Jose de Avino. This proposed height for the heap would require geotechnical verification. Despite the 26 m height proposed for the heap, this has resulted in a relatively large surface area being required for the leach pad. The site layout and available space, site drainage, and pad size have been done according to the most suitable surface area topography and the best available information. However, the close proximity of the proposed heap leach facilities to the community of San Jose de Avino, and its agricultural workings, may yet result in site and/or layout revisions.
17.2 SUMMARY
The unit processes selected were based on the results of metallurgical testing reported by MMI, along with resources set out by Avino Mines.
The treatment plant will consist of agglomeration and heap leaching, followed by a Merrill-Crowe process to recover silver and gold from pregnant solution.
The simplified flowsheet is shown in Figure 17.1. The detailed process flow diagrams are located in Appendix B.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 44 |

Figure 17.1 Simplified Process Flowsheet

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 45 |

17.3 MAJOR DESIGN CRITERIA
The heap leach has been designed to process 0.5 Mt of oxide tailings per year, this would be equivalent to a throughput rate of 1,370 t/d, and equivalent to 63.4 t/h at 90% running time.
The major criteria used in the design are outlined in Table 17.3. The complete design criteria are included in Appendix D of the Supporting Documents.
Table 17.3 Major Design Criteria

Criteria | Unit | Number
Operating year | d | 365
Overall plant availability | % | 90
Annual processing rate | t | 500,000
Daily processing rate | t/d | 1,370
Tailing bulk density | t/m3 | 1.605
Agglomerated tailing bulk density | t/m3 | 1.2407
Agglomerator feed size, P80 passing | µm | 225
Agglomerator product size, P80 passing | mm | 6 to 15
Moisture content of agglomerated geed | % | 12.5
Total loading/curing/leaching/rinsing cycle | d | 142
Cyanide solution strength | g/l | 0.5

The design parameters are based on test work results obtained by PRA but directed by MMI, using the results from “Metallurgical Test Work on Avino Tailings, Durango, Mexico” Project No. 0406407 dated March 28, 2005 and, more recently the report titled “Avino Silver and Gold Mines Ltd, A Tailings Resource”, issued in July 2005.
17.4 PLANT DESIGN
1 7.4.1 OPERATING SCHEDULE AND AVAILABILITY
The plant will be operated on a 24 h/d, 365 d/a basis, with an overall utilization of 90%.
17.5 PROCESS PLANT DESCRIPTION
The following is a conceptual description of the reprocessing of the tailings material using the heap leach method.
The plant will operate on a 24 h, 365 d basis with an overall utilization of 90%. For an oxide tailings treatment rate of 0.5 Mt/a, this would be equivalent to a throughput rate of 1,370 t/d or 63.4 t/h. This will give an overall project duration of four years.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 46 |

This four-year period will exclude the time required for site establishment and remediation of the heap after the leaching process has been completed.
The mining equipment will operate on a different schedule than the plant. Loading operations will be conducted one 8 h shift per day, 5 d/wk. A front-end loader will be used to load three 20 t OTR dump trucks that will either deliver the sulphide tailings to the sulphide stockpile or the oxide tailings to the 160 t oxide tailings hopper. Once the hopper is filled, excess tailings will be stockpiled around the hopper to be loaded by the process plant group on the weekends. The sulphide stockpile is situated immediately to the north-east of the heap leach pad.
Certain areas of the tailings contain high amounts of moisture that can lead to equipment getting stuck. To mitigate this potentiality, wider, oversized tires with chains will be installed on the front-end loader. Also, the front-end loader bucket will be downsized. This will lighten the load on the front tires preventing them from sinking into saturated material. The trucks will not enter the soft zones so there will be no modifications to the trucks.
A dribble chute will feed the tailings from the hopper onto a conveyor belt. Cement and lime will be added to the tailings under controlled addition rate conditions. Although some operations add solid dry, flake cyanide to the agglomerator feed material, this option will not be exercised in this case. The cement and lime will be added from their respective bulk storage silos. A 50 t capacity cement storage silo equipped with a dust collection filter and a cement blower will be required, as well as a 30 t capacity lime storage silo similarly equipped with a dust collection filter and a lime blower. Each reagent delivery system will be controlled by a weightometer prior to feeding the tailings material conveyor belt feeding the agglomerator drum. The design treatment rate will be 63.4 t/h of tailings material with an average moisture content of 10%. Water, or barren solution, will be added to the agglomerator to provide for an overall moisture content of about 12.5 to 15% to the leach pad feed material. Two 1 t capacity cyanide mixing and storage tanks will be positioned at the Merrill-Crowe facility. Cyanide will be diluted to 20% strength, and then injected into the solution distribution system going to the agglomerator, the heap and Precipitation Filter Press.
The agglomerator will be a drum type unit with a diameter of 1.8 m and a length of 4.0 m rotating at 10.5 rpm and with a variable angle of 2.5, 5 or 7.5°. Agglomerated material will be discharged onto a conveyor belt, then on to a series of jump conveyors, and then deposited on the heap leach pad by a Radial Telestacker. A curing time of five days will be allowed before spraying of the agglomerates with cyanide-bearing leach solution commences.
There will be one leach pad only. The leach heap dimensions will be an estimated 243 m wide and 282 m long and includes a surrounding berm of 6.5 m in width.
There will be four lifts over the four year treatment period. Each lift will be 6.5 m high giving the heap an overall height of 26 m.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 47 |

The heap leach process will operate with three solution ponds. Solution from the Barren Solution Pond will be pumped to the leach heap. Concentrated cyanide solution will be added to the Barren Solution Pond where it will be mixed to give a controlled cyanide concentration of about 0.5 g/L NaCN strength. The pH will be maintained at 10.5. This solution will be distributed over the leach pad using i rr i g a t i on p i p es a n d d r i p s f or an o v e r a l l s o l u t i o n f e ed i ng r a t e of a bout 7.3 L/h/m2 (0.002 L/s/m2). A total leaching duration of 130 d will be allowed, followed by an ash/rinse cycle of seven days resulting in a total loading, leaching and rinsing cycle of 142 d.
The overall life of a pad on a per lift basis is 365 d. The total calculated amount of area of pad under irrigation per day will be 22,413 m2, with 1,210 m2 being rinsed every day. The calculated volume of solution pumped to the heap will be 173 m3/h of which a nominal 9 m3/h will be rinse solution. A total solution evaporation loss of 10% is assumed.
The 173 m3/h pregnant solution collected from the leach pad will be directed to the Pregnant Solution Pond. The solution from the Pregnant Solution Pond will be pumped to the Merrill-Crowe plant for silver and gold recovery by precipitation with zinc dust and filtration of the precipitate. The barren solution will then be returned to the Barren Solution Pond. Solution from the Pregnant Solution Pond can overflow into the Barren Solution Pond should this be required. Solution from the Barren Solution Pond can also overflow into the Overflow Solution Pond. This Overflow Solution Pond will also collect excess water and drainage solution from the heaps and the plant environs. The Overflow Solution Pond will also supply make-up water to the process by pumping the water back to the Barren Solution Pond. Alternatively, excess solution from this pond will be treated in the Effluent Treatment section prior to discharge in the river. Water drawn from this pond will be treated with calcium hypochlorite in an agitated treatment tank to reduce the cyanide levels to acceptable limits prior to discharging this water to the environment, or re-using this water as process water.
The Merrill-Crowe section will receive the pregnant solution, which will be pumped to the clarifier filter together with filter aid pre-coat and body feed. The slurry from the backwash cycles will be pumped to an inactive part of leach heap. The clarified solution will be pumped to the de-aeration tower where the solution will be de- oxygenated and a slurry of zinc dust, lead nitrate, cyanide and filter aid will be pumped into the de-aerated solution after the towers but ahead of the precipitate filters. The zinc dust, lead nitrate and filter aid will be made up into a slurry at the required dosage rate in the precipitate mixing tank and cyanide will be added as needed. The cementation reaction occurs at the point of introduction of the slurry to the de-aerated solution. This reaction normally requires about two to five minutes for completion. The reaction should be complete by the time the now-barren solution exits the precipitate filter to barren solution tank and from there it will flow into the Barren Solution Pond where the pH will be adjusted to 10.5 with lime if necessary and then be pumped back to the heap for leaching.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 48 |

The addition of zinc dust has been calculated on the basis of 10 g of zinc dust per 1 g of silver plus gold in order to ensure that the cementation reaction will be driven to completion. Although precipitation efficiencies are normally considered to be higher than 99.5%, in this case 96% has been selected since no test work has been conducted on pregnant solution from this material. The cyanide concentration of the pregnant solution should be a minimum of about 100 mg/L as free cyanide, and will be monitored on a regular basis. The lead nitrate addition will be calculated on the basis of about 2 mg/L of solution and will be added to improve the precipitation efficiency. About 50% of the total required amount of the lead nitrate will be added to the pregnant solution prior to the clarifier filter in order to precipitate detrimental impurities. These impurities will then be removed in the clarifier filter. Although no anti-scalant reagents have been included in the study, any reagents of this nature should be tested to determine its effect on the precipitation efficiency.
The silver-rich precipitate which contains the gold and excess zinc flows to the Acid Vat tank where the excess zinc can be dissolved by adding adequate amount of sulphuric acid to the system and from there it will be pumped to the digest precipitate filter press. This precipitate from the filter press will be dried in an oven prior to a smelting furnace for dore production. It is anticipated that the total metal precipitate production per day will be about 461 kg/d (dry basis). The silver and gold content will be about 20%, or 92.2 kg (silver and gold).

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 49 |

18.0 PROJECT INFRASTRUCTURE

This section is not applicable. Refer to sections 5.0 and 17.0.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 50 |

19.0 MARKET STUDIES AND CONTRACTS

This section is not applicable.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 51 |

20.0 ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR COMMUNITY IMPACT

20.1 ENVIRONMENTAL STUDIES
ABA tests have indicated that mild acid generation may already have started on the tailings dam. Processing of at least the oxide tailings will mitigate these concerns. However, the sulphide tailings have been shown to be potential net acid producers. Re-locating the sulphide tailings may afford a timeous opportunity to address this potential environmental problem. Alternatively, the treatment of the sulphide tailings for gold recovery will afford an opportunity to recover silver and gold from the material as well as treating this material with the lime to ensure that this material will not be a net acid producer (see discussion in the Section 24.3).
20.2 PERMITTING
It is assumed that no other costs or claims are associated with this project. Thus the cost of permitting has not been considered, and neither has the cost of expropriating agricultural land for the leach pad, nor the cost of water which would have to be re- directed to the heap leach project but which is currently used for agricultural purposes.
20.3 MINE CLOSURE
Remediation work will also be required at the end of the life of the heap leach project. No cost estimates have been undertaken to ensure the heap meets the environmental requirements once the processing of the heap material has been terminated.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 52 |

21.0 CAPITAL AND OPERATING COSTS

The estimated capital cost for the construction of the heap leach pad and the treatment facilities has been calculated to be US$29.1 million, and the estimated operating costs are US$14.25/t. These cost items are described in the following sections and the details are given in the appendix.
21.1 CAPITAL COSTS
2 1.1.1 PURPOSE AND CLASS OF ESTIMATE UPDATING
The purpose of this section is to describe the methodology in the updating of the Avino Tailings Retreatment Process Option Scope Study Capital Cost estimate.
The estimate is a preliminary economic assessment (PEA) class IV estimate prepared in accordance with industry standard. The accuracy of the estimate is -25%/+40% which is suitable for client review and the NI 43-101 report.
2 1.1.2 INTRODUCTION
The capital cost for the Avino Mines heap leach project has been developed on the basis of the treatment of 1,370t/d, or 500,000 t/a, of oxide tailings. In 2005, a total cost of US$16.2 million, including contingency, was estimated as capital expenditure (CAPEX) for this project.
The cost estimate update includes the following items:
· A new equipment list is generated with process engineering, quotations for major equipment are obtained and replace the previous estimate.
· All the previous estimate in 2006 is escalated to reflect the current cost.
2 1.1.3 PRICING AND CURRENCY
This PEA study estimate is prepared with a base date of Q4-2011 and has not included any escalation beyond this date.
For major equipment, costing is based on budgetary quotations from vendors. Other mechanical equipment costs are based on in-house data from recent projects.
All project capital costs are expressed in US dollars with the following provisions:
· Any costs in Canadian dollars and other currencies are converted into US dollars based on an exchange rate of 1.1.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 53 |

· No provision is made for fluctuations in the currency exchange rates
The following currency exchange rates (see Table 21.1) are used in the estimate:
Table 21.1 Currency Exchange Rate

Currency | Exchange
Cdn $1.00 | US$0.95
EUR €1.00 | US$1.50

Note: EUR = Euro currency
2 1.1.4 CONSTRUCTION LABOUR RATES
A blended labour rate of $9.75/h was used in previous estimate. In the updated cost estimate, escalation from 2006 to 2011 is calculated and applied. The inflation rate is noted in next section.
2 1.1.5 INFLATION RATE
An inflation rate has been applied to reflect the current cost of the project (Table 21.2). The escalation is based on inflation rate (consumer prices) in Mexico (Index Mundi 2011, www.indexmundi.com).
Table 21.2 Inflation Rates in Mexico

Year | Rate
2006 | 3.4
2007 | 4
2008 | 5.1
2009 | 3.6
2010 | 4.1

An estimate of 5% inflation rate is given for 2011.
An over-all of 30% inflation rate from 2005 to 2011 is calculated and applied in the updating estimate.
2 1.1.6 DIRECTCOSTS
The equipment list has been updated based on the process flow diagram (PFD) document. The costs of equipment are estimated based on the changes.
Other disciplines than mechanical equipment carry previous cost estimate with escalation applied only.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 54 |

2 1.1.7 INDIRECT COSTS
All the indirect costs have been estimated based on percentage of direct cost using the same percentage numbers from previous estimate.
2 1.1.8 CONTINGENCY AND RISK
A contingency of 25% will be applied to the direct and indirect capital costs for the PEA study to meet anticipated, foreseen but incompletely defined costs to satisfy the approved scope.
2 1.1.9 ASSUMPTIONS AND EXCLUSION
It is assumed no design change other than equipment list updating.
It is assumed all the material take-offs (MTOs) from previous estimate are valid.
2 1.1.1 0 CAPITAL COSTS SUMMARY
The capital cost for the Avino Mines heap leach project has been assessed at US$29.1 million. Recognizing that the duration of the project is only four years, the costs of the equipment and infrastructure have been kept as low as realistically possible. However, the capital costs are based on new equipment. The capital costs are summarized in Table 21.3.
Table 21.3 Capital Cost Estimate – Summary

Item/Description | Total Cost (US$)
Mining, Agglomeration, and Pad Loading | 3,293,320
Process Facilities | 3,905,528
Reagents/Auxiliary Services | 501,750
Buildings | 932,763
Leach Pad and Infrastructure | 7,414,974
Power Supply and Distribution | 1,457,296
Total Direct Costs | 17,505,632
EPCM, QA and Vendor Representatives | 2,658,728
Freight and Construction Indirects | 3,146,235
Contingency | 5,828,000
Total Indirect Costs | 11,632,964
Total Project Capital Cost Estimate | 29,138,596

Note: Engineering, procurement and construction management (EPCM)

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 55 |

MINING, AGGLOMERATION AND PAD LOADING
These costs include the facilities required for the transferring the tailings from the existing tailing dam to the dump bin for oxide tailings and to the sulphide stockpile for the sulphide tailings using the front end loader and trucks. It also includes the facilities required for the loading of the tailings into a bin to feed the conveyor to the agglomerator, and includes the agglomerator and its structural supports as well as the ancillary equipment. This section also includes the lime and cement silos.
PROCESS FACILITIES
The costs in this section include the various items of equipment, the tanks and their attendant pumps and agitators (if equipped), the Merrill-Crowe circuit (supplied as a modular package unit) and other miscellaneous process-related equipment. The process equipment is estimated as new cost items.
REAGENTS AND AUXILIARY SERVICES
The costs derived for this section includes reagent tanks and related equipment as well as civil construction costs. Water will be supplied from the existing sources, namely from the dams and/or the wells. The costs shown for the fresh water supply includes the refurbishing of the equipment and pumps. Safety items related to reagent handling have also been included.
BUILDINGS
The existing buildings and offices of the Avino Mine will be utilized for the project. An allowance has been included for the refurbishment of these facilities. No costs have been allocated for the truck shop since it is intended to have a transport contractor to provide all the transportation needs for the project. An allowance has been included for the procurement/refurbishing of laboratory equipment.
LEACH PAD AND INFRASTRUCTURE
The civil construction costs of upgrading the roads and constructing the leach pad and ponds are given in this section. The leach pad will be constructed according to standard practice with liners and a leak detection system. The ponds will all be lined. Also included is the cost of fencing off the plant area, the telephone system, sewage disposal, water supply and treatment, and fuel storage facilities. The existing fuel storage facilities will be used but this will require refurbishing and this cost has been provided in this section.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 56 |

POWER SUPPLY AND DISTRIBUTION
The refurbishing and expanding of the existing electrical power supply system, along with lighting, has been included in this section. It also includes power to the agglomerator area and the Merrill-Crowe area.
INDIRECT COSTS
Indirect costs have been included as costs associated with construction services, consulting services, spare parts and freight. A contingency of 25% has been included in the indirect costs.
No sunk costs, owner's costs, taxes, or insurance costs have been added to the capital cost estimates as detailed above.
21.2 OPERATING COSTS
2 1.2.1 PROCESS OPERATING COST ESTIMATE
The process operating costs for the Avino tailing retreatment includes agglomeration, heap leaching followed by Merrill-Crowe refinery plant to produce a silver/gold dore. General & Administrative (G&A) costs have also been estimated and are included in the operating cost estimate. The operating costs will be reported in US dollars with an exchange rate of New Mexican Peso to US dollars at 12.5.
OPERATING COST SUMMARY
Table 21.4 gives the overall estimated cost summary for the processing facility and the G&A costs, and is based on 1,370 t/d with an availability of 92% and 365 operating days per year.
The annual operating cost for the process facilities is estimated to be US$6.3 million or US$12.74/t of tailings treated at the processing rate of 1,370 t/d. An incremental increase in G&A operating cost is estimated to be US$750,000, or US$1.5/t of tailings treated.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 57 |

Table 21.4 Operating Cost Summary

Description | Personnel | Annual Cost (US$) | Unit Cost (US$/t Treated)
Maintenance Labour | 7 | 175,104 | 0.35
Operations Labour | 35 | 545,832 | 1.09
Laboratory | 7 | 139,536 | 0.279
Sub-total | 49 | 860,472 | 1.72
Operating Supplies | - | 4,582,421 | 9.16
Maintenance Supplies | - | 450,000 | 0.9
Power Supply | - | 479,947 | 0.96
Sub-total | - | 5,512,368 | 11.02
Total Process Operating Costs | 49 | 6,372,840 | 12.74
G&A Staff | 11 | 262,656 | 0.53
G&A Expenses | - | 490,000 | 0.98
Total G&A Costs | 11 | 752,656 | 1.51

The annual operating cost estimate includes the following:
· staffing and maintenance manpower complements and base salaries, including a burden of 42.5%, salary information is based on staffing complements as supplied by Avino, similar project salary cost and Tetra Tech in-house data
· power consumption, based on the estimated power drawn by the equipment
reagent consumption rates and associated costs has been based on recent prices received from reagent suppliers
· an estimated maintenance costs which was based on the capital cost estimate.
MANPOWER
Table 21.5 gives the estimated operating and maintenance manpower requirements for the process plant and Table 21.6 gives the G&A complement.
Table 21.5 Process Plant Manpower Requirements

Description | Manpower | Loaded Annual Salary (US$) | Annual Cost Payroll (US$) | Unit Cost (US$/t Milled)
Average Benefit Rate / Burden | - | 42.5% | - | -
Plant Maintenance
Maintenance Manager | 1 | 47,880 | 47,880 | 0.096
Leach Plant Maintenance Foreman | 1 | 38,304 | 38,304 | 0.077
Mechanics | 1 | 20,520 | 20,520 | 0.041

Table continues…

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 58 |

Description | Manpower | Loaded Annual Salary (US$) | Annual Cost Payroll (US$) | Unit Cost (US$/t Milled)
Welders | 1 | 20,520 | 20,520 | 0.041
Electricians | 1 | 20,520 | 20,520 | 0.041
Apprentices | 2 | 13,680 | 27,360 | 0.055
Sub-Total 1 | 7 | - | 175,104 | 0.035
Operations
Plant Superintendent | 1 | 68,400 | 68,400 | 0.137
Engineering and Planning Manager | 1 | 47,880 | 47,880 | 0.096
Plant Shift Foremen | 3 | 24,624 | 73,872 | 0.148
Front End Loader Operator | 1 | 13,680 | 13,680 | 0.027
Dump Truck Driver | 3 | 13,680 | 41,040 | 0.082
Dozer Operator | 6 | 13,680 | 82,080 | 0.055
Plant Operator: Agglomerator | 3 | 10,944 | 32,832 | 0.066
Plant Operator: Conveyors | 3 | 10,944 | 32,832 | 0.066
Plant Operator: Merrill Crew | 6 | 10,944 | 65,664 | 0.131
Day Crew Reagents | 2 | 10,944 | 21,888 | 0.044
Day Crew Heap Piping | 6 | 10,944 | 65,664 | 0.131
Sub-Total 2 | 35 | - | 545,832 | 1.092
Laboratory
Chief Assayer | 1 | 41,040 | 41,040 | 0.082
Assayer | 6 | 16,416 | 98,496 | 0.197
Sub-Total 3 | 7 | - | 139,536 | 0.279

Table 21.6 G&A Requirements

Description | Manpower | Annual Cost/ Employee (US$) | Annual Cost Payroll (US$) | Unit Cost (US$/t Milled)
General Manager | 1 | 75,240 | 75,240 | 0.150
Administration Manager | 1 | 27,360 | 27,360 | 0.055
First Aid Attendant | 1 | 20,520 | 20,520 | 0.041
Purchasing Agent | 1 | 27,360 | 27,360 | 0.055
Office Clerk | 1 | 13,680 | 13,680 | 0.027
Computer Technician | 1 | 16,416 | 16,416 | 0.033
Safety & Security | 2 | 13,680 | 27,360 | 0.055
Warehouse Staff | 2 | 13,680 | 27,360 | 0.055
Environmental Supervisor | 1 | 27,360 | 27,360 | 0.055
Total G&A Manpower | 11 | - | 262,656 | 0.525

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 59 |

Assumptions Usedinthe Manpower Estimate
The operating costs have been determined using the operating plant complement required to run and maintain the plant facilities.
POWER AND SUPPLIES
Table 21.7 through to Table 21.10 show the operating cost details relating to power and supplies, as well as the G&A expenses.
Table 21.7 Power Supply Required for Process

Plant Power Supply | 842.9 kW Running
kWh/year | Unit Cost (US$/kWh) | Total Cost (US$/year) | Unit Cost (US$/t Milled)
Plant Power | 7,383,804 | 0.065 | 479,947 | 0.96
Total Power Supply | - | - | 479,947 | 0.96

Table 21.8 Maintenance Supplies

Area | Total Cost (US$/year) | Unit Cost (US$/t Ore)
Conveyors | 100,000 | 0.2
Agglomerator | 50,000 | 0.1
Leach Plant & Refinery Supplies & Maintenance | 50,000 | 0.1
Merrill-Crowe | 250,000 | 0.5
Total Maintenance Supplies | 450,000 | 0.9

Table 21.9 Plant Operating Supplies

Supplies | Consumption (kg/t Milled) | Unit Cost (US$/kg) | Total Cost (US$/year) | Unit Cost (US$/t Milled)
Reagents
Cement | 10.90 | 0.20 | 1,090,109 | 2.18
Lime | 6.865 | 0.11 | 360,449 | 0.72
Cyanide | 0.928 | 2.45 | 1,136,914 | 2.27
Zinc Dust | 0.96 | 3.20 | 1,536,154 | 3.07
Lead Nitrate | 0.19 | 0.25 | 23,752 | 0.05
Filter -Aid | 0.10 | 0.85 | 42,504 | 0.09
Pre-Coat | 0.10 | 0.09 | 4,500 | 0.01
Sodium Hydroxide | 0.09 | 1.00 | 45,005 | 0.09
Sulphuric Acid | 0.76 | 0.85 | 323,032 | 0.65
Calcium Hypochlorite | 0.05 | 0.80 | 20,002 | 0.04
Total Operating Supplies | - | - | 4,582,421 | 9.16

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 60 |

Table 21.10 G&A Expenses

Description | Total Cost (US$/a) | Unit Cost (US$/t Milled)
Communications | 36,000 | 0.072
Consulting | 30,000 | 0.060
HR & Employee Costs | 10,000 | 0.020
Vehicle Costs | 20,000 | 0.040
Site Costs | 24,000 | 0.048
Office Costs | 24,000 | 0.048
Safety & Security | 24,000 | 0.048
Travel | 36,000 | 0.072
Water Costs | 24,000 | 0.048
Housing Costs | 30,000 | 0.060
Insurance | 60,000 | 0.120
Environmental
Consumables & Supplies | 24,000 | 0.048
Permitting | 24,000 | 0.048
Water Analysis | 24,000 | 0.048
Dore Transportation | 100,000 | 0.200
Total G&A Expenses | 490,000 | 0.980

Table 21.7 gives the annual power requirements for the process sections based on the estimated power usage. The unit cost of power was given to be US$0.065/kWh and equates to US$0.96/t of tailings processed.
The annual maintenance supplies requirement for the plant has been estimated for each of the sections, and these costs are shown in Table 21.6. The plant cost of maintenance supplies has been calculated to be US$450,000, or US$0.90/t of oxide tailings treated.
The annual estimated plant operating supplies requirements are provided in Table
21.9. The total cost of operating supplies for the main plant which mostly includes the cost of the reagents has been determined to be US$4.6 million, or US$9.16/t of tailings treated.
Table 21.10 details the annual G&A expenses and the unit G&A expenses operating cost has been calculated to be US$0.98/t of oxide tailings treated.
Assumptions Used in Power and Supplies Requirements
The estimated power requirements for the process sections are given as a total value in Table 21.7. The power value records the anticipated annual operating power
usage and not the installed power for the equipment. The complete equipment list and electrical load list are located in the Appendix F. The unit electrical cost of US$0.065/kWh was provided by Avino Mines.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 61 |

The costs of the plant operating supplies include the reagent costs for the usage as given in the process design criteria.
The maintenance supplies costs are estimated values and are reflected as an allowance as based on a percentage of the capital cost estimate. Similarly, the G&A expenses have been based on estimated allowance values.
21.3 COMMENTS REGARDING THE COST ESTIMATES
It can be seen that the calculated capital and operating cost estimates are higher than the estimates previously given in Section 17.1.1 which were referencing average industry costs. This possibly implies that there are costs which could be reduced in a future feasibility study for Avino Mines. The reagent consumption values, although considered to be reasonable estimates, are based on the outcome of one test only and all these numbers therefore require confirmation, while the staff complement for the proposed heap leach treatment facility should also be updated, and the work schedules require confirmation. It is anticipated that a relief (4th shift) may have to be factored into the staff structure. A review of the processing section may also result in some power savings.
In summary, it should be noted that the above cost estimates are based on the best available information and assumptions made, and these have all been discussed in the report. The costs are very sensitive to the price of silver and gold, the extraction recoveries used in developing the cost analysis, reagent consumption values (especially cyanide and zinc dust), and the head grade of the material to be treated. The availability of more detailed and accurate metallurgical information will assist in providing more accurate information for the feasibility study phase of the tailings treatment project.
The capital costs are based on purchasing new equipment for the project. Selecting good and suitable used equipment (if available) could reduce the overall cost of construction.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 62 |

22.0 ECONOMIC ANALYSIS

22.1 INTRODUCTION
Tetra Tech prepared an economic evaluation of Avino Mine tailings retreatment scoping study based on a pre-tax financial model.
Tetra Tech’s long-term consensus metal prices (as of January 27, 2012) used in the base case were as follows:
· gold – US$1,271.00/oz
· silver – US$20.59/oz
The pre-tax financial results were as follows:
· 60% internal rate of return (IRR)
· 1.5-year payback
· US$38.2 million net present value (NPV) at 8% discount rate.
Sensitivity analyses were conducted to analyze the sensitivity of the project merit measures (NPV, IRR and payback periods) to the main inputs.
22.2 PRE - TAX MODEL
2 2.2.1 MINE/METAL PRODUCTION IN FINANCIAL MODEL
The life-of-project average material tonnages, grades and metal production are indicated in Table 22.1.
Table 22.1 Metal Production from the Avino Mine Tailings Retreatment

Description | Value
Total Tonnes to Mill (‘000) | 2,091
Annual Tonnes to Mill (‘000) | 523
Mine Life (Years) | 4
Average Grades
Gold (g/t) | 0.53
Silver (g/t) | 95.50
Total Production
Gold (‘000 oz) | 27
Silver (‘000 oz) | 4,499

Table continues…

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 63 |

Description | Value
Average Annual Production
Gold (‘000 oz) | 6.75
Silver (‘000 oz) | 1,124.86

2 2.2.2 BASIS OF FINANCIAL EVALUATIONS
The production schedule has been incorporated into the 100% equity pre-tax financial model to develop annual recovered metal production from the relationships of tonnage processed, head grades, and recoveries.
All costs and revenues are assumed to occur at the end of the years.
Gold and silver payable values were calculated based on base case metal prices. Net Invoice Value (NIV) was calculated each year by subtracting the applicable refining charges from the payable metal value. At-mine revenues are then estimated by subtracting transportation and insurance costs. Unit operating costs for mining, processing, power, fuel, and G&A were applied to annual mined/milled tonnages to determine the overall operating cost which was deducted from the revenues to derive annual operating cash flow.
Initial capital costs as well as working capital have been incorporated on a year-by- year basis over the mine life. Salvage value and mine reclamation costs are applied to the capital expenditure in the last production year. Capital expenditures are then deducted from the operating cash flow to determine the net cash flow before taxes.
Initial capital expenditures include costs accumulated prior to first production of concentrate. No sustaining capital is included in this study. Pre-production period is assumed to be one year.
Working capital is assumed to be three months of the annual operating cost and fluctuates from year to year based on the annual cost. The working capital is recovered at the end of the mine life.
The salvage value is assumed to be 2% of the initial capital cost and recovered at the end of mine life.
Mine closure and reclamation is assumed to be US$0.1/t mined and incurred at the end of mine life.
The undiscounted annual net cash flows (NCF) and cumulative net cash flows (CNCF) are illustrated in Figure 22.1.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 64 |

Figure 22.1 Undiscounted Annual and Cumulative Net Cash Flow
22.3 SUMMARY OF FINANCIAL RESULTS
Tetra Tech evaluated the base case using consensus gold and silver prices of US$1,271.00/oz and US$20.59/oz, respectively.
The pre-tax financial model was established on a 100% equity basis, excluding debt financing and loan interest charges. The financial results for the base case and for an alternative case based on spot metal prices as of February 23, 2012 are presented in Table 22.2.

Table 22.2 Summary of Pre-Tax Financial Results |  |
Description | Base case | Spot prices case
Gold Price (US$/oz) | 1,271.00 | 1,770.00
Silver Price (US$/oz) | 20.59 | 34.00
Total Payable Metal Value (‘00 0 US$) | 121,971 | 192,624
Refining (‘00 0 US$) | 4,488 | 4,488
Total NIV (‘00 0 US$) | 117,483 | 188,136
Transportation, Insurance (‘00 0 US$) | 176 | 282
At-mine Revenue (‘0 0 0 US$) | 117,306 | 187,854
Royalties (‘0 0 0 US$) | 0 | 0
Operating Costs (‘000 US$) | 32,156 | 32,156
Operating Cash Flow (‘000 US$) | 85,150 | 155,698
Capital Expenditure, Including Reclamation and Salvage (‘00 0 US$) | 28,765 | 28,765
Net Cash Flow (‘00 0 US$) | 56,386 | 126,933

Table continues…

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 65 |

Description | Base case | Spot prices case
DCF NPV (‘000 US$) at:
0.00% | 56,386 | 126,933
5.00% | 44,181 | 103,742
8.00% | 38,199 | 92,288
10.0 0% | 34,669 | 85,493
Payback (years) | 1.5 | 0.8
IRR | 60% | 125%

22.4 SENSITIVITY ANALYSIS
Sensitivity of the project’s NPV, IRR and payback period to the project key variables was investigated. Using the base case as a reference, each of key variables is changed between -30%/+30% at 10% interval while holding the other variables constant. The following are the key variables investigated:
· gold (AuP) and silver (AgP) prices
· capital costs CAPEX
· operating costs (OPEX).
As shown in Figure 22.2, the project NPV, calculated at 8% discount, is most sensitive to the silver price (AgP) and, in decreasing order: gold price (AuP), operating costs and capital costs. The lines representing the capital and operating costs are overlaying as they have similar effect on the NPV.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 66 |

As shown in Figure 22.3, the project IRR is most sensitive to the CAPEX and AgP, followed by AuP and operating costs.
As shown in Figure 22.4, the payback period is also most sensitive to the AgP, followed capital costs, operating costs and AuP.
22.5 ROYALTIES
No royalties are considered in the financial analysis.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 67 |

22.6 SMELTER TERMS
In the absence of letters of interest or letters of intent from potential smelters or buyers of gold and silver dore, smelter terms for similar projects have been applied.

| · | G o l d –pay 99% on the gold less a refining charge of $8.00/accountable troy oz from the London Metal Exchange (LME) price.

| · | S il v er – pay 95% on the silver less a refining charge of $1.00/accountable troy oz from the LME price.

22.7 TRANSPORTATION LOGISTICS
Transportation costs for gold and silver dore are assumed to be included in the refining charges.
2 2.7.1 INSURANCE
An insurance rate of 0.15% was applied to the provisional invoice value of the dore.
2 2.7.2 OWNERSREPRESENTATION
Not considered.
2 2.7.3 LOSSES
Not considered.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 68 |

23.0 ADJACENT PROPERTIES

This section is not applicable.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 69 |

24.0 OTHER RELEVANT DATA AND INFORMATION

24.1 REFURBISHED EQUIPMENT
The suitability and/or the possibility of refurbishing the existing equipment at the Avino Mines plant site also needs to be evaluated more specifically. Some water pumps, and possibly some conveyors, could be returned to service, and some of the existing tanks could be used for water storage/supply. However, it does not appear as if any other equipment could be salvaged and/or refurbished for use in a heap leach plant. The general availability of used equipment from other locations in the Durango district, or in Mexico, would need to be investigated.
24.2 ASSAY LABORATORY EQUIPMENT
The assay laboratory would require re-equipping with suitable equipment. The availability of suitable used laboratory equipment and facilities is also not known.
24.3 SULPHIDE TAILINGS
The option of whether the sulphide tailings should be re-treated on the heap, or re- located and dumped elsewhere while possibly being treated for environmental remediation, is not known at this stage. The absence of reliable sulphide tailings dump metallurgical information makes quantification of this option difficult. A detailed trade-off study should be undertaken to determine whether the re-treatment of this material would contribute to the profitability of the project. However, at this stage only limited metallurgical test data is available since no detailed metallurgical test work was undertaken on this material during the MMI 2004 test program. Based on the assumption that 65% of the silver and gold would be recovered by heap leaching under the same conditions as given for the oxide tailings, Table 24.1 gives the potential income from treating this sulphide tailings material. The operating costs will probably be higher for this material than for the oxide material because of the increased requirements for lime and cyanide, but this cannot be quantified at this stage because of the lack of detailed test information. However, there will be a cost in relocating the sulphide material if it is not treated for silver and gold recovery on the heap. Indications are that the sulphide tailings will also require treatment for environmental remediation purposes in the future. These costs could be partially or completely be off-set by treating this material separately or together with the oxide material by the heap leach process.
The assumed sulphide tailings grade at 37.8 g/t Ag and 0.34 g/t Au is lower than the assumed oxide tailings grade of 95.5 g/t Ag and 0.53 g/t Au. Also, in the absence of specific metallurgical extraction information, the estimated recovery for the sulphide material has been set at 65% which is lower than that for the oxide material. Despite this, the apparent potential income of about $70 million is significant.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 70 |

Table 24.1 Estimated Inherent Value of Sulphide Tailings

| Process Treatment Options | Remarks
Cyanidation As-received | Cyanidation Reground | Heap Leach As-received
Tailings Dam (t) | 2,900,000 | 2,900,000 | 2,900,000 | MMI Technical Report
Available for Treatment (%) | 100.0 | 100.0 | 100.0 | -
Head Grade (g/t, Ag) | 37.78 | 37.78 | 37.78 | MMI Technical Report
Head Grade (g/t, Au) | 0.34 | 0.34 | 0.34 | MMI Technical Report
Metal Available (kg, Ag) | 109,562.0 0 | 109,562.0 0 | 109,562.0 0 | -
Metal Available (kg, Au) | 986.0 0 | 986.0 0 | 986.0 0 | -
Concentration (g/L, NaCN) | 1.0 | 2.0 | 1.0 | Data ex Table 11
Extraction (%, Ag) | 73.8 | 86.6 | 65.0 | Column extractions;
Extraction (%, Au) | 77.3 | 85.0 | 65.0 | assumed at 65.0%
Precipitation (%, Ag & Au) | 96.0 | 96.0 | 96.0 | Assumed value
Metal Recovered (kg, Ag) | 77,622.49 | 91,085.46 | 68,366.69 | -
Metal Recovered (kg, Au) | 731.69 | 804.58 | 615.26 | -
Metal Recovered (oz, Ag) | 2,495,640.5 | 2,928,488.7 | 2,198,057.4 | 1 kg = 32.151 oz
Metal recovered (oz, Au) | 23,524.59 | 25,867.92 | 19,781.35 | -
Silver Price ($/oz) | 20.59 | 20.59 | 20.59 | -
Gold Price ($/oz) | 1,271 | 1,271 | 1,271 | -
Silver Income Potential ($) | 51,385,238 | 60,297,582 | 45,258,0 02 | -
Gold Income Potential ($) | 29,899,754 | 32,878,126 | 25,142,096 | -
Total Potential Income ($) | 81,284,992 | 93,175,709 | 70,40 0,098 | -

For the purposes of the present Tetra Tech Technical Report, it will be assumed that the sulphide tailings will be moved to another location north-east of the proposed site for the leach pad. Again, it should also be mentioned that this proposed site is very close to the town of San Jose de Avino and this may result in objections from the local community.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 71 |

25.0 INTERPRETATION AND CONCLUSIONS

A possible process design was developed to recover the silver and gold present in the oxide tailings dam material at the Avino Mine as per the MMI report dated October 2005.
The implied values contained in the oxide tailings dam are approximately US$117.4 million, based on US$20.59/oz of silver and US$1,271/oz of gold prices. The silver values are approximately three times higher than the gold values. NPV calculated at 8% discount rate is US$38.2 million.
The capital cost to design and construct a 500,000 t/a agglomeration heap leach operation treating tailings material is estimated to be US$29.1 million.
Based on information in the MMI report and using current reagent costs, plant operating and maintenance costs are estimated to average US$14.25/t treated. It must be noted that no sulphide tailings relocation costs are included in this figure because of insufficient information to calculate the volumes of both the oxide and sulphide tailings.
These costs are summarized in Table 25.1 below.
Table 25.1 Cost Summary

Description | Cost (US$ million)
Implied value contained in oxide tailings | 117.3
Capital cost for 50 0,0 0 0 t/a agglomeration/ heap leach operation | 29.1
Estimated operating cost per tonne of tailings treated (stripping costs not included) | 14.25
Estimated net revenue using $20.59/oz silver and $1271/oz gold | 56.4

Continues Vat Leaching (CVL) technology was investigated for retreatment of the tailings as an alternative to heap leaching. A test program was completed in 2011, for the evaluation of the CVL process. This program was of poor quality, for the following reasons:
· The origin of the sample was not discussed.
· The particle size of the material tested was not given.
· Cyanide consumptions during the test were not checked and are therefore not reliable as given.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 72 |

· There was no comparison of the results with standard bottle roll tests.
In conclusion, CVL process has not been demonstrated positive results in the test program. Further tests on site should be conducted in order to confirm CVL process as an alternative for retreatment of the tailings.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 73 |

26.0 RECOMMENDATIONS

26.1 PROCESS
Based on the conclusions within the components of this technical report, it is recommended that the following tasks could be executed for verifying the material within the tailings:

| · | Drill the surface of both tailings dam areas to determine the volumes and bulk density of each of the oxide and sulphide tailings material.

| · | Take sufficient amounts of samples from both oxide and sulphide tailings to obtain representative samples for assay and metallurgical test work to confirm the grade of the deposit and the recovery of silver and gold from the heap leach process.

| · | Use the metallurgical results from the test work program to confirm/define the duration of leaching on the pad, the reagent consumption values and the silver and gold precipitation efficiencies.

| · | Use the metallurgical results from the metallurgical test work program to develop a heap leach flowsheet.

| · | Based on accurate assay and reproducible metallurgical test work data, prepare an economic analysis for the retreatment of the oxide tailings dam material, the sulphide tailings dam material, and for the treatment of both oxide and sulphide tailings material.

| · | Continues Vat Leaching technology could be explored as an alternative process to heap leaching. In order to justify this technology a pilot scale test could be implemented.

26.2 PROJECT SCHEDULE
A suggested high-level schedule of the Tailings Retreatment project execution plan has been prepared. This schedule is provided in Figure 26.1.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 74 |

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 75 |

27.0 REFERENCES

"Flotation and Cyanidation Scoping Tests and Specific Gravity", Process Research Associates Ltd., Project No. 0302303. Report by John Huang, 28 March 20 03. Report to Bryan Slim, MineStart Management Inc.
"Tailings Valuation, Avino Silver and Gold Mines Ltd., Cia Minera Mexicana, Durango, Mexico", MineStart Management Inc. Report by Bryan Slim, November 2003.
"Metallurgical Test Work on Avino Tailings, Durango, Mexico", Process Research Associates Ltd., Project Number 0406407. Report by John Huang and Gie Tan, 28 March 2005. Report to Bryan Slim, MineStart Management Inc.
"Preliminary Feasibility, Avino Silver and Gold Mines Ltd., Cia Minera Mexicana, Durango, Mexico", MineStart Management Inc. Report by Bryan Slim, May 2005.
"Tailings Valuation, Avino Silver and Gold Mines Ltd., Cia Minera Mexicana, Durango, Mexico", MineStart Management Inc. Report by Bryan Slim, May 2005.
"A Tailings Resource, Avino Silver and Gold Mines Ltd., Cia Minera Mexicana, Durango, Mexico", MineStart Management Inc. Report by Bryan Slim, July 2005.
"A Tailings Resource, Avino Silver and Gold Mines Ltd., Cia Minera Mexicana, Durango, Mexico", MineStart Management Inc. Report by Bryan Slim, October 2005.
“Technical Report: Tailings Retreatment – Process Option”, Wardrop Engineering Incorporation. Report by Ron Hall, 31 March 2006. Report to Avino Silver and Gold Mines Ltd.
Index Mundi 2011, www.indexmundi.com.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 76 |

28.0 CERTIFICATE OF QUALIFIED PERSON

H A S S A N G H A F F A R I , P . E N G .
I, Hassan Ghaffari, P.Eng., of Vancouver, British Columbia, do hereby certify:

| · | I am a Manager of Metallurgy with Tetra Tech WEI Inc. with a business address at #800 – 555 West Hastings Street, Vancouver, BC, V6B 1M1.

| · | This certificate applies to the technical report entitled Technical Report: Tailings Retreatment Process Option Update, dated March 12, 2012 (the “Technical Report”).

| · | I am a graduate of the University of Tehran (M.A.Sc., Mining Engineering, 1990) and the University of British Columbia (M.A.Sc., Mineral Process Engineering, 2004). I am a member in good standing of the Association of Professional Engineers and Geoscientists of the Province of British Columbia (#30408). My relevant experience with respect to mineral process engineering includes 22 years of experience in mining and plant operation, project studies, management, and engineering. I am “Qualified Person” for purposes of National Instrument 43- 101 (the “Instrument”).

| · | My most recent personal inspection of the Property was March 30, 2011 for one day.

| · | I am responsible for all Sections of the Technical Report.

| · | I am independent of Avino Silver and Gold Mines Ltd. as defined by Section 1.5 of the Instrument.

| · | I have no prior involvement with the Property that is the subject of the Technical Report.

| · | I have read the Instrument and the technical report has been prepared in compliance with the Instrument.

| · | As of the date of this certificate, to the best of my knowledge, information and belief, the technical report contains all scientific and technical information that is required to be disclosed to make the technical report not misleading.

Signed and dated this 12 day of March, 2012 at Vancouver, British Columbia
“Original document signed and sealed by
Ha ss a n G ha ff ar i, P.E ng.”
Hassan Ghaffari, P.Eng.
Manager of Metallurgy
Tetra Tech WEI Inc.

Avino Silver and Gold Mines Ltd. Technical Report: Tailings Retreatment Process Option Update | 77 |

APPENDIX A

OVERALL SITE PLAN

APPENDIX B

PROCESS FLOW DIAGRAMS

APPENDIX C

ELECTRICAL SINGLE LINE DIAGRAM

APPENDIX D

PROCESS DESIGN CRITERIA

PROCESS DESIGN CRITERIA
|  | CODES |  |
| PROJE C T: | Taili ng s R et r e a tment-S c op i n g Stud y | 1 | Client
| CLIEN T: | Av i n o S il ve r & G o l d M i ne s | 2 | MineStart Management Inc. NI43-101 Report
| PROJE CT N UMB E R: | 11519201 | 3 | Experience
| DA T E: | 15-A ug-1 1 | 4 | Refernce Literature
| RE V: | A | 5 | Calculation
|  |  | 6 | Mass Balance
|  |  | 7 | PRA Metallurgical Test Program
All values are in metric units.

DESCRIPTION | UNIT | VALUE | SOURCES
GENERAL
Type Of Material (Tailings) |  | Silver-gold bearing material (oxide) |
Tailings Characteristics |  |  |
Tailings Specific Gravity |  | 2.720 | 7
Tailings Bulk Density | t/m3 | 1.605 | 2
Agglomerated Tailings Bulk Density | t/m3 | 1.2407 | 7
Tailing moisture content-Primary | % | 10.0 | 4
Tailing moisture content-Design | % | 12.5 | 7
Operating Schedule |  |  |
Shift/Day | 3 | 2 |
Hours/Shift | h | 8 | 2
Hours/Day | h | 24 | 2
Days/Year | days | 365 | 2
Plant Availability/Utilization |  |  |
Overall Plant Availability | % | 90 | 3
Annual Processing Rate | t | 500,000 | 1
Daily Processing Rate - Nominal | t/d | 1,370 | 5
Daily Processing Rate - Design | t/d | 1522.1 | 1/5
Daily Processing Rate - Assumed | t/d | 1522.1 | 1
Processing Rate | t/h | 63.4 | 5
Production-Oxide Tailings |  |  |
Total Oxide Tailings Tonnage - Actual | t | 2,091,074 | 2
Total Oxide Tailings Tonnage - Assumed | t | 2,000,000 | 1
Sulphide Tailings Tonnage - available | t | 3,000,000 | 2
Sulphide Tailings Tonnage - for treatment | t | 0 | 1
Total Tailings Treatment | t | 2,000,000 |
Period of Treatment | d | 1,460 |
Period of Treatment | y | 4 |
Head Grade: |  |  |
Silver | Ag g/t | 95.50 | 2
Gold | Au g/t | 0.53 | 2
P80 | microns | 225.00 | 7
Extraction: |  |  |
Silver | % | 73.0 | 7
Gold | % | 78.9 | 7
Laboratory Extraction: |  |  |
Silver | % | 67.8 | 7
Gold | % | 81.8 | 7
AGLOMERATION
PLANT FEED PREPARATION / AGGLOMERATION |  |  |
Operating Shifts/Day |  | 3 | 3
Operating Hours/Day/Shift | hr | 8 | 2
Processing Rate | t/h | 63.42 | 5

Page 1 of 7

PROCESS DESIGN CRITERIA
|  | CODES |  |
| PROJE C T: | Taili ng s R et r e a tment-S c op i n g Stud y | 1 | Client
| CLIEN T: | Av i n o S il ve r & G o l d M i ne s | 2 | MineStart Management Inc. NI43-101 Report
| PROJE CT N UMB E R: | 11519201 | 3 | Experience
| DA T E: | 15-A ug-1 1 | 4 | Refernce Literature
| RE V: | A | 5 | Calculation
|  |  | 6 | Mass Balance
|  |  | 7 | PRA Metallurgical Test Program
All values are in metric units.

DESCRIPTION | UNIT | VALUE | SOURCES
Agglomerator Type |  | Drum | 4/7
Agglomerator Processing Rate - maximum | t/h | 79 | 7
Agglomerator Dimensions: L/D ratio |  | 3.0 | 4
Agglomerator Size - Diameter | m | 2.0 | 4
Agglomerator Size - Length | m | 6.0 | 4
Rotation Speed | rpm | 10.5 | 4
Agglomerator Slope | degrees | 4 | 4
Cement Addition-Column Test | kg/t | 21.80 | 7
Lime Addition-Column Test | kg/t | 13.73 | 7
Cyanide Consumption-Column Test | kg/t | 2.32 | 7
Cement Addition-Design | kg/t | 10.90 | 3/4
Lime Addition-Design | kg/t | 6.87 | 3/4
Cyanide Consumption-Design | kg/t | 0.93 | 3/4
Agglomerated Product Size | mm | 6 to 15 | 7
Cement Addition | t/hr | 0.62 | 5
Lime Addition | t/hr | 0.39 | 5
Cyanide Addition | t/hr | 0.018 | 5
Moisture Content of Agglomerated Feed | % | 12.50 | 7
HEAP LEACH PAD
Pad Liner Type |  | pvc | 4
Number of Pads |  | 1 | 1/2
Number of Lifts |  | 4 | 1/2
Height of Pad - 1 lift | m | 6.5 | 1/2
Maximum Height of Pad | m | 26 |
Slope of Leach Pad | % | 1.5 | 4
Tons on Pad per Lift | t | 500,000 |
Volume of Pad: one lift | m3 | 403010.8 |
Area of Pad: one lift | m2 | 62001.67 |
Volume of Heap required for Oxide tailings | m3 | 1,612,043 | 5
Dimensions of Pad: 4 lifts |  |  |
Width of Pad | m | 230 |
Length of Pad | m | 269.57 |
Volume of Pad ex Berms | m3 | 1612043 | 5
Maximum Length of Pad required - with berms | m | 283 |
Maximum Width of Pad - with berms | m | 243 |
Total Surface Area of Pad: |  |  |
Sloping Berm Width & Height-Bottom Lift | m | 6.50 |
Total Surface Area of Pad | m2 | 68665 |
Volume of Sloping Berm | m3 | 86625 |
Total Volume of Leach Pad | m3 | 1,698,668 | 5
Method of Stacking |  | Conveyor | 4
Curing Time | d | 5 | 4
HEAP LEACH PAD CONSTRUCTION
Tailings Feed - actual | t/d | 1370 |
Tailings Feed - design | t/d | 1522 |
Reagents to Agglomerator | t/d | 25 |

Page 2 of 7

PROCESS DESIGN CRITERIA
|  | CODES |  |
| PROJE C T: | Taili ng s R et r e a tment-S c op i n g Stud y | 1 | Client
| CLIEN T: | Av i n o S il ve r & G o l d M i ne s | 2 | MineStart Management Inc. NI43-101 Report
| PROJE CT N UMB E R: | 11519201 | 3 | Experience
| DA T E: | 15-A ug-1 1 | 4 | Refernce Literature
| RE V: | A | 5 | Calculation
|  |  | 6 | Mass Balance
|  |  | 7 | PRA Metallurgical Test Program
All values are in metric units.

DESCRIPTION | UNIT | VALUE | SOURCES
Daily Processing Rate - Total Feed | t/d | 1395 | 1
Volume of Daily Production of Heap Leach Feed | m3/d | 1124 | 7
Height of Pad | m | 6.5 |
Area of Daily Production | m2/d | 173 |
Width of Pad | m | 230 |
Length of Daily Advance of Pad | m/d | 0.75 |
LEACHING CIRCUIT
Diameter of Column | m | 0.102 | 7
Measured Flowrate through Column | ml/s | 0.05 | 7
Area of Column | m2 | 0.008171 | 5
Flowrate in Column Test | l/s/m2 | 0.00612 | 5
Solution Flowrate - Assumed | l/s/m2 | 0.00204 | 4
Solution Flowrate - Assumed | l/hr/m2 | 7.3 | 5
Solution pH | 10.5 | 7 |
Cyanide Solution Strength | g/l | 0.5 | 4/7
Leaching Period - Column Test | d | 81 |
Kinetic Leaching Rate on Heap-Slower |  | 1.6 |
Leaching Period - Assumed | d | 130 | 4
Calculation of Duration of Wash Period |  |  |
Total Wash Solution | l | 18.1 |
Flowrate Through Column | ml/s | 0.05 |
Flowrate Through Column | ml/hr | 180 |
Duration of Wash Period | hr | 100.6 |
Duration of Wash Period | d | 4.2 |
Duration of Wash Period on Heap | d | 6.7 |
Duration of Wash Period -Design | d | 7 |
Total Leach/Rinse Cycle | d | 137 |
Pad Life / Cycle Time per Lift | d | 365 |
Area of Pad Under Irrigation every day | m2 | 22412.74 |
Area of Pad Under Rinse/Wash every day | m2 | 1210.56 |
Volume of Solution to Heap for Leaching | m3/hr | 164.60 |
Volume of Solution to Heap for Rinsing | m3/hr | 8.89 |
Total Volume of Solution to Heap | m3/hr | 173.49 |
Impervious Layer | mm | 400 | 4
Solution Application / Spray |  | dripping |
Geomembrane Liner | mm | 1.5 |
Total Loading/Curing/Leaching/Rinsing Cycle | d | 142 |
Height of Column for Column Test | m | 3.048 | 7
Cyanide Addition to Barren Solution to Heap | t/hr | 0.044 |
Cyanide Addition as 20% solution | m3/hr | 0.221 |
METAL RECOVERY
Metal Recovery Process |  | Merrill Crowe | 4
Column Test Extraction: |  |  |
Column Test Sample Weight | kg | 30.940 | 7
Total Volume of Solution used for Column Test | l | 349.92 | 7
Silver | mg | 2156.982 | 7
Gold | mg | 12.938 | 7

Page 3 of 7

PROCESS DESIGN CRITERIA
|  | CODES |  |
| PROJE C T: | Taili ng s R et r e a tment-S c op i n g Stud y | 1 | Client
| CLIEN T: | Av i n o S il ve r & G o l d M i ne s | 2 | MineStart Management Inc. NI43-101 Report
| PROJE CT N UMB E R: | 11519201 | 3 | Experience
| DA T E: | 15-A ug-1 1 | 4 | Refernce Literature
| RE V: | A | 5 | Calculation
|  |  | 6 | Mass Balance
|  |  | 7 | PRA Metallurgical Test Program
All values are in metric units.

DESCRIPTION | UNIT | VALUE | SOURCES
Pregnant Solution Assay: |  |  |
Silver | mg/l | 6.164 |
Gold | mg/l | 0.037 |
Calculated Pregnant Solution Assay: |  |  |
Silver | mg/l | 22.019 |
Gold | mg/l | 0.132 |
Daily Metal Production: |  |  |
Silver | kg/d | 91.680 |
Gold | kg/d | 0.550 |
PREGNANT and BARREN SOLUTION HANDLING
Rainfall - average per month | mm | 47 | 2
Rainfall - over Cure/Leach/Rinse Cycle | mm | 219 | 5
Rainfall | m3/hr | 4.42 |
Evaporation - assume | % | 10 | 4
Evaporation | m3/hr | 17.35 |
Pregnant Solution Pond Size - capacity in hours | hr | 15 |
Pregnant Solution Pond Size - Volume | m3 | 2408 |
Pregnant Solution Flowrate | m3/hr | 160.56 |
Barren Solution Pond Size - capacity in hours | hr | 15 |
Barren Solution Pond Size - Volume | m3 | 2408 |
Barren Solution Flowrate - ex Pregnant Solution | m3/hr | 160.56 |
Volume of Solution to Heap | m3/hr | 173.49 |
Make-Up Water Required | m3/hr | 12.93 |
Overflow Solution Pond Size - capacity in hours | hr | 28 |
Overflow Solution Pond Size - Volume | m3 | 4858 |
Pregnant Solution Pond - dimensions | m | 25x25x4.6 |
Barren Solution Pond - dimensions | m | 25x25x4.6 |
Overflow Solution Pond - dimensions | m | 35x35x4.6 |
Solids in Pregnant Solution | % | 0.01 | 4
Conventional Clarifier Flowrate | m3/hr/m2 | 0.58 |
Conventional Clarifier Area Required | m2 | 299.12 |
Diameter of Clarifier | m | 25 |
Filter Pre-Coat: Total | kg/m3 | 0.1 | 4
Filter Pre-Coat: Total | t/d | 0.39 |
Gland Service Water to Backwash Pumps | m3/hr | 0 |
Frequency of Backwash | no./day | 1 |
Duration of Backwash | hr | 0.5 |
Gland Service Water per Backwash per day | m3/hr | 0 |
Barren Solution per Backwash per day | m3/hr | 0.33 |
Total Solution for Backwash | m3/hr | 0.33 |
Total Solution for Evaporation | m3/hr | 17.68 |
Solids in Pregnant Solution | t/hr | 0.0161 |
Filter Pre-Coat | t/hr | 0.0161 |
Total Solids + Precoat per Backwash | t/day | 0.7707 |

Page 4 of 7

PROCESS DESIGN CRITERIA
|  | CODES |  |
| PROJE C T: | Taili ng s R et r e a tment-S c op i n g Stud y | 1 | Client
| CLIEN T: | Av i n o S il ve r & G o l d M i ne s | 2 | MineStart Management Inc. NI43-101 Report
| PROJE CT N UMB E R: | 11519201 | 3 | Experience
| DA T E: | 15-A ug-1 1 | 4 | Refernce Literature
| RE V: | A | 5 | Calculation
|  |  | 6 | Mass Balance
|  |  | 7 | PRA Metallurgical Test Program
All values are in metric units.

DESCRIPTION | UNIT | VALUE | SOURCES
Total Solids in Backwash | t/hr | 0.0321 |
Total Solids in Backwash | % | 8.759124088 |
Cyanide Addition to Precipitate Mixing Tank | t/hr | 0.044 |
Cyanide Addition at 20% solution | m3/hr | 0.22 |
Lead Nitrate Addition | t/day | 0.13 |
Lead Nitrate Addition at 20% solution | m3/hr | 0.03 |
Filter Pre-Coat | m3/hr | 0.14 |
PREGNANT SOLUTION
Precipitation Efficiency | % | 96 |
Barren Solution Assay: |  |  |
Silver | mg/l | 0.2466 |
Gold | mg/l | 0.0015 |
METAL PRECIPITATE PRODUCTION
Metal Production - Silver + Gold | kg/d | 92.23 |
Metal Precipitate Production | kg/d | 461.15 |
Precipitate Moisture Content | % | 20 |
Weight of Precipitate - wet | kg | 576.44 |
Weight of Precipitate - dry | kg | 461.15 |
Precipitate Assay: |  |  |
Silver | % | 19.88 |
Gold | % | 0.12 |
Base Metals | % | 80 |
Metal Precipitate Bag Capacity | t/bag | 2 |
Number of Days Production per Bag | day/bag | 4.3 |
Number of Bags per week | bag/week | 1.6 |
REAGENTS
Cement |  |  |
Cement-Actual | kg/t | 21.8 | 7
Cement-Design | kg/t | 10.9 | 3/4
SG |  | 3.14 |
Lime |  |  |
Lime-Actual | kg/t | 13.73 | 7
Lime-Design | kg/t | 6.865 | 3/4
SG |  | 2.45 |
Cyanide |  |  |
Cyanide, Solid [NaCN]-Assume | kg/t | 2.32 | 7
Cyanide, Solid [NaCN]-Design | kg/t | 0.928 | 3/4
SG |  | 1.6 |
Zinc Dust |  |  |
Zinc Dust-Actual & Design | kg/t | 0.96 | 4
SG |  | 7.1 |

Page 5 of 7

PROCESS DESIGN CRITERIA
|  | CODES |  |
| PROJE C T: | Taili ng s R et r e a tment-S c op i n g Stud y | 1 | Client
| CLIEN T: | Av i n o S il ve r & G o l d M i ne s | 2 | MineStart Management Inc. NI43-101 Report
| PROJE CT N UMB E R: | 11519201 | 3 | Experience
| DA T E: | 15-A ug-1 1 | 4 | Refernce Literature
| RE V: | A | 5 | Calculation
|  |  | 6 | Mass Balance
|  |  | 7 | PRA Metallurgical Test Program
All values are in metric units.

DESCRIPTION | UNIT | VALUE | SOURCES
Lead Nitrate |  |  |
Lead Nitrate-Actual & Design | kg/t | 0.19 | 4
SG |  | 4.6 |
Filter Pre-Coat |  |  |
Filter Pre-Coat -Design | kg/m3 | 0.10 | 4
SG |  |  |
Calcium Hypochlorite |  |  |
Calcium Hypochlorite-Design | kg/t | 0.05 | 4
SG |  |  |
Filter Aid |  |  |
Filter Aid-Design | kg/m3 | 0.10 | 4
SG |  |  |
Sodium Hydroxide |  |  |
Sodium Hydroxide-Design | kg/t | 0.09 |
SG |  | 2.13 |
Sulphuric Acid |  |  |
Sulphuric Acid-Design | kg/t | 0.76 |
SG |  | 1.84 |
REAGENT STOCKS: STORAGE AND SUPPLY FOR 1 WEEK
Cement Consumption | t/week | 104.52 |
Cement Stock- design | t/week | 135.88 |
Lime Consumption | t/week | 65.83 |
Lime Stock - design | t/week | 85.58 |
Cyanide [NaCN] Consumption | t/week | 8.90 |
Cyanide [NaCN] Stock - design | t/week | 11.6 |
Zinc Dust Consumption | t/week | 9.2 |
Zinc Dust Stock - design | t/week | 12.0 |
Lead Nitrate Consumption | t/week | 1.8 |
Lead Nitrate Stock - design | t/week | 2.4 |
Filter Pre-Coat Consumption | t/week | 2.70 |
Filter Pre-Coat Stock-Design | t/week | 3.5 |
Calcium Hypochlorite Consumption | t/week | 0.5 |
Calcium Hypochlorite Stock - design | t/week | 0.6 |
Filter Aid Consumption | t/week | 2.70 |
Filter Aid Stock - design | t/week | 3.5 |
Cement Consumption | t/d | 14.93 |
Cement Stock- design | t/d | 19.41 |
Lime Consumption | t/d | 9.40 |
Lime Stock - design | t/d | 12.23 |
Cyanide [NaCN] Consumption | t/d | 1.27 |
Cyanide [NaCN] Stock - design | t/d | 1.65 |
Zinc Dust Consumption | t/d | 1.32 |
Zinc Dust Stock - design | t/d | 1.71 |
Lead Nitrate Consumption | t/d | 0.26 |

Page 6 of 7

PROCESS DESIGN CRITERIA
|  | CODES |  |
| PROJE C T: | Taili ng s R et r e a tment-S c op i n g Stud y | 1 | Client
| CLIEN T: | Av i n o S il ve r & G o l d M i ne s | 2 | MineStart Management Inc. NI43-101 Report
| PROJE CT N UMB E R: | 11519201 | 3 | Experience
| DA T E: | 15-A ug-1 1 | 4 | Refernce Literature
| RE V: | A | 5 | Calculation
|  |  | 6 | Mass Balance
|  |  | 7 | PRA Metallurgical Test Program
All values are in metric units.

DESCRIPTION | UNIT | VALUE | SOURCES
Lead Nitrate Stock - design | t/d | 0.34 |
Filter Pre-Coat Consumption | t/d | 0.39 |
Filter Pre-Coat Stock-Design | t/d | 0.50 |
Calcium Hypochlorite Consumption | t/d | 0.07 |
Calcium Hypochlorite Stock - design | t/d | 0.09 |
Filter Aid Consumption | t/d | 0.39 |
Filter Aid Stock - design | t/d | 0.50 |

Page 7 of 7

APPENDIX E

C A P I T A L C O S T S E S T I M A T E R E P O R T

Project No: 1151920100 | Avino Tailings Retreatment | Report Date: 17-Feb-12
Client: Avino Silver & Gold Mines Ltd | Scoping Study - Level 1 Summary | Rev 1

|  |  | Labour Manhour | Labour Cost | Material Cost | Construction Equipment Cost | Mechanical Equipment Cost | Total Cost (USD)
| Direct Works |  |  |  |  |  |
10 | Mining, Agglomeration & Pad Loading | 26,708 | 338,518 | 437,278 | 0 | 2,517,524 | 3,293,320
20 | Process Facilities | 28,507 | 361,326 | 3,006,458 | 0 | 537,744 | 3,905,528
25 | Reagents / Auxiliary Services | 8,120 | 102,921 | 176,207 | 0 | 222,622 | 501,750
50 | Buildings | 21,784 | 276,115 | 656,648 | 0 | 0 | 932,763
60 | Leach Pad & Infrastructure | 199,011 | 2,522,459 | 4,693,703 | 0 | 198,812 | 7,414,974
70 | Power Supply and Distribution | 15,736 | 199,455 | 1,257,841 | 0 | 0 | 1,457,296
|  | Direct Works Subtotal | 299,865 | 3,800,794 | 10,228,135 | 0 | 3,476,702 | 17,505,632
| Indirects |  |  |  |  |  |
91 | EPCM & Vendor Representatives | 0 | 0 | 2,658,728 | 0 | 0 | 2,658,728
92 | Freight & Construction Indirects | 0 | 0 | 3,146,235 | 0 | 0 | 3,146,235
99 | Contingency | 0 | 0 | 5,828,000 | 0 | 0 | 5,828,000
|  | Indirects Subtotal | 0 | 0 | 11,632,964 | 0 | 0 | 11,632,964
Scoping Study Total |  | 299,865 | 3,800,794 | 21,861,099 | 0 | 3,476,702 | 29,138,596

Page 1 of 1

Project No: 1151920100 | Avino Tailings Retreatment | Report Date: 17-Feb-12
Client: Avino Silver & Gold Mines Ltd | Scoping Study - Level 2 Summary | Rev 1

Area |  |  | Labour Manhour | Labour Cost | Material Cost | Construction Eqpt Cost | Mechancial Eqpt Cost | Total Cost (USD)
10 - Mining, Agglomeration & Pad Loading 1000 Mining, Agglomeration & Pad Loading |  |  | 26,708 | 338,518 | 437,278 | 0 | 2,517,524 | 3,293,320
10 - Mining, Agglomeration & Pad Loading Subtotal |  | 26,708 | 338,518 | 437,278 | 0 | 2,517,524 | 3,293,320
20 - Process Facilities 2000 Process Facilities |  |  | 28,507 | 361,326 | 3,006,458 | 0 | 537,744 | 3,905,528
20 - Process Facilities Subtotal |  | 28,507 | 361,326 | 3,006,458 | 0 | 537,744 | 3,905,528
25 - Reagents / Auxiliary Services 2505 Reagents / Auxiliary Services |  |  | 8,120 | 102,921 | 176,207 | 0 | 222,622 | 501,750
25 - Reagents / Auxiliary Services Subtotal |  | 8,120 | 102,921 | 176,207 | 0 | 222,622 | 501,750
50 - Buildings 5000 Buildings |  |  | 21,784 | 276,115 | 656,648 | 0 | 0 | 932,763
50 - Buildings Subtotal |  | 21,784 | 276,115 | 656,648 | 0 | 0 | 932,763
60 - Leach Pad & Infrastructure 6000 Leach Pad & Infrastructure |  |  | 199,011 | 2,522,459 | 4,693,703 | 0 | 198,812 | 7,414,974
60 - Leach Pad & Infrastructure Subtotal |  | 199,011 | 2,522,459 | 4,693,703 | 0 | 198,812 | 7,414,974
70 - Power Supply and Distribution 7000 Power Supply and Distribution |  |  | 15,736 | 199,455 | 1,257,841 | 0 | 0 | 1,457,296
70 - Power Supply and Distribution Subtotal |  | 15,736 | 199,455 | 1,257,841 | 0 | 0 | 1,457,296
91 - EPCM & Vendor Representatives |  |  |  |  |  |  |  |

Page 1 of 2

Project No: 1151920100 | Avino Tailings Retreatment | Report Date: 17-Feb-12
Client: Avino Silver & Gold Mines Ltd | Scoping Study - Level 2 Summary | Rev 1

Area |  |  | Labour Manhour | Labour Cost | Material Cost | Construction Eqpt Cost | Mechancial Eqpt Cost | Total Cost (USD)
9101 EPCM & Vendor Representatives |  |  | 0 | 0 | 2,658,728 | 0 | 0 | 2,658,728
91 - EPCM & Vendor Representatives Subtotal |  | 0 | 0 | 2,658,728 | 0 | 0 | 2,658,728
92 - Freight & Construction Indirects 9202 Freight & Construction Indirects |  |  | 0 | 0 | 3,146,235 | 0 | 0 | 3,146,235
92 - Freight & Construction Indirects Subtotal |  | 0 | 0 | 3,146,235 | 0 | 0 | 3,146,235
99 - Contingency 9909 Contingency |  |  | 0 | 0 | 5,828,000 | 0 | 0 | 5,828,000
99 - Contingency Subtotal |  | 0 | 0 | 5,828,000 | 0 | 0 | 5,828,000
Scoping Study Total |  | 299,865 | 3,800,794 | 21,861,099 | 0 | 3,476,702 | 29,138,596

Page 2 of 2

Project No: 1151920100 | Avino Tailings Retreatment | Report Date: 17-Feb-12
Client: Avino Silver & Gold Mines Ltd | Scoping Study - Level 3 Summary | Rev 1

Sub-Area | Labour Manhour | Labour Cost | Material Cost | Construction Eqpt Cost | Mechancial Eqpt Cost | Total Cost (USD)
10 - Mining, Agglomeration & Pad Loading
125 | Truck Dump |  | 635 | 8,050 | 7,956 | 0 | 2,584 | 18,590
130 | Agglomerator Feed Bin and Conveyor |  | 12,557 | 159,160 | 219,580 | 0 | 146,200 | 524,940
141 | Lime Silo |  | 1,301 | 16,486 | 11,986 | 0 | 125,300 | 153,772
142 | Cement Silo |  | 1,301 | 16,486 | 11,856 | 0 | 165,300 | 193,642
150 | Agglomerator |  | 8,768 | 111,136 | 185,900 | 0 | 388,640 | 685,676
160 | Portable Conveyors |  | 2,146 | 27,201 | 0 | 0 | 1,689,500 | 1,716,701
| 10 - Mining, Agglomeration & Pad Loading Subtotal | 26,708 | 338,518 | 437,278 | 0 | 2,517,524 | 3,293,320
20 - Process Facilities
210 | Solution |  | 6,322 | 80,131 | 211,600 | 0 | 179,566 | 471,297
220 | Merrill-Crow Circuit |  | 22,185 | 281,195 | 2,794,858 | 0 | 358,178 | 3,434,231
| 20 - Process Facilities Subtotal | 28,507 | 361,326 | 3,006,458 | 0 | 537,744 | 3,905,528
25 - Reagents / Auxiliary Services
243 | Cyanide Solution System |  | 1,943 | 24,628 | 79,190 | 0 | 123,122 | 226,939
248 | Pre Coat System |  | 116 | 1,470 | 6,533 | 0 | 0 | 8,003
263 | Reagent Area Services |  | 116 | 1,470 | 8,450 | 0 | 0 | 9,920
264 | Gland Water Supply |  | 290 | 3,676 | 17,875 | 0 | 0 | 21,551
265 | Reagents and Auxiliary Services Civil and Concrete | 5,655 | 71,677 | 64,160 | 0 | 99,500 | 235,337

Page 1 of 4

Project No: 1151920100 | Avino Tailings Retreatment | Report Date: 17-Feb-12
Client: Avino Silver & Gold Mines Ltd | Scoping Study - Level 3 Summary | Rev 1

Sub-Area |  | Labour Manhour | Labour Cost | Material Cost | Construction Eqpt Cost | Mechancial Eqpt Cost | Total Cost (USD)
25 - Reagents / Auxiliary Services Subtotal | 8,120 | 102,921 | 176,207 | 0 | 222,622 | 501,750
50 - Buildings |  |  |  |  |  |  |
510 | Process Building |  | 19,624 | 248,731 | 470,748 | 0 | 0 | 719,479
530 | Assay Laboratory |  | 421 | 5,330 | 166,400 | 0 | 0 | 171,730
550 | Accommodation Complex |  | 1,740 | 22,055 | 19,500 | 0 | 0 | 41,555
560 | Truck Shop |  | 0 | 0 | 0 | 0 | 0 | 0
| 50 - Buildings Subtotal | 21,784 | 276,115 | 656,648 | 0 | 0 | 932,763
60 - Leach Pad & Infrastructure
120 | Mobile Equipment |  | 392 | 4,962 | 1,569,100 | 0 | 0 | 1,574,062
610 | Site Work |  | 57,478 | 728,534 | 484,250 | 0 | 0 | 1,212,784
620 | Leach Pad |  | 112,854 | 1,430,418 | 1,997,320 | 0 | 0 | 3,427,738
631 | Pregnant and Barren Solution Ponds |  | 5,218 | 66,141 | 34,288 | 0 | 164,604 | 265,032
632 | Overflow/Stormwater Solution Pond |  | 2,249 | 28,504 | 16,206 | 0 | 34,208 | 78,917
640 | Fencing |  | 8,011 | 101,543 | 70,200 | 0 | 0 | 171,743
650 | Site Telephone System |  | 363 | 4,595 | 31,200 | 0 | 0 | 35,795
660 | Sewage Disposal |  | 290 | 3,676 | 26,000 | 0 | 0 | 29,676
661 | Upgrade Existing Fresh Water Supply |  | 6,221 | 78,845 | 334,100 | 0 | 0 | 412,945
662 | Firewater Site Distribution |  | 2,349 | 29,774 | 31,460 | 0 | 0 | 61,234

Page 2 of 4

Project No: 1151920100 | Avino Tailings Retreatment | Report Date: 17-Feb-12
Client: Avino Silver & Gold Mines Ltd | Scoping Study - Level 3 Summary | Rev 1

Sub-Area |  | Labour Manhour | Labour Cost | Material Cost | Construction Eqpt Cost | Mechancial Eqpt Cost | Total Cost (USD)
663 | Fresh Water Site Distribution |  | 1,204 | 15,254 | 13,650 | 0 | 0 | 28,904
664 | Water Treatment System |  | 725 | 9,189 | 20,150 | 0 | 0 | 29,339
680 | Fuel Storage Area - Assume Use Existing |  | 1,537 | 19,481 | 13,780 | 0 | 0 | 33,261
690 | Equipment - Assume Refurbished at 112 Price UNO |  | 122 | 1,544 | 52,000 | 0 | 0 | 53,544
60 - Leach Pad & Infrastructure Subtotal | 199,011 | 2,522,459 | 4,693,703 | 0 | 198,812 | 7,414,974
70 - Power Supply and Distribution
710 | Site Power Distribution |  | 2,900 | 36,758 | 195,000 | 0 | 0 | 231,758
720 | Tailings Area |  | 860 | 10,899 | 113,451 | 0 | 0 | 124,350
730 | Agglomeration and Pad Loading |  | 4,319 | 54,741 | 401,570 | 0 | 0 | 456,311
740 | Plantsite |  | 131 | 1,654 | 66,300 | 0 | 0 | 67,954
750 | Leaching |  | 2,671 | 33,854 | 186,550 | 0 | 0 | 220,404
760 | Process |  | 4,856 | 61,550 | 294,970 | 0 | 0 | 356,520
70 - Power Supply and Distribution Subtotal | 15,736 | 199,455 | 1,257,841 | 0 | 0 | 1,457,296
91 - EPCM & Vendor Representatives
910 | Engineering and Procurement |  | 0 | 0 | 1,437,665 | 0 | 0 | 1,437,665
920 | Construction Management |  | 0 | 0 | 988,845 | 0 | 0 | 988,845
930 | Site Consultants |  | 0 | 0 | 232,218 | 0 | 0 | 232,218
91 - EPCM & Vendor Representatives Subtotal | 0 | 0 | 2,658,728 | 0 | 0 | 2,658,728

Page 3 of 4

Project No: 1151920100 | Avino Tailings Retreatment | Report Date: 17-Feb-12
Client: Avino Silver & Gold Mines Ltd | Scoping Study - Level 3 Summary | Rev 1

Sub-Area |  | Labour Manhour | Labour Cost | Material Cost | Construction Eqpt Cost | Mechancial Eqpt Cost | Total Cost (USD)
92 - Freight & Construction Indirects |  |  |  |  |  |  |
940 | Freight and Spares |  | 0 | 0 | 396,844 | 0 | 0 | 396,844
950 | Construction Indirects |  | 0 | 0 | 2,749,391 | 0 | 0 | 2,749,391
| 92 - Freight & Construction Indirects Subtotal | 0 | 0 | 3,146,235 | 0 | 0 | 3,146,235
99 - Contingency |  |  |  |  |  |  |
990 | Contingency |  | 0 | 0 | 5,828,000 | 0 | 0 | 5,828,000
| 99 - Contingency Subtotal | 0 | 0 | 5,828,000 | 0 | 0 | 5,828,000
Scoping Study Total |  | 299,865 | 3,800,794 | 21,861,099 | 0 | 3,476,702 | 29,138,596

Page 4 of 4

| Avino Tailings Retreatment Scoping Study L5 Detail Estimate |
Project No: 1151920100 |  | Report Date: 17-Feb-12
|  | Rev 1
Client: Avino Silver & Gold Mines Ltd |  | Sorted By Area and Sequence

SubArea-Exp-Seq | Qty | Labour Unit Mhr | Producitivity Factor | Total Labour Manhour | Labour Rate | Labour Cost | Material Unit Cost | Material Cost | Const Eqt Unit Cost | Const Eqt Cost | Process Eqpt Unit Cost | Process Eqpt Cost | Total Unit Cost | Total Cost (USD)
125 - Truck Dump
125-4-0032.00 | Agglomerator Feed Bin Retaining Wall Excavation
| 500.cm | 0.30 | 1.5 | 217.50 | 12.68 | 2,757 |  | 0 |  | 0 | 2.00 | 1,000 | 7.51 | 3,757
125-4-0033.00 | Agglomerator Feed Bin Truck Dump Retaining Wall
| 72.sm | 3.00 | 1.5 | 313.20 | 12.68 | 3,970 | 25.00 | 2,340 |  | 0 | 2.00 | 144 | 89.64 | 6,454
125-4-0034.00 | Agglomerator Feed Bin Truck Dump Backfill
| 720.cm | 0.10 | 1.5 | 104.40 | 12.68 | 1,323 | 6.00 | 5,616 |  | 0 | 2.00 | 1,440 | 11.64 | 8,379
125 - Truck Dump Subtotal | 635.10 |  | 8,050 |  | 7,956 |  | 0 |  | 2,584 |  | 18,590
130 - Agglomerator Feed Bin and Conveyor
130-4-0036.00 | Agglomerator Feed Bin Excavation and Backfill
| 100.cm | 0.30 | 1.5 | 43.50 | 12.68 | 551 | 6.00 | 780 |  | 0 | 2.00 | 200 | 15.31 | 1,531
130-4-0037.00 | Agglomerator Feed Bin and Conveyor Concrete
| 100.cm | 22.00 | 1.5 | 3,190.00 | 12.68 | 40,433 | 300.00 | 39,000 |  | 0 | 0.00 | 0 | 794.33 | 79,433
130-4-0039.00 | Agglomerator Feed Belt Feeder
| 1.ls | 250.00 | 1.5 | 362.50 | 12.68 | 4,595 | 25,000.00 | 32,500 |  | 0 | 0.00 | 0 | 37,094.69 | 37,095
130-4-0040.00 | Agglomerator Feed Conveyor Concrete
| 20.cm | 22.00 | 1.5 | 638.00 | 12.68 | 8,087 | 300.00 | 7,800 |  | 0 | 0.00 | 0 | 794.33 | 15,887
130-4-0042.00 | Agglomerator Feed Conveyor Weigh Scale
| 1.ea | 100.00 | 1.5 | 145.00 | 12.68 | 1,838 | 15,000.00 | 19,500 |  | 0 | 0.00 | 0 | 21,337.88 | 21,338
130-4-0043.00 | TAILINGS DUMP BIN, 160 T CAPACITY [130-BIN-047]
| 1.ea | 1,600.00 | 1.5 | 2,320.00 | 12.68 | 29,406 | 120,000.00 | 120,000 |  | 0 | 0.00 | 0 | 149,406.00 | 149,406
130-4-0044.00 | TAILINGS TRANSFER CONVEYOR, 762 x 35,000 [130-CNV-048]
| 1.ea | 2,000.00 | 1.5 | 2,900.00 | 12.68 | 36,758 |  | 0 |  | 0 | 65,500.00 | 65,500 | 102,257.50 | 102,258
130-4-0045.00 | AGGLOMERATOR FEED CONVEYOR, 762 x 35,000 [130-CNV-049]
| 1.ea | 2,000.00 | 1.5 | 2,900.00 | 12.68 | 36,758 |  | 0 |  | 0 | 65,500.00 | 65,500 | 102,257.50 | 102,258
130-4-0046.00 | BELT SAMPLER [130-SMP-059]
| 1.ea | 40.00 | 1.5 | 58.00 | 12.68 | 735 |  | 0 |  | 0 | 15,000.00 | 15,000 | 15,735.15 | 15,735
130 - Agglomerator Feed Bin and Conveyor Subtotal | 12,557.00 |  | 159,160 |  | 219,580 |  | 0 |  | 146,200 |  | 524,940

Page 1 of 31

| Avino Tailings Retreatment Scoping Study L5 Detail Estimate |
Project No: 1151920100 |  | Report Date: 17-Feb-12
|  | Rev 1
Client: Avino Silver & Gold Mines Ltd |  | Sorted By Area and Sequence

SubArea-Exp- Seq | Qty | Labour Unit Mhr | Producitivity Factor | Total Labour Manhour | Labour Rate | Labour Cost | Material Unit Cost | Material Cost | Const Eqt Unit Cost | Const Eqt Cost | Process Eqpt Unit Cost | Process Eqpt Cost | Total Unit Cost | Total Cost (USD)
141 - Lime Silo
141-4-0048.00 | Lime Bin - Excavate Fdtns
| 100.cm | 0.30 | 1.5 | 43.50 | 12.68 | 551 |  | 0 |  | 0 | 2.00 | 200 | 7.51 | 751
141-4-0049.00 | Lime Bin - Backfill Fdtns
| 50.cm | 0.10 | 1.5 | 7.25 | 12.68 | 92 | 2.00 | 130 |  | 0 | 2.00 | 100 | 6.44 | 322
141-4-0050.00 | Lime Bin - Backfill Fdtns - Granular
| 20.cm | 0.10 | 1.5 | 2.90 | 12.68 | 37 | 6.00 | 156 |  | 0 | 0.00 | 0 | 9.64 | 193
141-4-0051.00 | Lime Bin - Foundation Pad
| 30.cm | 22.00 | 1.5 | 957.00 | 12.68 | 12,130 | 300.00 | 11,700 |  | 0 | 0.00 | 0 | 794.33 | 23,830
141-4-0053.00 | LIME SILO C/W FEEDER SYSTEM, 30 T CAPACITY [141-SIL-046]
| 1.ea | 200.00 | 1.5 | 290.00 | 12.68 | 3,676 |  | 0 |  | 0 | 125,000.00 | 125,000 | 128,675.75 | 128,676
141 - Lime Silo Subtotal | 1,300.65 |  | 16,486 |  | 11,986 |  | 0 |  | 125,300 |  | 153,772
142 - Cement Silo
142-4-0055.00 | Cement Bin - Excavate Fdtns
| 100.cm | 0.30 | 1.5 | 43.50 | 12.68 | 551 |  | 0 |  | 0 | 2.00 | 200 | 7.51 | 751
142-4-0056.00 | Cement Bin - Backfill Fdtns
| 50.cm | 0.10 | 1.5 | 7.25 | 12.68 | 92 |  | 0 |  | 0 | 2.00 | 100 | 3.84 | 192
142-4-0057.00 | Cement - Backfill Fdtns - Granular
| 20.cm | 0.10 | 1.5 | 2.90 | 12.68 | 37 | 6.00 | 156 |  | 0 | 0.00 | 0 | 9.64 | 193
142-4-0058.00 | Cement Bin - Foundation Pad
| 30.cm | 22.00 | 1.5 | 957.00 | 12.68 | 12,130 | 300.00 | 11,700 |  | 0 | 0.00 | 0 | 794.33 | 23,830
142-4-0060.00 | CEMENT SILO C/W FEEDER SYSTEM, 50 T CAPACITY [142-SIL-045]
| 1.ea | 200.00 | 1.5 | 290.00 | 12.68 | 3,676 |  | 0 |  | 0 | 165,000.00 | 165,000 | 168,675.75 | 168,676
142 - Cement Silo Subtotal | 1,300.65 |  | 16,486 |  | 11,856 |  | 0 |  | 165,300 |  | 193,642
150 - Agglomerator
150-4-0068.00 | Agglomerator - Excavate Fdtns
| 50.cy | 0.30 | 1.5 | 21.75 | 12.68 | 276 |  | 0 |  | 0 | 2.00 | 100 | 7.51 | 376

Page 2 of 31

| Avino Tailings Retreatment Scoping Study L5 Detail Estimate |
Project No: 1151920100 |  | Report Date: 17-Feb-12
|  | Rev 1
Client: Avino Silver & Gold Mines Ltd |  | Sorted By Area and Sequence

SubArea-Exp-Seq | Qty | Labour Unit Mhr | Producitivity Factor | Total Labour Manhour | Labour Rate | Labour Cost | Material Unit Cost | Material Cost | Const Eqt Unit Cost | Const Eqt Cost | Process Eqpt Unit Cost | Process Eqpt Cost | Total Unit Cost | Total Cost (USD)
150-4-0069.00 | Agglomerator-Backfill Fdtns
| 20.cy | 0.10 | 1.5 | 2.90 | 12.68 | 37 |  | 0 |  | 0 | 2.00 | 40 | 3.84 | 77
150-4-0070.00 | Agglomerator Concrete
| 20.cm | 22.00 | 1.5 | 638.00 | 12.68 | 8,087 | 300.00 | 7,800 |  | 0 |  | 0 | 794.33 | 15,887
150-4-0072.00 | Agglomerator Product Conveyor Concrete - 900 mm
| 40.cm | 22.00 | 1.5 | 1,276.00 | 12.68 | 16,173 | 300.00 | 15,600 |  | 0 |  | 0 | 794.33 | 31,773
150-4-0073.00 | Agglomerator Product Conveyor Including Steel - 900 mm
| 30.m | 80.00 | 1.5 | 3,480.00 | 12.68 | 44,109 | 3,500.00 | 136,500 |  | 0 |  | 0 | 6,020.30 | 180,609
150-4-0074.00 | Agglomerator Product Conveyor Weigh Scale
| 1.ea | 150.00 | 1.5 | 217.50 | 12.68 | 2,757 | 15,000.00 | 19,500 |  | 0 |  | 0 | 22,256.81 | 22,257
150-4-0075.00 | Agglomerator Spray Piping
| 1.ls | 60.00 | 1.5 | 87.00 | 12.68 | 1,103 | 5,000.00 | 6,500 |  | 0 |  | 0 | 7,602.73 | 7,603
150-4-0076.00 | DRUM ORE AGGLOMERATOR, 1800 x 4000 [150-AGG-050]
| 1.ea | 2,000.00 | 1.5 | 2,900.00 | 12.68 | 36,758 |  | 0 |  | 0 | 375,000.00 | 375,000 | 411,757.50 | 411,758
150-4-0077.00 | AGGLOMERATOR AREA SUMP PUMP [150-PSU-039]
| 1.ea | 100.00 | 1.5 | 145.00 | 12.68 | 1,838 |  | 0 |  | 0 | 13,500.00 | 13,500 | 15,337.88 | 15,338
150 - Agglomerator Subtotal | 8,768.15 |  | 111,136 |  | 185,900 |  | 0 |  | 388,640 |  | 685,676
160 - Portable Conveyors
160-4-0080.00 | GRASSHOPER CONVEYOR No.1, 762x35,000 [160-CNV-020]
| 1.ea | 60.00 | 1.5 | 87.00 | 12.68 | 1,103 |  | 0 |  | 0 | 65,500.00 | 65,500 | 66,602.73 | 66,603
160-4-0081.00 | GRASSHOPER CONVEYOR, 762x35,000 [160-CNV-021]
| 1.ea | 60.00 | 1.5 | 87.00 | 12.68 | 1,103 |  | 0 |  | 0 | 65,500.00 | 65,500 | 66,602.73 | 66,603
160-4-0082.00 | GRASSHOPER CONVEYOR, 762x35,000 [160-CNV-022]
| 1.ea | 60.00 | 1.5 | 87.00 | 12.68 | 1,103 |  | 0 |  | 0 | 65,500.00 | 65,500 | 66,602.73 | 66,603
160-4-0083.00 | GRASSHOPER CONVEYOR, 762x35,000 [160-CNV-023]
| 1.ea | 60.00 | 1.5 | 87.00 | 12.68 | 1,103 |  | 0 |  | 0 | 65,500.00 | 65,500 | 66,602.73 | 66,603
160-4-0084.00 | GRASSHOPER CONVEYOR, 762x35,000 [160-CNV-024]
| 1.ea | 60.00 | 1.5 | 87.00 | 12.68 | 1,103 |  | 0 |  | 0 | 65,500.00 | 65,500 | 66,602.73 | 66,603

Page 3 of 31

| Avino Tailings Retreatment Scoping Study L5 Detail Estimate |
Project No: 1151920100 |  | Report Date: 17-Feb-12
|  | Rev 1
Client: Avino Silver & Gold Mines Ltd |  | Sorted By Area and Sequence

SubArea-Exp-Seq | Qty | Labour Unit Mhr | Producitivity Factor | Total Labour Manhour | Labour Rate | Labour Cost | Material Unit Cost | Material Cost | Const Eqt Unit Cost | Const Eqt Cost | Process Eqpt Unit Cost | Process Eqpt Cost | Total Unit Cost | Total Cost (USD)
160-4-0085.00 | GRASSHOPER CONVEYOR, 762x35,000 [160-CNV-025]
| 1.ea | 60.00 | 1.5 | 87.00 | 12.68 | 1,103 |  | 0 |  | 0 | 65,500.00 | 65,500 | 66,602.73 | 66,603
160-4-0086.00 | GRASSHOPER CONVEYOR, 762x35,000 [160-CNV-026]
| 1.ea | 60.00 | 1.5 | 87.00 | 12.68 | 1,103 |  | 0 |  | 0 | 65,500.00 | 65,500 | 66,602.73 | 66,603
160-4-0087.00 | GRASSHOPER CONVEYOR, 762x35,000 [160-CNV-027]
| 1.ea | 60.00 | 1.5 | 87.00 | 12.68 | 1,103 |  | 0 |  | 0 | 65,500.00 | 65,500 | 66,602.73 | 66,603
160-4-0088.00 | GRASSHOPER CONVEYOR, 762x35,000 [160-CNV-028]
| 1.ea | 60.00 | 1.5 | 87.00 | 12.68 | 1,103 |  | 0 |  | 0 | 65,500.00 | 65,500 | 66,602.73 | 66,603
160-4-0089.00 | GRASSHOPER CONVEYOR, 762x35,000 [160-CNV-029]
| 1.ea | 60.00 | 1.5 | 87.00 | 12.68 | 1,103 |  | 0 |  | 0 | 65,500.00 | 65,500 | 66,602.73 | 66,603
160-4-0090.00 | GRASSHOPER CONVEYOR, 762x35,000 [160-CNV-030]
| 1.ea | 60.00 | 1.5 | 87.00 | 12.68 | 1,103 |  | 0 |  | 0 | 65,500.00 | 65,500 | 66,602.73 | 66,603
160-4-0091.00 | GRASSHOPER CONVEYOR, 762x35,000 [160-CNV-031]
| 1.ea | 60.00 | 1.5 | 87.00 | 12.68 | 1,103 |  | 0 |  | 0 | 65,500.00 | 65,500 | 66,602.73 | 66,603
160-4-0092.00 | GRASSHOPER CONVEYOR, 762x35,000 [160-CNV-032]
| 1.ea | 60.00 | 1.5 | 87.00 | 12.68 | 1,103 |  | 0 |  | 0 | 65,500.00 | 65,500 | 66,602.73 | 66,603
160-4-0093.00 | GRASSHOPER CONVEYOR, 762x35,000 [160-CNV-033]
| 1.ea | 60.00 | 1.5 | 87.00 | 12.68 | 1,103 |  | 0 |  | 0 | 65,500.00 | 65,500 | 66,602.73 | 66,603
160-4-0094.00 | GRASSHOPER CONVEYOR, 762x35,000 [160-CNV-034]
| 1.ea | 60.00 | 1.5 | 87.00 | 12.68 | 1,103 |  | 0 |  | 0 | 65,500.00 | 65,500 | 66,602.73 | 66,603
160-4-0095.00 | GRASSHOPER CONVEYOR, 762x35,000 [160-CNV-035]
| 1.ea | 60.00 | 1.5 | 87.00 | 12.68 | 1,103 |  | 0 |  | 0 | 65,500.00 | 65,500 | 66,602.73 | 66,603
160-4-0096.00 | GRASSHOPER CONVEYOR, 762x35,000 [160-CNV-036]
| 1.ea | 60.00 | 1.5 | 87.00 | 12.68 | 1,103 |  | 0 |  | 0 | 65,500.00 | 65,500 | 66,602.73 | 66,603
160-4-0097.00 | HORIZENTAL INDEX FEED CONVEYOR, 762x21,000 [160-CNV-042]
| 1.ea | 60.00 | 1.5 | 87.00 | 12.68 | 1,103 |  | 0 |  | 0 | 35,500.00 | 35,500 | 36,602.73 | 36,603
160-4-0098.00 | HORIZENTAL INDEX CONVEYOR, 762x35,000 [160-CNV-043]
| 1.ea | 200.00 | 1.5 | 290.00 | 12.68 | 3,676 |  | 0 |  | 0 | 285,500.00 | 285,500 | 289,175.75 | 289,176

Page 4 of 31

| Avino Tailings Retreatment Scoping Study L5 Detail Estimate |
Project No: 1151920100 |  | Report Date: 17-Feb-12
|  | Rev 1
Client: Avino Silver & Gold Mines Ltd |  | Sorted By Area and Sequence

SubArea-Exp-Seq | Qty | Labour Unit Mhr | Producitivity Factor | Total Labour Manhour | Labour Rate | Labour Cost | Material Unit Cost | Material Cost | Const Eqt Unit Cost | Const Eqt Cost | Process Eqpt Unit Cost | Process Eqpt Cost | Total Unit Cost | Total Cost (USD)
160-4-0099.00 | HEAP LEACH RADIAL STACKER, 762 x 40,000 [160-CNV-044]
| 1.ea | 200.00 | 1.5 | 290.00 | 12.68 | 3,676 |  | 0 |  | 0 | 255,000.00 | 255,000 | 258,675.75 | 258,676
160 - Portable Conveyors Subtotal | 2,146.00 |  | 27,201 |  | 0 |  | 0 |  | 1,689,500 |  | 1,716,701
210 - Solution
210-4-0101.00 | Pregnant Solution Feed Pipe to Plant
| 100.m | 3.00 | 1.5 | 435.00 | 12.68 | 5,514 | 45.00 | 5,850 |  | 0 |  | 0 | 113.64 | 11,364
210-4-0102.00 | Pregnant Solution Flowmeter
| 1.ea | 80.00 | 1.5 | 116.00 | 12.68 | 1,470 | 5,000.00 | 6,500 |  | 0 |  | 0 | 7,970.30 | 7,970
210-4-0106.00 | Barren Solution Pipe to Pond
| 100.m | 3.00 | 1.5 | 435.00 | 12.68 | 5,514 | 45.00 | 5,850 |  | 0 |  | 0 | 113.64 | 11,364
210-4-0107.00 | Barren Solution Pond to Pad
| 400.m | 4.00 | 1.5 | 2,320.00 | 12.68 | 29,406 | 45.00 | 23,400 |  | 0 |  | 0 | 132.01 | 52,806
210-4-0110.00 | EFFLUENT TREATMENT TANK AGITATOR [210-AGI-039]
| 1.ea | 120.00 | 1.5 | 174.00 | 12.68 | 2,205 |  | 0 |  | 0 | 63,000.00 | 63,000 | 65,205.45 | 65,205
210-4-0111.00 | BARREN SOLUTION PUMP No.1, 125 x 100 [210-PSL-050]
| 1.ea | 40.00 | 1.5 | 58.00 | 12.68 | 735 |  | 0 |  | 0 | 11,608.00 | 11,608 | 12,343.15 | 12,343
210-4-0112.00 | BARREN SOLUTION PUMP No.2, 125 x 100 [210-PSL-051]
| 1.ea | 40.00 | 1.5 | 58.00 | 12.68 | 735 |  | 0 |  | 0 | 11,608.00 | 11,608 | 12,343.15 | 12,343
210-4-0113.00 | EFFLUENT TREATMENT PUMP, 75 X 50 [210-PSO-038]
| 1.ea | 40.00 | 1.5 | 58.00 | 12.68 | 735 |  | 0 |  | 0 | 5,000.00 | 5,000 | 5,735.15 | 5,735
210-4-0114.00 | EVENT SOLUTION SAMPLER [210-SMP-060]
| 1.ea | 40.00 | 1.5 | 58.00 | 12.68 | 735 |  | 0 |  | 0 | 14,725.00 | 14,725 | 15,460.15 | 15,460
210-4-0115.00 | EVENT SOLUTION SAMPLER [210-SMP-061]
| 1.ea | 40.00 | 1.5 | 58.00 | 12.68 | 735 |  | 0 |  | 0 | 14,725.00 | 14,725 | 15,460.15 | 15,460
210-4-0116.00 | EVENT SOLUTION SAMPLER [210-SMP-062]
| 1.ea | 40.00 | 1.5 | 58.00 | 12.68 | 735 |  | 0 |  | 0 | 14,725.00 | 14,725 | 15,460.15 | 15,460
210-4-0117.00 | EVENT SOLUTION SAMPLER [210-SMP-063]
| 1.ea | 40.00 | 1.5 | 58.00 | 12.68 | 735 |  | 0 |  | 0 | 14,725.00 | 14,725 | 15,460.15 | 15,460

Page 5 of 31

| Avino Tailings Retreatment Scoping Study L5 Detail Estimate |
Project No: 1151920100 |  | Report Date: 17-Feb-12
|  | Rev 1
Client: Avino Silver & Gold Mines Ltd |  | Sorted By Area and Sequence

SubArea-Exp-Seq | Qty | Labour Unit Mhr | Producitivity Factor | Total Labour Manhour | Labour Rate | Labour Cost | Material Unit Cost | Material Cost | Const Eqt Unit Cost | Const Eqt Cost | Process Eqpt Unit Cost | Process Eqpt Cost | Total Unit Cost | Total Cost (USD)
210-4-0118.00 | EVENT SOLUTION SAMPLER [210-SMP-064]
| 1.ea | 40.00 | 1.5 | 58.00 | 12.68 | 735 |  | 0 |  | 0 | 14,725.00 | 14,725 | 15,460.15 | 15,460
210-4-0119.00 | EVENT SOLUTION SAMPLER [210-SMP-065]
| 1.ea | 40.00 | 1.5 | 58.00 | 12.68 | 735 |  | 0 |  | 0 | 14,725.00 | 14,725 | 15,460.15 | 15,460
210-4-0120.00 | EFFLUENT TREATMENT TANK, 8000 x 8600 [210-TNK-040]
| 1.ea | 800.00 | 1.5 | 1,160.00 | 12.68 | 14,703 | 85,000.00 | 85,000 |  | 0 |  | 0 | 99,703.00 | 99,703
210-4-0121.00 | BARREN SOLUTION TANK, 8000 x 8600 [210-TNK-050]
| 1.ea | 800.00 | 1.5 | 1,160.00 | 12.68 | 14,703 | 85,000.00 | 85,000 |  | 0 |  | 0 | 99,703.00 | 99,703
210 - Solution Subtotal | 6,322.00 |  | 80,131 |  | 211,600 |  | 0 |  | 179,566 |  | 471,297
220 - Merrill-Crow Circuit
220-6-0135.00 | 150 m3/hr Merrill Crowe Plant - Summit Valley Package
| 1.lot | 10,000.00 | 1.5 | 14,500.00 | 12.68 | 183,788 | 2,073,081.00 | 2,073,081 |  | 0 |  | 0 | 2,256,868.50 | 2,256,869
220-6-0143.00 | Refinery - Summit Valley Package
| 1.lot | 3,000.00 | 1.5 | 4,350.00 | 12.68 | 55,136 | 596,777.00 | 596,777 |  | 0 |  | 0 | 651,913.25 | 651,913
220-6-0149.00 | PRECIPITATE MIX TANK AGITATOR Summit Valley Package, Included [221-AGI-032]
| 1.ea |  | 1.5 | 0.00 | 12.68 | 0 |  | 0 |  | 0 |  | 0 | 0.00 | 0
220-6-0150.00 | SOLUTION VERTICAL LEAF CLARIFIER Summit Valley Package, Included [221-CLR-090]
| 1.ea |  | 1.5 | 0.00 | 12.68 | 0 |  | 0 |  | 0 |  | 0 | 0.00 | 0
220-6-0151.00 | ZINC DUST AND LEAD NITRATE VIBRATING FEEDER Summit Valley Package, Included [221-FDR-242]
| 1.ea |  | 1.5 | 0.00 | 12.68 | 0 |  | 0 |  | 0 |  | 0 | 0.00 | 0
220-6-0152.00 | CLARIFIER FEED PUMP No.1, 125 x 100 [221-PSL-027]
| 1.ea | 100.00 | 1.5 | 145.00 | 12.68 | 1,838 |  | 0 |  | 0 | 14,839.00 | 14,839 | 16,676.88 | 16,677
220-6-0153.00 | CLARIFIER FEED PUMP No.2, 125 x 100 [221-PSL-028]
| 1.ea | 100.00 | 1.5 | 145.00 | 12.68 | 1,838 |  | 0 |  | 0 | 14,839.00 | 14,839 | 16,676.88 | 16,677
220-6-0154.00 | PRECIPITATION FILTER FEED PUMP No.1 Summit Valley Package, 100 x 75, Included [221-PSL-033]
| 1.ea |  | 1.5 | 0.00 | 12.68 | 0 |  | 0 |  | 0 |  | 0 | 0.00 | 0
220-6-0155.00 | PRECIPITATION FILTER FEED PUMP No.2 Summit Valley Package, 100 X 75, Included [221-PSL-034]
| 1.ea |  | 1.5 | 0.00 | 12.68 | 0 |  | 0 |  | 0 |  | 0 | 0.00 | 0

Page 6 of 31

| Avino Tailings Retreatment Scoping Study L5 Detail Estimate |
Project No: 1151920100 |  | Report Date: 17-Feb-12
|  | Rev 1
Client: Avino Silver & Gold Mines Ltd |  | Sorted By Area and Sequence

SubArea-Exp-Seq | Qty | Labour Unit Mhr | Producitivity Factor | Total Labour Manhour | Labour Rate | Labour Cost | Material Unit Cost | Material Cost | Const Eqt Unit Cost | Const Eqt Cost | Process Eqpt Unit Cost | Process Eqpt Cost | Total Unit Cost | Total Cost (USD)
220-6-0156.00 | CLARIFIER SLUDGE SUMP PUMP [221-PSU-047]
| 1.ea | 40.00 | 1.5 | 58.00 | 12.68 | 735 |  | 0 |  | 0 | 13,500.00 | 13,500 | 14,235.15 | 14,235
220-6-0157.00 | CLARIFIER AREA SUMP PUMP [221-PSU-048]
| 1.ea | 40.00 | 1.5 | 58.00 | 12.68 | 735 |  | 0 |  | 0 | 13,500.00 | 13,500 | 14,235.15 | 14,235
220-6-0158.00 | CROWE TOWER VACUUM PUMP No.1 Summit Valley Package, Included [221-PVU-039]
| 1.ea |  | 1.5 | 0.00 | 12.68 | 0 |  | 0 |  | 0 |  | 0 | 0.00 | 0
220-6-0159.00 | CROWE TOWER VACUUM PUMP Summit Valley Package, Included [221-PVU-040]
| 1.ea |  | 1.5 | 0.00 | 12.68 | 0 |  | 0 |  | 0 |  | 0 | 0.00 | 0
220-6-0160.00 | PREGNANT SOLUTION TANK, 8000 x 8600 [221-TNK-026]
| 1.ea | 800.00 | 1.5 | 1,160.00 | 12.68 | 14,703 | 85,000.00 | 85,000 |  | 0 |  | 0 | 99,703.00 | 99,703
220-6-0161.00 | PRECIPITATE MIX TANK Summit Valley Package, 3000 X 3600, Included [221-TNK-031]
| 1.ea |  | 1.5 | 0.00 | 12.68 | 0 |  | 0 |  | 0 |  | 0 | 0.00 | 0
220-6-0162.00 | CROWE TOWER Summit Valley Package, Included [221-TOW-030]
| 1.ea |  | 1.5 | 0.00 | 12.68 | 0 |  | 0 |  | 0 |  | 0 | 0.00 | 0
220-6-0172.00 | ACID VAT AGITATOR [222-AGI-062]
| 1.ea | 120.00 | 1.5 | 174.00 | 12.68 | 2,205 |  | 0 |  | 0 | 63,000.00 | 63,000 | 65,205.45 | 65,205
220-6-0173.00 | DIGEST FILTRATE TANK AGITATOR [222-AGI-082]
| 1.ea | 120.00 | 1.5 | 174.00 | 12.68 | 2,205 |  | 0 |  | 0 | 63,000.00 | 63,000 | 65,205.45 | 65,205
220-6-0174.00 | SMELTING FURNACE COMBUSTION AIR BLOWER Summit Valley Package, Included [222-BLO-075]
| 1.ea |  | 1.5 | 0.00 | 12.68 | 0 |  | 0 |  | 0 |  | 0 | 0.00 | 0
220-6-0175.00 | DRYING TRAY Summit Valley Package, Included [222-EQP-071]
| 1.ea |  | 1.5 | 0.00 | 12.68 | 0 |  | 0 |  | 0 |  | 0 | 0.00 | 0
220-6-0176.00 | PRECIPITATE TRANSFER CART Summit Valley Package, Included [222-EQP-073]
| 1.ea |  | 1.5 | 0.00 | 12.68 | 0 |  | 0 |  | 0 |  | 0 | 0.00 | 0
220-6-0177.00 | ACID VAT EXHAUST FAN [222-EXF-069]
| 1.ea | 100.00 | 1.5 | 145.00 | 12.68 | 1,838 |  | 0 |  | 0 | 5,000.00 | 5,000 | 6,837.88 | 6,838
220-6-0178.00 | PRECIPITATION PLATE & FRAME FILTER Summit Valley Package, 900 x 900 x 16, Included [222-FIL-042]
| 1.ea |  | 1.5 | 0.00 | 12.68 | 0 |  | 0 |  | 0 |  | 0 | 0.00 | 0

Page 7 of 31

| Avino Tailings Retreatment Scoping Study L5 Detail Estimate |
Project No: 1151920100 |  | Report Date: 17-Feb-12
|  | Rev 1
Client: Avino Silver & Gold Mines Ltd |  | Sorted By Area and Sequence

SubArea-Exp-Seq | Qty | Labour Unit Mhr | Producitivity Factor | Total Labour Manhour | Labour Rate | Labour Cost | Material Unit Cost | Material Cost | Const Eqt Unit Cost | Const Eqt Cost | Process Eqpt Unit Cost | Process Eqpt Cost | Total Unit Cost | Total Cost (USD)
220-6-0179.00 | DIGEST PRECIPITATE FILTER PRESS, 900 x 900 x 16 [222-FIL-070]
| 1.ea | 400.00 | 1.5 | 580.00 | 12.68 | 7,352 |  | 0 |  | 0 | 125,000.00 | 125,000 | 132,351.50 | 132,352
220-6-0180.00 | PRECIPITATE DRYING OVEN Summit Valley Package, Included [222-FUR-072]
| 1.ea |  | 1.5 | 0.00 | 12.68 | 0 |  | 0 |  | 0 |  | 0 | 0.00 | 0
220-6-0181.00 | SMELTING FURNACE (GAS FIRED) Summit Valley Package, Included [222-FUR-074]
| 1.ea |  | 1.5 | 0.00 | 12.68 | 0 |  | 0 |  | 0 |  | 0 | 0.00 | 0
220-6-0182.00 | FLUX MIXER Summit Valley Package, Included [222-MIX-080]
| 1.ea |  | 1.5 | 0.00 | 12.68 | 0 |  | 0 |  | 0 |  | 0 | 0.00 | 0
220-6-0183.00 | DIGEST FILTER FEED PUMP No.1 [222-PSL-063]
| 1.ea | 40.00 | 1.5 | 58.00 | 12.68 | 735 |  | 0 |  | 0 | 8,000.00 | 8,000 | 8,735.15 | 8,735
220-6-0184.00 | DIGEST FILTER FEED PUMP No.2 [222-PSL-064]
| 1.ea | 40.00 | 1.5 | 58.00 | 12.68 | 735 |  | 0 |  | 0 | 8,000.00 | 8,000 | 8,735.15 | 8,735
220-6-0185.00 | DIGEST FILTRATE FEED PUMP No.1 [222-PSL-083]
| 1.ea | 40.00 | 1.5 | 58.00 | 12.68 | 735 |  | 0 |  | 0 | 8,000.00 | 8,000 | 8,735.15 | 8,735
220-6-0186.00 | DIGEST FILTRATE FEED PUMP No.2 [222-PSL-084]
| 1.ea | 40.00 | 1.5 | 58.00 | 12.68 | 735 |  | 0 |  | 0 | 8,000.00 | 8,000 | 8,735.15 | 8,735
220-6-0187.00 | REFINERY AREA SUMP PUMP [222-PSU-049]
| 1.ea | 120.00 | 1.5 | 174.00 | 12.68 | 2,205 | 20,000.00 | 20,000 |  | 0 | 13,500.00 | 13,500 | 35,705.45 | 35,705
220-6-0188.00 | FURNACE AREA DUST COLLECTION SYSTEM Summit Valley Package, Included [222-SYS-076]
| 1.ea |  | 1.5 | 0.00 | 12.68 | 0 |  | 0 |  | 0 |  | 0 | 0.00 | 0
220-6-0189.00 | ACID VAT, 2000 x 2300 [222-TNK-061]
| 1.ea | 100.00 | 1.5 | 145.00 | 12.68 | 1,838 | 10,000.00 | 10,000 |  | 0 |  | 0 | 11,837.88 | 11,838
220-6-0190.00 | DIGEST FILTRATE TANK, 2000 x 2300 [222-TNK-081]
| 1.ea | 100.00 | 1.5 | 145.00 | 12.68 | 1,838 | 10,000.00 | 10,000 |  | 0 |  | 0 | 11,837.88 | 11,838
220-6-0191.00 | REFINERY SAFE Summit Valley Package, Included [222-VAU-077]
| 1.ea |  | 1.5 | 0.00 | 12.68 | 0 |  | 0 |  | 0 |  | 0 | 0.00 | 0
220-6-0200.00 | BODY FEED TANK AGITATOR Summit Valley Package, Included [223-AGI-302]
| 1.ea |  | 1.5 | 0.00 | 12.68 | 0 |  | 0 |  | 0 |  | 0 | 0.00 | 0

Page 8 of 31

| Avino Tailings Retreatment Scoping Study L5 Detail Estimate |
Project No: 1151920100 |  | Report Date: 17-Feb-12
|  | Rev 1
Client: Avino Silver & Gold Mines Ltd |  | Sorted By Area and Sequence

SubArea-Exp-Seq | Qty | Labour Unit Mhr | Producitivity Factor | Total Labour Manhour | Labour Rate | Labour Cost | Material Unit Cost | Material Cost | Const Eqt Unit Cost | Const Eqt Cost | Process Eqpt Unit Cost | Process Eqpt Cost | Total Unit Cost | Total Cost (USD)
220-6-0201.00 | BODY FEED METERING PUMP No.1 Summit Valley Package, 25 x 12, Included [223-PMT-311]
| 1.ea |  | 1.5 | 0.00 | 12.68 | 0 |  | 0 |  | 0 |  | 0 | 0.00 | 0
220-6-0202.00 | BODY FEED METERING PUMP No.2 Summit Valley Package, Included [223-PMT-312]
| 1.ea |  | 1.5 | 0.00 | 12.68 | 0 |  | 0 |  | 0 |  | 0 | 0.00 | 0
220-6-0203.00 | BODY FEED TANK Summit Valley Package, 1000 x 1200, Included [223-TNK-301]
| 1.ea |  | 1.5 | 0.00 | 12.68 | 0 |  | 0 |  | 0 |  | 0 | 0.00 | 0
220 - Merrill-Crow Circuit Subtotal | 22,185.00 |  | 281,195 |  | 2,794,858 |  | 0 |  | 358,178 |  | 3,434,231
243 - Cyanide Solution System
243-6-0219.00 | Cyanide Scrubber
| 1.ea | 80.00 | 1.5 | 116.00 | 12.68 | 1,470 | 15,000.00 | 19,500 |  | 0 |  | 0 | 20,970.30 | 20,970
243-6-0221.00 | Cyanide-Piping
| 1.ls | 200.00 | 1.5 | 290.00 | 12.68 | 3,676 | 10,815.00 | 14,060 |  | 0 |  | 0 | 17,735.25 | 17,735
243-6-0222.00 | CYANIDE MIX TANK AGITATOR [243-AGI-052]
| 1.ea | 120.00 | 1.5 | 174.00 | 12.68 | 2,205 |  | 0 |  | 0 | 63,000.00 | 63,000 | 65,205.45 | 65,205
243-6-0223.00 | CYANIDE BULK BAG HANDLING SYSTEM [243-BBS-050]
| 1.ea | 100.00 | 1.5 | 145.00 | 12.68 | 1,838 |  | 0 |  | 0 | 10,000.00 | 10,000 | 11,837.88 | 11,838
243-6-0224.00 | CYANIDE VENTILATION FAN [243-FAN-059]
| 1.ea | 40.00 | 1.5 | 58.00 | 12.68 | 735 |  | 0 |  | 0 | 5,000.00 | 5,000 | 5,735.15 | 5,735
243-6-0225.00 | CYANIDE METERING PUMP No.1, 25 x 15 [243-PMT-071]
| 1.ea | 40.00 | 1.5 | 58.00 | 12.68 | 735 |  | 0 |  | 0 | 5,000.00 | 5,000 | 5,735.15 | 5,735
243-6-0226.00 | CYANIDE METERING PUMP No.2, 25 x 15 [243-PMT-072]
| 1.ea | 40.00 | 1.5 | 58.00 | 12.68 | 735 |  | 0 |  | 0 | 5,000.00 | 5,000 | 5,735.15 | 5,735
243-6-0227.00 | CYANIDE METERING PUMP No.3, 25 x 15 [243-PMT-073]
| 1.ea | 40.00 | 1.5 | 58.00 | 12.68 | 735 |  | 0 |  | 0 | 5,000.00 | 5,000 | 5,735.15 | 5,735
243-6-0228.00 | CYANIDE METERING PUMP No.4, 25 x 15 [243-PMT-074]
| 1.ea | 40.00 | 1.5 | 58.00 | 12.68 | 735 |  | 0 |  | 0 | 5,000.00 | 5,000 | 5,735.15 | 5,735
243-6-0229.00 | CYANIDE TRANSFER PUMP [243-PSO-076]
| 1.ea | 200.00 | 1.5 | 290.00 | 12.68 | 3,676 | 10,815.00 | 10,815 |  | 0 | 6,122.00 | 6,122 | 20,612.75 | 20,613

Page 9 of 31

| Avino Tailings Retreatment Scoping Study L5 Detail Estimate |
Project No: 1151920100 |  | Report Date: 17-Feb-12
|  | Rev 1
Client: Avino Silver & Gold Mines Ltd |  | Sorted By Area and Sequence

SubArea-Exp-Seq | Qty | Labour Unit Mhr | Producitivity Factor | Total Labour Manhour | Labour Rate | Labour Cost | Material Unit Cost | Material Cost | Const Eqt Unit Cost | Const Eqt Cost | Process Eqpt Unit Cost | Process Eqpt Cost | Total Unit Cost | Total Cost (USD)
243-6-0230.00 | CYANIDE AREA SUMP PUMP [243-PSU-099]
| 1.ea | 200.00 | 1.5 | 290.00 | 12.68 | 3,676 | 10,815.00 | 10,815 |  | 0 | 13,500.00 | 13,500 | 27,990.75 | 27,991
243-6-0231.00 | CYANIDE AREA SAFETY SHOWER AND EYE WASH STATION [243-SSW-089]
| 1.ea | 40.00 | 1.5 | 58.00 | 12.68 | 735 |  | 0 |  | 0 | 5,500.00 | 5,500 | 6,235.15 | 6,235
243-6-0232.00 | CYANIDE MIX TANK, 2500 x 3100 [243-TNK-051]
| 1.ea | 100.00 | 1.5 | 145.00 | 12.68 | 1,838 | 12,000.00 | 12,000 |  | 0 |  | 0 | 13,837.88 | 13,838
243-6-0233.00 | CYANIDE HOLDING TANK, 2500 x 3100 [243-TNK-060]
| 1.ea | 100.00 | 1.5 | 145.00 | 12.68 | 1,838 | 12,000.00 | 12,000 |  | 0 |  | 0 | 13,837.88 | 13,838
243 - Cyanide Solution System Subtotal | 1,943.00 |  | 24,628 |  | 79,190 |  | 0 |  | 123,122 |  | 226,939
248 - Pre Coat System
248-6-0239.00 | Pre Coat Piping
| 1.ls | 80.00 | 1.5 | 116.00 | 12.68 | 1,470 | 5,025.00 | 6,533 |  | 0 |  | 0 | 8,002.80 | 8,003
248-6-0240.00 | PRE-COAT TANK AGITATOR Summit Valley Package, Included [248-AGI-272]
| 1.ea |  | 1.5 | 0.00 | 12.68 | 0 |  | 0 |  | 0 |  | 0 | 0.00 | 0
248-6-0241.00 | PRE-COAT BAG HANDLING SYSTEM Summit Valley Package, Included [248-BBS-270]
| 1.ea |  | 1.5 | 0.00 | 12.68 | 0 |  | 0 |  | 0 |  | 0 | 0.00 | 0
248-6-0242.00 | PRE-COAT METERING PUMP No.1 Summit Valley Package, 25 x 12, Included [248-PMT-281]
| 1.ea |  | 1.5 | 0.00 | 12.68 | 0 |  | 0 |  | 0 |  | 0 | 0.00 | 0
248-6-0243.00 | PRE-COAT METERING PUMP No.2 Summit Valley Package, 25 x 12, Included [248-PMT-282]
| 1.ea |  | 1.5 | 0.00 | 12.68 | 0 |  | 0 |  | 0 |  | 0 | 0.00 | 0
248-6-0244.00 | PRE-COAT TANK Summit Valley Package, 1000 x 1200, Included [248-TNK-271]
| 1.ea |  | 1.5 | 0.00 | 12.68 | 0 |  | 0 |  | 0 |  | 0 | 0.00 | 0
248 - Pre Coat System Subtotal | 116.00 |  | 1,470 |  | 6,533 |  | 0 |  | 0 |  | 8,003
263 - Reagent Area Services
263-6-0248.00 | Sump Pump 2
| 1.ea | 60.00 | 1.5 | 87.00 | 12.68 | 1,103 | 4,500.00 | 5,850 |  | 0 |  | 0 | 6,952.73 | 6,953
263-6-0249.00 | Eyewash/Shower Station
| 1.ea | 20.00 | 1.5 | 29.00 | 12.68 | 368 | 2,000.00 | 2,600 |  | 0 |  | 0 | 2,967.58 | 2,968

Page 10 of 31

| Avino Tailings Retreatment Scoping Study L5 Detail Estimate |
Project No: 1151920100 |  | Report Date: 17-Feb-12
|  | Rev 1
Client: Avino Silver & Gold Mines Ltd |  | Sorted By Area and Sequence

SubArea-Exp-Seq | Qty | Labour Unit Mhr | Producitivity Factor | Total Labour Manhour | Labour Rate | Labour Cost | Material Unit Cost | Material Cost | Const Eqt Unit Cost | Const Eqt Cost | Process Eqpt Unit Cost | Process Eqpt Cost | Total Unit Cost | Total Cost (USD)
263 - Reagent Area Services Subtotal | 116.00 |  | 1,470 |  | 8,450 |  | 0 |  | 0 |  | 9,920
264 - Gland Water Supply
264-6-0251.00 | Gland Water Tank 2m x 2m
| 1.ea | 40.00 | 1.5 | 58.00 | 12.68 | 735 | 2,000.00 | 2,600 |  | 0 |  | 0 | 3,335.15 | 3,335
264-6-0252.00 | Gland Water Pumps 38mm x 25mm Incl Motor
| 2.ea | 60.00 | 1.5 | 174.00 | 12.68 | 2,205 | 4,500.00 | 11,700 |  | 0 |  | 0 | 6,952.73 | 13,905
264-6-0253.00 | Gland Water- Piping
| 1.ls | 40.00 | 1.5 | 58.00 | 12.68 | 735 | 2,750.00 | 3,575 |  | 0 |  | 0 | 4,310.15 | 4,310
264 - Gland Water Supply Subtotal | 290.00 |  | 3,676 |  | 17,875 |  | 0 |  | 0 |  | 21,551
265 - Reagents and Auxiliary Services Civil and Concrete
265-6-0255.00 | Reagents and Anciliaries Excavation
| 375.cm | 0.30 | 1.5 | 163.13 | 12.68 | 2,068 |  | 0 |  | 0 |  | 0 | 5.51 | 2,068
265-6-0256.00 | Reagents and Facilities Backfill - Native
| 135.cm | 0.10 | 1.5 | 19.58 | 12.68 | 248 |  | 0 |  | 0 |  | 0 | 1.84 | 248
265-6-0257.00 | Reagents and Facilities Backfill - Granular
| 140.cm | 0.10 | 1.5 | 20.30 | 12.68 | 257 | 5.00 | 910 |  | 0 |  | 0 | 8.34 | 1,167
265-6-0258.00 | Reagents and Facilities Equipment Foundations
| 100.cm | 22.00 | 1.5 | 3,190.00 | 12.68 | 40,433 | 300.00 | 39,000 |  | 0 |  | 0 | 794.33 | 79,433
265-6-0259.00 | Reagents and Facilities Slab on Grade
| 50.cm | 20.00 | 1.5 | 1,450.00 | 12.68 | 18,379 | 250.00 | 16,250 |  | 0 |  | 0 | 692.58 | 34,629
265-6-0260.00 | SODIUM HYDROXIDE TANK AGITATOR [265-AGI-252]
| 1.ea | 40.00 | 1.5 | 58.00 | 12.68 | 735 |  | 0 |  | 0 | 14,500.00 | 14,500 | 15,235.15 | 15,235
265-6-0261.00 | SODIUM HYDROXIDE BAG HANDLING SYSTEM [265-BBS-250]
| 1.ea | 100.00 | 1.5 | 145.00 | 12.68 | 1,838 |  | 0 |  | 0 | 10,000.00 | 10,000 | 11,837.88 | 11,838
265-6-0262.00 | REAGENT AREA OVERHEAD CRANE, 2 T [265-CRN-199]
| 1.ea | 100.00 | 1.5 | 145.00 | 12.68 | 1,838 |  | 0 |  | 0 | 30,000.00 | 30,000 | 31,837.88 | 31,838
265-6-0263.00 | REAGENT AREA HOIST [265-HOI-198]
| 1.ea | 60.00 | 1.5 | 87.00 | 12.68 | 1,103 |  | 0 |  | 0 | 25,000.00 | 25,000 | 26,102.73 | 26,103

Page 11 of 31

| Avino Tailings Retreatment Scoping Study L5 Detail Estimate |
Project No: 1151920100 |  | Report Date: 17-Feb-12
|  | Rev 1
Client: Avino Silver & Gold Mines Ltd |  | Sorted By Area and Sequence

SubArea-Exp-Seq | Qty | Labour Unit Mhr | Producitivity Factor | Total Labour Manhour | Labour Rate | Labour Cost | Material Unit Cost | Material Cost | Const Eqt Unit Cost | Const Eqt Cost | Process Eqpt Unit Cost | Process Eqpt Cost | Total Unit Cost | Total Cost (USD)
265-6-0264.00 | SULPHURIC ACID METERING PUMP No.1, 25 x 12 [265-PMT-161]
| 1.ea | 40.00 | 1.5 | 58.00 | 12.68 | 735 |  | 0 |  | 0 | 5,000.00 | 5,000 | 5,735.15 | 5,735
265-6-0265.00 | SULPHURIC ACID METERING PUMP No.2, 25 x 12 [265-PMT-162]
| 1.ea | 40.00 | 1.5 | 58.00 | 12.68 | 735 |  | 0 |  | 0 | 5,000.00 | 5,000 | 5,735.15 | 5,735
265-6-0266.00 | SODIUM HYDROXIDE METERING PUMP No.1, 25 x 12 [265-PMT-261]
| 1.ea | 40.00 | 1.5 | 58.00 | 12.68 | 735 |  | 0 |  | 0 | 5,000.00 | 5,000 | 5,735.15 | 5,735
265-6-0267.00 | SODIUM HYDROXIDE METERING PUMP No.2 [265-PMT-262]
| 1.ea | 40.00 | 1.5 | 58.00 | 12.68 | 735 |  | 0 |  | 0 | 5,000.00 | 5,000 | 5,735.15 | 5,735
265-6-0268.00 | SODIUM HYDROXIDE TANK, 1200 x 1400 [265-TNK-251]
| 1.ea | 100.00 | 1.5 | 145.00 | 12.68 | 1,838 | 8,000.00 | 8,000 |  | 0 |  | 0 | 9,837.88 | 9,838
265 - Reagents and Auxiliary Services Civil and Concrete Subtotal | 5,655.00 |  | 71,677 |  | 64,160 |  | 0 |  | 99,500 |  | 235,337
510 - Process Building
510-6-0270.00 | Excavation for Building
| 1,000.cm | 0.30 | 1.5 | 435.00 | 12.68 | 5,514 |  | 0 |  | 0 |  | 0 | 5.51 | 5,514
510-6-0271.00 | Backfill - Building Area Native
| 700.cm | 0.10 | 1.5 | 101.50 | 12.68 | 1,287 |  | 0 |  | 0 |  | 0 | 1.84 | 1,287
510-6-0272.00 | Drainage allowance - Building
| 1.ls | 50.00 | 1.5 | 72.50 | 12.68 | 919 | 1,500.00 | 1,950 |  | 0 |  | 0 | 2,868.94 | 2,869
510-6-0273.00 | Backfill - Foundations Granular
| 100.cm | 0.10 | 1.5 | 14.50 | 12.68 | 184 | 6.00 | 780 |  | 0 |  | 0 | 9.64 | 964
510-6-0274.00 | Concrete - Building Foundations and Piers
| 100.cm | 22.00 | 1.5 | 3,190.00 | 12.68 | 40,433 | 300.00 | 39,000 |  | 0 |  | 0 | 794.33 | 79,433
510-6-0275.00 | Concrete - Grade Beams
| 100.cm | 22.00 | 1.5 | 3,190.00 | 12.68 | 40,433 | 300.00 | 39,000 |  | 0 |  | 0 | 794.33 | 79,433
510-6-0276.00 | Concrete - Equipment Foundations
| 50.cm | 22.00 | 1.5 | 1,595.00 | 12.68 | 20,217 | 300.00 | 19,500 |  | 0 |  | 0 | 794.33 | 39,717
510-6-0277.00 | Concrete - Slab/Aprons
| 244.cm | 20.00 | 1.5 | 7,076.00 | 12.68 | 89,688 | 250.00 | 79,300 |  | 0 |  | 0 | 692.57 | 168,988

Page 12 of 31

| Avino Tailings Retreatment Scoping Study L5 Detail Estimate |
Project No: 1151920100 |  | Report Date: 17-Feb-12
|  | Rev 1
Client: Avino Silver & Gold Mines Ltd |  | Sorted By Area and Sequence

SubArea-Exp-Seq | Qty | Labour Unit Mhr | Producitivity Factor | Total Labour Manhour | Labour Rate | Labour Cost | Material Unit Cost | Material Cost | Const Eqt Unit Cost | Const Eqt Cost | Process Eqpt Unit Cost | Process Eqpt Cost | Total Unit Cost | Total Cost (USD)
510-6-0278.00 | Misc. Concrete Sumps / Curbs / Pads
| 30.cm | 24.00 | 1.5 | 1,044.00 | 12.68 | 13,233 | 325.00 | 12,675 |  | 0 |  | 0 | 863.59 | 25,908
510-6-0279.00 | Building Shell including columns, beams, purlins, girts, roofing siding and mandoors
| 781.sm | 0.40 | 1.5 | 452.98 | 12.68 | 5,742 | 48.00 | 48,734 |  | 0 |  | 0 | 69.75 | 54,476
510-6-0280.00 | Building O/H Doors
| 4.ea | 40.00 | 1.5 | 232.00 | 12.68 | 2,941 | 8,000.00 | 41,600 |  | 0 |  | 0 | 11,135.15 | 44,541
510-6-0281.00 | Additional Internal Support Steel
| 10.ton | 20.00 | 1.5 | 290.00 | 12.68 | 3,676 | 3,000.00 | 39,000 |  | 0 |  | 0 | 4,267.58 | 42,676
510-6-0282.00 | Additional Platforms
| 37.sm | 1.60 | 1.5 | 85.84 | 12.68 | 1,088 | 152.00 | 7,311 |  | 0 |  | 0 | 227.01 | 8,399
510-6-0283.00 | Stairs c/w HR & KP
| 12.m | 14.00 | 1.5 | 243.60 | 12.68 | 3,088 | 656.00 | 10,234 |  | 0 |  | 0 | 1,110.10 | 13,321
510-6-0284.00 | Building - HVAC/Fume Control
| 390.sm | 0.40 | 1.5 | 226.20 | 12.68 | 2,867 | 54.00 | 27,378 |  | 0 |  | 0 | 77.55 | 30,245
510-6-0285.00 | Building - Fire Protection
| 1.ls | 200.00 | 1.5 | 290.00 | 12.68 | 3,676 | 20,000.00 | 26,000 |  | 0 |  | 0 | 29,675.75 | 29,676
510-6-0286.00 | Building - Cyanide Detection
| 1.ls | 200.00 | 1.5 | 290.00 | 12.68 | 3,676 | 20,000.00 | 26,000 |  | 0 |  | 0 | 29,675.75 | 29,676
510-6-0287.00 | Building - Security
| 1.ls | 100.00 | 1.5 | 145.00 | 12.68 | 1,838 | 13,000.00 | 16,900 |  | 0 |  | 0 | 18,737.88 | 18,738
510-6-0288.00 | Building - Fencing Metal Lockup Area
| 37.m | 4.00 | 1.5 | 214.60 | 12.68 | 2,720 | 60.00 | 2,886 |  | 0 |  | 0 | 151.52 | 5,606
510-6-0289.00 | Building Architectural MCC/Control Room
| 1.ls | 300.00 | 1.5 | 435.00 | 12.68 | 5,514 | 25,000.00 | 32,500 |  | 0 |  | 0 | 38,013.63 | 38,014
510 - Process Building Subtotal | 19,623.72 |  | 248,731 |  | 470,748 |  | 0 |  | 0 |  | 719,479
530 - Assay Laboratory
530-6-0295.00 | Laboratory Equipment
| 1.ls | 250.00 | 1.5 | 362.50 | 12.68 | 4,595 | 120,000.00 | 156,000 |  | 0 |  | 0 | 160,594.69 | 160,595

Page 13 of 31

| Avino Tailings Retreatment Scoping Study L5 Detail Estimate |
Project No: 1151920100 |  | Report Date: 17-Feb-12
|  | Rev 1
Client: Avino Silver & Gold Mines Ltd |  | Sorted By Area and Sequence

SubArea-Exp-Seq | Qty | Labour Unit Mhr | Producitivity Factor | Total Labour Manhour | Labour Rate | Labour Cost | Material Unit Cost | Material Cost | Const Eqt Unit Cost | Const Eqt Cost | Process Eqpt Unit Cost | Process Eqpt Cost | Total Unit Cost | Total Cost (USD)
530-6-0296.00 | Office Furniture, Equipment & Computers
| 1.Lot | 40.00 | 1.5 | 58.00 | 12.68 | 735 | 8,000.00 | 10,400 |  | 0 |  | 0 | 11,135.15 | 11,135
530 - Assay Laboratory Subtotal | 420.50 |  | 5,330 |  | 166,400 |  | 0 |  | 0 |  | 171,730
550 - Accommodation Complex
550-6-0303.00 | Refurbish Existing Hotel and Offices
| 1.ls | 1,200.00 | 1.5 | 1,740.00 | 12.68 | 22,055 | 15,000.00 | 19,500 |  | 0 |  | 0 | 41,554.50 | 41,555
550 - Accommodation Complex Subtotal | 1,740.00 |  | 22,055 |  | 19,500 |  | 0 |  | 0 |  | 41,555
560 - Truck Shop
560-6-0305.00 | By Contractor
| 1.ls |  | 1.5 | 0.00 | 12.68 | 0 |  | 0 |  | 0 |  | 0 | 0.00 | 0
560 - Truck Shop Subtotal | 0.00 |  | 0 |  | 0 |  | 0 |  | 0 |  | 0
120 - Mobile Equipment
###-##-####.00 | 966 FEL - Tailings Loadout
| 1.ea | 30.00 | 1.5 | 43.50 | 12.68 | 551 | 275,000.00 | 357,500 | 0.00 | 0 |  | 0 | 358,051.36 | 358,051
###-##-####.00 | D6 Dozer Leach Pad
| 1.ea | 30.00 | 1.5 | 43.50 | 12.68 | 551 | 250,000.00 | 325,000 | 0.00 | 0 |  | 0 | 325,551.36 | 325,551
###-##-####.00 | D6 Dozer Tailings Hopper
| 1.ea | 30.00 | 1.5 | 43.50 | 12.68 | 551 | 250,000.00 | 325,000 | 0.00 | 0 |  | 0 | 325,551.36 | 325,551
###-##-####.00 | 5 Tonne Hiab
| 1.ea | 20.00 | 1.5 | 29.00 | 12.68 | 368 | 50,000.00 | 65,000 | 0.00 | 0 |  | 0 | 65,367.58 | 65,368
###-##-####.00 | Skid Steer
| 1.ea | 20.00 | 1.5 | 29.00 | 12.68 | 368 | 15,000.00 | 19,500 | 0.00 | 0 |  | 0 | 19,867.58 | 19,868
###-##-####.00 | 3/4 Tonne Pick-up New
| 1.ea | 20.00 | 1.5 | 29.00 | 12.68 | 368 | 32,000.00 | 41,600 | 0.00 | 0 |  | 0 | 41,967.58 | 41,968
###-##-####.00 | 5 Tonne Forklift
| 1.ea | 20.00 | 1.5 | 29.00 | 12.68 | 368 | 20,000.00 | 26,000 | 0.00 | 0 |  | 0 | 26,367.58 | 26,368
###-##-####.00 | Pick-up Trucks New
| 2.ea | 20.00 | 1.5 | 58.00 | 12.68 | 735 | 30,000.00 | 78,000 | 0.00 | 0 |  | 0 | 39,367.58 | 78,735

Page 14 of 31

| Avino Tailings Retreatment Scoping Study L5 Detail Estimate |
Project No: 1151920100 |  | Report Date: 17-Feb-12
|  | Rev 1
Client: Avino Silver & Gold Mines Ltd |  | Sorted By Area and Sequence

SubArea-Exp-Seq | Qty | Labour Unit Mhr | Producitivity Factor | Total Labour Manhour | Labour Rate | Labour Cost | Material Unit Cost | Material Cost | Const Eqt Unit Cost | Const Eqt Cost | Process Eqpt Unit Cost | Process Eqpt Cost | Total Unit Cost | Total Cost (USD)
###-##-####.00 | 20 Tonne Dump Truck
| 3.ea | 20.00 | 1.5 | 87.00 | 12.68 | 1,103 | 85,000.00 | 331,500 | 0.00 | 0 |  | 0 | 110,867.58 | 332,603
120 - Mobile Equipment Subtotal | 391.50 |  | 4,962 |  | 1,569,100 |  | 0 |  | 0 |  | 1,574,062
610 - Site Work
610-9-0312.00 | Site Road Upgrades 2.5 km Subcontract
| 1.ls | 0.00 | 1.5 | 0.00 | 12.68 | 0 | 62,500.00 | 81,250 | 0.00 | 0 |  | 0 | 81,250.00 | 81,250
610-9-0313.00 | Water Runoff Diversion Ditches Subcontract
| 1.ls | 0.00 | 1.5 | 0.00 | 12.68 | 0 | 100,000.00 | 130,000 | 0.00 | 0 |  | 0 | 130,000.00 | 130,000
610-9-0314.00 | Site Clearing and Grubbing - Pad, Ponds and Plant
| 20.ha | 32.00 | 1.5 | 928.00 | 12.68 | 11,762 |  | 0 | 0.00 | 0 |  | 0 | 588.12 | 11,762
610-9-0315.00 | Site Stripping
| 30,000.cm | 0.15 | 1.5 | 6,525.00 | 12.68 | 82,704 |  | 0 | 0.00 | 0 |  | 0 | 2.76 | 82,704
610-9-0316.00 | Site Rough Grading - Cut to Fill
| 400,000.cm | 0.06 | 1.5 | 34,800.00 | 12.68 | 441,090 |  | 0 | 0.00 | 0 |  | 0 | 1.10 | 441,090
610-9-0317.00 | Site Fill
| 100,000.cm | 0.10 | 1.5 | 14,500.00 | 12.68 | 183,788 | 2.00 | 260,000 | 0.00 | 0 |  | 0 | 4.44 | 443,788
610-9-0318.00 | Surfacing Plant Areas
| 2,500.cm | 0.20 | 1.5 | 725.00 | 12.68 | 9,189 | 4.00 | 13,000 | 0.00 | 0 |  | 0 | 8.88 | 22,189
610 - Site Work Subtotal | 57,478.00 |  | 728,534 |  | 484,250 |  | 0 |  | 0 |  | 1,212,784
620 - Leach Pad
620-9-0320.00 | Leach Pad Foundation Drain
| 300.cm | 1.00 | 1.5 | 435.00 | 12.68 | 5,514 | 6.00 | 2,340 | 0.00 | 0 |  | 0 | 26.18 | 7,854
620-9-0321.00 | Leach Pad Drain Rock
| 200.cm | 0.30 | 1.5 | 87.00 | 12.68 | 1,103 | 8.00 | 2,080 | 0.00 | 0 |  | 0 | 15.91 | 3,183
620-9-0322.00 | Leach Pad Soil Liner
| 62,500.cm | 0.30 | 1.5 | 27,187.50 | 12.68 | 344,602 | 3.00 | 243,750 | 0.00 | 0 |  | 0 | 9.41 | 588,352
620-9-0323.00 | Leach Pad Geomembrane
| 125,000.sm | 0.25 | 1.5 | 45,312.50 | 12.68 | 574,336 | 5.00 | 812,500 | 0.00 | 0 |  | 0 | 11.09 | 1,386,836

Page 15 of 31

| Avino Tailings Retreatment Scoping Study L5 Detail Estimate |
Project No: 1151920100 |  | Report Date: 17-Feb-12
|  | Rev 1
Client: Avino Silver & Gold Mines Ltd |  | Sorted By Area and Sequence

SubArea-Exp-Seq | Qty | Labour Unit Mhr | Producitivity Factor | Total Labour Manhour | Labour Rate | Labour Cost | Material Unit Cost | Material Cost | Const Eqt Unit Cost | Const Eqt Cost | Process Eqpt Unit Cost | Process Eqpt Cost | Total Unit Cost | Total Cost (USD)
620-9-0324.00 | Solution Collection Piping |  |  |  |  |  |  |  |  |  |  |
| 43,200.m | 0.20 | 1.5 | 12,528.00 | 12.68 | 158,792 | 5.00 | 280,800 | 0.00 | 0 |  | 0 | 10.18 | 439,592
620-9-0325.00 | Overliner |  |  |  |  |  |  |  |  |  |  |  |
| 62,500.m | 0.30 | 1.5 | 27,187.50 | 12.68 | 344,602 | 8.00 | 650,000 | 0.00 | 0 |  | 0 | 15.91 | 994,602
620-9-0326.00 | Leak Detection Pumps |  |  |  |  |  |  |  |  |  |  |  |
| 1.ea | 80.00 | 1.5 | 116.00 | 12.68 | 1,470 | 4,500.00 | 5,850 | 0.00 | 0 |  | 0 | 7,320.30 | 7,320
| 620 - Leach Pad Subtotal | 112,853.50 |  | 1,430,418 |  | 1,997,320 |  | 0 |  | 0 |  | 3,427,738
631 - Pregnant and Barren Solution Ponds |  |  |  |  |  |  |  |  |  |
631-9-0328.00 | Pregnant and Barren Solution Pond Cut to Fill |  |  |  |  |  |  |  |  |
| 5,000.cm | 0.30 | 1.5 | 2,175.00 | 12.68 | 27,568 |  | 0 | 0.00 | 0 |  | 0 | 5.51 | 27,568
631-9-0329.00 | Pregnant and Barren Solution Pond Soil Liner |  |  |  |  |  |  |  |  |
| 625.cm | 0.30 | 1.5 | 271.88 | 12.68 | 3,446 | 2.00 | 1,625 | 0.00 | 0 |  | 0 | 8.11 | 5,071
631-9-0330.00 | Pregnant and Barren Solution Pond Geomembrane |  |  |  |  |  |  |  |  |  |
| 2,750.sm | 0.25 | 1.5 | 996.88 | 12.68 | 12,635 | 5.00 | 17,875 | 0.00 | 0 |  | 0 | 11.09 | 30,510
631-9-0331.00 | Pregnant and Barren Solution Pond Geotextile |  |  |  |  |  |  |  |  |
| 1,375.sm | 0.25 | 1.5 | 498.44 | 12.68 | 6,318 | 5.00 | 8,938 | 0.00 | 0 |  | 0 | 11.09 | 15,255
631-9-0333.00 | Leak Detection Pumps |  |  |  |  |  |  |  |  |  |
| 1.ea | 80.00 | 1.5 | 116.00 | 12.68 | 1,470 | 4,500.00 | 5,850 | 0.00 | 0 |  | 0 | 7,320.30 | 7,320
631-9-0334.00 | PREGNANT SOLUTION POND PUMP No.1 [631-PSO-052] |  |  |  |  |  |  |  |
| 1.ea | 200.00 | 1.5 | 290.00 | 12.68 | 3,676 |  | 0 |  | 0 | 36,654.00 | 36,654 | 40,329.75 | 40,330
631-9-0335.00 | PREGNANT SOLUTION POND PUMP [631-PSO-053] |  |  |  |  |  |  |  |
| 1.ea | 200.00 | 1.5 | 290.00 | 12.68 | 3,676 |  | 0 |  | 0 | 36,654.00 | 36,654 | 40,329.75 | 40,330
631-9-0336.00 | BARREN SOLUTION POND PUMP No.1 [631-PSO-054] |  |  |  |  |  |  |  |
| 1.ea | 200.00 | 1.5 | 290.00 | 12.68 | 3,676 |  | 0 |  | 0 | 45,648.00 | 45,648 | 49,323.75 | 49,324
631-9-0337.00 | BARREN SOLUTION POND PUMP [631-PSO-055] |  |  |  |  |  |  |  |  |  |
| 1.ea | 200.00 | 1.5 | 290.00 | 12.68 | 3,676 |  | 0 |  | 0 | 45,648.00 | 45,648 | 49,323.75 | 49,324
631 - Pregnant and Barren Solution Ponds Subtotal | 5,218.19 |  | 66,141 |  | 34,288 |  | 0 |  | 164,604 |  | 265,032
632 - Overflow/Stormwater Solution Pond |  |  |  |  |  |  |  |  |  |

Page 16 of 31

| Avino Tailings Retreatment Scoping Study L5 Detail Estimate |
Project No: 1151920100 |  | Report Date: 17-Feb-12
|  | Rev 1
Client: Avino Silver & Gold Mines Ltd |  | Sorted By Area and Sequence

SubArea-Exp-Seq | Qty | Labour | Producitivity | Total Labour | Labour | Labour | Material | Material | Const Eqt | Const Eqt | Process Eqpt | Process Eqpt | Total | Total Cost
|  | Unit Mhr | Factor | Manhour | Rate | Cost | Unit Cost | Cost | Unit Cost | Cost | Unit Cost | Cost | Unit Cost | (USD)
632-9-0339.00 | Stormwater Pond Cut and Fill |  |  |  |  |  |  |  |  |  |
| 2,500.cm | 0.30 | 1.5 | 1,087.50 | 12.68 | 13,784 |  | 0 | 0.00 | 0 |  | 0 | 5.51 | 13,784
632-9-0340.00 | Stormwater Pond Soil Liner |  |  |  |  |  |  |  |  |  |
| 613.cm | 0.30 | 1.5 | 266.66 | 12.68 | 3,380 | 2.00 | 1,594 | 0.00 | 0 |  | 0 | 8.11 | 4,974
632-9-0341.00 | Stormwater Pond Geomembrane |  |  |  |  |  |  |  |  |  |
| 1,348.sm | 0.25 | 1.5 | 488.65 | 12.68 | 6,194 | 5.00 | 8,762 | 0.00 | 0 |  | 0 | 11.09 | 14,956
632-9-0343.00 | Leak Detection Pumps |  |  |  |  |  |  |  |  |  |  |
| 1.ls | 80.00 | 1.5 | 116.00 | 12.68 | 1,470 | 4,500.00 | 5,850 | 0.00 | 0 |  | 0 | 7,320.30 | 7,320
632-9-0344.00 | EVENT POND PUMP [632-PSO-056] |  |  |  |  |  |  |  |  |  |
| 1.ea | 200.00 | 1.5 | 290.00 | 12.68 | 3,676 |  | 0 |  | 0 | 34,208.00 | 34,208 | 37,883.75 | 37,884
632 - Overflow/Stormwater Solution Pond Subtotal | 2,248.81 |  | 28,504 |  | 16,206 |  | 0 |  | 34,208 |  | 78,917
640 - Fencing |  |  |  |  |  |  |  |  |  |  |  |  |
640-9-0346.00 | Perimeter Fencing - 2m high |  |  |  |  |  |  |  |  |  |
| 2,500.m | 1.25 | 1.5 | 4,531.25 | 12.68 | 57,434 | 10.00 | 32,500 | 0.00 | 0 |  | 0 | 35.97 | 89,934
640-9-0347.00 | Security Fencing |  |  |  |  |  |  |  |  |  |  |
| 500.m | 4.00 | 1.5 | 2,900.00 | 12.68 | 36,758 | 50.00 | 32,500 | 0.00 | 0 |  | 0 | 138.51 | 69,258
640-9-0348.00 | Gates and Cattle Crossings |  |  |  |  |  |  |  |  |  |
| 2.ea | 200.00 | 1.5 | 580.00 | 12.68 | 7,352 | 2,000.00 | 5,200 | 0.00 | 0 |  | 0 | 6,275.75 | 12,552
640 - Fencing Subtotal | 8,011.25 |  | 101,543 |  | 70,200 |  | 0 |  | 0 |  | 171,743
650 - Site Telephone System |  |  |  |  |  |  |  |  |  |  |
650-9-0350.00 | Communication Allowance |  |  |  |  |  |  |  |  |  |
| 1.ls | 200.00 | 1.5 | 290.00 | 12.68 | 3,676 | 20,000.00 | 26,000 | 0.00 | 0 |  | 0 | 29,675.75 | 29,676
650-9-0351.00 | Extensions to Lab and Process Plant |  |  |  |  |  |  |  |  |  |
| 1.ls | 50.00 | 1.5 | 72.50 | 12.68 | 919 | 4,000.00 | 5,200 | 0.00 | 0 |  | 0 | 6,118.94 | 6,119
650 - Site Telephone System Subtotal | 362.50 |  | 4,595 |  | 31,200 |  | 0 |  | 0 |  | 35,795
660 - Sewage Disposal |  |  |  |  |  |  |  |  |  |  |
660-9-0353.00 | Tile Field Subcontract |  |  |  |  |  |  |  |  |  |  |
| 1.ls |  | 1.5 | 0.00 | 12.68 | 0 | 15,000.00 | 19,500 | 0.00 | 0 |  | 0 | 19,500.00 | 19,500

Page 17 of 31

| Avino Tailings Retreatment Scoping Study L5 Detail Estimate |
Project No: 1151920100 |  | Report Date: 17-Feb-12
|  | Rev 1
Client: Avino Silver & Gold Mines Ltd |  | Sorted By Area and Sequence

SubArea-Exp-Seq | Qty | Labour | Producitivity | Total Labour | Labour | Labour | Material | Material | Const Eqt | Const Eqt | Process Eqpt | Process Eqpt | Total | Total Cost
|  | Unit Mhr | Factor | Manhour | Rate | Cost | Unit Cost | Cost | Unit Cost | Cost | Unit Cost | Cost | Unit Cost | (USD)
660-9-0354.00 | Holding Tank |  |  |  |  |  |  |  |  |  |  |
| 1.ls | 200.00 | 1.5 | 290.00 | 12.68 | 3,676 | 5,000.00 | 6,500 | 0.00 | 0 |  | 0 | 10,175.75 | 10,176
| 660 - Sewage Disposal Subtotal | 290.00 |  | 3,676 |  | 26,000 |  | 0 |  | 0 |  | 29,676
661 - Upgrade Existing Fresh Water Supply |  |  |  |  |  |  |  |  |  |
661-9-0356.00 | Install Existing Pumps |  |  |  |  |  |  |  |  |  |  |
| 2.ea | 200.00 | 1.5 | 580.00 | 12.68 | 7,352 | 2,500.00 | 6,500 | 0.00 | 0 |  | 0 | 6,925.75 | 13,852
661-9-0357.00 | Reconnect Piping and Electrical |  |  |  |  |  |  |  |  |  |
| 1.ls | 200.00 | 1.5 | 290.00 | 12.68 | 3,676 | 2,500.00 | 3,250 | 0.00 | 0 |  | 0 | 6,925.75 | 6,926
661-9-0358.00 | Reinstall Transformer and Tie in Electrical |  |  |  |  |  |  |  |  |  |
| 1.ls | 300.00 | 1.5 | 435.00 | 12.68 | 5,514 | 3,000.00 | 3,900 | 0.00 | 0 |  | 0 | 9,413.63 | 9,414
661-9-0359.00 | Misc Pipeline and Pump Station Repairs |  |  |  |  |  |  |  |  |  |
| 1.ls | 250.00 | 1.5 | 362.50 | 12.68 | 4,595 | 5,000.00 | 6,500 | 0.00 | 0 |  | 0 | 11,094.69 | 11,095
661-9-0360.00 | 4" Dia. CS Pipeline extension to Plant Reservoir |  |  |  |  |  |  |  |  |
| 1,500.m | 0.80 | 1.5 | 1,740.00 | 12.68 | 22,055 | 30.00 | 58,500 | 0.00 | 0 |  | 0 | 53.70 | 80,555
661-9-0361.00 | Fresh Water Pond to Barren Pond |  |  |  |  |  |  |  |  |  |
| 350.m | 0.80 | 1.5 | 406.00 | 12.68 | 5,146 | 30.00 | 13,650 | 0.00 | 0 |  | 0 | 53.70 | 18,796
661-9-0362.00 | Reservoir Pump |  |  |  |  |  |  |  |  |  |  |
| 1.ea | 60.00 | 1.5 | 87.00 | 12.68 | 1,103 | 6,000.00 | 7,800 | 0.00 | 0 |  | 0 | 8,902.73 | 8,903
661-9-0364.00 | Fire Water Pump House Incl Jockey Pump Fire Pump and Diesel Standby |  |  |  |  |  |
| 1.ea | 1,600.00 | 1.5 | 2,320.00 | 12.68 | 29,406 | 180,000.00 | 234,000 | 0.00 | 0 |  | 0 | 263,406.00 | 263,406
661 - Upgrade Existing Fresh Water Supply Subtotal | 6,220.50 |  | 78,845 |  | 334,100 |  | 0 |  | 0 |  | 412,945
662 - Firewater Site Distribution |  |  |  |  |  |  |  |  |  |  |
662-9-0366.00 | Pipeline Excavation, Bedding and Backfill |  |  |  |  |  |  |  |  |
| 400.cm | 0.30 | 1.5 | 174.00 | 12.68 | 2,205 | 15.00 | 7,800 | 0.00 | 0 |  | 0 | 25.01 | 10,005
662-9-0367.00 | Pipeline c/w Fittings |  |  |  |  |  |  |  |  |  |  |
| 200.m | 4.00 | 1.5 | 1,160.00 | 12.68 | 14,703 | 36.00 | 9,360 | 0.00 | 0 |  | 0 | 120.32 | 24,063
662-9-0368.00 | Facilities Hydrants & Hose Reels etc |  |  |  |  |  |  |  |  |  |
| 1.ls | 500.00 | 1.5 | 725.00 | 12.68 | 9,189 | 7,500.00 | 9,750 | 0.00 | 0 |  | 0 | 18,939.38 | 18,939

Page 18 of 31

| Avino Tailings Retreatment Scoping Study L5 Detail Estimate |
Project No: 1151920100 |  | Report Date: 17-Feb-12
|  | Rev 1
Client: Avino Silver & Gold Mines Ltd |  | Sorted By Area and Sequence

SubArea-Exp-Seq | Qty | Labour | Producitivity | Total Labour | Labour | Labour | Material | Material | Const Eqt | Const Eqt | Process Eqpt | Process Eqpt | Total | Total Cost
|  | Unit Mhr | Factor | Manhour | Rate | Cost | Unit Cost | Cost | Unit Cost | Cost | Unit Cost | Cost | Unit Cost | (USD)
662-9-0369.00 | Plant - Fire System |  |  |  |  |  |  |  |  |  |
| 1.ls | 200.00 | 1.5 | 290.00 | 12.68 | 3,676 | 3,500.00 | 4,550 | 0.00 | 0 |  | 0 | 8,225.75 | 8,226
662 - Firewater Site Distribution Subtotal | 2,349.00 |  | 29,774 |  | 31,460 |  | 0 |  | 0 |  | 61,234
663 - Fresh Water Site Distribution |  |  |  |  |  |  |  |  |  |  |
663-9-0371.00 | Pipeline Excavation Backfill and Bedding |  |  |  |  |  |  |  |  |
| 100.cm | 0.30 | 1.5 | 43.50 | 12.68 | 551 | 15.00 | 1,950 | 0.00 | 0 |  | 0 | 25.01 | 2,501
663-9-0372.00 | Pipeline c/w Fittings 100mm HDPE |  |  |  |  |  |  |  |  |  |
| 100.m | 3.00 | 1.5 | 435.00 | 12.68 | 5,514 | 40.00 | 5,200 | 0.00 | 0 |  | 0 | 107.14 | 10,714
663-9-0373.00 | Fresh Water Plant Distribution Piping |  |  |  |  |  |  |  |  |  |
| 1.ls | 500.00 | 1.5 | 725.00 | 12.68 | 9,189 | 5,000.00 | 6,500 | 0.00 | 0 |  | 0 | 15,689.38 | 15,689
663 - Fresh Water Site Distribution Subtotal | 1,203.50 |  | 15,254 |  | 13,650 |  | 0 |  | 0 |  | 28,904
664 - Water Treatment System |  |  |  |  |  |  |  |  |  |  |  |
664-9-0375.00 | Chlorination System |  |  |  |  |  |  |  |  |  |  |
| 1.ls | 250.00 | 1.5 | 362.50 | 12.68 | 4,595 | 12,500.00 | 16,250 | 0.00 | 0 |  | 0 | 20,844.69 | 20,845
664-9-0376.00 | Distribution Piping |  |  |  |  |  |  |  |  |  |  |
| 1.ls | 250.00 | 1.5 | 362.50 | 12.68 | 4,595 | 3,000.00 | 3,900 | 0.00 | 0 |  | 0 | 8,494.69 | 8,495
664 - Water Treatment System Subtotal | 725.00 |  | 9,189 |  | 20,150 |  | 0 |  | 0 |  | 29,339
680 - Fuel Storage Area - Assume Use Existing |  |  |  |  |  |  |  |  |  |
680-9-0382.00 | Fuel System Testing |  |  |  |  |  |  |  |  |  |  |
| 1.ls | 60.00 | 1.5 | 87.00 | 12.68 | 1,103 | 600.00 | 780 | 0.00 | 0 |  | 0 | 1,882.73 | 1,883
680-9-0383.00 | Misc Improvements and Repairs |  |  |  |  |  |  |  |  |  |
| 1.ls | 1,000.00 | 1.5 | 1,450.00 | 12.68 | 18,379 | 10,000.00 | 13,000 | 0.00 | 0 |  | 0 | 31,378.75 | 31,379
680 - Fuel Storage Area - Assume Use Existing Subtotal | 1,537.00 |  | 19,481 |  | 13,780 |  | 0 |  | 0 |  | 33,261
690 - Equipment - Assume Refurbished at 112 Price UNO |  |  |  |  |  |  |  |  |
###-##-####.00 | Light Plants |  |  |  |  |  |  |  |  |  |  |
| 2.ea | 20.00 | 1.5 | 58.00 | 12.68 | 735 | 10,000.00 | 26,000 | 0.00 | 0 |  | 0 | 13,367.58 | 26,735
###-##-####.00 | Portable Air Compressor |  |  |  |  |  |  |  |  |  |
| 2.ea | 22.00 | 1.5 | 63.80 | 12.68 | 809 | 10,000.00 | 26,000 | 0.00 | 0 |  | 0 | 13,404.33 | 26,809

Page 19 of 31

| Avino Tailings Retreatment Scoping Study L5 Detail Estimate |
Project No: 1151920100 |  | Report Date: 17-Feb-12
|  | Rev 1
Client: Avino Silver & Gold Mines Ltd |  | Sorted By Area and Sequence

SubArea-Exp-Seq | Qty | Labour | Producitivity | Total Labour | Labour | Labour | Material | Material | Const Eqt | Const Eqt | Process Eqpt | Process Eqpt | Total | Total Cost
|  | Unit Mhr | Factor | Manhour | Rate | Cost | Unit Cost | Cost | Unit Cost | Cost | Unit Cost | Cost | Unit Cost | (USD)
690 - Equipment - Assume Refurbished at 112 Price UNO Subtotal | 121.80 |  | 1,544 |  | 52,000 |  | 0 |  | 0 |  | 53,544
710 - Site Power Distribution |  |  |  |  |  |  |  |  |  |  |  |
###-##-####.00 | Removal and Demolition of Existing Site Power Lines |  |  |  |  |  |  |  |
| 1,000.m | 1.50 | 1.5 | 2,175.00 | 12.68 | 27,568 |  | 0 | 0.00 | 0 |  | 0 | 27.57 | 27,568
###-##-####.00 | Emergency Power Supply Diesel Genset |  |  |  |  |  |  |  |  |
| 1.ea | 500.00 | 1.5 | 725.00 | 12.68 | 9,189 | 150,000.00 | 195,000 | 0.00 | 0 |  | 0 | 204,189.38 | 204,189
710 - Site Power Distribution Subtotal | 2,900.00 |  | 36,758 |  | 195,000 |  | 0 |  | 0 |  | 231,758
720 - Tailings Area |  |  |  |  |  |  |  |  |  |  |  |
###-##-####.00 | Utility Switch / Fusible |  |  |  |  |  |  |  |  |  |
| 1.ls | 20.00 | 1.5 | 29.00 | 12.68 | 368 | 5,000.00 | 6,500 | 0.00 | 0 |  | 0 | 6,867.58 | 6,868
###-##-####.00 | 500kVA 34.5kV to 460V Transformer |  |  |  |  |  |  |  |  |
| 1.ea | 30.00 | 1.5 | 43.50 | 12.68 | 551 | 20,000.00 | 26,000 | 0.00 | 0 |  | 0 | 26,551.36 | 26,551
###-##-####.00 | Pad For Transformer |  |  |  |  |  |  |  |  |  |
| 1.ls | 10.00 | 1.5 | 14.50 | 12.68 | 184 | 500.00 | 650 | 0.00 | 0 |  | 0 | 833.79 | 834
###-##-####.00 | Grounding for Transformer |  |  |  |  |  |  |  |  |  |
| 1.ls | 10.00 | 1.5 | 14.50 | 12.68 | 184 | 500.00 | 650 | 0.00 | 0 |  | 0 | 833.79 | 834
###-##-####.00 | 800A Secondary Cables |  |  |  |  |  |  |  |  |  |
| 1.ls | 20.00 | 1.5 | 29.00 | 12.68 | 368 | 500.00 | 650 | 0.00 | 0 |  | 0 | 1,017.58 | 1,018
###-##-####.00 | Tailings Area MCC 800A Incl. |  |  |  |  |  |  |  |  |  |
| 1.ea | 1.00 | 1.5 | 1.45 | 12.68 | 18 |  | 0 | 0.00 | 0 |  | 0 | 18.38 | 18
###-##-####.00 | - 30A 3P Breakers |  |  |  |  |  |  |  |  |  |  |
| 2.ea | 1.00 | 1.5 | 2.90 | 12.68 | 37 |  | 0 | 0.00 | 0 |  | 0 | 18.38 | 37
###-##-####.00 | - Size 5 Starters |  |  |  |  |  |  |  |  |  |  |
| 4.ea | 4.00 | 1.5 | 23.20 | 12.68 | 294 |  | 0 | 0.00 | 0 |  | 0 | 73.52 | 294
###-##-####.00 | - Nema 3 Enclosures |  |  |  |  |  |  |  |  |  |  |
| 1.ea |  | 1.5 | 0.00 | 12.68 | 0 | 5,000.00 | 6,500 | 0.00 | 0 |  | 0 | 6,500.00 | 6,500
###-##-####.00 | 460V lighting transformer and Panel |  |  |  |  |  |  |  |  |
| 1.ls | 30.00 | 1.5 | 43.50 | 12.68 | 551 | 2,000.00 | 2,600 | 0.00 | 0 |  | 0 | 3,151.36 | 3,151

Page 20 of 31

| Avino Tailings Retreatment Scoping Study L5 Detail Estimate |
Project No: 1151920100 |  | Report Date: 17-Feb-12
|  | Rev 1
Client: Avino Silver & Gold Mines Ltd |  | Sorted By Area and Sequence

SubArea-Exp-Seq | Qty | Labour | Producitivity | Total Labour | Labour | Labour | Material | Material | Const Eqt | Const Eqt | Process Eqpt | Process Eqpt | Total | Total Cost
|  | Unit Mhr | Factor | Manhour | Rate | Cost | Unit Cost | Cost | Unit Cost | Cost | Unit Cost | Cost | Unit Cost | (USD)
###-##-####.00 | 120/208V transformer and Panel |  |  |  |  |  |  |  |  |
| 1.ls | 30.00 | 1.5 | 43.50 | 12.68 | 551 | 1,500.00 | 1,950 | 0.00 | 0 |  | 0 | 2,501.36 | 2,501
###-##-####.00 | 100HP Slushers - Connect (120 FLA) |  |  |  |  |  |  |  |  |
| 3.ea | 2.00 | 1.5 | 8.70 | 12.68 | 110 | 50.00 | 195 | 0.00 | 0 |  | 0 | 101.76 | 305
###-##-####.00 | Control Start/Stop Stations |  |  |  |  |  |  |  |  |
| 4.ea | 2.00 | 1.5 | 11.60 | 12.68 | 147 | 150.00 | 780 | 0.00 | 0 |  | 0 | 231.76 | 927
###-##-####.00 | Control Wiring for 4 stations to MCC 4c#10 |  |  |  |  |  |  |  |  |
| 1,000.m | 0.07 | 1.5 | 101.50 | 12.68 | 1,287 | 7.00 | 9,100 | 0.00 | 0 |  | 0 | 10.39 | 10,387
###-##-####.00 | Trenching for above |  |  |  |  |  |  |  |  |  |  |  |  |
| 1.ls | 80.00 | 1.5 | 116.00 | 12.68 | 1,470 | 5,000.00 | 6,500 | 0.00 | 0 |  | 0 | 7,970.30 | 7,970
###-##-####.00 | Trailing Cables 3c 2/0 (200m Receptacles to each Slusher) |  |  |  |  |  |  |
| 600.m | 0.07 | 1.5 | 60.90 | 12.68 | 772 | 42.64 | 33,259 | 0.00 | 0 |  | 0 | 56.72 | 34,031
###-##-####.00 | Trailing Cables Control (200m to each slusher) |  |  |  |  |  |  |  |
| 600.m | 0.03 | 1.5 | 26.10 | 12.68 | 331 | 6.56 | 5,117 | 0.00 | 0 |  | 0 | 9.08 | 5,448
###-##-####.00 | Instrumentation allowance |  |  |  |  |  |  |  |  |
| 1.ls | 50.00 | 1.5 | 72.50 | 12.68 | 919 | 2,500.00 | 3,250 | 0.00 | 0 |  | 0 | 4,168.94 | 4,169
###-##-####.00 | Lighting allowance |  |  |  |  |  |  |  |  |  |
| 1.ls | 150.00 | 1.5 | 217.50 | 12.68 | 2,757 | 7,500.00 | 9,750 | 0.00 | 0 |  | 0 | 12,506.81 | 12,507
720 - Tailings Area Subtotal | 859.85 |  | 10,899 |  | 113,451 |  | 0 |  | 0 |  | 124,350
730 - Agglomeration and Pad Loading |  |  |  |  |  |  |  |  |  |  |
###-##-####.00 | Utility Switch/Fusible |  |  |  |  |  |  |  |  |  |
| 1.ls | 20.00 | 1.5 | 29.00 | 12.68 | 368 | 5,000.00 | 6,500 | 0.00 | 0 |  | 0 | 6,867.58 | 6,868
###-##-####.00 | 1500KVA 34.5kV to 460 volt transformer pad mount |  |  |  |  |  |  |
| 1.ea | 30.00 | 1.5 | 43.50 | 12.68 | 551 | 40,000.00 | 52,000 | 0.00 | 0 |  | 0 | 52,551.36 | 52,551
###-##-####.00 | Pad for above item |  |  |  |  |  |  |  |  |  |
| 1.ls | 10.00 | 1.5 | 14.50 | 12.68 | 184 | 500.00 | 650 | 0.00 | 0 |  | 0 | 833.79 | 834
###-##-####.00 | Grounding for above |  |  |  |  |  |  |  |  |  |
| 1.ls | 10.00 | 1.5 | 14.50 | 12.68 | 184 | 500.00 | 650 | 0.00 | 0 |  | 0 | 833.79 | 834

Page 21 of 31

| Avino Tailings Retreatment Scoping Study L5 Detail Estimate |
Project No: 1151920100 |  | Report Date: 17-Feb-12
|  | Rev 1
Client: Avino Silver & Gold Mines Ltd |  | Sorted By Area and Sequence

SubArea-Exp-Seq | Qty | Labour | Producitivity | Total Labour | Labour | Labour | Material | Material | Const Eqt | Const Eqt | Process Eqpt | Process Eqpt | Total | Total Cost
|  | Unit Mhr | Factor | Manhour | Rate | Cost | Unit Cost | Cost | Unit Cost | Cost | Unit Cost | Cost | Unit Cost | (USD)
###-##-####.00 | 2000A Secondary Cables |  |  |  |  |  |  |  |  |  |
| 1.ls | 20.00 | 1.5 | 29.00 | 12.68 | 368 | 5,000.00 | 6,500 | 0.00 | 0 |  | 0 | 6,867.58 | 6,868
###-##-####.00 | Agglomeration Area MCC 2500 A c/w |  |  |  |  |  |  |  |  |
| 1.ea | 80.00 | 1.5 | 116.00 | 12.68 | 1,470 | 65,000.00 | 84,500 | 0.00 | 0 |  | 0 | 85,970.30 | 85,970
###-##-####.00 | - 30A 3P Breakers |  |  |  |  |  |  |  |  |  |  |
| 4.ea | 1.00 | 1.5 | 5.80 | 12.68 | 74 |  | 0 | 0.00 | 0 |  | 0 | 18.38 | 74
###-##-####.00 | -100A 3P Breakers |  |  |  |  |  |  |  |  |  |
| 2.ea | 1.00 | 1.5 | 2.90 | 12.68 | 37 |  | 0 | 0.00 | 0 |  | 0 | 18.38 | 37
###-##-####.00 | - Size 1 Starter |  |  |  |  |  |  |  |  |  |
| 1.ea | 1.00 | 1.5 | 1.45 | 12.68 | 18 |  | 0 | 0.00 | 0 |  | 0 | 18.38 | 18
###-##-####.00 | - Size 2 Starter |  |  |  |  |  |  |  |  |  |
| 2.ea | 1.50 | 1.5 | 4.35 | 12.68 | 55 |  | 0 | 0.00 | 0 |  | 0 | 27.57 | 55
###-##-####.00 | - Size 3 Starter |  |  |  |  |  |  |  |  |  |
| 19.ea | 2.00 | 1.5 | 55.10 | 12.68 | 698 |  | 0 | 0.00 | 0 |  | 0 | 36.76 | 698
###-##-####.00 | - Size 4 Starter |  |  |  |  |  |  |  |  |  |
| 3.ea | 3.00 | 1.5 | 13.05 | 12.68 | 165 |  | 0 | 0.00 | 0 |  | 0 | 55.14 | 165
###-##-####.00 | - Size 5 Starter |  |  |  |  |  |  |  |  |  |
| 1.ea | 4.00 | 1.5 | 5.80 | 12.68 | 74 |  | 0 | 0.00 | 0 |  | 0 | 73.52 | 74
###-##-####.00 | - Allow for Nema 3 |  |  |  |  |  |  |  |  |  |
| 1.ea |  | 1.5 | 0.00 | 12.68 | 0 | 5,000.00 | 6,500 | 0.00 | 0 |  | 0 | 6,500.00 | 6,500
###-##-####.00 | 460 volt lighting transformer and panel |  |  |  |  |  |  |  |
| 1.ls | 30.00 | 1.5 | 43.50 | 12.68 | 551 | 2,000.00 | 2,600 | 0.00 | 0 |  | 0 | 3,151.36 | 3,151
###-##-####.00 | 120/208 volt transformer and panel |  |  |  |  |  |  |  |  |
| 1.ls | 30.00 | 1.5 | 43.50 | 12.68 | 551 | 1,500.00 | 1,950 | 0.00 | 0 |  | 0 | 2,501.36 | 2,501
###-##-####.00 | Tailings Transfer Conveyor |  |  |  |  |  |  |  |  |
| 1.ea | 2.00 | 1.5 | 2.90 | 12.68 | 37 | 200.00 | 260 | 0.00 | 0 |  | 0 | 296.76 | 297
###-##-####.00 | Misc Control Devices on conveyor (Details TBD) |  |  |  |  |  |  |
| 1.ls | 20.00 | 1.5 | 29.00 | 12.68 | 368 | 1,500.00 | 1,950 | 0.00 | 0 |  | 0 | 2,317.58 | 2,318

Page 22 of 31

| Avino Tailings Retreatment Scoping Study L5 Detail Estimate |
Project No: 1151920100 |  | Report Date: 17-Feb-12
|  | Rev 1
Client: Avino Silver & Gold Mines Ltd |  | Sorted By Area and Sequence

SubArea-Exp-Seq | Qty | Labour | Producitivity | Total Labour | Labour | Labour | Material | Material | Const Eqt | Const Eqt | Process Eqpt | Process Eqpt | Total | Total Cost
|  | Unit Mhr | Factor | Manhour | Rate | Cost | Unit Cost | Cost | Unit Cost | Cost | Unit Cost | Cost | Unit Cost | (USD)
###-##-####.00 | Control Station |  |  |  |  |  |  |  |  |  |  |  |
| 1.ea | 2.00 | 1.5 | 2.90 | 12.68 | 37 | 200.00 | 260 | 0.00 | 0 |  | 0 | 296.76 | 297
###-##-####.00 | Power Cable allowance (3c#1) Standardize |  |  |  |  |  |  |  |
| 50.m | 0.52 | 1.5 | 37.70 | 12.68 | 478 | 25.00 | 1,625 | 0.00 | 0 |  | 0 | 42.06 | 2,103
###-##-####.00 | Control Cable allowance |  |  |  |  |  |  |  |  |  |
| 150.m | 0.07 | 1.5 | 15.23 | 12.68 | 193 | 7.00 | 1,365 | 0.00 | 0 |  | 0 | 10.39 | 1,558
###-##-####.00 | Agglomerator Feed Conveyor |  |  |  |  |  |  |  |  |
| 1.ea | 2.00 | 1.5 | 2.90 | 12.68 | 37 | 200.00 | 260 | 0.00 | 0 |  | 0 | 296.76 | 297
###-##-####.00 | Misc Control Devices on conveyor (Details TBD) |  |  |  |  |  |  |  |
| 1.ls | 20.00 | 1.5 | 29.00 | 12.68 | 368 | 1,500.00 | 1,950 | 0.00 | 0 |  | 0 | 2,317.58 | 2,318
###-##-####.00 | Control Station |  |  |  |  |  |  |  |  |  |  |
| 1.ea | 2.00 | 1.5 | 2.90 | 12.68 | 37 | 200.00 | 260 | 0.00 | 0 |  | 0 | 296.76 | 297
###-##-####.00 | Power Cable allowance (3c#1) Standardize |  |  |  |  |  |  |  |
| 50.m | 0.52 | 1.5 | 37.70 | 12.68 | 478 | 25.00 | 1,625 | 0.00 | 0 |  | 0 | 42.06 | 2,103
###-##-####.00 | Control Cable allowance |  |  |  |  |  |  |  |  |
| 150.m | 0.07 | 1.5 | 15.23 | 12.68 | 193 | 7.00 | 1,365 | 0.00 | 0 |  | 0 | 10.39 | 1,558
###-##-####.00 | Cement Blower at Silo 100HP |  |  |  |  |  |  |  |  |
| 1.ea | 2.00 | 1.5 | 2.90 | 12.68 | 37 | 50.00 | 65 | 0.00 | 0 |  | 0 | 101.76 | 102
###-##-####.00 | Cement Screw Feeder |  |  |  |  |  |  |  |  |  |
| 1.ea | 2.00 | 1.5 | 2.90 | 12.68 | 37 | 25.00 | 33 | 0.00 | 0 |  | 0 | 69.26 | 69
###-##-####.00 | Misc Valves/Vibrator |  |  |  |  |  |  |  |  |  |
| 2.ea | 2.00 | 1.5 | 5.80 | 12.68 | 74 | 25.00 | 65 | 0.00 | 0 |  | 0 | 69.26 | 139
###-##-####.00 | Control Stations |  |  |  |  |  |  |  |  |  |
| 4.ea | 2.00 | 1.5 | 11.60 | 12.68 | 147 | 200.00 | 1,040 | 0.00 | 0 |  | 0 | 296.76 | 1,187
###-##-####.00 | Power Cable allowance (2/0) |  |  |  |  |  |  |  |  |
| 50.m | 0.30 | 1.5 | 21.75 | 12.68 | 276 | 49.00 | 3,185 | 0.00 | 0 |  | 0 | 69.21 | 3,461
###-##-####.00 | Power Cable allowance (#8) |  |  |  |  |  |  |  |  |
| 50.m | 0.26 | 1.5 | 18.85 | 12.68 | 239 | 10.00 | 650 | 0.00 | 0 |  | 0 | 17.78 | 889

Page 23 of 31

| Avino Tailings Retreatment Scoping Study L5 Detail Estimate |
Project No: 1151920100 |  | Report Date: 17-Feb-12
|  | Rev 1
Client: Avino Silver & Gold Mines Ltd |  | Sorted By Area and Sequence

SubArea-Exp-Seq | Qty | Labour | Producitivity | Total Labour | Labour | Labour | Material | Material | Const Eqt | Const Eqt | Process Eqpt | Process Eqpt | Total | Total Cost
|  | Unit Mhr | Factor | Manhour | Rate | Cost | Unit Cost | Cost | Unit Cost | Cost | Unit Cost | Cost | Unit Cost | (USD)
###-##-####.00 | Control Cable allowance (4 equipment) |  |  |  |  |  |  |  |  |
| 150.m | 0.07 | 1.5 | 15.23 | 12.68 | 193 | 7.00 | 1,365 | 0.00 | 0 |  | 0 | 10.39 | 1,558
###-##-####.00 | Lime Blower |  |  |  |  |  |  |  |  |  |  |
| 1.ea | 2.00 | 1.5 | 2.90 | 12.68 | 37 | 50.00 | 65 | 0.00 | 0 |  | 0 | 101.76 | 102
###-##-####.00 | Lime Silo Screw Feeder |  |  |  |  |  |  |  |  |  |
| 1.ea | 1.00 | 1.5 | 1.45 | 12.68 | 18 | 25.00 | 33 | 0.00 | 0 |  | 0 | 50.88 | 51
###-##-####.00 | Misc Valves/Vibrator |  |  |  |  |  |  |  |  |  |
| 2.ea | 2.00 | 1.5 | 5.80 | 12.68 | 74 | 25.00 | 65 | 0.00 | 0 |  | 0 | 69.26 | 139
###-##-####.00 | Control Stations |  |  |  |  |  |  |  |  |  |
| 4.ea | 2.00 | 1.5 | 11.60 | 12.68 | 147 | 200.00 | 1,040 | 0.00 | 0 |  | 0 | 296.76 | 1,187
###-##-####.00 | Power Cable allowance (2/0) |  |  |  |  |  |  |  |  |
| 50.m | 0.30 | 1.5 | 21.75 | 12.68 | 276 | 49.00 | 3,185 | 0.00 | 0 |  | 0 | 69.21 | 3,461
###-##-####.00 | Power Cable allowance (#10) |  |  |  |  |  |  |  |  |
| 50.m | 0.26 | 1.5 | 18.85 | 12.68 | 239 | 10.00 | 650 | 0.00 | 0 |  | 0 | 17.78 | 889
###-##-####.00 | Control Cable allowance (4 equipment) |  |  |  |  |  |  |  |
| 150.m | 0.07 | 1.5 | 15.23 | 12.68 | 193 | 7.00 | 1,365 | 0.00 | 0 |  | 0 | 10.39 | 1,558
###-##-####.00 | Cyanide Blower |  |  |  |  |  |  |  |  |  |
| 1.ea | 2.00 | 1.5 | 2.90 | 12.68 | 37 | 50.00 | 65 | 0.00 | 0 |  | 0 | 101.76 | 102
###-##-####.00 | Cyanide Vibrator/Valves/Feeder |  |  |  |  |  |  |  |  |
| 1.ea | 1.00 | 1.5 | 1.45 | 12.68 | 18 | 25.00 | 33 | 0.00 | 0 |  | 0 | 50.88 | 51
###-##-####.00 | Misc Valves/Vibrator |  |  |  |  |  |  |  |  |  |
| 2.ea | 2.00 | 1.5 | 5.80 | 12.68 | 74 | 25.00 | 65 | 0.00 | 0 |  | 0 | 69.26 | 139
###-##-####.00 | Control Stations |  |  |  |  |  |  |  |  |  |
| 4.ea | 2.00 | 1.5 | 11.60 | 12.68 | 147 | 200.00 | 1,040 | 0.00 | 0 |  | 0 | 296.76 | 1,187
###-##-####.00 | Power Cable allowance (6) |  |  |  |  |  |  |  |  |
| 50.m | 0.30 | 1.5 | 21.75 | 12.68 | 276 | 49.00 | 3,185 | 0.00 | 0 |  | 0 | 69.21 | 3,461
###-##-####.00 | Power Cable allowance (#10) |  |  |  |  |  |  |  |  |
| 50.m | 0.26 | 1.5 | 18.85 | 12.68 | 239 | 10.00 | 650 | 0.00 | 0 |  | 0 | 17.78 | 889

Page 24 of 31

| Avino Tailings Retreatment Scoping Study L5 Detail Estimate |
Project No: 1151920100 |  | Report Date: 17-Feb-12
|  | Rev 1
Client: Avino Silver & Gold Mines Ltd |  | Sorted By Area and Sequence

SubArea-Exp-Seq | Qty | Labour | Producitivity | Total Labour | Labour | Labour | Material | Material | Const Eqt | Const Eqt | Process Eqpt | Process Eqpt | Total | Total Cost
|  | Unit Mhr | Factor | Manhour | Rate | Cost | Unit Cost | Cost | Unit Cost | Cost | Unit Cost | Cost | Unit Cost | (USD)
###-##-####.00 | Control Cable allowance (4 equipment) |  |  |  |  |  |  |  |  |
| 150.m | 0.07 | 1.5 | 15.23 | 12.68 | 193 | 7.00 | 1,365 | 0.00 | 0 |  | 0 | 10.39 | 1,558
###-##-####.00 | Cable Tray Allowance to silos |  |  |  |  |  |  |  |  |  |
| 1.ls | 40.00 | 1.5 | 58.00 | 12.68 | 735 | 5,000.00 | 6,500 | 0.00 | 0 |  | 0 | 7,235.15 | 7,235
###-##-####.00 | Agglomerator |  |  |  |  |  |  |  |  |  |  |
| 1.ea | 4.00 | 1.5 | 5.80 | 12.68 | 74 | 200.00 | 260 | 0.00 | 0 |  | 0 | 333.52 | 334
###-##-####.00 | Misc Controls on machine |  |  |  |  |  |  |  |  |  |
| 1.ls | 8.00 | 1.5 | 11.60 | 12.68 | 147 | 100.00 | 130 | 0.00 | 0 |  | 0 | 277.03 | 277
###-##-####.00 | Control Station |  |  |  |  |  |  |  |  |  |  |
| 4.ea | 2.00 | 1.5 | 11.60 | 12.68 | 147 | 200.00 | 1,040 | 0.00 | 0 |  | 0 | 296.76 | 1,187
###-##-####.00 | Power Cable allowance (250MCM) |  |  |  |  |  |  |  |  |
| 25.m | 0.30 | 1.5 | 10.88 | 12.68 | 138 | 49.00 | 1,593 | 0.00 | 0 |  | 0 | 69.21 | 1,730
###-##-####.00 | Control Cable allowance |  |  |  |  |  |  |  |  |  |
| 100.m | 0.07 | 1.5 | 10.15 | 12.68 | 129 | 7.00 | 910 | 0.00 | 0 |  | 0 | 10.39 | 1,039
###-##-####.00 | Agglomerator Discharge Conveyor |  |  |  |  |  |  |  |  |
| 1.ea | 2.00 | 1.5 | 2.90 | 12.68 | 37 | 200.00 | 260 | 0.00 | 0 |  | 0 | 296.76 | 297
###-##-####.00 | Misc Control Devices on conveyor (Details TBD) |  |  |  |  |  |  |  |
| 1.ls | 20.00 | 1.5 | 29.00 | 12.68 | 368 | 1,500.00 | 1,950 | 0.00 | 0 |  | 0 | 2,317.58 | 2,318
###-##-####.00 | Control Station |  |  |  |  |  |  |  |  |  |
| 1.ea | 2.00 | 1.5 | 2.90 | 12.68 | 37 | 200.00 | 260 | 0.00 | 0 |  | 0 | 296.76 | 297
###-##-####.00 | Power Cable allowance (3c#1) Standardize |  |  |  |  |  |  |  |
| 50.m | 0.52 | 1.5 | 37.70 | 12.68 | 478 | 25.00 | 1,625 | 0.00 | 0 |  | 0 | 42.06 | 2,103
###-##-####.00 | Control Cable allowance |  |  |  |  |  |  |  |  |
| 150.m | 0.07 | 1.5 | 15.23 | 12.68 | 193 | 7.00 | 1,365 | 0.00 | 0 |  | 0 | 10.39 | 1,558
###-##-####.00 | Ore Portable Conveyors 15 @ 37 kW |  |  |  |  |  |  |  |  |
| 15.ea | 2.00 | 1.5 | 43.50 | 12.68 | 551 | 200.00 | 3,900 | 0.00 | 0 |  | 0 | 296.76 | 4,451
###-##-####.00 | Misc Control Devices on conveyor (Details TBD) |  |  |  |  |  |  |  |
| 15.ls | 20.00 | 1.5 | 435.00 | 12.68 | 5,514 | 1,500.00 | 29,250 | 0.00 | 0 |  | 0 | 2,317.58 | 34,764

Page 25 of 31

| Avino Tailings Retreatment Scoping Study L5 Detail Estimate |
Project No: 1151920100 |  | Report Date: 17-Feb-12
|  | Rev 1
Client: Avino Silver & Gold Mines Ltd |  | Sorted By Area and Sequence

SubArea-Exp-Seq | Qty | Labour | Producitivity | Total Labour | Labour | Labour | Material | Material | Const Eqt | Const Eqt | Process Eqpt | Process Eqpt | Total | Total Cost
|  | Unit Mhr | Factor | Manhour | Rate | Cost | Unit Cost | Cost | Unit Cost | Cost | Unit Cost | Cost | Unit Cost | (USD)
###-##-####.00 | Control Station |  |  |  |  |  |  |  |  |  |  |
| 15.ea | 2.00 | 1.5 | 43.50 | 12.68 | 551 | 200.00 | 3,900 | 0.00 | 0 |  | 0 | 296.76 | 4,451
###-##-####.00 | Power Cable allowance (3c#1) Standardize |  |  |  |  |  |  |  |  |
| 1,000.m | 0.52 | 1.5 | 754.00 | 12.68 | 9,557 | 25.00 | 32,500 | 0.00 | 0 |  | 0 | 42.06 | 42,057
###-##-####.00 | Control Cable allowance |  |  |  |  |  |  |  |  |  |
| 1,000.m | 0.07 | 1.5 | 101.50 | 12.68 | 1,287 | 7.00 | 9,100 | 0.00 | 0 |  | 0 | 10.39 | 10,387
###-##-####.00 | 460 volt lighting transformer and panel |  |  |  |  |  |  |  |  |
| 1.ls | 30.00 | 1.5 | 43.50 | 12.68 | 551 | 2,000.00 | 2,600 | 0.00 | 0 |  | 0 | 3,151.36 | 3,151
###-##-####.00 | 120/208 volt transformer and panel |  |  |  |  |  |  |  |  |
| 1.ls | 30.00 | 1.5 | 43.50 | 12.68 | 551 | 1,500.00 | 1,950 | 0.00 | 0 |  | 0 | 2,501.36 | 2,501
###-##-####.00 | I/O Remote Drop |  |  |  |  |  |  |  |  |  |  |
| 1.ea | 100.00 | 1.5 | 145.00 | 12.68 | 1,838 | 15,000.00 | 19,500 | 0.00 | 0 |  | 0 | 21,337.88 | 21,338
###-##-####.00 | Instrumentation |  |  |  |  |  |  |  |  |  |  |
| 1.ls | 160.00 | 1.5 | 232.00 | 12.68 | 2,941 | 10,000.00 | 13,000 | 0.00 | 0 |  | 0 | 15,940.60 | 15,941
###-##-####.00 | Lighting |  |  |  |  |  |  |  |  |  |  |
| 1.ls | 500.00 | 1.5 | 725.00 | 12.68 | 9,189 | 25,000.00 | 32,500 | 0.00 | 0 |  | 0 | 41,689.38 | 41,689
###-##-####.00 | Cable Tray |  |  |  |  |  |  |  |  |  |  |
| 1.ls | 400.00 | 1.5 | 580.00 | 12.68 | 7,352 | 25,000.00 | 32,500 | 0.00 | 0 |  | 0 | 39,851.50 | 39,852
###-##-####.00 | Grounding |  |  |  |  |  |  |  |  |  |  |
| 1.ls | 100.00 | 1.5 | 145.00 | 12.68 | 1,838 | 10,000.00 | 13,000 | 0.00 | 0 |  | 0 | 14,837.88 | 14,838
730 - Agglomeration and Pad Loading Subtotal | 4,318.83 |  | 54,741 |  | 401,570 |  | 0 |  | 0 |  | 456,311
740 - Plantsite |  |  |  |  |  |  |  |  |  |  |  |
###-##-####.00 | Utility Switch/Fusible |  |  |  |  |  |  |  |  |  |
| 1.ls | 20.00 | 1.5 | 29.00 | 12.68 | 368 | 5,000.00 | 6,500 | 0.00 | 0 |  | 0 | 6,867.58 | 6,868
###-##-####.00 | 1500KVA 34.5kV to 460 volt transformer pad mount |  |  |  |  |  |  |  |
| 1.ea | 30.00 | 1.5 | 43.50 | 12.68 | 551 | 40,000.00 | 52,000 | 0.00 | 0 |  | 0 | 52,551.36 | 52,551
###-##-####.00 | Pad for above item |  |  |  |  |  |  |  |  |  |
| 1.ls | 10.00 | 1.5 | 14.50 | 12.68 | 184 | 500.00 | 650 | 0.00 | 0 |  | 0 | 833.79 | 834

Page 26 of 31

| Avino Tailings Retreatment Scoping Study L5 Detail Estimate |
Project No: 1151920100 |  | Report Date: 17-Feb-12
|  | Rev 1
Client: Avino Silver & Gold Mines Ltd |  | Sorted By Area and Sequence

SubArea-Exp-Seq | Qty | Labour | Producitivity | Total Labour | Labour | Labour | Material | Material | Const Eqt | Const Eqt | Process Eqpt | Process Eqpt | Total | Total Cost
|  | Unit Mhr | Factor | Manhour | Rate | Cost | Unit Cost | Cost | Unit Cost | Cost | Unit Cost | Cost | Unit Cost | (USD)
###-##-####.00 | Grounding for above |  |  |  |  |  |  |  |  |  |  |
| 1.ls | 10.00 | 1.5 | 14.50 | 12.68 | 184 | 500.00 | 650 | 0.00 | 0 |  | 0 | 833.79 | 834
###-##-####.00 | 2000A Secondary Cables |  |  |  |  |  |  |  |  |  |
| 1.ls | 20.00 | 1.5 | 29.00 | 12.68 | 368 | 5,000.00 | 6,500 | 0.00 | 0 |  | 0 | 6,867.58 | 6,868
740 - Plantsite Subtotal | 130.50 |  | 1,654 |  | 66,300 |  | 0 |  | 0 |  | 67,954
750 - Leaching |  |  |  |  |  |  |  |  |  |  |  |
###-##-####.00 | Leaching Area MCC 800 A c/w |  |  |  |  |  |  |  |  |
| 1.ea | 80.00 | 1.5 | 116.00 | 12.68 | 1,470 | 30,000.00 | 39,000 | 0.00 | 0 |  | 0 | 40,470.30 | 40,470
###-##-####.00 | - 30A 3P Breakers |  |  |  |  |  |  |  |  |  |
| 4.ea | 1.00 | 1.5 | 5.80 | 12.68 | 74 |  | 0 | 0.00 | 0 |  | 0 | 18.38 | 74
###-##-####.00 | - 100A 3P Breakers |  |  |  |  |  |  |  |  |  |
| 2.ea | 1.00 | 1.5 | 2.90 | 12.68 | 37 |  | 0 | 0.00 | 0 |  | 0 | 18.38 | 37
###-##-####.00 | - Size 4 Starter |  |  |  |  |  |  |  |  |  |
| 6.ea | 3.00 | 1.5 | 26.10 | 12.68 | 331 |  | 0 | 0.00 | 0 |  | 0 | 55.14 | 331
###-##-####.00 | Pregnant Solution Pump (submersible) |  |  |  |  |  |  |  |
| 1.ea | 3.00 | 1.5 | 4.35 | 12.68 | 55 | 300.00 | 390 | 0.00 | 0 |  | 0 | 445.14 | 445
###-##-####.00 | Pregnant Solution Pump (submersible) Stby |  |  |  |  |  |  |  |
| 1.ea | 3.00 | 1.5 | 4.35 | 12.68 | 55 | 300.00 | 390 | 0.00 | 0 |  | 0 | 445.14 | 445
###-##-####.00 | Barren Solution Pump |  |  |  |  |  |  |  |  |
| 1.ea | 3.00 | 1.5 | 4.35 | 12.68 | 55 | 300.00 | 390 | 0.00 | 0 |  | 0 | 445.14 | 445
###-##-####.00 | Barren Solution Pump(standby) |  |  |  |  |  |  |  |
| 1.ea | 3.00 | 1.5 | 4.35 | 12.68 | 55 | 300.00 | 390 | 0.00 | 0 |  | 0 | 445.14 | 445
###-##-####.00 | Overflow/Storm Water Pond Pump (submersible) |  |  |  |  |  |  |
| 1.ea | 3.00 | 1.5 | 4.35 | 12.68 | 55 | 300.00 | 390 | 0.00 | 0 |  | 0 | 445.14 | 445
###-##-####.00 | Leak Detection Pump (submersible) |  |  |  |  |  |  |  |
| 1.ea | 3.00 | 1.5 | 4.35 | 12.68 | 55 | 300.00 | 390 | 0.00 | 0 |  | 0 | 445.14 | 445
###-##-####.00 | Control Stations for above pumps |  |  |  |  |  |  |  |
| 6.ea | 3.00 | 1.5 | 26.10 | 12.68 | 331 | 150.00 | 1,170 | 0.00 | 0 |  | 0 | 250.14 | 1,501

Page 27 of 31

| Avino Tailings Retreatment Scoping Study L5 Detail Estimate |
Project No: 1151920100 |  | Report Date: 17-Feb-12
|  | Rev 1
Client: Avino Silver & Gold Mines Ltd |  | Sorted By Area and Sequence

SubArea-Exp-Seq | Qty | Labour | Producitivity | Total Labour | Labour | Labour | Material | Material | Const Eqt | Const Eqt | Process Eqpt | Process Eqpt | Total | Total Cost
|  | Unit Mhr | Factor | Manhour | Rate | Cost | Unit Cost | Cost | Unit Cost | Cost | Unit Cost | Cost | Unit Cost | (USD)
###-##-####.00 | Power Cable allowance (3c#2/0) Standardize( 500ft each) |  |  |  |  |  |  |
| 3,000.m | 0.30 | 1.5 | 1,305.00 | 12.68 | 16,541 | 15.00 | 58,500 | 0.00 | 0 |  | 0 | 25.01 | 75,041
###-##-####.00 | Control Cable allowance |  |  |  |  |  |  |  |  |
| 3,000.m | 0.07 | 1.5 | 304.50 | 12.68 | 3,860 | 7.00 | 27,300 | 0.00 | 0 |  | 0 | 10.39 | 31,160
###-##-####.00 | 460 volt lighting transformer and panel |  |  |  |  |  |  |  |
| 1.ls | 30.00 | 1.5 | 43.50 | 12.68 | 551 | 2,000.00 | 2,600 | 0.00 | 0 |  | 0 | 3,151.36 | 3,151
###-##-####.00 | 120/208 volt transformer and panel |  |  |  |  |  |  |  |
| 1.ls | 30.00 | 1.5 | 43.50 | 12.68 | 551 | 1,500.00 | 1,950 | 0.00 | 0 |  | 0 | 2,501.36 | 2,501
###-##-####.00 | 440V Welding Outlet |  |  |  |  |  |  |  |  |
| 1.ea | 2.00 | 1.5 | 2.90 | 12.68 | 37 | 300.00 | 390 | 0.00 | 0 |  | 0 | 426.76 | 427
###-##-####.00 | I/O Remote Drop |  |  |  |  |  |  |  |  |
| 1.ea | 100.00 | 1.5 | 145.00 | 12.68 | 1,838 | 15,000.00 | 19,500 | 0.00 | 0 |  | 0 | 21,337.88 | 21,338
###-##-####.00 | Building Lighting |  |  |  |  |  |  |  |  |  |
| 1.ls | 100.00 | 1.5 | 145.00 | 12.68 | 1,838 | 10,000.00 | 13,000 | 0.00 | 0 |  | 0 | 14,837.88 | 14,838
###-##-####.00 | Cable Tray |  |  |  |  |  |  |  |  |
| 1.ls | 200.00 | 1.5 | 290.00 | 12.68 | 3,676 | 10,000.00 | 13,000 | 0.00 | 0 |  | 0 | 16,675.75 | 16,676
###-##-####.00 | Fire Alarm |  |  |  |  |  |  |  |  |  |
| 1.ls | 100.00 | 1.5 | 145.00 | 12.68 | 1,838 | 5,000.00 | 6,500 | 0.00 | 0 |  | 0 | 8,337.88 | 8,338
###-##-####.00 | Grounding |  |  |  |  |  |  |  |  |  |
| 1.ls | 30.00 | 1.5 | 43.50 | 12.68 | 551 | 1,000.00 | 1,300 | 0.00 | 0 |  | 0 | 1,851.36 | 1,851
750 - Leaching Subtotal | 2,670.90 |  | 33,854 |  | 186,550 |  | 0 |  | 0 |  | 220,404
760 - Process |  |  |  |  |  |  |  |  |  |  |  |
###-##-####.00 | Process Area MCC 2500 A c/w |  |  |  |  |  |  |  |  |
| 1.ea | 80.00 | 1.5 | 116.00 | 12.68 | 1,470 | 45,000.00 | 58,500 | 0.00 | 0 |  | 0 | 59,970.30 | 59,970
###-##-####.00 | - Allowance for Merrill Crowe Modules |  |  |  |  |  |  |  |
| 1.ea | 1.00 | 1.5 | 1.45 | 12.68 | 18 |  | 0 | 0.00 | 0 |  | 0 | 18.38 | 18
###-##-####.00 | -100A 3P Breakers |  |  |  |  |  |  |  |  |
| 2.ea | 1.00 | 1.5 | 2.90 | 12.68 | 37 |  | 0 | 0.00 | 0 |  | 0 | 18.38 | 37

Page 28 of 31

| Avino Tailings Retreatment Scoping Study L5 Detail Estimate |
Project No: 1151920100 |  | Report Date: 17-Feb-12
|  | Rev 1
Client: Avino Silver & Gold Mines Ltd |  | Sorted By Area and Sequence

SubArea-Exp-Seq | Qty | Labour | Producitivity | Total Labour | Labour | Labour | Material | Material | Const Eqt | Const Eqt | Process Eqpt | Process Eqpt | Total | Total Cost
|  | Unit Mhr | Factor | Manhour | Rate | Cost | Unit Cost | Cost | Unit Cost | Cost | Unit Cost | Cost | Unit Cost | (USD)
###-##-####.00 | 460 volt lighting transformer and panel |  |  |  |  |  |  |  |  |
| 1.ls | 30.00 | 1.5 | 43.50 | 12.68 | 551 | 2,000.00 | 2,600 | 0.00 | 0 |  | 0 | 3,151.36 | 3,151
###-##-####.00 | 120/208 volt transformer and panel |  |  |  |  |  |  |  |  |
| 1.ls | 30.00 | 1.5 | 43.50 | 12.68 | 551 | 1,500.00 | 1,950 | 0.00 | 0 |  | 0 | 2,501.36 | 2,501
###-##-####.00 | Merrill Crowe Modules |  |  |  |  |  |  |  |  |  |
| 1.ls | 1,000.00 | 1.5 | 1,450.00 | 12.68 | 18,379 | 20,000.00 | 26,000 | 0.00 | 0 |  | 0 | 44,378.75 | 44,379
###-##-####.00 | Feeder to Process MCC |  |  |  |  |  |  |  |  |  |
| 1.ls | 200.00 | 1.5 | 290.00 | 12.68 | 3,676 | 7,500.00 | 9,750 | 0.00 | 0 |  | 0 | 13,425.75 | 13,426
###-##-####.00 | Process Plant Lighting |  |  |  |  |  |  |  |  |  |
| 1.ls | 200.00 | 1.5 | 290.00 | 12.68 | 3,676 | 10,000.00 | 13,000 | 0.00 | 0 |  | 0 | 16,675.75 | 16,676
###-##-####.00 | 480V Welding Outlet |  |  |  |  |  |  |  |  |  |
| 3.ea | 2.00 | 1.5 | 8.70 | 12.68 | 110 | 300.00 | 1,170 | 0.00 | 0 |  | 0 | 426.76 | 1,280
###-##-####.00 | I/O PLC Panel |  |  |  |  |  |  |  |  |  |  |
| 1.ea | 200.00 | 1.5 | 290.00 | 12.68 | 3,676 | 40,000.00 | 52,000 | 0.00 | 0 |  | 0 | 55,675.75 | 55,676
###-##-####.00 | Operator Controls |  |  |  |  |  |  |  |  |  |  |
| 1.ea | 100.00 | 1.5 | 145.00 | 12.68 | 1,838 | 40,000.00 | 52,000 | 0.00 | 0 |  | 0 | 53,837.88 | 53,838
###-##-####.00 | Control Stations and J.boxes |  |  |  |  |  |  |  |  |  |
| 1.ls | 200.00 | 1.5 | 290.00 | 12.68 | 3,676 | 3,000.00 | 3,900 | 0.00 | 0 |  | 0 | 7,575.75 | 7,576
###-##-####.00 | Instrumentation |  |  |  |  |  |  |  |  |  |  |
| 1.ls | 300.00 | 1.5 | 435.00 | 12.68 | 5,514 | 20,000.00 | 26,000 | 0.00 | 0 |  | 0 | 31,513.63 | 31,514
###-##-####.00 | Power and Control Cables and Connections |  |  |  |  |  |  |  |
| 1.ls | 500.00 | 1.5 | 725.00 | 12.68 | 9,189 | 20,000.00 | 26,000 | 0.00 | 0 |  | 0 | 35,189.38 | 35,189
###-##-####.00 | Cable Tray |  |  |  |  |  |  |  |  |  |
| 1.ls | 300.00 | 1.5 | 435.00 | 12.68 | 5,514 | 10,000.00 | 13,000 | 0.00 | 0 |  | 0 | 18,513.63 | 18,514
###-##-####.00 | Fire Alarm |  |  |  |  |  |  |  |  |  |
| 1.ls | 100.00 | 1.5 | 145.00 | 12.68 | 1,838 | 5,000.00 | 6,500 | 0.00 | 0 |  | 0 | 8,337.88 | 8,338
###-##-####.00 | Grounding |  |  |  |  |  |  |  |  |  |
| 1.ls | 100.00 | 1.5 | 145.00 | 12.68 | 1,838 | 2,000.00 | 2,600 | 0.00 | 0 |  | 0 | 4,437.88 | 4,438

Page 29 of 31

| Avino Tailings Retreatment Scoping Study L5 Detail Estimate |
Project No: 1151920100 |  | Report Date: 17-Feb-12
|  | Rev 1
Client: Avino Silver & Gold Mines Ltd |  | Sorted By Area and Sequence

SubArea-Exp-Seq | Qty | Labour | Producitivity | Total Labour | Labour | Labour | Material | Material | Const Eqt | Const Eqt | Process Eqpt | Process Eqpt | Total | Total Cost
|  | Unit Mhr | Factor | Manhour | Rate | Cost | Unit Cost | Cost | Unit Cost | Cost | Unit Cost | Cost | Unit Cost | (USD)
760 - Process Subtotal | 4,856.05 |  | 61,550 |  | 294,970 |  | 0 |  | 0 |  | 356,520
910 - Engineering and Procurement |  |  |  |  |  |  |  |  |  |
###-##-####.00 | Engineering - Infrastructure 6% On Direct Cost |  |  |  |  |  |  |  |
| 1.lot | 0.00 | 1.5 | 0.00 | 12.68 | 0 | 729,935.43 | 729,935 | 0.00 | 0 | 0.00 | 0 | 729,935.43 | 729,935
###-##-####.00 | Engineering - Process Facilities 15% On Direct Cost Including Packages |  |  |  |  |  |
| 1.lot | 0.00 | 1.5 | 0.00 | 12.68 | 0 | 661,091.73 | 661,092 | 0.00 | 0 |  | 0 | 661,091.73 | 661,092
###-##-####.00 | Engineering - Buildings 5% On Buildings |  |  |  |  |  |  |
| 1.lot | 0.00 | 1.5 | 0.00 | 12.68 | 0 | 46,638.16 | 46,638 | 0.00 | 0 |  | 0 | 46,638.16 | 46,638
910 - Engineering and Procurement Subtotal | 0.00 |  | 0 |  | 1,437,665 |  | 0 |  | 0 |  | 1,437,665
920 - Construction Management |  |  |  |  |  |  |  |  |  |
###-##-####.00 | C. Mgmt - Infrastructure 5% On Direct Cost |  |  |  |  |  |  |
| 1.lot | 0.00 | 1.5 | 0.00 | 12.68 | 0 | 608,279.53 | 608,280 | 0.00 | 0 | 0.00 | 0 | 608,279.53 | 608,280
###-##-####.00 | C.Mgmt - Process Facilities 8% On Direct Cost |  |  |  |  |  |  |
| 1.lot | 0.00 | 1.5 | 0.00 | 12.68 | 0 | 352,582.26 | 352,582 | 0.00 | 0 | 0.00 | 0 | 352,582.26 | 352,582
###-##-####.00 | C.Mgmt - Buildings 3% On Direct Cost |  |  |  |  |  |  |  |
| 1.lot | 0.00 | 1.5 | 0.00 | 12.68 | 0 | 27,982.90 | 27,983 | 0.00 | 0 | 0.00 | 0 | 27,982.90 | 27,983
920 - Construction Management Subtotal | 0.00 |  | 0 |  | 988,845 |  | 0 |  | 0 |  | 988,845
930 - Site Consultants |  |  |  |  |  |  |  |  |  |  |
###-##-####.00 | QA/QC, Surveying, Geotechnical |  |  |  |  |  |  |  |
| 1.lot | 0.00 | 1.5 | 0.00 | 12.68 | 0 | 100,000.00 | 100,000 | 0.00 | 0 | 0.00 | 0 | 100,000.00 | 100,000
###-##-####.00 | Vendor Support - Equipment 3% On Process Facilities |  |  |  |  |  |  |
| 1.lot | 0.00 | 1.5 | 0.00 | 12.68 | 0 | 132,218.35 | 132,218 | 0.00 | 0 | 0.00 | 0 | 132,218.35 | 132,218
930 - Site Consultants Subtotal | 0.00 |  | 0 |  | 232,218 |  | 0 |  | 0 |  | 232,218
940 - Freight and Spares |  |  |  |  |  |  |  |  |  |  |
###-##-####.00 | Freight 3% On Material Cost |  |  |  |  |  |  |  |  |
| 1.lot |  | 1.5 | 0.00 | 12.68 | 0 | 306,844.07 | 306,844 | 0.00 | 0 |  | 0 | 306,844.07 | 306,844
###-##-####.00 | Spares on Capital Equipment |  |  |  |  |  |  |  |  |
| 1.lot |  | 1.5 | 0.00 | 12.68 | 0 | 50,000.00 | 50,000 | 0.00 | 0 |  | 0 | 50,000.00 | 50,000

Page 30 of 31

| Avino Tailings Retreatment Scoping Study L5 Detail Estimate |
Project No: 1151920100 |  | Report Date: 17-Feb-12
|  | Rev 1
Client: Avino Silver & Gold Mines Ltd |  | Sorted By Area and Sequence

SubArea-Exp-Seq | Qty | Labour | Producitivity | Total Labour | Labour | Labour | Material | Material | Const Eqt | Const Eqt | Process Eqpt | Process Eqpt | Total | Total Cost
|  | Unit Mhr | Factor | Manhour | Rate | Cost | Unit Cost | Cost | Unit Cost | Cost | Unit Cost | Cost | Unit Cost | (USD)
###-##-####.00 | Spares on Electrical |  |  |  |  |  |  |  |  |  |
| 1.lot |  | 1.5 | 0.00 | 12.68 | 0 | 10,000.00 | 10,000 | 0.00 | 0 |  | 0 | 10,000.00 | 10,000
###-##-####.00 | Spares on Conveyors |  |  |  |  |  |  |  |  |
| 1.lot |  | 1.5 | 0.00 | 12.68 | 0 | 10,000.00 | 10,000 | 0.00 | 0 |  | 0 | 10,000.00 | 10,000
###-##-####.00 | Initial Fills |  |  |  |  |  |  |  |  |  |
| 1.lot |  | 1.5 | 0.00 | 12.68 | 0 | 20,000.00 | 20,000 | 0.00 | 0 |  | 0 | 20,000.00 | 20,000
940 - Freight and Spares Subtotal | 0.00 |  | 0 |  | 396,844 |  | 0 |  | 0 |  | 396,844
950 - Construction Indirects |  |  |  |  |  |  |  |  |  |
###-##-####.00 | Construction Equipment $6.00 Per Manhour |  |  |  |  |  |  |  |
| 1.lot |  | 1.5 | 0.00 | 12.68 | 0 | 1,799,192.62 | 1,799,193 | 0.00 | 0 |  | 0 | 1,799,192.62 | 1,799,193
###-##-####.00 | Contractor General Conditions 5% On Manhour Cost |  |  |  |  |  |
| 1.lot |  | 1.5 | 0.00 | 12.68 | 0 | 190,039.72 | 190,040 | 0.00 | 0 |  | 0 | 190,039.72 | 190,040
###-##-####.00 | Contractor Overhead 10% On Manhour Cost |  |  |  |  |  |  |
| 1.lot |  | 1.5 | 0.00 | 12.68 | 0 | 380,079.44 | 380,079 | 0.00 | 0 |  | 0 | 380,079.44 | 380,079
###-##-####.00 | Contractor Mark Up 10% On Manhour Cost |  |  |  |  |  |  |
| 1.lot |  | 1.5 | 0.00 | 12.68 | 0 | 380,079.44 | 380,079 | 0.00 | 0 |  | 0 | 380,079.44 | 380,079
950 - Construction Indirects Subtotal | 0.00 |  | 0 |  | 2,749,391 |  | 0 |  | 0 |  | 2,749,391
990 - Contingency |  |  |  |  |  |  |  |  |  |  |  |
###-##-####.00 | Contingency 25.0% of Direct and Indirect Costs |  |  |  |  |  |
| 1.lot | 0.00 | 1.5 | 0.00 | 12.68 | 0 | 5,828,000.00 | 5,828,000 | 0.00 | 0 |  | 0 | 5,828,000.00 | 5,828,000
990 - Contingency Subtotal | 0.00 |  | 0 |  | 5,828,000 |  | 0 |  | 0 |  | 5,828,000
Scoping Study L5 Detail Estimate Total | 299,865.44 |  | 3,800,794 |  | 21,861,099 |  | 0 |  | 3,476,702 |  | 29,138,596

Page 31 of 31

APPENDIX F

EQUIPMENT AND ELECTRICAL LOAD LISTS

Page 1 of 4

Page 2 of 4

Page 3 of 4

Page 4 of 4

Page 1 of 4

Page 2 of 4

Page 3 of 4

Page 4 of 4

APPENDIX G

SCOPING STUDY FOR THE RECOVERING OF SILVER AND GOLD FROM
TAILINGS – PRELIMINARY ECONOMIC EVALUATION

Report to:
Scoping Study for the Recovering of
Silver and Gold from Tailings -
Preliminary Economic Evaluation
Document No. 0551920100-REP-R0002-00
Third Party Disclaimer
This document has been prepared in response to a specific request for service from the client to whom it is addressed. The content of this document is not intended for the use of. nor is it intended to be relied upon, by any person, firm, or corporation, other than the client of Wardrop Engineering Inc. to whom it is addressed. Wardrop Engineering Inc. denies any liability whatsoever to other parties, who may obtain access to this document, for damages or injury suffered by such third parties arising from use of this document by them, without the express prior written authority of Wardrop Engineering Inc. and its client who has commissioned this document.
Confidential
This document is for the confidential use of the addressee only. Any retention, reproduction, distribution or disclosure to parties other than the addressee is prohibited without the express written authorization of Wardrop Engineering Inc.

Report to:
SCOPING STUDY FOR THE
RECOVERING OF SILVER AND GOLD
FROM TAILINGS - PRELIMINARY
ECONOMIC EVALUATION
February 2006

Prepared By |  |  | Date |
| Ken Deter |  |  |
Reviewed By |  |  | Date |
| Rick Alexander |  |  |
Authorized by |  |  | Date |
| Ron Hall |  |  |

905-1130 West Pender Street, Vancouver, British Columbia V6E 4A4
Phone: 604-408-3788 Fax: 608-3722 E-mail: vancouver@wardrop.com

REVISION HISTORY

REV. NO | ISSUE DATE | PREPARED BY AND DATE | REVIEWED BY AND DATE | APPROVED BY AND DATE | DESCRIPTION OF REVISION

1.1 | Introduction During the meeting between Avino Silver and Gold and Wardrop Engineering, Inc (WEI), a request was made to calculate the potential return for re-treating the oxide tailings based on information in the scoping study. Avino wanted to determine if there was enough potential for producing a pre-feasibility study.
1.2 | Evaluation Two scenarios were produced, processing over a 4 year span versus a 2 year span. The silver price was varied between $7.00 and $9.00 per ounce with the gold price fixed at $500 per ounce, followed by the silver price fixed at $8.00 per ounce with the gold price changing between $450 tO $600 per ounce (USD). For this comparison, the following was used:
| o | The Design Criteria silver and gold recovery rates were used to estimate metal recovery;
| o | The Design Criteria 130-day leaching cycle was used to estimate the rate of recovery;
| o | One month delay between the time ore was stacked and when leaching began;
| o | 30% of the total recovered metal was recovered in the first month;
| o | 20% of the total recovered metal was estimated for months 2 though 4;
| o | 10% of the total recovered metal was estimated for month 5;
| o | Leaching continued for 5 months after the ore was exhausted, at half the operating cost;
| o | The 4 year mine life capital cost was estimated at $16,500,000; the 2 year mine life plant was expanded at only 1.4 times over the smaller plant.
| Table 1 summarizes the Net Present Value by processing the tailings re-treatment using heap leaching. The comparison uses updated operating costs received on 10 February 2006, and includes a 1:1 stripping ratio for removing the sulfide tailings. A graph of the Net Present Value is shown in Figure 1.
| The earnings shown in the table and graph are before any interest, taxes and royalties, if any.

Avino Silver and Gold Mines Ltd. Scoping Study for the Recovering of Silver and Gold from Tailings - Preliminary Economic Evaluation | 1 |

Table 1 Net Present Value

Avino Silver and Gold Net Present Value
Mine Life | 4 Years | 2 Years
Estimated Capital | $16,200,000 | $22,680,000
Metal Price |  | Gold price fixed at $500/ounce
Silver |  |
$7.00 | $3,722,727 | $169,543
$7.50 | $5,283,952 | $1,879,119
$8.00 | $6,845,176 | $3,588,695
$8.50 | $8,406,401 | $5,298,271
$9.00 | $9,967,625 | $7,007,847
Gold |  | Silver price fixed at $8.00/ounce
$450 | $5,908,710 | $2,563,244
$500 | $6,845,176 | $3,588,695
$550 | $7,781,642 | $4,614,146
$600 | $8,718,108 | $5,639,598

The Internal Rate of Return was also calculated for the Avino Project and shown below in Table 2. A graph of the Internal Rate of Return is shown in Figure 2.
Table 2 Internal Rate of Return

Avino Silver and Gold Internal Rate of Return
Mine Life | 4 Years | 2 Years
Estimated Capital | $16,200,000 | $22,680,000
Metal Price |  | Gold price fixed at $500/ounce
Silver |  |
$7.00 | 20% | 11%
$7.50 | 24% | 16%
$8.00 | 28% | 21%
$8.50 | 32% | 26%
$9.00 | 35% | 31%
Gold |  | Silver price fixed at $8.00/ounce
$450 | 26% | 18%
$500 | 28% | 21%
$550 | 30% | 24%
$600 | 32% | 27%

No salvage value for either plant was included for this comparison.
Reagent and power costs are fixed based on $/tonne treated. The labour costs were calculated on a cost per month basis. As a result, the overall cost per tonne treated will be lower with a 2 year minelife, but the NPV will be lower due to the high capital costs.

Avino Silver and Gold Mines Ltd. Scoping Study for the Recovering of Silver and Gold from Tailings - Preliminary Economic Evaluation | 2 |

Table 3 Design Criteria

SPECIFIC DESIGN CRITERIA
PRODUCTION - OXIDE TAILINGS
Total Oxide Tailings Tonnage - Actual | t | 2091074 | 2
Total Oxide Tailings Tonnage - Assumed | t | 2000000 | 1
Total Tailings Treatment | t | 1460 |
Period of Treatment | d | 4.00 |
Period of Treatment | y | 2.72 |
Tailings Specific Gravity |  | 2.720 | 7
Tailings Bulk Density | t/m3 | 1.605 | 2
Agglomerated Tailings Bulk Density | t/m3 | 1.2423 | 7
Tailings Moisture Content - Primary | % | 10.0 | 4
Tailings Moisture Content - Design | % | 12.5 | 7
Head Grade:
Silver | Ag, g/t | 95.5 | 2
Gold | Au, g/t | 0.53 | 2
P80 | microns | 225 | 7
Extraction:
Silver | % | 73.0 | 7
Gold | % | 78.9 | 7
Laboratory Extraction:
Silver | % | 67.8 | 7
Gold | % | 81.8 | 7
HEAP LEACH PAD CONSTRUCTION
Tailings Feed - actual | t/d | 1370
Tailings Feed - design | t/d | 1522
Reagents to Agglomerator | t/d | 25
Daily Processing Rate - Total Feed | t/d | 1395
Volume of Daily Production of Heap Leach Feed | m3/d | 1123
Height of Pad | m | 2.72
Area of Daily Production | m2/d | 413
Width of Pad | m | 95.5
Length of Daily Advance of Pad | m/d | 4.32
Leaching Period - Column Test | d | 81
Kinetic Leaching Rate on Heap - slower |  | 1.6
Leaching Period - Assumed | d | 130
Volume of Solution to Heap for Leaching | m3/hr | 164.87

Avino Silver and Gold Mines Ltd. Scoping Study for the Recovering of Silver and Gold from Tailings - Preliminary Economic Evaluation | 3 |

Table 4 Labour Costs

Avino Silver and Gold Staffing Requirements
| No of Shifts | Persons per shift | Total persons | Monthly Salary Pesos | Monthly Cost
Plant Superintendent | 1 | 1 | 1 | 30000 | 30000
Engineering and Planning Manager | 1 | 1 | 1 | 25000 | 25000
Administration Manager | 1 | 1 | 1 | 20000 | 20000
Shift Foreman | 3 | 1 | 3 | 15000 | 45000
Slusher Operator | 3 | 3 | 9 | 15000 | 135000
Plant Agglomerator Operator | 3 | 2 | 6 | 6000 | 36000
Plant Conveyor Operator | 3 | 1 | 3 | 6000 | 18000
Plant Merrill Crowe Operator | 3 | 2 | 6 | 6000 | 36000
Day Crew Reagents | 1 | 2 | 2 | 6000 | 12000
Day Crew Heap Piping | 1 | 10 | 10 | 6000 | 60000
Maintenance Crew | 1 | 4 | 4 | 15000 | 60000
Assay Supervision | 1 | 1 | 1 | 15000 | 15000
Assayers | 3 | 2 | 6 | 6000 | 36000
First Aid Attendents | 1 | 1 | 1 | 15000 | 15000
Office Clerk | 1 | 1 | 1 | 7000 | 7000
Warehouse staff | 1 | 2 | 2 | 10000 | 20000
Computer Technician | 1 | 1 | 1 | 8000 | 8000
Environmental Supervisor | 1 | 1 | 1 | 20000 | 20000
Purchasing Agent | 1 | 1 | 1 | 20000 | 20000
Security | 3 | 1 | 3 | 6000 | 18000
Total Employees |  |  | 63 |  | 636000
Excange Rate (USD: pesos) |  |  |  |  | $0.095165
Monthly costs in USD |  |  |  |  | $60,525
Cost per tonne |  |  |  |  | $1.45

Avino Silver and Gold Mines Ltd. Scoping Study for the Recovering of Silver and Gold from Tailings - Preliminary Economic Evaluation | 4 |

Table 5 Operating and Shut Down Costs

Avino Silver and Gold Operating Costs
|  |  |  |  | Operating $ Per Month | Per tonne treated
Operating Expenses |  |  |  | Per tonne treated | Mine life 4 year | Mine life 2 year
Relocation of Tailings to Pad |  | $42,916.67 | $1.03 | $1.03
|  | Conspt. | Reagent Price |  |  |  |
Reagent Costs |  | kg/t | kg/t |  |  | $4.21 | $4.21
Cement | kg/t | 10.900 | $0.15 | $1.64 | $68,125 |  |
Lime - Design | kg/t | 6.865 | $0.08 | $0.55 | $22,883 |  |
Cyanide, solid [NaCN] - | kg/t | 0.928 | $1.95 | $1.81 | $75,400 |  |
Assume |  |  |  |  |  |  |
Zinc Dust - Actual & | kg/t | 0.980 | $2.05 | $0.20 | $8,371 |  |
Design |  |  |  |  |  |  |
Filter Pre-Coat - Design | kg/m3 | 0.100 | $0.79 | $0.01 | $329 |  |
Filter Aid - Design | kg/m3 | 0.100 | $0.79 | $0.01 | $329 |  |
Power | $0.069 |  | Per kwH |  | $62,500 | $1.50 | $1.50
Water |  |  |  | $0.04 |  | $0.04 | $0.04
Labor |  | $60,525 | $1.45 | $0.74
Miscellaneous |  | 5.00% of total |  |  | $0.41 | $0.38
Total |  | $341,379.11 | $8.64 | $7.89
|  |  |  |  | Operating $ Per Month | Per tonne treated
Shut Down Costs |  |  |  | Per tonne treated | Mine life 4 year | Mine life 2 year
|  | Conspt. | Reagent Price |  |  | $2.39 | $2.39
Reagent Costs |  | kg/t | kg/t |  |  |  |
Lime - maintain pH | kg/t | 0.50 | $0.08 | $0.04 | $1,667 |  |
Cyanide, solid [NaCN] - | kg/t | 0.50 | $1.95 | $0.98 | $40,625 |  |

Avino Silver and Gold Mines Ltd. Scoping Study for the Recovering of Silver and Gold from Tailings - Preliminary Economic Evaluation | 5 |

Assume |  |  |  |  |  |  |
Zinc Dust - Actual & Design | kg/t | 0.58 | S2.05 | $1.19 | S4.954 |  |
Lead Nitrate - Actual & design | kg/t | 0.12 | $0.21 | $0.03 | S105 |  |
Filter Pre-Coat - Design | kg/m3 | 0.10 | $0.79 | $0.08 | S329 |  |
Filter Aid - Desiqn | kq/m3 | 0.10 | $0.79 | $0.08 | S329 |  |
Power | $0.069 |  | Per kwH |  | S41.667 | $1.00 | $1.00
Water |  | $0.04 | $0. 04
Labor | Labor costs Cut in Half |  | S30.262 | $0.73 | $0. 37
Miscellaneous |  | 5.00% of total |  |  |  | $0.21 | $0. 19
Total |  | $4.36 | $3.99
Capital costs |  |  |  |  | S119,938 | S16,200,000 | $22,680,000

Avino Silver and Gold Mines Ltd. Scoping Study for the Recovering of Silver and Gold from Tailings - Preliminary Economic Evaluation | 6 |

APPENDIX H

MINESTART MANAGEMENT INC. REPORT - A TAILINGS RESOURCE,
JULY 2005

— Durango, Mexico
Avino Silver & Gold Mines Ltd

A Tailings Resource
N24°32' W104°38'
July 2005
Bryan Slim, mba PEng

20 July 2005
Avino Silver & Gold Mines Ltd
400,455 Granville Street
Vancouver,
British Columbia
V6C 1T1
Attn: MrD. Wolfin, President
Dear Sirs,
Cia Minera Mexicana de Avino SA de CV
Indicated resource in the oxide tailings Avino mine
It is with much pleasure we forward your study on the above company.
This study, per you requirements and which based on our site inspections and follow-up investigations including detailed sampling, assaying and metallurgical testing of oxidic tailings in 2004/5, has allowed for a sufficiently detailed comparison with the 1990 drill sampling of the tailings that we accept the latter results.
As such it is our professional opinion the combined 1990 and 2004 data has allowed us to estimate an indicated resource of 2M t of 95 g/t silver and 0.5 g/t gold within the oxide tailings.
The Avino property offers choices between tailings development, reserve development to restart the mine and exploration in mineral concessions surrounding the mine. We believe this calls for the development of a strategic plan to examine costs and benefits and to set priorities and budgets for the property development.
We thank you for this opportunity to be of assistance to Avino Silver & Gold Mines Ltd and offer our services for the ongoing development.
Yours sincerely
MineStart Management Inc
Bryan Slim, BSc, MBA, PEng
Consulting Mining Engineer
A9-05070.202
att

1763 Scott Road, North Vancouver, B.C., Canada, V7J3J4 | Phone: (604)986-7014 Fax: (604)986-7017 email: minstart@istar.ca

Summary

Avino Silver & Gold Mines Ltd wishes to increase its ownership of Cia Minera Mexicana de Avino, SA de CV of Durango Mexico from its present holding of 49% to 100%. The principle asset of Cia Minera is the Avino mine where from 1976 to 2001 the mine produced about 4971 of silver, 3 t of gold and 11 0001 copper. Avino Silver has held its 49% share of the assets since 1968.
The study has identified an indicated resource of 2M tonne of 95 g/t silver and 0.5 g/t gold for the oxide portion of the Avino mine tailings for which a trial 90 day column leach of a composite sample yielded 73% silver and 79% gold recover^'.
The Avino mine is about 82 km northeast of the city of Durango and lies within a core mineral concession block covering about 980 ha. The underground workings of which some parts have a history going back 100 year or more years, have been developed over 1 200 m on strike and some 400 m deep. Continuity of strike was proved by Cia Minera when, by drifting, they connected three of the old mine workings as part of the rehabilitation and sampling programme, and completed about 2 500 m of drifting and cross-cuts as well as 8 000 m of surface and underground diamond drilling.
Until 1992 production was from an open-cut in the oxide zone but because of the then high stripping ratio an underground mine was developed in the deeper, sulphide zone. The presently worked ore bodies occur as silicified fault breccia whose of dip of 60-70° southwards favours trackless, sub-level stoping. Current underground mining extends over 200 m vertically and is serviced from a spiral ramp. A flotation plant on site has a capacity of 1000 t/d and since 1993 has produced a copper concentrate which has been sold, with credits paid for the silver and gold, to a toll smelter. Delays in smelter payments for concentrates and closure of the smelter for toll processing led to the suspension of mine operations at the end of 2001.
The Avino property offers choices between tailings development, reserve development to restart the mine and exploration in mineral concessions surrounding the mine. Recommendations are made for the first instance in securing surface land use agreements and developing a strategic plan to examine costs and benefits to set priorities and budgets for the property development. Part of this strategic planning is the need for detailed prospecting/sampling over the concessions for which we estimate a cost of $C 14 000.

| ii
| MineStartTM

Table of Contents

SUMMARY | ii
Table of contents | iii
1 | INTRODUCTION | 1
| 1.1 | Preamble | 1
| 1.2 | This Study | 1
|  | 121 | Terms of Reference | 1
|  | 122 | Purjiose of the Report | 1
| 1.3 | Sources of Information | 1
| 1.4 | Field Activity of the Qualified Person | 2
| 1.5 | Disclaimer | 2
2 | PROPERTY | 4
| 2.1 | Preamble | 4
| 2.2 | Mineral Property | 4
| 2.3 | Mineral Tenure | 4
|  | 231 | Mineral Title | 4
|  |  | .1 | Concession Holder | 4
|  |  | .2 | Operator | 4
|  |  | .3 | Issuer | 5
|  | 232 | leased Concessions | 5
|  | 233 | Royalties | 8
| 2.4 | Surface Tenure | 8
| 2.5 | Environmental Liabilities | 8
| 2.6 | Permiis | 8
|  | 261 | Anno Permit | 8
|  | 262 | Environmental Agencies | 9
| 2.7 | Situation, Access and Physiography | 9
| 2.8 | Infrastructure and Local Resources | 10
3 | HISTORY | 11
| 3.1 | Preamble | 11
| 3.2 | Discovery | 11
| 3.3 | Ownership | 11
| 3.4 | Issuer Exploration History | 12
|  | 341 | Issuer Definition | 12
|  | 342 | Early Exploration | 12
|  | 343 | Property | 13

| iii
| MineStartTM

|  | 344 | Mine | 13
|  | 345 | Tailings | 14
| 3.5 | Historical Reserves/Resources | 17
|  | 351 | Open-Cut | 17
|  | 352 | Underground Mine | 17
|  | 353 | Mexican Reserve Definitions | 17
|  | 354 | Tailings | 18
| 3.6 | Mine Production | 18
| 3.7 | Historical Metallurgical Testing of Tailings | 20
4 | GEOLOGY |  | 21
| 4.1 | General | 21
| 4.2 | Structural Geology | 21
| 4.3 | Ore Bodies | 21
|  | 431 | Veins | 21
|  | 432 | Mineralisation | 22
|  | 433 | Hydrothcrmal Alteration | 22
| 4.4 | Mine Geology | 25
| 4.5 | Property | 25
5 | AVINO MINE HISTORICAL OPERATIONS | 26
| 5.1 | Preamble | 26
| 5.2 | Production | 26
| 5.3 | Operations | 26
|  | 531 | Underground Mining | 26
|  | 532 | Mineral Processing | 27
|  | 533 | Concentrates | 28
|  | 534 | Tailings | 28
| 5.4 | Production Control | 28
|  | 541 | Mining | 28
|  | 542 | Metallurgical Balance | 29
| 5.5 | Current Status | 29
6 | TAILINGS INVESTIGATIONS | 31
| 6.1 | Preamble | 31
| 6.2 | Results and Analysis of 2004 Tailings Sampling | 31
|  | 621 | Purpose | 31
|  | 622 | Anomaly characteristics | 31
|  | 623 | Composite assays by fence | 32
|  | 624 | Downstream decreases in assays | 34
|  | 625 | Factors arising from the downstream construction | 35
|  | 626 | Conclusions | 35
| 6.3 | Exploration, Operators and Uncertainty | 35
|  | 631 | Operators |  | 35
|  | 632 | Data Reliability | 36
| 6.4 | Sample Pits | 36

| iv
| MineStartTM

| 6.5 | Sampling Methods | 36
|  | 651 | Sampling Methods ei al | 36
|  | 652 | Sampling and Recovery factors | 39
|  | 653 | Sample Quality | 39
|  | 654 | Geological Controls | 39
| 6.6 | Sample Preparation, Analysis and Security | 39
| 6.7 | Data Verification | 40
| 6.8 | Adjacent Properties | 40
| 6.9 | Metallurgical Investigatioas | 40
7 | RESOURCE ESTIMATE AND ANALYSIS | 41
| 7.1 | The Argument |  | 41
| 7.2 | The Opinion |  | 41
8 | DISCUSSION AND CONCLUSIONS | 42
| 8.1 | Discussion | 42
| 8.2 | Conclusions | 42
9 | DEVELOPMENT RECOMMENDATIONS AND BUDGET | 44
| 9.1 | Recommendations |  | 44
| 9.2 | Preliminary Budget |  | 44

Author's certificate
Table

2-1 | Mineral concessions - Avino mine-site
3-1 | Historical reserves allocated to production Nov 2001
3-2 | Mexican historical ore-mill feed definitions
3-3 | 1990 Historical estimate of tailings
3-4 | Avino Mine Production as concentrate ex underground sulphides ore
3-5 | Avino Mine Production as concentrate ex open-cut ore
3-6 | Avino mine -Summary of recoveries for various cyanidation leaches of tailings
5-1 | Silver and gold recoveries 1987-2001
6-1 | Sample assays from 2004 programme
6-2 | Fence assay comparison of tailings 2004 pit sampling with 1990 drilling
6-3 | Decrease in downstream tailings fence assay values from 1990 drilling results
6-4 | Downstream percentage decrease in tailings mass and assays for panicles > 150/jm
7-1 | Author's mathematical check of 1990 historical estimate

Figure

2-1 | Mean monthly rainfall at Panuco de Coronado 1961-90
2-2 | Mean monthly temperatures
6-1 | Grouped frequency plot showing normal distribution of 1990 silver assays
6-2 | Grouped frequency plot showing normal distribution of 1990 silver assays

| v
| MineStartTM

Plate

2-1 | Map of Mexico showing Avino
2-2 | Cia Minera concession map as of July 2005
2-3 | Mine-site access map
3-1 | Avino minesite in early 1900s
3-2 | Exploration holes around the underground mine
3-3 | Preliminary area prospecting and mapping
4-1 | Avino mine geology
4-2 | Open cut at Avino
6-1 | Drill hole plot of 1990 tailing sampling
6-2 | 2004 Sample pit plan on tailings
6-3 | Sampling in a 2004 pit
6-4 | Some 2004 sample pits on middle bench with excavating underway

| vi
| MineStartTM

1 Introduction

1.1 PREAMBLE
Avino Silver & Gold Mines Ltd is proposing to increase its ownership of Cia Minera Mexicana de Avino, SA de CV of Durango Mexico from its present holding of 49% to 100%, and has retained MineStart Management Inc to assist by reviewing the company's assets and provide a comprehensive report.
1.2 THIS STUDY

121 | Terms of Reference

Avino Silver & Gold Mines has retained MineStart to review the minesite, draw conclusions and make recommendations in support of the companies plans, including an examination of tailings resource potential, in a written report to meet regularity requirements.

122 | Purpose of The Report

MineStart was advised this report is intended to document the Avino mine to support a buyout and provide recommendations for work programmes and support a financing if needed.
1.3 SOURCES OF INFORMATION
Sources of information have included site examinations and investigations, various historical engineering, geological and management reports compiled about the project or site. Discussions have been held with management personal from Avino Silver & Gold and Cia Minera Mexicana as well as Ing Pedro Sanchez Mejorada mining engineer and metallurgist.1 Additional information has been derived from the 2004 tailings sampling programme and subsequent assaying and metallurgical characterisation by PRA in Vancouver, Canada in a programme designed and supervised by J Yee PEng. Ad hoc discussions with professional associates have provided further insights. We also acknowledge the assistance and information provided by Sr Bernardo Ysita del Hoyo, general director of Cia Minera Mexicana and Ing Jose Carlos Rodriguez Moreno a former Avino geologist during our visits and inspections and Snr Mercedes Ling, manager of Cia Minera in Durango.
Specific references to persons, reports and other information or data are noted as footnotes to superscript text notations.
___________________________________
1 for 20 years Ing Pedro Sanchez was president of Industries Penoles SA de CV the largest silver producer in the world and now chairmnan of Cía Minera Mexicana

1.4 FIELD ACTIVITY OF THE QUALIFIED PERSON
In June/July 2004 the author designed, implemented and directed a field tailings sampling-programme for material for assaying and metallurgical characterisation testing in Canada. Prior to this the author had carried out a preliminary investigation in 2003, which included surficial tailings sampling and scoping metallurgical testing.2
1.5 DISCLAIMER
For parts of this report the author has relied on third party information, reports and geological information and metallurgical characterisation generated from either various exploration programs or testing and evaluation carried out by companies and individuals. The data reported by these entities is generally presented without comment as judged appropriate unless the author is aware of the situation. Unless otherwise stated the author has not independently confirmed the accuracy of the data.
Any descriptions of the properties provided herein, including concession numbers, areas, locations, etc., are for general orientation only and are not to be construed as legal descriptions. No opinion on ownership is given or implied. It is for Avino Silver & Gold Mines Ltd to investigate and confirm tenure.
___________________________________
2 the operation has been closed since November 2001 and technical staff were not available for discussions or to provide documents

| 2
| MineStartTM

Cia Minera Mexicana
Avino Silver and Gold Mines Ltd

| 3
| MineStartTM

2 Property

2.1 PREAMBLE
Part 2 Property, describes the Avino mine property and tenure as well as the site and infrastructure and notes the environmental certification and agencies as well as infrastructure.
2.2 MINERAL PROPERTY
The current Avino mine property, which is in the municipality of Panuco de Coronada in the state of Durango, is made up of mineral concessions in three parcels which are held or leased by Cia Minera Mexicana de Avino SA de CV with a total area coverage of 981 ha as listed in Table 2-1 and shown in Plate ●2-2.3 4
Consistent with the mining regulations of Mexico, cadastral surveys will have been carried out for all the listed mineral concessions as part of the field staking prior to recording.
2.3 MINERAL TENURE

231 | M ineral Title

.1 | Concession Holder Exploitation concessions, which can be held for 50 years before renewal, are subject to the payment of taxes, for which the rate increases the longer the concessions are held. The mineral concession holder of record is liable for the taxes.5 Table 2-1 lists the concession holder per concessions.

.2 | Operator Companie Minera Mexicana de Avino, SA de CV is the operator of the mine.

___________________________________

3 | MineStart compiled Table 2-1 and Plate 2-1 from documents supplied by Cia Minera Mexicana de Avino; other possible concessions may exist but their documentation is incomplete

4 | mineral concessions in Mexico do not include surface rights, access/use rights have to be obtained from their land owners as agreements or purchases

5 | payments are current for the Cia Minera concessions listed Table 2-1 - pers comm Snr Mercedes Ling, manager Cia Minera

| 4
| MineStartTM

.3 | Issuer Avino Silver & Gold Mines Ltd, 'the issuer', currently owns 49% of Companie Minera Mexicana de Avino, SAdeCV.

Table 2-1 List of mineral concessions - Avino mine-site

| Concession | No | Area ha | from | to | Concession holder
Exploitation |  |  |  |  |
| Aranjuez | 214612 | 96.00 | 2 Oct 2001 | 1 Oct 2007 | Cia Minera
| Avino Grande IX | 216005 | 19.56 | 2 Apr 2002 | 1 Apr 2008 | Cia Minera
| Avino Grande VIII | 215224 | 22.88 | 14 Feb 2002 | 13 Feb 2008 | Cia Minera
| El Trompo | 164044 | 81.55 | 13 Oct 1989 | 12 Oct 2039 | Cia Minera
Exploitation |  |  |  |  |
| Aguila Mexicana | 215733 | 36.77 | 12 Mar 2002 | 29Jun2044 | Cia Minera
| El Caracol | 215732 | 102.38 | 12 Mar 2002 | 20 Apr 2044 | Cia Minera
| El Fuerte | 216103 | 100.33 | 9 Apr 2002 | 14 Dec 2048 | Cia Minera
| Fernando | 205401 | 72.13 | 29 Aug 1997 | 28 Aug 2047 | Cia Minera
| Gran Lucero | 189477 | 161.47 | 5 Dec 1990 | 4 Dec 2015 | Cia Minera
| Los Angeles | 154410 | 23.71 | 25 Mar 1971 | 24 Mar 2021 | Cia Minera
| Negro Jose | 218252 | 58.00 | 17 Oct 2002 | 16 Oct 2052 | Cia Minera
| Purisima Chica | 155597 | 136.71 | 30 Sep 1971 | 29 Sep 2021 | Cia Minera
| San Carlos | 117411 | 4.45 | 11 Dec 1986 | 10 Dec 2036 | Cia Minera
| San Jose6 | 164985 | 8.00 | 13 Aug 1979 | 12 Aug 2004 | Cia Minera
| San Martin de Porres | 222909 | 30.00 | 15 Sep 2004 | 14 Dec 2054 | Cia Minera
| San Pedro y San Pablo | 139615 | 12.00 | 22Jun 1959 | 21Jun2011 | Cia Minera
| Santa Ana | 195678 | 136.18 | 14 Sep 1992 | 13 Sep 2017 | Cia Minera
|  |  | 882.13 |  |  |
Leased Exploitation |  |  |  |  | Stackpole
| Unificacion La Platosa | 170585 | 98.83 |  |  |

232 | LEASED CONCESSIONS Exploitation rights to and for the Unification La Platosa are granted, by a mineral lease agreement, to Companie Minera Mexicana de Avino from Minerales de Avino SA de CV. The two concessions, Primer Rey

___________________________________

6 | expiration now 12 Aug 2029 - changes to legislation which allow a full 50 year life for an exploitation concession - Perito Sanchez as cited Snr Mercedes Ling email to MineStart (12 May 2005

| 5
| MineStartTM

| 6
| MineStartTM

| 7
| MineStartTM

| and Avino y Emma, are included in the lease agreement, but being discrete and lying under the town of San Jose de Avino are not considered part of the core concessions per this study. The agreement is valid until 3 lOctober 2010.

233 | ROYALTIES By the agreement per § 232, Companie Minera Mexicana de Avino shall pay to Minerales de Avino the following royalties: - 3-5% on mineral extracted, processed and sold from Unification La Platosa, concession - 3-5% on mineral extracted, processed and sold from the San Carlos and San Jose concessions Such royalty is to be calculated on a base of net sales (net smelter payment less the cost of goods sold) less the process costs at the mine.7

2.4 SURFACE TENURE
Surface rights are separate from the mineral concessions in Mexico and agreements registered with the government are necessary for the use or occupation of surface lands. To-date we have seen no such agreements for the minesite and tailings area.
2.5 ENVIRONMENTAL LIABILITIES
At the time of shutdown in November 2001 the Avino mine was in compliance with regulations.8 A complaint alleging contaminated water coming from the mine property was investigated in 2003 and the water was found to be from a private house and not Cia Minera related.9 No other complaints have been received.10
2.6 PERMITS

261 | AVINO PERMIT As the Avino mine in not in operation the operating permit has been suspended. The permit can be reinstated upon application to validate the Certificate of Industry clean up for a resumption of operations, providing there are no changes to operating methods or practices.11 If changes are planned then revised permits would be needed. This would necessitate submittal of technical reports and plans. The company remains in the National Program for Environmental Audit.

___________________________________
7 per clauses 4 and 5 p 5 and declaration 4 p 4 - pers comm by Bernardo Ysita
8 pers comm, lawyer Paulino Cordova Quinines, Federal Delegate for environmental audit. Durango, Dgo (29tfun*2004)
9 letter: lawyer Paulino Cordova Quinines, Federal Delegate to Bernardo Ysita del Hoy, legal agent for Cia Minera (1 Jul 2004)
10 pers comm, lawyer Paulino Cordova Quinines, op cit
11 pers comm, lawyer Paulino Cordova Quinines, op cit

| 8
| MineStartTM

262 | ENVIRONMENTAL AGENCIES Environmental protection regulations in Mexico are described as similar those in North America. Permits are required for regular mine operations and specifically to operate a concentration plant and for hydraulic discharge of tailings. There are four government departments which deal with and regulate affairs for permits, inspections, water and worker health.

2.7 SITUATION, ACCESS and PHYSIOGRAPHY
The mine, which lies about 82 km to the northeast of the city of Durango, is in the municipality of Panuco de Coronado in the state of Durango at about latitude N 24° 32', longitude W104° 19'.12 Plate 2-3 shows the local and access routes including the relatively new federal route 40, a four-lane highway leading from Durango, past the airport and on to the city of Torreon in Coahuila. Successive turn-offs for the mine are at Franciso I Madero, Ignanacio Zaraoza and San Jose de Avino.
The mine-site, which lies between the towns of Panuco de Coronado and San Jose de Avino, is at an elevation of about 2*200 m at the gatehouse and office. Relief is estimated at about 100 m ranging from the bottom bench of the tailings to the top of the former open-cut. The vegetation is typically sparse. A number of gravelled roads cross the property.
The climate is temperate and area semi-arid. Mean monthly rainfall and min/max temperatures are given in Figures 2-1 and 2-2.
___________________________________
12 per Carta topografica 1: 50 000 Ignacio Ramirez G13D63, Durango (map not dated)
13 Normales Climatological 1951-90, Unidad del Servicio Meteorologico Nacional

| 9
| MineStartTM

2.8 INFRASTRUCTURE AND LOCAL RESOURCES
The 34 years of operation of the Avino mine should be considered as ample evidence of the sufficiency of infrastructure and services. The majority of the employees lived in the two local towns of Panuco de Coronado and San Jose de Avino.
Although water supply in the past was found to be limiting, management has taken the necessary steps to secure an adequate supply. To supplement the 1M m3 dam built by the company in 1989, a well was drilled in 1996 to a depth of 400 m to the west of the mine-site and is reported to have a water level at 40 m below collar; a pipeline connection has been installed to the mine.14 In addition Cia Minera, in co-operation with the government, has repaired a nearby government dam and raised the dam wall by 6 m as well as installing a pipeline to the mine. This dam is shared with the population of Panuco de Coronado for their irrigation needs, as 60 per cent for the mine and 40 per cent for the town, with government setting the annual total take to which the percent sharing applies. Minesite water use was from a combination of underground mine drainage, re-circulation from the tailings, and wells and dam with preference given to the minesite sources for which no water conservation charge was applicable.15 The underground mine needs treatment for acidity if not drawn for some days.16
The Mexican grid supplied electrical power from a line capacity quoted as 4 MW.
___________________________________
14 pers comm B. Ysita
15 a $NM 4/m3 charge applies for water taken from the dam or well
16 pers comm B Ysita

| 10
| MineStartTM

3 History

3.1 PREAMBLE
Section 3 History, describes the pre issuer discovery of mineralisation and continues with the history of ownership. All known exploration is related to the issuer through its partial ownership of the Cia Minera. Operations at the mine were suspended in November 2001 owing to delays in payment for concentrate sold to a toll smelter. Although payments were made eventually, the subsequent closure of the smelter (the only toll copper smelter in Mexico) for toll treatment has delayed the re-opening of Avino.1 7Plant operations and production and concentrate statistics are given and the tailings are described.
3.2 DISCOVERY
Although silver and gold were discovered at what is now the Avino mine in 1555 by a Juan de Tolosa, a member of the Spanish Army expedition, mining did not started until seven years later. Shares in the mine are reported to have offered to anyone who would build in what is now Durango, and thus provide protection from the Indians. Avino is believed to have been the first operating mine in Nueva Vizcaya, now Durango, and is reported to have contributed much wealth to Spain and the Church, until it was shut down in 1810 at the onset of the War for Independence. Early mining may have been by fire setting to break the ore.18
3.3 OWNERSHIP
From 1810, mining was carried out intermittently as small underground operations until 1880 when the deposits were merged into Avino Mines Ltd and worked on a larger scale with new equipment and technology, financed with British and U.S. capital.
A new company, Las Minas de Avino de Mexico, Cia Ltda was organized in London in the early 1900s, with capital of £1,000,000 and the mine was developed as "the largest open pit in the world, designed to provide feed to the largest leach smelter in the world, with a capacity of 100 tonnes daily".19 Plate 3-1 shows the plant in the early 1900s when there were about 600 employees reported to be living locally with their families.20 Operations were subsequently abandoned in 1912 as the threat of a revolution loomed. Some of the old workings are reported to be still extant.21
___________________________________
we understand the smelter has been re-opened for toll
18 we acknowledge the work of Royal Bay Gold Corporation for the background and historical descriptions
19 Royal Bay Gold Corporation 'The Avino Silver and Gold Mine, Durango, Mexico (Apr 1994)
20 photo ex Southworth, J. R; 'Las Minas de Mexico' Vol IX (Oct 1905)
21 pers comm, Louis Wolfin

|  |  | 11
|  |  | MineStartTm

In 1968, the Ysita family of Mexico City, and Avino Mines and Resources Ltd. of Vancouver, Canada formed, jointly, Companie Minera Mexicana de Avino. SA. de C.V., which acquired the mine and surrounding property and implemented an exploration programme.
Limited open-pit mining and flotation concentration was started in 1970. From about 1974 production was continuous until 1993 when, in expectation of reaching the economic depth of the open pit, underground development was started. In mid 1976 the 1974 mill operating agreement with S.C.L. was terminated and from then the mine was operated continuously by the Ysita family, who hold 51% of Cia Minera Mexicana de Avino, and Avino Mines Ltd. of Vancouver, B.C the balance of 49%.
3.4 ISSUER EXPLORATION HISTORY
341 ISSUER DEFINITION
By virtue of the issuer being a shareholder of Cia Minera since 1968 we classify all work carried out since that date as being for the benefit of the issuer.
342 EARLY EXPLORATION
In 1970 a contract was signed with Selco Mining and Development Limited, who spent more than $US*1M in exploration and feasibility studies before returning the property to Cia Minera in 1972, reportedly because of low metal prices. The majority of the documentation seen covered feasibility work and related to investigations of old underground workings probably developed in the late 1800s

|  |  | 12
|  |  | MineStartTm

343 PROPERTY
The only recorded property exploration, apart from limited prospecting, is that documented in the 1993 report by Servicios Administrates Luismin, SA de CV, the engineering arm of Cia Minera de San Luis Exploration.
The study reported on detailed analysis and sampling of the then known showings on the property with the emphasis on the Avino vein and Potosina/El Fuerte area. Plate 2-2 shows the El Fuerte concession but the Potosina concession appears to have been abandoned. The report made recommendations for follow-up for drilling and underground development for the main Avino vein. Trenching and drilling were recommended for the Potosina/El Fuerte area. As far as we aware these recommendations were not implemented for the prospective areas.
In addition the Luismin report included a property scale geological mapping and lithogeochemical sampling programme which was contoured and coloured for Au, Ag, Cu, Pb, Zn, As, Sb and Hg.
Other notable observations from the Luismin data22
all mineralisation, with the exception of the Nuestra Senora and Potosina/El Fuerte area radiate out in a west to north-west direction from the Cerro San Jose. The latter being a silicified and, in part, a hornsfelsed body of volcanic rock probably overlying an intrusive stock, which could have been the source of most of the property mineralisation;
mineralisation in all radiating structures is described as being strongest 2 to 3 km from Cerro San Jose. This resembles many of the gold deposits in Nevada where the source of mineralisation is a near surface acid-intrusive but with ore bodies lying one to five km away along high angle faults;
the two strongest and widest structures appear to be the Avino and Aguila Mexicana veins;
the Avino vein has three main ore shoots - San Luis, El Trompo (La Gloria/Hundido) and Chirombo areas - which rake to the west and are open at depth. While silver values decrease with depth, gold appears to increase;
the existence of other mineralisation cutting the Cerro San Jose mineralisation in the Nuestra Senora and Potosina/El Fuerta areas could offer the potential for bulk mineable stockwork zones.
344 MINE
Pre-production exploration carried out by Cia Minera and others, covered 2.500 m of drifting and crosscuts as well as 8000 m of surface and underground diamond drilling.23 Included was extensive rehabilitation including connecting three of the old - possibly pre 1900 - underground mine workings for which Selco was involved.
___________________________________
22 per D. St Clair Dunn, Pgeo (May 2004)
23 Hicks, Brodie H.; 'Report on the Durango, Mexico properties of Avino Mines and Resources Ltd.' (8 Jun 1978)

|  |  | 13
|  |  | MineStartTm

A contract was signed in October 1973 with S.C.L. Ltd. and Sheridan Geophysics Ltd., under which a new 500 t/d plant was completed in May 1974.
At least 25 diamond-drill holes are reported as having been drilled from the surface to intersect the Avino vein in the past 25 years. Plate 3-2 shows some of the drill holes in the area of the main underground workings. The shortest hole at 132.20 m and the longest at 575.20 m were part of 10 holes drilled by Selco in 1970 when they were re-habilitating some of the old underground workings to provide access for sampling.
The extensive underground sampling programme carried out by Luismin provided later direction for underground mining.
Since 1992 exploration in/for the mine has been limited to traditional underground mine development with associated sampling and planning for production feed24 In the late 1990s it appears that development was not kept up as monthly reports seen showed decreasing historical reserve allocations for production and mill feed.
345 TAILINGS
In 1990 Cia Minera carried out a sampling programme across the then exposed surface of the tailings. The company drilled 34 vertical holes in seven fences on the tailings - Plate 6-1.25 A total of 461 samples were, for the most part, cut at 1 m vertical increments and assayed for silver and gold at the mine assay lab; occasional moisture contents were reported26 However, no associated reports of the day have been seen on follow-up metallurgical characterisation.
In 2004 a focused sampling programme was implemented on the tailings to qualify the 1990 work. This testing, analysis and significance is covered in Section 6.
___________________________________
24 pers comm Bernardo Ysita
25 plate plotted by MineStart from estimated co-ordinates scaled from minesite records
26 the records show the occasional 1.5 to 2 m increments for which no reason is recorded or apparent

|  |  | 14
|  |  | MineStartTm

|  |  | 15
|  |  | MineStartTm

|  |  | 16
|  |  | MineStartTm

3.5 HISTORICAL RESERVES/RESOURCES
351 OPEN-CUT
We have not seen any documented historical resource or reserves for the open-cut.
352 UNDERGROUND MINE
As of November 2001 the historical reserves, described at the mine as the planned production available and allocated as mill feed for the next few months for Avino are given in Table 3-1.27 This is not a statement of the life of the mine but rather what development was then current.
Table 3-1 Historical Reserves allocated for production at Nov 2001

| Mass t | Ag g/t | Au g/t | Cu %
Avino hanging and foot-wall | 93 420 | 182 | 0.71 | 0.88
Foot-wall breccia | 68 637 | 123 | 0.58 | 0.48
Total and means | 162 057 | 157 | 0.65 | 0.71

We have not checked these estimates and do not know if they include allowances for either mine losses or dilution or mine/mill recovery and cannot be relied upon.28
353 MEXICAN RESERVE DEFINITIONS
For the record Mexico has a standard definitions used for mine-sites for describing ore allocated for mill feed and these were as used by Avino.29
Table 3-2 Mexican historical reserve definitions for production and mill feed

Proved-prepared |  | - sampled top and bottom, block undercut and the stope is ready for production
Proved-not prepared |  | - sampled top and bottom but not undercut
probable |  | - projection of assay values more than 30 m

However, for NI43-101 practice, reserves have to be stated as proven or probable per CIM definitions.30
___________________________________
27 per Seccion Longitudinal de la Veta Avino - Viendo al NW (22 Nov 2001)
28 notwithstanding the NI 43-101 classifications and although having reasonnable assay values indicated the economics would be inadequate for a start up in the present situation.
29 per use Avino mine and standard Mexican practice, as advised, Bernardo Ysita
30 such definitions would need qualifying as to the inclusions of allowances for losses, mine or mill dilution and cut-off

|  |  | 17
|  |  | MineStartTm

354 TAILINGS
A1990 historical estimate of oxide volume and aggregate assay - Table 3-3 - derived from the drilling program and associated sampling was carried out by Cia Minera by a simplified block model centred at each drill hole, apparently as a proxy for polygonal estimates and were recorded by fence section on longitudinal section plates. Blocks were bounded transversely by drill holes and longitudinally by drill fences, and based on the arithmetic mean of the cross-sectional areas at the bounding drill fence-lines for which the section plates record cross-sectional areas per fence.31 While technically using a block as a proxy for a polygon is invalid, in this case the drilling was near normal patterned such that an almost regular block would result from polygonal description.32
From the summation tables an overall 'dry' bulk density of 1.605 was used to estimate the 'dry' tonnage from the volume calculation.33
Table 3-3: 1990 Historical estimate of tailings34

estimate | tonnage -t | silver g/t | gold g/t | source | RD
Cia Minera 1990 | 2 092 178 | 93 | 0.50 | Cia Minera plates | 1.605

The significance of these results are dealt with in Section 6.
3.6 MINE PRODUCTION
The total mine historical production since 1976 is usually quoted as 2M t of oxides and 3M t of sulphides.35
While post-1986 minesite-records were deemed sufficiently complete to provide a production base, those such as were found for pre-1987 were sometimes incomplete and operations metallurgical balances, where examined, appeared to rely only on the silver.36 A change in the accounting year sometime in the 1980s, which straddled two calendar years, confounded the situation for a time in the 12 month summation to a calendar year base and, for those seen, appeared to focus on the costs and revenues as a proxy measure for reporting the tonnage throughput.
Table 3-4 provides a summary of annual run-of-mine tonnage from underground and associated concentrate shipments from 1993 to 2001 and Table 3-5 a summary of the concentrate shipments ex open cut oxides.
___________________________________
31 the sections also show area and grades for three layers but the relationship or basis of division is neither explained nor understood; with the mine now closed staff are not available to answer questions

32 the block was derived from 'half distance to the next sample' for all its boundaries

33 | bulk densities are dimensionless as are relative densities. Some fence sections gave moisture contents others did not; the values, for which no units were given, ranged typically from 20 to 28%. However, if the drilling was wet then the moisture measurements would have no merit. For the record, samples MineStart's June 2004 field work gave moisture contents from 7 to 25% ODW; PRA had recorded estimate of moistures as'% as received' an invalid measurement

34 these figures are given here as part of an invcestigation and are not intended to represent resource or reserve estimates at this stage
35 for which no assay grades were quoted, pers comm Bernardo Ysita
36 we had unlimited access to the minesite offices

|  |  | 18
|  |  | MineStartTm

Table 3-4 Avino Mine Production as concentrate shipped ex sulphides ore37

| mined t | Con shipped t | Silver g/t | Gold g/t | Copper %
U/g sulphides |  |  |  |  |
1993 | 217276 | 3 659 | 5 719.8 | 57.2 | 8
1994 | 287662 | 5 571 | 5 091.8 | 53.7 | 12.3
1995 | 325 236 | 6 643 | 5 031.7 | 43.4 | 19.1
1996 | 304 420 | 5 413 | 4438.4 | 35.1 | 20.6
1997 | 363 937 | 6 260 | 4 648.3 | 38 | 24.8
1998 | 364319 | 6 603 | 4129.3 | 41 | 19.4
1999 | 383 739 | 6 514 | 4715.5 | 36.4 | 21.3
2000 | 351216 | 6 477 | 4382.9 | 38.2 | 23.9
2001 | 338 628 | 7 430 | 3 571.6 | 21.3 | 22.3

Table 3-5 Avino Mine Production as concentrate shipped ex open-cut ore38

| mined t | Con shipped t | Silver g/t | Gold g/t
Open-cut oxides |  |  |  |
1976 |  | 1332 | 5343.8 | 20.5
1977 |  | 1059 | 7773.9 | 17.1
1978 |  | 1014 | 8941.8 | 21.9
1979 |  | 1337 | 6653.4 | 16.1
1980 |  | 1635 | 5175.4 | 20.1
1981 |  | 1645 | 7770.8 | 24.2
1982 |  | 1661 | 7845.7 | 29.0
1983 |  | 1277 | 10239.8 | 43.8
1984 |  | 1306 | 9837.2 | 28.6
1985 |  | 1570 | 9383.0 | 33.2
1986 |  | 749 | 9261.5 | 48.6
1987 | 138 112 | 1096 | 13177.0 | 62.2
1988 | 153 254 | 1139 | 15184.4 | 67.0
1989 | 259 836 | 2040 | 13258.5 | 60.4
1990 | 235 129 | 3041 | 9587.6 | 40.0
1991 | 176 340 | 1082 | 21261.6 | 100.5
1992 | 180 744 | 2034 | 10795.5 | 50.0

___________________________________
37 decimal points rounded for clarity
38 decimal points rounded for clarity

|  |  | 19
|  |  | MineStartTm

3.7 HISTORICAL METALLURGICAL TESTING OF TAILINGS
There have been several metallurgical tests of the tailings for cyanidation and Table 3-6 provides a summary of results.39
Table 3-6 Avino mine -Summary of precious metal recoveries for various cyanidation testing of tailings

Author | Ag% | Au% | Time - hr | Grind - mesh
Denver Equipment 1982 | 69.3 | 66.7 | 24 | 33.4% +100
Maja 1990 | 85.9 | 80.9 | 24 | < 140
Penoles 1987 | 78.3 | 88.9 | 24 | 87% < 200
Chryssoulis 1990 | 85.9 | 80.9 | 24 |
Rosales 1996 | 83.9 | 76.9 | 23 | 75% < 200
MineStart 2003 | 77.1 | 71.4 | 24 | 86% <200
MineStart 2003 | 88.8 | 88.4 | 48 | 86% <200

The Denver 1982 testing was without re-grind; the Rosales work was with added oxidation by peroxide.40 Rosales also carried out flotation, which gave recoveries of 69.4% silver and 66.9% gold from a head assay of 87 g/t silver and 0.52 g/t gold. A cyanide leach of the flotation concentrate gave 92.5% silver recovery and 88.4% gold from the concentrate41 Penoles also reported on flotation recoveries as silver 60.2% and gold 47.1%.42 The MineStart sample were a composite of eight samples with four taken on the middle and four on the lower bench.
In all cases no notes were seen which qualified the samples as to when or where taken or assay types, etc
___________________________________
39 we are indebted to Ing Pedro Sanches Mejores for a summary of some older test reports which were not to hand
40 use of peroxide is an expensive method when straight aeration could have been carried out.
41 Eusebio Alvaarez Rosales; Investigation Metalurgicajalesde Avino. (Agosto 1996)
42 Davila, Roberta; 'Minera Mexicana de Avino, Flotacion y Cianuracion de Jales. Servicios Industrials Penoles, SA de CV. (15 enero 1987)

|  |  | 20
|  |  | MineStartTm

4 Geology

4.1 GENERAL
The Avino mine lies in the Sierra de Gamon, on the east flank of the geological province of the Sierra Madre Occidental. The area represents a geological window, with outcrops of andesite, rhyolites and trachytes of the Lower Volcanic series, which consists mainly of volcanic flows and sills, and tuffaceous layers, from 300 to 800 m thick. The andesites outcrop over most of the window with the other rocks occurring more sparsely to the north.
Various evidence of the intrusion of a large monzonitic body into the pre-existing rock outcrop in different areas of the window exists in the form of dykes and small stocks, which appear to be linked to the origin of the Avino vein mineralisation. Other, post-mineral, andesitic and rhyolitic dykes outcrop in various areas, causing minor structural displacements; a number of thin basalt sills found in various parts of the window, demonstrate recent vulcanism.
Higher areas of the Sierra Madre, which surround the zone, are composed of rhyolites and ignimbrites of the Upper Volcanic Series, with thicknesses approaching 1 500 m.
4.2 STRUCTURAL GEOLOGY
The Avino district has been affected by a number of tectonic events, some possibly related to the Laramide Revolution, while others appear to be associated with subsequent events, both extrusive and intrusive, causing the formation of various systems of pre-mineral faulting. These fault systems usually displace the pre-existing rocks normally, and generally strike NW-SE. Additional tensional forces produced other normal fault systems, striking NE-SW, and dipping toward the south.
Faulting subsequent to mineralisation has produced displacements of the various window blocks, leading to the present rough topography. One of the most significant regional features of the district is the Avino Fault which strikes NW 20° SE and dips SE and appears to cut off the mineralisation, and places in contact the Upper and Lower Volcanic series within the geological window.
4.3 ORE BODIES
431 VEINS
The Avino ore-body is epithermal and made up of veins and dependent stock-work structures, mainly in the hanging wall and often associated with vein intersections. Four vein systems have been described which, in decreasing order of importance, are:

|  |  | 21
|  |  | MineStartTm

| - | system striking E-W, dipping southward at 60-70°. This includes the Avino Vein, the most important regional structure, including its possible extension in the Cerro de San Jose.
| - | system striking N 60-70° W, dipping 60-80° SW, comprising the following important veins: El Trompo, Sanjuventino, San Jorge, Platosa, Los Reyes, Potosina, El Fuerte, and Conejo.
| - | system striking N 20-30° W, dipping between 60-80°, either SW or NE, comprising the following significant veins: San Gonzalo, Aguila Mexicana, and La Calcita, as well as the Stockwork La Potosina, and the Stockwork El Fuerte.
| - | systems striking N 60-80° E, dipping 60-80° SE, comprising the: Santiago, Retana, Nuestra Senora, and San Pedro & San Pablo veins.

432 MINERALISATION
The Avino vein is the most striking and important example of the epithermal mineralisation of the district whose structures are normally weathered and leached in their upper section as a result of contact with atmospheric waters producing a band of oxide minerals and zones of supergene enrichment to a depth of about 70 m.
In the oxide band the common minerals encountered are hematite, limonite, anglesite and copper carbonate in white or green, somewhat chloritized, quartz zones. The common primary and secondary minerals encountered are argentite, bromyrite, chalcopyrite, chalcocite, galena sphalerite, bornite, native silver, free gold, and native copper. The most frequent gangue minerals are quartz, pyrite, chlorite, barite, arsenopyrite, pyrrhotite and specularite.
The mine economics of the ore have been focused on the combined grade of silver, gold and copper. The higher silver values, which appear to be found at or near the surface are reported to decrease generally with depth, except at vein intersections, where higher values are more persistent. The same can be said for gold, although the higher values start just below the onset of silver mineralisation, at or near the surface. In contrast, while higher copper values also coincide with the vein intersections they may increase with depth and as a consequence contribute to the mill concentrate produced from the underground mine ore.43
433 HYDROTHERMAL ALTERATION
Alteration has been reported in three forms. The Propylitic form is the most common in the andesites to which it imparts a greenish tint to the andesite whereas the Argillaceous appears mainly in the upper parts of the veins and manifests itself as a whitening of the country rock from the alunite and montmorillonite whitish clays. Silicification, chloritization, and pyritization alterations are seen in the hanging and foot-wall, being more prominent closer to the vein.
___________________________________
43 pers comm, Ingjose Carlos Rodriguez Moreno

|  |  | 22
|  |  | MineStartTm

|  |  | 23
|  |  | MineStartTm

|  |  | 24
|  |  | MineStartTm

4.4 MINE GEOLOGY
The Avino vein has been followed longitudinally for more than 1 300 m and 600 m vertically; it strikes E-W and N 66° E, dipping to the S and SE 60-70°. Ore shoots in the vein and stock-work zones are found frequently in the upper part of the vein, as well as at its intersections with a number of lateral veins, particularly Ramal del Alto (at San Luis), El Trompo (Hundido area), and very probably at the intersection zone with San Juventino on the east -Plate 3-1. An example of the rich and large area of mineralization encountered with major lateral vein intersecting the Avino was the El Hundido, which exceeded 40 m in thickness. In the lower areas of the vein and mine, mineralized cross-veins, branch-veins, and stockwork zones have been found in the foot-wall at San Luis and at El Hundido, and assumed to persist with depth.44
The hanging wall of the Avino vein is andesite, while the foot-wall is a monzonite intrusive with andesite sections. Plate 4-1 shows a cross-section and typical geological detail.
A post-mineral fault parallel with the vein occurs in the hanging wall, at a distance of several metres in the area of San Luis, while in the central part of El Hundido, this fault is located virtually at the contact with the vein, remaining in this position for a length of about 300 m, up to the area of Santa Elena and San Antonio. From that point, and proceeding toward the El Chirumbo Mine, this fault cuts the vein between the face at San Carlos to the face exposed at the underground ramp. The fault then enters the foot-wall where it remains until a point about 30 m east of the west face of the Chirumbo area, producing a downward displacement of the vein of between 50-100 m. At Chirumbo, the fault virtually replaces the vein due to strong washing away and leaching resulting from the action of circulating water on the gouge. On the east face at Chirumbo, the fault again enters the hanging wall; in this zone the vein is composed of branches and stockwork and to the east criss-crosses from side to side.
4.5 PROPERTY
The Luismin work of 1993 showed some prospecting and limited exploration has been carried out in the general vicinity of the mine-site and Plate 4-2 indicates projected veins to the east and north east of the mining area. Of note is the apparent orientation of the surface mapped veins towards the San Jose hill - just visible in Plate 4-2.45 Assay values from outcrop sampling range from lows of 2 g/t silver and trace gold over a true thicknesses from 0.1 to 2.3 m up to a high of 755 g/t Ag with a corresponding 1.5 g/t Au over 0.45 m.4 6The thickness does not appear to be related to the assay values.47We are not aware of any systematic sampling, trenching or drilling on either the outcrops or veins.
___________________________________
44 pers comm lng Jose Rodriguez
45 outcrops seen in the field seem to support this orientation
46 per 'Piano Geologico Regional yMuestro de Orientation,' Cia Minera Mexican de Avino SA de CV. (Oct 1990)
idem

|  |  | 25
|  |  | MineStartTm

5 Avino Mine Historical Operations

5.1 PREAMBLE
Section 5 Avino mine presents a summary description of the mine operations prior to suspension of operations in late 2001.
5.2 PRODUCTION
Initial mining was by open-cut - Plate 4-2 - in the oxide material from 1976 until 1992 when the stripping ratio was becoming excessive and sulphide content increasing at which date the production was transferred to underground. This necessitated a mill change from the prior lead concentrate production to one of copper carrying silver and gold. In the 1990s a larger ball mill was installed, with the intent to increase throughput to lOOOOt/d.48
In November 2001, delays in payments and closure of the toll smelter led to the suspension of mine operations.
5.3 OPERATIONS
531 UNDERGROUND MINING
Trackless mining was adopted, with all underground development headings sized at 4 x 4 m. Mine access from surface was by a spiral ramp from a portal on the south side of the hill and there is a secondary ramp - Rampo El Trompo - to the north side, close to the maintenance shop. The former mine shaft is now limited to the water pipe for supply to mill.
Production was by sub-level stoping with a sub-vertical increment restricted from 11 to 15 m to counter mine dilution arising from an occasional, semi-incompetent hanging-wall. Stopes were started by raising, and then slashing to the designated width - §5.4 Production Control.49 Blasting was by parallel holes drilled with a traditional drill wagon. Rib and sill pillars have been left but are generally considered as non-recoverable.50
Standard mine development was by using boom jumbo with waste being dumped where possible into old stopes.51 Ore mucking and haulage was by scoop tram and dumped on surface at the main portal. Theore was then picked up and transferred to the plant ROM hopper about 300 m away. The mine equipment is reported to have been old and requiring heavy maintenance.52 Two 'six yard' scoop trams, which bore the brunt of production, were leased.
___________________________________
48 see §532
49 raising was reported to be the most effective with the traditional use of miners 'in the raise'
50 pers comm Bernardo Ysita
51 a practice which may, at times, have restricted pillar recovery
52 pers comm Bernardo Ysita

|  |  | 26
|  |  | MineStartTm

The main ventilation was natural, with forced mechanical ventilation for development headings. There are two ventilation raises to the west-side of the mine and the old vertical shaft. A surface sited compressor provided drill air.
The mine was operated six days per week, three shifts per day - a summary is given in Tables 3-4, - 5 of concentrate shipments.
532 MINERAL PROCESSING
Silver and gold concentration was by flotation in a base metal concentrate; the circuit and controls were adjusted from a lead con when the ore feed was changed from the surface oxides to copper con for the underground sulphides in about 1993.53 We note that with the oxide material, a report of sulphidizing carried out in the scavenger circuit - at least in the early 1980s.54 A larger ball mill was installed in the early 1990s. We have seen neither a flow-sheet nor test/design criteria for the plant nor overall operating procedures.53 Silver and gold recoveries are summarised in Table 5-1 for the period 1987-2001 - see also §542
Table 5-1 Avino silver and gold recoveries 1987-200156

years | Ag con kg | Ag tails kg | % Ag recovery | Au con kg | Au tails kg | % Au recovery
oxides |  |  |  |  |  |
1987-92 | 132 906 | 83 888 | 61 | 600 | 501 | 55
sulphides |  |  |  |  |  |
1993-01 | 248 756 | 82 846 | 75 | 2138 | 733 | 74

Fractional analysis of tailings samples from the 2004 sampling programme showed the bulk of the concentrations of the precious metals in the tails > 150 mesh fractions which implies production emphasis was on mill tonnage throughput rather than optimum grinding designed for maximising profit.
Increased grinding although reducing the ROM throughput could have increased the silver and gold shipment for less daily throughput which would have meant, in effect, increasing the profitability. The precious metals lost to the tails in former years are the subject of Section 6.
___________________________________
53 idem
54 Metallurgical Review, Avino Mines and Resources Ltd, Kilborn Engineering (BC) Ltd (Jun 1980)
55 a plan, dated March 2001, is confusing in being only a partial general arrangement and does not give the standard feed parameters, slurry solids percentages and other criteria
56 summary by MineStart, recovery numbers rounded for clarity

|  |  | 27
|  |  | MineStartTm

533 CONCENTRATES
The lead concentrate was sold to the Penoles' smelter at Torreon for credits for silver and gold. With change to the sulphides from underground mining, a copper concentrate was produced which was shipped to Asarco's San Luis Potosi copper smelter, who also paid for silver and gold credits.57This concentrate resulted in a reduced ratio of concentration in the plant although silver and gold recoveries are recorded as increasing - Table 5-1.
534 TAILINGS
A surface-stacked, downstream tailings-system was adopted with cyclones on the tails discharge line to provide coarse wall-material. Decant water was recovered by a back-slope gradient and pumping, for mill re-circulation. A second, stepped-back bench was created, possibly about 1986 or 7. A third bench was started, apparently in 1990, with about two years placement of final oxide material then continued with the sulphide tails.58 Plate 3-5 and the cover show the current tailings.
From the many plugs on the discharge line seen on the sulphide tail wall it appears that the line was operated at too high a pulp density, which necessitated frequent snaking. It also appears that there may not have been a night-wall system as evidenced by the major rupture seen on the sulphide wall about two thirds of the way to the south west.59 Large erosion gullies were created and a drainage line made of oil drums was installed on the top of the middle bench at the south-west end. We suspect some of the water from this major break infiltrated the top of the middle bench and could have been the cause of the apparent static failure, which led to the back-hoe sinking in 2004. We note the sample pits dug in the vicinity of the break were all wetter than those further to the north-east.
5.4 PRODUCTION CONTROL
541 MINING
Production decisions for a new stope and feed for the mill were governed by assays of underground sampling. Sub-levels were drifted longitudinally within block boundaries and sampled in transverse increments at longitudinal intervals. Assaying was carried out in the mine-site lab where gold was assayed by traditional fire assay and silver and copper by acid digestion and measured by Atomic Absorption.60-61
___________________________________
57 for a haulage distance of 550 km
58 evidence for this comes from minesite plans dated 1993 showing the front portion of the second bench at the same elevation as when the 1990 tailings drilling and sampling programme was carried out.
59 the major gullying shows the ruptured line ran for many hours before detection suggesting a night failure and no operators on duty
60 the AA unit was subject to a sixth month maintenance and re-calibration by the manufacturer

|  |  | 28
|  |  | MineStartTm

Examination of some records found in the assay lab did not appear to show quality control using blanks and repeat assays. However, we note examples of general agreement shown between the mine and smelter assays of the concentrate shipments which indicates a degree of confidence for the mine-site sampling and assay lab procedures.62
Simple spreadsheet modelling of mine sampling allowed for selective analysis based on assay and thickness and this was then tested by application of current metal-prices.63 Where economic and control criteria were met the tonnage and grade estimate could be designated into one of several mine-site categories to designate readiness and value potential as mill-feed - § 353.
542 METALLURGICAL BALANCE
The start of a metallurgical balance, the tonnage measurement of ROM ore, was by weigh-bridge for the ore-truck from portal to ROM hopper at the mill.64 Within the mill several places were noted, by drill holes, where samplers and scales could have been installed on conveyers or otherwise but no such units were seen.65 Documents in the assay office showed a daily metallurgical balance was kept although based on only silver control.
Integral with metallurgical balance should be the flow control at the mill. One major area of weakness was spillage; all of which it appears being washed to the tailings line resulting in the estimated grade from the metallurgical balance of the tailings being less than reality whereas the tailings would actually have been higher than indicated. Such an imbalance should have been picked up in the management of the metallurgical balance.
Based on documents seen it does not appear that there was feed-back between the measured mill-feed and the underground grade-control. As such the metallurgical balance system appears to have been incomplete in management and record keeping, particularly with regard to the expected mass of concentrate shipments.
5.5 CURRENT STATUS
Since the suspension of operation at the mine-site there have been losses and deterioration. An inspection of the mill in June 2004 showed electric motors, cable and switchgear missing. Grinding balls and mill charge do not appear to have been dumped before shut down, which suggests lines and equipment were not drained.

61 as there was no operator the author's control sample could not be run on the AA
62 examination of several smelter reports vs corresponding mine-site assay reports
63 pers comm, Ingjose Carlos Rodriguez
64 tally slips at the weigh-bridge were current to the last day of operation in November 2001. Tare was established at the weigh-bridge when the ore truck was on the return to the portal for a new load
65 presumably the head sampler or belt weightometers

|  |  | 29
|  |  | MineStartTm

The mine air compressors, which were installed nearby, are missing from their foundations. Access roads on the property need re-grading to control run-off, which is creating bad channelling and erosion. Water diversion ditches above the tailings need attention.

|  |  | 30
|  |  | MineStartTm

6 TAILINGS INVESTIGATIONS

6.1 PREAMBLE
Section 6 Tailings Investigations describes, interprets and analyses the 2004 field work and by necessity the 1990 assay results. The associated quality control and other factors are reviewed
6.2 RESULTS AND ANALYSIS OF 2004 TAILINGS SAMPLING
621 PURPOSE
The 1990 tailings sampling offered the potential to provide a data-base but needed independent validation. Hence the 2004 programme was designed to provide samples for such independent examination of the tailings assay potential, and additionally, metallurgical characteristics. The 2004 sample assays are given in Table 6-1. Plate 6-1, 6-2 shows the 1990 and 2004 sampling points.66
Given the hydraulic deposition of the tailings, four important factors required examination: anomaly characteristics of the samples and total population, assay comparison by fence, examination of downstream decrease in assays and factors arising from the downstream construction.
622 ANOMALY CHARACTERISTICS
Anomalies in sample populations can arise from various causes — sampling without replacement as in classification or the distribution of a single metal assay in a mix of minerals for that metal.
A grouped frequency analysis of the 1990 silver and gold assays show good normal curves without anomalies, thus indicating a representative sampling of a total population which conforms to a stockpile model — Figures 6-1, -2. Grouped frequency analysis of fence assays from the 1990 and 2004 sampling show anomalies indicative of incomplete populations, as would be expected when that sampling did not cover the total bench by area.67
___________________________________
66 the grids were scaled from a minesite plate and while relative within themselves are not UTM. The relative 2004 pit positions were derived by string traverse
67 provided the sample depth was reasonable and consistent for the area, the anomaly constraint is areal for unconstrained hydraulic deposition — the layer at the front is part of the population of the same layer downstream

|  |  | 31
|  |  | MineStartTm

Table 6-1, Sample assays from 2004 programme

sample | Au g/t | Ag ppm | sample | Au g/t | Ag ppm | sample | Au g/t | Ag ppm
| FA | Mult/ICP |  | FA | Mult/ICP |  | FA | Mult/ICP
Si | 0.34 | 31.5 | S29 | 0.20 | 109.2 | S53 | 0.34 | 93.7
S 2 | 0.32 | 46.7 | S30 | 0.29 | 88.1 | S54 | 7.00 | 109.7
S3 | 0.38 | 46.5 | 531 | 0.38 | 95.3 | S55 | 0.60 | 104.3
S 4 | 0.27 | 36.4 | S32 | 0.42 | 107.2 | S56 | 0.57 | 119.5
S5 | 0.16 | 15.3 | S33 | 0.35 | 96.4 | S57 | 0.50 | 78.7
S6 | 0.19 | 17.6 | S34 | 0.38 | 125.0 | S58 | 0.50 | 69.4
S7 | 0.39 | 94.2 | S35 | 0.33 | 112.0 | S59 | 0.36 | 63.3
S 8 | 0.30 | 69.1 | S36 | 0.26 | 90.8 | S60 | 0.38 | 70.5
S9 | 0.34 | 82.8 | S37 | 0.36 | 93.3 | S61 | 0.35 | 87.0
S10 | 0.36 | 91.8 | S38 | 0.29 | 87.5 | S62 | 0.62 | 77.4
S11 | 0.42 | 111.2 | S39 | 0.30 | 83.8 | S63 | 0.67 | 84.1
S12 | 0.30 | 97.6 | S40 | 0.23 | 78.8 | S64 | 0.53 | 71.6
S13 | 0.25 | 98.6 | S41 | 0.21 | 100.8 | S68 | 0.33 | 60.6
S18 | 1.22 | 178.6 | S42 | 0.62 | 74.6 | S69 | 0.44 | 100.3
S19 | 0.34 | 107.7 | S43 | 0.46 | 71.1 | S70 | 0.54 | 71.0
S20 | 0.26 | 147.8 | S44 | 0.50 | 71.0 | S71 | 0.41 | 59.4
S21 | 0.31 | 102.2 | S45 | 0.34 | 116.9 | S72 | 0.55 | 75.0
S22 | 0.29 | 183.6 | S46 | 0.68 | 110.5 | S73 | 0.44 | 62.9
S23 | 0.18 | 100.5 | S47 | 0.65 | 115.6 | S74 | 0.54 | 75.3
S24 | 0.30 | 96.7 | S48 | 0.49 | 100.3 | S75 | 0.37 | 69.1
S25 | 0.33 | 107.9 | S49 | 0.53 | 94.9 | S76 | 0.26 | 55.5
S26 | 0.36 | 100.4 | S50 | 0.50 | 68.6 | S77 | 0.45 | 101.1
S27 | 0.40 | 98.3 | S51 | 0.45 | 66.4 |  |  |
S28 | 0.29 | 107.6 | S52 | 0.37 | 86.6 |  |  |

623 COMPOSITE ASSAYS BY FENCE
Since hydraulic deposition was from multi-points along a discharge line, single point sample comparison is invalid. The sampling must be by fences parallel with the line of discharge for composites of the samples in the fence. Good assay comparisons are shown in Table 6-2 between the 2004 pit samples and the 1990 drill samples with silver appearing to show less sensitivity owing to a higher concentration. This comparison is limited to samples from the top 4 m from the drilling to match the 4 m depth limitation of back-hoe sampling.

|  |  | 32
|  |  | MineStartTm

|  |  | 33
|  |  | MineStartTm

Table 6-2 Fence assay comparison of tailings 2004 pit sampling with 1990 drilling

| top 4m of 1976-9068 |  | 2004 sampling of top 4 m
| Ag g/t | Au g/t |  | Ag g/t | Au g/t
Lower bench | 110 | .59 |  | 125 | .59
Middle bench69 c 5 m | 100 | .51 |  | 104 | .59
c 50 m | 77 | .72 |  | 83 | .48
c 100 m | 78 | .63 |  | 78 | .61

624 DOWNSTREAM DECREASES IN ASSAYS
Composite assays by fence should show decreases as the downstream distance increases from the wall, and this is shown in Table 6-3 within the 1990 drilling data as a comparison of assays for the total depth and the top 4 m and also between those two data sets.
Table 6-1 also shows this decrease for the 2004 sampling for the limited portion of the exposed middle bench.
Table 6-3 Decrease in downstream tailings fence assay values shown in 1990 drilling samples

| 1976-90 |  | top 4 m of 1976-9070
distance from wall toe - m | Ag g/t | Au g/t |  | Ag g/t | Au g/t
42 | 111 | .57 |  | 110 | .59
86 | 120 | .51 |  | 100 | .51
135 | 92 | .72 |  | 77 | .72
185 | 77 | .63 |  | 78 | .63
235 | 100 | .50 |  | 82 | .51
285 | 83 | .51 |  | 81 | .52
360 | 77 | .43 |  | 77 | .55

___________________________________
68 taken from the 1990 data
69 these distances represent fence lines
70 taken from the 1990 data

|  |  | 34
|  |  | MineStartTm

625 FACTORS ARISING FROM THE DOWNSTREAM CONSTRUCTION
The use of cyclones for wall construction should be expected to result in accentuated higher assays close to the wall and lower assay gradients downstream. Given the coarseness of the production grind there should also be a decreasing downstream gradient of coarser particles (> 150 gm). Table 6-4 shows the downstream gradients for the precious metal content and mass of the coarser particles, as a percentage of total sample.
Figures for the upper (sulphide) benches are included for reference only.71
Table 6-4: Downstream percentage decrease in tailings mass and assays for particles > 150 i.tm

| lwr bench |  | middle bench |  | upper bench
| front | rear |  | front | rear |  | front | rear
mass % | 79.2 | 60.4 |  | 61.9 | 50.4 |  | 82.7 | 55.1
silver % | 80.1 | 57.9 |  | 68.7 | 57.8 |  | 76.7 | 53.7
gold % | 79.9 | 58.1 |  | 62.7 | 56.6 |  | 71.4 | 49.6

* nb the use of the terms front and rear are relative to the amount for that bench exposed for sampling — Plates 6-1 and 6-2 illustrate these dimensions.
The figures in Table 6-4 confirm the early deposition of the coarser fractions at the front of the benches, as would be expected by use of hydro cyclones for wall formation. The high precious metal contents and their downstream decay parallel with decrease in mass percentage of the coarse particles is consistent with the hydraulic disposal and indicate the source as the insufficiently ground mill-feed.
626 CONCLUSIONS
Collectively, analysis of the assays and other laboratory examinations of samples from the 2004 programme and their comparison with assays of 1990 in showing assay consistency with those measured in 1990 and supporting characteristics of cyclone assisted, hydraulic disposal of coarse ground ore feed indicate confidence in the 1990 sampling and assaying programme.
6.3 EXPLORATION, OPERATORS and UNCERTAINTY
631 OPERATORS
The 2004 tailings field-work was under the direction of the author, for the issuer. Excavation of the sample pits was under contract to Desarrollos Rod Construcciones a major Mexican company in civil and environmental engineering and construction. The company is based in the city of Durango. We are not aware of any links of this company with Cia Minera. In addition the author hired and paid local casual labour as needed.
___________________________________
71 the figures for the sulphides also show the underginding

|  |  | 35
|  |  | MineStartTm

632 DATA RELIABILITY
The weakness of the 2004 programme could be viewed as the restriction to sampling exposed areas of the oxide tailings and to a depth limited by the reach of the boom. By examining only samples and results for the corresponding depth for the 1990 drilling this did not matter for the comparison. That the overall grouped frequency analysis of the 1990 showed an anomaly free population and a good comparison with albeit limited fence assays and could confirm hydraulic deposition characteristics we believe showed the sampling was reasonable and achieved its aim.
Any uncertainty concerns must rest with the lack metallurgical characterisation for those areas not sampled.
6.4 SAMPLE PITS
The preliminary investigations in 2003 showed the need for a sampling of the oxide tailings to validate the assay results of the 1990 drilling and to carry out metallurgical characterisation, the latter requiring large samples.
In deciding on test pitting, the costs, timing and sample size were important. Back hoes were available locally and could be mobilized within a few days whereas drills would have to be brought in from up to 500 km away and for minimum contracts of in excess of the needs and with availability waits of then eight or more weeks. Back-hoe sampling was chosen as the most suitable and expedient.
Relevant sample composite assays have been given in the above tables. The reference to or correction to true widths is not applicable.
6.5 SAMPLING METHODS
651 SAMPLING METHODS et al
In 2004 as part of the investigations, 14 sample pits were excavated by back-hoe on the exposed portions of the oxide tailings benches to a boom limited 4 m deep and sampled at 1 m vertical increments; The hand sampling required two sample taken at each 1 m vertical increment on each sidewall to give a nominal 3 -4 kg, four sample composite per metre — Plate 6-3.72 73
Plate 6-2 shows the pit sample-sites and 6-4 a view of the middle bench with back-hoe excavation underway.
___________________________________
72 constant volume maintained by using the same can scraped upwards
73 back-hoe excavating to such depth creates trenches which in effect restrict sampling to the two 'vertical side-walls

|  |  | 36
|  |  | MineStartTm

|  |  | 37
|  |  | MineStartTm

|  |  | 38
|  |  | MineStartTm

On the top (sulphide) bench, two pits were hand dug and sampled and a large surface sample collected from the discharge points of a cyclone. A further six oxide pits were dug by hand and sampled but these samples were not tested when it was found later the sites lay outside the 1990 test area.
652 SAMPLING AND RECOVERY FACTORS
We have not identified any pitting, sampling or sample recovers factors which could affect the reliability of the results.
653 SAMPLE QUALITY
The systematic and volume-controlled, four equal increment sampling, two per trench side in the tailings to give one composite per 1 m vertical increment per pit should not have resulted in any sample bias especially as the resulting four assays per pit where then combined to give a single composite value per pit.
654 GEOLOGICAL CONTROLS
The only recognition of the need for geological type controls was to eliminate a bias potential from localised abnormal high or low tailings assay values arising from mill function or localised mill feed.
The bias control for this was the compositing of four samples per each vertical increment sample and subsequent composite value per pit for the 4 m cut for 1990 comparison.
6.6 SAMPLE PREPARATION, ANALYSIS AND SECURITY
All field sampling and handling was under the control or direction of the author and handled or taken by those casual labourers hired for the programme. No sample preparation was carried out in the field or before submission to the testing labs in Vancouver, Canada. Sealed sample bags were delivered to Cia Minera offices in Durango for air-freight pick up for delivery to PRA laboratories in Vancouver, Canada.
Samples when delivered to the PRA lab were checked by the author for any signs of apparent tampering and renumbered on the PRA receiving report to a straight numerical sequence without reference to sample position or type, etc. All samples were then submitted for drying before assays or any testing. After drying, spot checks were made of select samples.
Following preliminary assay tests, gold assaying was set for fire assay and AA finish and silver by four-acid digestion and ICP finish also multi-element ICP. IPL labs ran assays on the instructions of and split samples, ex metallurgical trials, submitted by PRA. IPL are ISO 9001:2000 registered but PRA is not.
Overall the adequacy of sampling, sample prep, security and analytical procedures, are believed to have been satisfactory as they relate to this study of the tailings.

|  |  | 39
|  |  | MineStartTm

6.7 DATA VERIFICATION
With reference to the assay values of the field samples the author carried out initial data verification on silver sample assays which showed discrepancies in FA vs ICP results and requested re assay by ICP with adjustment for reporting ICP > 100 ppm. Samples were also submitted to a third party assayer and discussions followed. Silver assaying procedure was adopted as multi-acid digestion with ICP measurement.
With reference to the analysis of the coarse samples for mass and metal contents, a check was made in fractional analysis of the head composite to back calculation and a new fractional analysis requested because of silver discrepancies between head composite and back calculation.74 Initial validation of the field samples showed moistures had been estimated on 'an received basis' and the author re estimated the moistures to the standard ODW.75 A spot check on low recoveries in the electro winning investigations led to are set up of the equipment in the PRA lab. Generally the metallurgical characterisation work is self-validating by a check of composite head versus the back-calculation. We advise for the metallurgical test work that checks and validation of transcription are still needed.
6.8 ADJACENT PROPERTIES
There are no relevant adjacent properties.
6.9 METALLURGICAL INVESTIGATIONS
A metallurgical testing programme was developed for samples from the 2004 field-work with the main focus on the oxide material for silver and gold recovery. Composites were made up and tested per field bench from the various samples. Table 6-4 gives a summary of the recoveries for the various concentration tests carried out. Such results should be treated as preliminary as the figures need metallurgical review, transcription checking ex assay reports and validation.76 The column leach, based on the encouraging results, was stopped before completion. Other testing covered sample densities, bond work index, settling and filtration and some preliminary investigations were made with electro winning.
Table 6-4 Silver and gold recoveries for oxide tailings by various tests and benches

test |  | recovery lower bench |  | recovery middle bench
|  | Au % | Ag % |  | Au % | Ag %
gravity |  | 42.1 | 27.2 |  | 51.5 | 30.7
flotation |  | 38.6 | 22.6 |  | 32.7 | 32.5
cyanidation |  | 85.5 | 89.7 |  | 86.4 | 79.5
|  | overall recovery % |  |  |
column leach |  | 78.9 | 73.0 |  |  |

___________________________________
74 comparison of head to back calculation of the 'sum of the parts is always judgmental
75 oven dried basis for which two successive massings show no change
76 J Yee PEng resigned from the programme in May before the metallurgical review was completed

|  |  | 40
|  |  | MineStartTm

7 RESOURCE ESTIMATE AND ANALYSIS

7.1 THE ARGUMENT
The 2004 sampling of the Avino tailings, as described in §6 of this study, allowed for various analyses, which confirmed hydraulic deposition and distribution of tailings occurring as a stack of anisotropic planes with expected downstream decreases in coarse particle mass and related assays of silver and gold.

■ | Comparison of assays of 2004 composite fence samples with those of 1990 for the top 4 m of the 1990 drilling showed a good match.

■ | The normal statistical means of the 1990 sample populations for silver and gold were estimated at 95.5 g/t and 0.53 g/t respectively.

■ | In addition we note the closeness of the author's mathematical check of 1990 historical estimate by Cia Minera.

Table 7-1: Author's mathematical check vs 1990 historical estimate

Item | estimate | tonnage -t | silver g/t | gold g/t | source | RD77
1 | Cia Minera 1990 | 2 092 178 | 93 | 0.50 | Cia Minera plates | 1.605
2 | MineStart check of 1 | 2 091 074 | 96 | 0.53 | author's estimates | 1.605

7.2 THE OPINION
Thus in the professional opinion of the author, these confirmations are sufficient to accept the 1990 Avino sampling to describe an indicated resource for which he assigns an estimated dimension of 2M t at 95 g/t silver and 0.5 g/t gold for the combined middle and lower benches.
The estimate excludes the oxide material lying coincident with and at the bottom of the upper bench.
___________________________________
77 the use of an RD of 1.605 is reasonable and the figure is supported by test work carried out by PRA in 2004

|  |  | 41
|  |  | MineStartTm

8 DISCUSSION AND CONCLUSIONS

8.1 DISCUSSION
This study has shown that selective sampling of the tailings in 2004 provided sufficient data for the author's confirmation of criteria and assays carried out on tailings sampling 14 years before, thus allowing for an opinion to be given for an indicated tailings resource.
However, for this project to be advanced caution is needed. Further sampling is essential for metallurgical confirmation of oxide material characteristics below the 'top 4 m' and in those areas inaccessible in 2004.
Two important factors emerge for this study
the lack of exploration in the 1990s either in prospective areas away from the minesite or in the mine by way of mine development which led in time to the cessation of mine operations;
apparent high costs of operations related in part to the loss of precious metals to tails which in turn meant faster drawn down of production tonnage than was necessary, i.e. accelerated depletion and wasting of mine reserves.
Yet in both these cases there was clear evidence: the Luismin report recommending surface exploration on other concessions within the holdings where there was encouraging outcrop, and metallurgical test reports, one of which was co-authored by a then mine manager in the mid 1990s, pointing out the precious metal losses from insufficient grinding.
Now it appears that at least one concession flagged in the 1993 Luismin study has been dropped and only recently.
There are two levels of management essential in mining. The strategic one which leads to the finding and development of ore and the shorter term, which organizes the extraction and metal recovery at a cost less than the revenue.
8.2 CONCLUSIONS
Based on the evidence presented here, discussions with those noted and contributions, secondary data sources, experience and professional engineering and marketing judgement, all as contained in this study, it is our professional opinion that:

|  |  | 42
|  |  | MineStartTm

■ | the estimation of an indicated resource in the oxide tailings is but a start in the rehabilitation of the Avino mine and minesite;

■ | negotiations and agreements on surface land use with the relevant landowners is essential and must be implemented without delay;

■ | further tailings sampling is essential to confirm metallurgical characteristics in those areas either not in the 'top 4 m' or were inaccessible in 2004 being below the sulphide top bench or middle oxide bench;

■ | there is a need for a strategic plan which must address and set priorities within and between surface exploration including merits of current mineral concessions and adjoing lands and those concessions recently dropped — all with reference to the Luismin study; exploration for mine reserves and/and or extensions and tailings development.

|  |  | 43
|  |  | MineStartTm

9 DEVELOPMENT RECOMMENDATIONS AND BUDGET

9.1 RECOMMENDATIONS
Two conclusions demand first attention. Underlying this are the options of mine development, exploration in other parts of the property or development of the tailings.
First and foremost is the essential need for asset protection, for existing facilities and areas of mining activity, by securing agreements on surface land and access to and use. With this underway a strategic analysis should be commissioned to examine the relative merits and potential costs and benefits of three separate facets of the Avino property.

o | merits of current mineral concessions and those recently dropped all with reference to the Luismin study and exploration thereof;

o | exploration for mine reserves and extensions; and

o | tailings development.

All components of the strategic plan will require large budgets. For example just the sampling and metallurgical characterisation of those tailings areas not sampled in 2004 could well costs $C 100 000.
9.2 PRELIMINARY BUDGET
For the above we believe a preliminary budget as follow is reasonable and from which rational plans and budgets can be set for the next stage of property development:

1 | investigate, negotiate and prepare surface land use agreements — $C 35 000 (which excludes payments under the agreements)

2 | investigate and prepare a strategic plan. An essential prelude to this is a prospecting programme over the mineral concessions. Sample sites should be clearly marked and logged for mapping by GPS — $C 30 000 of which $C 14 000 is believed to be a reasonable estimate for the prospecting and elementary mapping.

|  |  | 44
|  |  | MineStartTm

|  |  | 45
|  |  | MineStartTm

20 July 2005
Certificate of Author
I, Bryan A. Slim PEng do hereby certify that:

1 | I am an independent consulting mining engineer and principal of MineStart Management Inc

2 | My academic qualifications are:

— | Bachelor of Science in Mining from University of London, England - 1963 Associate of the Royal School of Mines, Imperial College of Science and Technology in London, England - 1963

— | Master in Business Administration from Simon Fraser University, Vancouver - 1990

3 | My professional associations are:

— | member of the Association of Professional Engineers and Geoscientists in the Province of British Columbia, Canada Chartered Engineer in England member of the Institution of Mining and Metallurgy, England Mine Managers Certificate of Competency, Republic of South Africa member of the Canadian Institute of Mining and Metallurgy

4 | I have been professionally active in the mining industry for 42 years since initial graduation from university.

5 | I have read the definition of "qualified person" set out in National Instrument 43-101 and certify that by reason of my education, affiliation with a professional association and past relevant work experience, I fulfill the requirements to be a "qualified person" for the purposes of NI 43 -101.

6 | I am responsible for the preparation of all sections of the technical report entitled A Tailings Resource and dated 20 July 2005 relating to the Avino mine and tailings whose Mexican mine-site and offices I last visited between 27 June and 8 July 2004.

7 | I had prior involvement with the property in 2003 in carrying out some preliminary investigations, asa a preliminary to this technical report.

8 | I am not aware of any material fact or material change with respect to the subject matter of the technical report, which is not reflected in the technical report, the omission of which makes the technical report misleading.

9 | I am independent of the issuer, applying all of the tests in section 1.5 of National Instrument 43-101.

1763 Scott Road, North Vancouver, B.C., Canada, V7J3J4 | Phone: (604) 986-7014 Fax: (604) 986-7017 email: minstart@istar.ca

10 | I have read National Instrument 43-101 and Form 43-101FI, and the technical report has been prepared in compliance with that instrument and form.

11 | Subject to agreement by Avino Silver & Gold Mines Ltd., I consent to the filing of the Technical Report with any stock exchange and other regulatory authority and any publication by them, including electronic publication in the public company files on their web-sites accessible by the public, of the Technical Report, for reading only.

12 | This report supersedes all other reports on the Avino property by MineStart TM Management Inc and this author.

13 | This report is for use by Avino Silver & Gold Mines Ltd., subject to the terms and conditions of its contract with MineStart TM Management Inc. That contract permits Avino Silver & Gold Mines Ltd to file this report as a Technical Report with Canadian Securities Regulatory Authorities pursuant to provincial securities legislation. Except for the purposes legislated under provincial securities laws, any other use of this report by any third party are at that party's sole risk. All rights reserved

Signed and sealed as of 20th day of July 2005 in North Vancouver
Bryan Slim, ARSM, BSc, MBA, MIMM, CEng, PEng

|  |  | 2
|  |  | MineStartTm

APPENDIX I

PROCESS RESEARCH ASSOCIATES LTD. REPORT - METALLURGICAL TEST WORK ON AVINO TAILINGS DURANGO, MEXICO, MARCH 2005

|  |  | METALLURGICAL TEST WORK ON AVINO TAILINGS DURANGO, MEXICO
Prepared for: |  | MINESTART MANAGEMENT INC. 1763 Scott Road North Vancouver, B.C. V7J 3J4
Attention: |  | Mr. Bryan Slim
Prepared by: |  |
|  | 9145 Shaughnessy Street Vancouver, B.C. V6P 6R9 Canada
PRA Project No.: |  | 0406407

Reviewed by: |  | Report by: |
John Huang Senior Metallurgist |  | Gie Tan, Ph.D. Senior Metallurgist |
March 28, 2005 |  |  |

MineStart Management Inc | 1

TABLE OF CONTENTS

|  | Page No. |
1 SUMMARY |  |  | 3 |
2 INTRODUCTION |  |  | 6 |
3 PROCEDURES |  |  | 7 |
3.1 SAMPLE PREPARATION AND CHARACTERIZATION |  |  | 7 |
3.1.1 Grinding and Screening |  |  | 7 |
3.1.2 Analytical Determinations |  |  | 8 |
3.1.3 Density |  |  | 8 |
3.1.4 Ball Mill Bond Index |  |  | 9 |
3.1.5 Acid Base Accounting |  |  | 9 |
3.1.6 Settling and Filtration |  |  | 9 |
3.2 METALLURGICAL TEST PROCEDURES |  |  | 10 |
3.2.1 Flotation |  |  | 10 |
3.2.2 Batch Cyanidation |  |  | 10 |
3.2.3 Electrowinning |  |  | 11 |
3.2.4 Agglomeration |  |  | 11 |
3.2.5 Column Cyanide Leach Testing |  |  | 11 |
4 RESULTS AND DISCUSSION |  |  | 13 |
4.1 SAMPLE CHARACTERISTICS |  |  | 13 |
4.1.1 Head Assay |  |  | 13 |
4.1.2 Size-Assay Analysis |  |  | 16 |
4.1.3 Relative Bulk Density and Specific Gravity |  |  | 21 |
4.1.4 Bond ball mill work index |  |  | 22 |
4.1.5 Acid Base Accounting and Deionized Water Extractions |  |  | 22 |
4.1.6 Test Grinds |  |  | 24 |
4.2 PRE-CONCENTRATION TESTS |  |  | 24 |
4.2.1 Baseline Flotation Tests - Composites A, B |  |  | 24 |
4.2.1.1 Effect of Grinding on Composite A Flotation |  |  | 25 |
4.2.1.2 Effect of Grinding on Composite B Flotation |  |  | 27 |
4.2.2 Diagnostic Flotation Tests - Composite A |  |  | 29 |
4.2.2.1 Bulk vs. Selective Flotation |  |  | 29 |
4.2.2.2 Sulphidization and Activation |  |  | 30 |
4.2.3 Gravity Separation - Composites A, B, C |  |  | 32 |

MineStart Management Inc | 2

4.3 BATCH CYANIDE LEACHING |  |  | 33 |
4.3.1 Baseline Cyanidation Results - Composites A, B |  |  | 34 |
4.3.2 Baseline Leach Kinetics - Composite A, B |  |  | 35 |
4.3.3 Effect of NaCN Dosages - Composites A, B, C |  |  | 36 |
4.3.3.1 NaCN Level Confirmation Tests - Composites A, B |  |  | 37 |
4.3.3.2 Comparison of Leach Kinetics - Composites A, B, C |  |  | 38 |
4.3.3.3 Leaching at 45% solids - Composites A, B |  |  | 40 |
4.4 VACCUM FILTRATION TESTS |  |  | 41 |
4.4.1 Settling Tests |  |  | 41 |
4.4.2 Scoping Tests (VF 1,2) |  |  | 41 |
4.4.3 Scoping Filter Areas (VF3.4) |  |  | 42 |
4.4.4 Flocculated Pulp Results (VF5.6) |  |  | 42 |
4.5 COLUMN LEACHING |  |  | 43 |
4.5.1 Column Start Up |  |  | 43 |
4.5.2 Column Operation |  |  | 44 |
4.5.3 Column Ending |  |  | 46 |
4.5.4 Column Residue Analyses |  |  | 47 |
4.5.5 Column Residue Leaching |  |  | 48 |
4.5.6 Agglomeration Tests |  |  | 49 |
4.6 ELECTROWINNING (EMEW) |  |  | 49 |
5 CONCLUSIONS AND RECOMMENDATIONS |  |  | 52 |

APPENDIX I - SAMPLE CHARACTERISTICS: SR1-5, SG1, BI1, TG1-7, S(A)-S(C)
APPENDIX II - HEAD ASSAYS: Certificates, Reports, SA1-SA6®, SA9-10, Procedures
APPENDIX III - PRE-CONCENTRATION TESTS: F1-F11, SA7-8, Float Heads, GSB1-6
APPENDIX IV - BOTTLE ROLLS: C1-C18, Composite Head Summary
APPENDIX V-COLUMN LEACH DATA: Heads, Summary & Logs, SA11-13, C19-20
APPENDIX VI - MISCELLANEOUS DATA: ST1, VF1-6, ABA, DWE, E1-3

MineStart Management Inc | 3

1 SUMMARY
Metallurgical tests were conducted on three composites, which were generated from individual Avino tailing samples. The initial objectives of the work were to explore the amenability of these composites to flotation, cyanidation and gravity concentration, for the recovery of precious metal values. The test program also included material characterization, leaching and environmental impact studies.
Head assay results show that Composites A and B contain higher silver values at 105g/t Ag and 88g/t Ag, as compared to Composite C with 40g/t Ag (designated as incidental to the program). Gold grades vary from 0.36g/t in Composite A to 0.51 g/t in Composite B. The assay data also suggest that the tailing samples have been oxidized due to weathering.
Size assay analysis indicated that the metal distributions were variable. For main Composites A and B, elevated gold and silver distributions were detected in both the finest and the coarsest fractions, but the Ag grade was depressed relative to the mass distribution in the Composite B slimes. The solids specific gravity (SG) on a few selected samples ranged from 2.62 to 2.76, and relative bulk densities were between 1.57 and 1.73 for these samples. Other material characterizations and incidental test results are discussed in the body of this report.
Scoping flotation tests were conducted on Composites A and B using various reagent schemes to optimize gold and silver recoveries. The data showed that the samples did not respond well to the flotation conditions tested. The highest recoveries obtained were 42% Ag and 48% Au, with a mass pull of 8.8% from Composite A after grinding to 80% passing 200 mesh. Gravity concentration did not recover more than 40% of the Ag and 65% of the Au either. The results suggested that the degree of oxidation or lack of liberation of the mineral constituents did not allow adequate pre-concentration of the tailings, and detailed systematic testing is required to establish this route as a process option.

MineStart Management Inc | 4

Batch cyanidation tests on the three composites produced encouraging results, including the dewatering behavior of the P80 ~74µm residues. Flocculation of a reconstituted A+B residue blend pulped to 25% solids with 25g/t Magnafloc 156 at pH 12, produced a 55% solids thickener underflow with a unit area of 0.14m2 per tonne of solids per day. The standard filtration test on flocculated leach pulps yielded calculated unit filtration areas of 0.49m2/t/d for Composite A and 0.19m2/t/d for Composite B, respectively.
Gold responded better to the process than silver: 82% of the gold along with approximately 68% of the silver were extracted from relatively coarse as-received Composites A and B. The results improved to approximately 78% silver and 87% gold recoveries by grinding the samples to 80% passing 150 mesh. These baseline 72-hour bottle roll tests were conducted at pH 11 with 1g/L NaCN, and average consumptions of 2kg/t NaCN and 1.7kg/t of lime were obtained.
The data indicated that an increase in cyanide dosage from 0.5 to 2.0 g/L NaCN did not materially affect gold leaching from Composites A and B. Silver dissolution was more sensitive to cyanide concentration in comparison with gold. Conversely, both gold and silver recoveries from Composite C were significantly influenced by the cyanide dosage. Extractions achieved for this material were 74% Ag and 77% Au at 1g/L NaCN, and 87% Ag and 85% Au at 2g/L NaCN. In general the cyanide consumption increased with cyanide dosage, while the lime requirement went down slightly.
An exploratory column cyanide-leaching test yielded encouraging results after agglomeration of the feed using lime and cement. Approximately 73% of the silver and 79% of the gold was extracted from a 31kg blend of Composite A and B material by column leaching for 81 days. Two initial agglomerations with combined dosages of 11 kg/t cement and 3.9kg/t lime and 3 days of curing time, were followed by a third stage with another 10.8kg/t cement and 2.6kg/t lime and 5 days of curing before the target flow rate of ~0.05ml_/s could be maintained. The resulting non-optimized reagent consumptions were 7.13kg/t lime, 21.8kg/t cement and 2.32kg/t NaCN, maintained at pH 11 and 2g/l NaCN. Further testing is needed to optimize this processing option for detailed economical evaluations.

MineStart Management Inc | 5

Exploratory EMEW (Electrometals Electrowinning) tests on various generated pregnant solutions suggest that this technology may selectively deplete the silver tenor from ~60mg/L to approximately 3mg/L Ag without destroying the cyanide
Other test results showed that the crushed oxide ore had a Bond ball-mill work index of 12.3kWh/tonne of feed at a closing screen size of 74µm. The as-received tailings samples were found to have some acid generation potential, and processing for the recovery of gold and silver could alleviate many of the possible environmental concerns.

MineStart Management Inc | 6

2 INTRODUCTION
MineStart Management Inc. commissioned Process Research Associates Ltd. (PRA) to undertake metallurgical testing on various tailings samples taken from the Avino property in Durango, Mexico. The main objectives addressed the recovery of gold and silver by flotation, gravity separation and cyanidation. Various sample characteristics were also to be determined.
A preliminary study on similar materials from Avino had been conducted under Project 0302303, and further design parameters were needed to advance the project.
At the end of the program, a column leach test was performed to investigate the response of the samples to heap leaching. The deposition of gold and silver from pregnant solutions by electrolysis was also explored.

MineStart Management Inc | 7

3 PROCEDURES
3.1 SAMPLE PREPARATION AND CHARACTERIZATION
Four boxes arrived on July 30th, 2004, containing 87 plastic bags of naturally wet tailings. Each sample weight was logged in and the client then renumbered the samples for ease of reference. The contents were poured into individual pans and air-dried for several days, finishing in a low-temperature oven. Sample S74, which was identified as cyclone underflow, was kept isolated from the others. Moisture contents were determined, and selected sub-samples were riffled out for shipment for mineralogical work, as per client instructions.
Duplicate head samples were split out from homogenized dried samples during riffling into halves (H) and quarter (Q) portions, to be pulverized and submitted for independent assays. Three composites were then prepared from client-selected samples based on their location in the field. Composite A consisted of one quarter of available Samples S7 to S13 and S18 to S41. Composite B was prepared by blending one quarter of Samples S42 to S64, S68 to S73, and S75 to S77. Composite C, designated by the client as incidental to the main program, was similarly made up from Samples S1 to S6. The individual composites were thoroughly blended before splitting into a head sample for chemical analysis and 1 kg test charges.
Another two samples, labeled as oxide ore for Bond work index and sulphide tailings for environmental testing, were received on Nov. 08, 2004. The oxide ore sample was crushed to - 6 mesh for the Bond ball-mill work index determination. The sulphide tailings were subjected to water leaching after thorough blending, and for acid-base accounting.
3.1.1 Grinding and Screening
Test grinds were performed in a stainless steel laboratory rod mill, by wet grinding pre-crushed batches of materials at a 65% by weight solids content.
The 80% passing size (Pso) was plotted against the measured grinding time at a fixed tumbling rate.

MineStart Management Inc | 8

Particle size analysis was performed in a Rotap™, equipped with 20 cm (8") diameter test sieves stacked in consecutive mesh sizes. The sample was initially wet screened at 37 microns (400 Tyler™ mesh). The +37 micron fraction was then dry screened through stacked sieves. Each sieved fraction was collected and weighed for calculating the individual and cumulative percent retained.
3.1.2 Analytical Determinations
Gold and silver analyses were done by standard fire assay procedures using an atomic adsorption spectro-photometric (AA) finish at the International Plasma Laboratories (iPL). Silver was also determined by inductively coupled plasma spectroscopy (ICP) and this method was preceded by total digestion of the solids in a suite of mineral acids. In addition, the head silver analysis was performed at Chem Met Consultants Inc. using acid digestion followed by AA finish.
Other elements of interest were determined by commonly accepted procedures as well, either by titration, ICP or AA. Total sulfur was measured using a Leco furnace, and sulfide sulfur assays were based on a wet chemical gravimetric procedure.
3.1.3 Density
Specific gravity relative to water was measured on dry pulverized solids using a standard pycnometric method (see Appendix II). Pulverized dry solids were weighed into volumetric flasks, water was added and degassed (boiled) prior to cooling and filling to the mark. The displacement volume of the solids was calculated from the amount of water added.
The relative bulk density was also determined by measuring the volume of dry samples in a measuring cylinder.

MineStart Management Inc | 9

3.1.4 Ball Mill Bond Index
The Bond ball-mill work index was determined using standard procedures at the recommended loading rate and feed size distribution. The test was performed in a Bico-Braun laboratory mill with six cycles to stabilize the circulating loads. The work index was calculated based on a closing screen size of 74 microns.
3.1.5 Acid Base Accounting
The acid potential (AP) of samples was calculated from the sulfide analysis, and the neutralization potential (NP) was determined using the modified EPA (Sobek) method. Paste pH and fizz tests completed the analysis, and the NP/AP ratios and the NNP = NP - AP values were calculated. ABA predicts the overall acid generating potential of sulphidic materials on site.
3.1.6 Settling and Filtration
Screening of various dosages of flocculants was conducted in small beakers, and the most suitable conditions were applied to standard settling tests in raked 2L measuring cylinders. The rate of descent of the solids and liquid interface was measured over a 24-hour period, and the required thickener unit area to achieve the target underflow pulp density was calculated using the Oltman technique according to a modified Coe and Clevenger method.
The filtration test used a standard vacuum leaf filter. During the test, the slurry maintained at a target pulp density was thoroughly stirred. The vacuum system was then turned on with the filter disc immersed approximately 2 inches below the pulp surface, using a selected membrane, for a predetermined period. Washing, drying and evaluation of the filter cake and filtrate followed Dorr-Oliver-Long standard procedures. The data collected during the test was used for calculation of the solids and solution unit filtration rates.

MineStart Management Inc | 10

3.2 METALLURGICAL TEST PROCEDURES
3.2.1 Flotation
Baseline batch tests are conducted using a Denver D12 laboratory flotation machine, with appropriately selected cell sizes to yield a typical pulp density of -30 to 35% solids by weight. The solids were prepared with Vancouver municipal water at an ambient temperature of ~18ffiC. The impeller speed was set at the required rate according to cell size and the airflow was controlled manually to maintain the froth level with DF250 additions, as required. The pH was adjusted with soda ash and froths were skimmed into well-labeled stainless steel pans for measured lengths of time.
3.2.2 Batch Cyanidation
The cyanidation bottle roll leaching tests were conducted at pre-selected pulp densities and retention times, regularly maintaining the target pH and sodium cyanide (NaCN) concentration throughout the entire test period. During the cyanidation, intermediate solution samples were removed to determine the kinetics of extraction at various retention times. Filtration and washing of the residues and collection of the pregnant leach solution (PLS) terminated each bottle roll test.
At the end of leaching, the solid residue was washed with hot cyanide solution, followed by two hot water displacement washes. The leachate and residue were submitted for chemical analysis.
Reagent concentrations were determined using standard titration methods. The free sodium cyanide concentration was determined by titrating with silver nitrate, using para-dimethylamino rhodanine as an indicator. Lime concentration was determined by titrating with oxalic acid with phenolphthalein as the indicator. The reducing power of the final leachate was determined as an indication of potential solution fouling characteristics.

MineStart Management Inc | 11

3.2.3 Electrowinning
Standard EMEW (Electrometals Electrowinning) metal recovery tests were carried out on filtered cyanide-leach solutions using a 1" cylindrical cell with standard stainless steel electrode arrangements. Instrument settings were adjusted to provide an appropriate current density for depositing the metals. Cell voltage and current are monitored, along with the solution temperature and conductivity. Interval solution samples were assayed by ICP, and the cathode deposit was rinsed with acetone, dried and weighed prior to ICPM analysis.
3.2.4 Agglomeration
Agglomeration to increase the particle size was done by mixing a sample with powdered lime and cement, followed by rotating the mixture under a fine spray of water. The agglomeration was continued until the mean particle size increased to around 1/4" to 1/2", and the product was cured for several days before use.
3.2.5 Column Cyanide Leach Testing
A baseline column cyanidation leach test on agglomerated Composite A+B was performed in a transparent plastic pipe, 4" in diameter and 10' in height. A perforated support plate was located 1" above the base. The top of the column was covered with glass fiber to distribute cyanide solution evenly. Containers situated under the suspended column were used as alternating pregnant and barren reservoirs from which the solution was returned to the top of the column at a fixed rate.
The filled column was first saturated with a solution of hydrated lime. Sodium cyanide (NaCN) was added only when pH >10 was consistently achieved in the outflow. The cyanide and alkalinity levels were monitored and maintained on a daily basis. The pregnant solution was stripped with activated carbon and then pumped back to column after the addition of cyanide to the preset level. The loaded carbon was analyzed for gold and silver at intervals dependent on the expected loading of the carbon. Initially, it was done on a daily basis, later once in every two days, then twice a week and finally once a week. In addition, two barren solution samples were checked for residual silver contents at the initial leaching stage.

MineStart Management Inc | 12

On termination of the test, the column was rinsed four times with pH 10.5 lime solution. The barren solution, washing solutions and final residues were assayed to establish the final material balance. Reagent concentrations were determined using the standard titration methods described in Section 3.3.

MineStart Management Inc | 13

4 RESULTS AND DISCUSSION
4.1 SAMPLE CHARACTERISTICS
Eighty-seven samples arrived at Process Research Associates on July 30th, 2004, in plastic bags that were 2.2kg to 8.5kg in weight. The moisture content of each bag was determined (see Appendix I). Based on detailed assay results, three composites were prepared according to client instructions. Composite A consisted of Samples S7 to S13 and S18 to S41; Composite B was prepared from Samples S42 to S64, S68 to S73, and S75 to S77; and Composite C was made up from Samples S1 to S6. Sample S74 was kept apart for specialized testwork, and 17 Samples, including S14 to S17, S65 to S67, and non-relabeled specimens were left unused.
Another two samples were received later, comprising oxide ore for ball mill Bond work index testing and sulphide tailings for environmental studies. Results of these sample characterization tests are provided in Appendix I and VI, respectively.
4.1.1 Head Assay
Duplicate head samples were split from seventy client-selected samples, for gold, silver and ICP assay respectively. The silver values from fire assay and ICPM, as plotted in Figure 4.1, show a distinct shift between the results of the two methods. An improved fit with ICPM was obtained by independent determinations using acid digestion finished by AA, also shown in Figure 4.1 (see also Appendix II). The ICPM method was then used for all Ag assays.
The importance of total digestion was shown by a brief series on samples S5, S20, S22, S30, S50 and S72. The fire assays and 20% HN03 digestion results were frequently lower, and ICPM data generally lower but fairly close to the AA scans on the completely dissolved materials (AAM, see Figure 4.2). The Au fire assay followed by AA finish by standard methods was found to be reliable.

MineStart Management Inc | 14

Head assay results are listed in Table 4.1 to 4.3, and additional details are provided in Appendix II. The tables also show the arithmetic averages in bold print. for those samples selected for assay checks and for the total composites. As well, samples S2, S10, S22, S45, S50 and S74 were taken for size assay analyses, but these may serve as reliability checks only.

MineStart Management Inc | 15

Table 4.1 - Individual Head Assays (Samples for Composite A)

Sample ID | S7 | S8 | S9 | S10 | S11 | S12 | S13 | S18 | S19
Au, g/t | 0.39 | 0.30 | 0.34 | 0.41 | 0.42 | 0.30 | 0.25 | 1.22 | 0.34
Ag, g/t | 94.2 | 69.1 | 82.8 | 85.9 | 111.2 | 97.6 | 98.6 | 178.6 | 107.7
Sample ID | S20 | S21 | S22 | S23 | S24 | S25 | S26 | S27 | S28
Au, g/t | 0.26 | 0.31 | 0.29 | 0.18 | 0.30 | 0.33 | 0.36 | 0.40 | 0.29
Ag, g/t | 147.8 | 102.2 | 150.1 | 100.5 | 96.7 | 107.9 | 100.4 | 98.3 | 107.6
Sample ID | S29 | S30 | S31 | S32 | S33 | S34 | S35 | S36 | S37
Au, g/t | 0.20 | 0.29 | 0.38 | 0.42 | 0.35 | 0.38 | 0.33 | 0.26 | 0.36
Ag, g/t | 109.2 | 88.1 | 95.3 | 107.2 | 96.4 | 125.0 | 112.0 | 90.8 | 93.3
Sample ID | S38 | S39 | S40 | S41 | Average |  |  |
Au, g/t | 0.29 | 0.30 | 0.23 | 0.21 | 0.34 |  |  |
Ag, g/t | 87.5 | 83.8 | 78.8 | 100.8 | 103.4 |  |  |

Table 4.2 - Individual Head Assays (Samples for Composite B)

Sample ID | S42 | S43 | S44 | S45 | S46 | S47 | S48 | S49 | S50
Au, g/t | 0.62 | 0.46 | 0.50 | 0.39 | 0.68 | 0.65 | 0.49 | 0.53 | 0.57
Ag, g/t | 74.6 | 71.1 | 71.0 | 105.1 | 110.5 | 115.6 | 100.3 | 94.9 | 62.9
Sample ID | S51 | S52 | S53 | S54 | S55 | S56 | S57 | S58 | S59
Au, g/t | 0.45 | 0.37 | 0.34 | 7.00 | 0.60 | 0.57 | 0.50 | 0.50 | 0.36
Ag, g/t | 66.4 | 86.6 | 93.7 | 109.7 | 104.3 | 119.5 | 78.7 | 69.4 | 63.3
Sample ID | S60 | S61 | S62 | S63 | S64 | S68 | S69 | S70 | S71
Au, g/t | 0.38 | 0.35 | 0.62 | 0.67 | 0.53 | 0.33 | 0.44 | 0.54 | 0.41
Ag, g/t | 70.5 | 87.0 | 77.4 | 84.1 | 71.6 | 60.6 | 100.3 | 71.0 | 59.4
Sample ID | S72 | S73 | 06C.S1* | S75 | S76 | S77 | Average |
Au, g/t | 0.55 | 0.44 | 0.48 | 0.37 | 0.26 | 0.45 | 0.68 |
Ag, g/t | 75.0 | 62.9 | 65.2 | 69.1 | 55.5 | 101.1 | 82.6 |

* not included for the average calculation and the original label was retained for S74
Table 4.3 - Individual Head Assays (Samples for Composite C)

Sample ID | S1 | S2 | S3 | S4 | S5 | S6 | Average
Au, g/t | 0.34 | 0.37 | 0.38 | 0.27 | 0.16 | 0.19 | 0.29
Ag, g/t | 31.5 | 43.1 | 46.5 | 36.4 | 15.3 | 17.6 | 31.7
Pb, % | 0.15 | 0.29 | 0.30 | 0.14 | 0.08 | 0.12 | 0.18

Head assays of Composites A, B and C in Table 4.4, confirmed the trends in average individual grades, as shown above. Composites A and B had much higher silver grades at 105 and 88g/t Ag respectively, in comparison with Composite C. Gold grades varied from 0.36 to 0.51 g/t Au.

MineStart Management Inc | 16

Table 4.4 - Head Assays of Composites

Sample | Au* | Ag* | Pb | S(T) | S(S04)
ID | g/t | g/t | % | % | %
Composite A | 0.36 | 105.3 | 1.13 | 0.14 | 0.07
Composite B | 0.51 | 88.4 | 0.67 | 0.20 | 0.12
Composite C | 0.39 | 39.8 | n.a. | 1.65 | 0.23
* Average head assays |  |  |  |  |

The lead content of Composites A and B reflect those observed for the individual samples, and the grade for Composite C would be on the order of 0.18% Pb (Table 4.3). Composites A and B contained appreciable levels of sulphate, and Composite C was higher in sulphide. All materials averaged out at -6% Fe, 0.1% Zn, and 0.1% Cu. These flotation tailings had been stored between 3 and 28 years in different sections of a stack, and would have been oxidized to various degrees. Composite A samples likely contained less silica then Composite B, judging from consistent differences in gangue and heavy metal levels.
Sample S74, similar in grade as Composite B and noticeably devoid of fines, was sent out for outside testing along with Samples S22 and S45. The client also selected this batch plus Samples S2, S10 and S50, for mineralogical examination and size assay determinations.
4.1.2 Size-Assay Analysis
Duplicate precious metals distributions in various size fractions of samples S2, S10, S22, S45, S50 and S74 (P80 averages of 226, 326, 367, 254, 201 and 301 µm, respectively) were quite variable at sizes coarser than 65 mesh. Top size fractionation was expanded in the second set and the results are summarized in Figures 4.3 to 4.8, with complete details on both sets given in Appendix I.

MineStart Management Inc | 17

It can be observed that the distribution for S2 (member of Composite C) was largely bi-nodal with 19% of the mass in the slimes. The silver and gold were uniformly found in all the size fractions, with elevated levels in the slimes and the -100 +200 mesh materials mainly. The coarser samples S10 and S22 (members of Composite A) contained slightly depressed Ag grades in the -65 +400 mesh sizes. This liberation size appears to be shifted to the -100 +400 mesh fraction of the finer members S45 and S50 of Composite B (Figures 4.6 and 4.7).

MineStart Management Inc | 18

Elevated silver generally occurred in the undersize slimes, but the gold grade patterns in these samples did not match those of the silver. In cyclone underflow sample S74 (Figure 4.8), the Au and Ag were slightly concentrated into the -100 mesh material as might be expected from sorting by density and particle size. All other sample size distributions would likely reflect their mode of deposition onto the tailings pile and their historical operating parameters.

MineStart Management Inc | 19

The observations suggest the following relationships that could be verified from the actual field data: Sample S2 representing Composite C is comparatively finer sized, depleted in Ag and Pb, contains more sulphide and is less oxidized. Elevated Au distributions to the -100 mesh fractions, could reflect attrition and physical sorting during deposition, the lack of liberation or a complex mineralogy of this material.

MineStart Management Inc | 20

By comparison, Composite A would be coarser, containing more values but with lower sulphides and a higher degree of oxidation. Composite B with more gold and a high degree of oxidation would appear to be of an intermediate nature, otherwise. A subtle enrichment of heavy metals in many of the slimes of the samples tested is noteworthy.
As displayed in Figures 4.9 and 4.10, Composites A and B reflect similar types of gold and silver distributions as encountered for their members. Thus, elevated Ag grades were detected in the +65 mesh fraction and the slimes for Composite A, as predicted by Figures 4.3 and 4.4. Similar enrichment of Ag in the +100 mesh portion of finer Composite B (Figure 4.10) was also noted for its members in Figures 4.6 and 4.7. The test data appears to be quite consistent, overall.

MineStart Management Inc | 21

4.1.3 Relative Bulk Density and Specific Gravity
Bulk density and specific gravity on selected dry solids relative to the density of water were measured as listed in Table 4.5 and provided in Appendix I. The bulk density varied from 1.57 for Sample S74 (devoid of fines) to 1.73 for Samples S10 and S22 (coarse members of Composite A). The specific gravity of the samples was between 2.72 to 2.76, except for Sample S10 with a relative specific gravity of 2.62. The data seems to suggest that the slimes penetrated interstitial voids of coarser materials mainly, to increase the tapped bulk density.
Table 4.5 - Relative Bulk Density and Specific Gravity Results

Sample ID | Component of | Average P80 µ m | Bulk Density Relative to H2 0 | Specific Gravity Relative to H2 0
S2 | Comp. C | 226 | 1.66 | 2.74
S10 | Comp. A | 326 | 1.73 | 2.62
S22 | Comp. A | 367 | 1.73 | 2.76
S45 | Comp. B | 254 | 1.60 | 2.76
S50 | Comp. B | 201 | 1.63 | 2.74
S74 | Cyclone U/F | 301 | 1.57 | 2.72

MineStart Management Inc | 22

4.1.4 Bond ball mill work index
The Bond ball-mill work index (Wl) was determined on -6 mesh oxide ore at a closing screen size of 74 microns (200 mesh). The work index for the sample was 12.3 kWh/tonne of feed under simulated steady state conditions. The detailed test data are provided in Appendix I, also indicating that the sample used to assess the grindability of oxidic tailings had a bulk density of 1.92 at a feed size of 80% passing 1628 pm. The specific energy input (i.e., grams of product per revolution) converged after 5 Bond mill cycles.
4.1.5 Acid Base Accounting and Deionized Water Extractions
Acid base accounting (ABA) results, as presented in Table 4.6, indicated a lack of buffering capacity in the tailings, with less than 5kg/t of CaCO3 equivalent overall as neutralization potential (NP), mainly present in Composite A. This may constitute an environmental concern, since Composite C and the sulfide tailings are potential net acid producers. The mildly acidic paste pH values suggest that some acid generation could already have started.
Table 4.6 - Acid Base Accounting Results

Item | Sample | S(T) | S(SO4) | Paste | Acid | Neutralization Potential (NP)
ID | % | % | pH | Potential | Actual | Ratio | Net
1 | Composite A | 0.14 | 0.07 | 6.0 | 2.03 | 13.6 | 6.68 | 11.5
2 | Composite B | 0.20 | 0.12 | 5.7 | 2.50 | 4.1 | 1.63 | 1.6
3 | Composite C | 1.65 | 0.23 | 4.4 | 44.38 | 8.2 | 0.19 | -36.1
1 | Sulphide Tailings | 1.25 | 0.38 | 4.0 | 27.2 | - 0.1 | 0.00 | -27.3
DUP | Composite B | 0.20 | 0.12 | 5.7 | 2.50 | 4.0 | 1.60 | 1.5
DUP | Sulphide Tailings | 1.26 | 0.39 | 4.0 | 27.2 | 0.2 | 0.01 | -27.0

A water extraction test was performed on the Sulphide Tailings sample to further assess the environmental impact. The chemical analysis data on the extracted water are presented in Table 4.7 and appreciable levels of heavy metals such as Cu, Zn, Mn, Cd and Se are of concern. These levels are expected to rise with the continuing acidification of the tailings pile. Processing of the materials for precious metals recovery could mitigate such concerns.

MineStart Management Inc | 23

Table 4.7 - Deionized Water Extraction Test Results

Elements | Unit |  | DWE | Detection Limits | Analytical
| Filtrate | Min. | Max. | Method
Al | mg/L |  | 200.86 | 0.05 | 9999 | EPA200.7
Sb | mg/L |  | 0.22 | 0.05 | 9999 | EPA200.7
As | mg/L |  | <0.03 | 0.03 | 9999 | EPA200.7
Ba | mg/L |  | <0.005 | 0.005 | 9999 | EPA200.7
Be | mg/L |  | 0.013 | 0.001 | 999 | EPA200.7
Bi | mg/L |  | <0.1 | 0.1 | 9999 | EPA200.7
B | mg/L |  | 3.26 | 0.01 | 9999 | EPA200.7
Cd | mg/L |  | 0.525 | 0.005 | 999 | EPA200.7
Ca | mg/L |  | 574.35 | 0.05 | 9999 | EPA200.7
Cr | mg/L |  | 0.01 | 0.01 | 9999 | EPA200.7
Co | mg/L |  | 0.32 | 0.01 | 9999 | EPA200.7
Cu | mg/L |  | 51.12 | 0.01 | 9999 | EPA200.7
Fe | mg/L |  | 7.87 | 0.01 | 9999 | EPA200.7
Pb | mg/L |  | 1.07 | 0.05 | 9999 | EPA200.7
Li | mg/L |  | 0.62 | 0.02 | 9999 | EPA200.7
Mg | mg/L |  | 109.8 | 0.1 | 9999 | EPA200.7
Mn | mg/L |  | 49.184 | 0.005 | 9999 | EPA200.7
Hg | mg/L |  | <0.02 | 0.02 | 999 | EPA200.7
Mo | mg/L |  | <0.01 | 0.01 | 9999 | EPA200.7
Ni | mg/L |  | 0.22 | 0.01 | 9999 | EPA200.7
P | mg/L |  | <0.1 | 0.1 | 9999 | EPA200.7
K | mg/L |  | <2 | 2 | 9999 | EPA200.7
Se | mg/L |  | 0.18 | 0.05 | 9999 | EPA200.7
Si | mg/L |  | 13.93 | 0.05 | 9999 | EPA200.7
Ag | mg/L |  | 0.03 | 0.02 | 999 | EPA200.7
Na | mg/L |  | 6.3 | 0.2 | 50000 | EPA200.7
Sr | mg/L |  | 0.139 | 0.005 | 999 | EPA200.7
Tl | mg/L |  | <0.2 | 0.2 | 999 | EPA200.7
Sn | mg/L |  | <0.1 | 0.1 | 9999 | EPA200.7
Ti | mg/L |  | 0.06 | 0.01 | 999 | EPA200.7
W | mg/L |  | <0.1 | 0.1 | 9999 | EPA200.7
V | mg/L |  | 0.05 | 0.01 | 999 | EPA200.7
Zn | mg/L |  | 53.574 | 0.005 | 9999 | EPA200.7

MineStart Management Inc | 24

4.1.6 Test Grinds
For metallurgical testing, the time to achieve a target P80 value of ~74 µm was estimated by grinding 1kg batches of each composite under standard conditions in a laboratory rod mill. Typical results of grinding are summarized in Table 4.8 to indicate the relative hardness of these materials. It should be noted that Composite B contained less than 15% of particles coarser than 65 mesh, whereas Composite A was especially lacking in the -150 +400 mesh category.
Table 4.8 - Test Grind Summary for Composites A, B and C

Sample ID | Finer | Coarser
Grind time | P80, µm | Grind time | P80, µm
Composite A | 10 minutes | 72 | 6.0 minutes | 103
Composite B | 7 minutes | 73 | 4.4 minutes | 92
Composite C | 11 minutes | 79 | 10.0 minutes | 83

4.2 PRE-CONCENTRATION TESTS
Pre-concentration of precious metals prior to leaching was expected to benefit overall process economics. The test materials were tailings produced by flotation at relatively coarse primary grind sizes, and fine grinding might recover additional values. Exposure to weathering after deposition, however, would have to be contended with. Hence, several variables were examined to optimize the flotation recoveries for Composites A and B. The parameters tested included primary grind size, reagent types and dosages, as prescribed by the client. The pre-concentration of precious metals by gravity separation was also explored.
4.2.1 Baseline Flotation Tests - Composites A, B
Baseline rougher flotation tests were conducted at ~32% solids pulp density with addition of Na2CO 3 to adjust the pulp to a slightly alkaline pH. Reagent A404 and potassium amyl xanthate (PAX) were employed as collectors for gold, silver, and their carrier minerals; D250 was used as a frother. The addition of NaCN to the

MineStart Management Inc | 25

grind was intended to expose fresh mineral surfaces. The head assay results are summarized in Table 4.9, generally with slightly higher grades than those reported in Table 4.4.
Table 4.9 - Assays of Baseline Flotation Heads

Comp.A | Au | Ox.Pb | Pb | S04 | Cu | Fe | Ag
g/mt | % | % | % | ppm | ppm | ppm
F1 Head | 0.36 | 0.59 | 1.13 | 0.06 | 1320 | 73247 | 135.7
F3 Head | 0.39 | 0.75 | 1.23 | 0.06 | 1484 | 81730 | 131.5
F4 Head | 0.40 | 0.76 | 1.20 | 0.05 | 1164 | 76770 | 114.3
avg. | 0.38 | 0.70 | 1.19 | 0.06 | 1323 | 77249 | 127.2
Comp.B | Au | Ox.Pb | Pb | S04 | Cu | Fe | Ag
g/mt | % | % | % | ppm | ppm | ppm
F2 Head | 0.51 | 0.34 | 0.67 | 0.11 | 992 | 85609 | 88.4
F5 Head | 0.56 | 0.35 | 0.70 | 0.09 | 1213 | 91029 | 87.8
F6 Head | 0.51 | 0.35 | 0.67 | 0.08 | 948 | 81042 | 92.0
avg. | 0.53 | 0.35 | 0.68 | 0.09 | 1051 | 85893 | 89.4

4.2.1.1 Effect of Grinding on Composite A Flotation
Grinding of 1kg test batches was initially conducted without additions of NaCN and Na2CO3 to ascertain the precise requirements to achieve pH 8 for safety reasons. The feed pulp was then assayed for Au, Ag, Pb(total), Pb(oxide), S(total), S(sulphate) and ICPM; a separate cut from the feed pulp was for measurement of the PSD (particle size distribution). Conditioning with 1.36kg/t Na2CO3 and 0.05kg/t NaCN preceded the addition of 0.025kg/t of A404 for the first 2 minutes of roughing, 0.05kg/t PAX was added for 3 more minutes of roughing, and half the above dosages of PAX and A404 tested further flotation in 3 minutes of scavenging.

MineStart Management Inc | 26

In subsequent tests, the conditioning reagents were added to the grind, while the pH was maintained at 8 throughout the primary circuit and minor variations in conditioning and flotation times ensued. A final scavenging stage with 0.02kg/t of pine oil was introduced to ensure exhaustive flotation. The largely comparable rougher only concentrates of Tests F1, F3 and F4 on Composite A are shown in Table 4.10 to assess the effect of finer grinding mainly. While Au rougher grades improved with finer grinding, the corresponding Ag and Pb grades decreased, with comparable recoveries at the intermediate and finer grind size.
Table 4.10 - Effect of Grind Size on Flotation of Composite A

Test No | Grind Size | Product |  | Grade |  | Recovery
(Comp) | P80 |  | Au | Ag | Pb(T) | Mass | Au | Ag | Pb(T)
| µm |  | g/t | g/t | % | % | % | % | %
F1 |  | Ro. Cone 1+2 | 4.30 | 1158.4 | 2.52 | 1.4 | 16.6 | 15.1 | 2.8
(Comp A) | 238 | Total Cone | 3.17 | 908.7 | 2.46 | 2.1 | 18.4 | 17.8 | 4.1
|  | Tails | 0.30 | 89.5 | 1.23 | 97.9 | 81.6 | 82.2 | 95.9
|  | Calc. Head | 0.36 | 106.6 | 1.26 | 100.0 | 100.0 | 100.0 | 100.0
F3 |  | Ro. Cone 1+2 | 5.59 | 934.8 | 1.8 | 1.6 | 26.6 | 16.2 | 2.4
(Comp A) | 103 | Total Cone | 3.88 | 734.6 | 1.74 | 2.6 | 30.4 | 21.0 | 3.8
|  | Tails | 0.24 | 74.8 | 1.18 | 97.4 | 69.6 | 79.0 | 96.2
|  | Calc. Head | 0.34 | 92.2 | 1.19 | 100.0 | 100.0 | 100.0 | 100.0
F4 |  | Ro. Cone 1+2 | 6.27 | 964.0 | 1.67 | 1.7 | 32.1 | 15.4 | 2.3
(Comp A) | 72 | Total Cone | 3.36 | 630.9 | 1.60 | 3.8 | 38.6 | 22.6 | 4.9
|  | Tails | 0.21 | 84.9 | 1.22 | 96.2 | 61.4 | 77.4 | 95.1
|  | Calc. Head | 0.33 | 105.5 | 1.23 | 100.0 | 100.0 | 100.0 | 100.0

The head pulps were of consistently higher precious metals grade than the back-calculated heads, by comparison of Tables 4.9 and 4.10, indicating that some dissolution may have occurred, especially when grinding with NaCN (Tests F3, F4). Finer grinding with soda ash may also have increased the Pb(oxide) from -52% in Test F1 to -63% in proportion to Pb(total) in Test F4. The sulphate sulphur contents (-0.06% in Table 4.9) were marginally lower in the feed pulps than was reported in Table 4.4 (0.07%).
Silver was upgraded by a factor of at least 9 by rougher flotation and gold even more effectively at the finest grind, while Pb hardly responded. The additional scavenging and finer grinding clearly improved the ultimate recoveries, which disappointingly remained below the 25% level for Ag with mass pulls of less than 4% only. It seemed that weathering was detrimental for flotation of this material.

MineStart Management Inc | 27

The F4 flotation tailings were screen assayed, and the P80 remained at ~72 µrn measured for the feed. Examination of the individual size fractions revealed that most of the Ag is in the slimes, while elevated Au levels still remain in the +150 mesh oversize (see Figure 4.11). The results suggest that the degree of Ag liberation is adequate, whereas the Ag and Au in the slimes were not recovered.
4.2.1.2 Effect of Grinding on Composite B Flotation
The largely identical series of baseline flotation tests conducted on Composite B is summarized in Table 4.11 for comparison to Composite A results. The effects of finer grinding with NaCN and Na2CO 3 on the heads persisted, but to a lesser extent with the oxidic Pb portion rising from ~48% in F2 to ~51 % of total Pb in F6. The calculated Ag heads again appear deficient, while Au and Pb values are more in line with data in Tables 4.4 and 4.9.

MineStart Management Inc | 28

Table 4.11 - Effect of Grind Size on Flotation of Composite B

Test No | Grind Size | Product |  | Grade |  |  | Recovery |
(Comp) | P80 |  | Au | Ag | Pb(T) | Mass | Au | Ag | Pb(T)
| µm |  | g/t | g/t | % | % | % | % | %
F2 |  | Ro. Cone 1+2 | 3.35 | 893.5 | 1.21 | 1.7 | 10.1 | 18.5 | 2.8
(Comp B) | 173 | Total Ro. Cone | 2.65 | 695.4 | 1.24 | 2.6 | 12.2 | 22.0 | 4.5
|  | Tails | 0.50 | 64.9 | 0.70 | 97.4 | 87.8 | 78.0 | 95.5
|  | Calc. Head | 0.56 | 81.1 | 0.71 | 100.0 | 100.0 | 100.0 | 100.0
F5 |  | Ro. Cone 1+2 | 6.27 | 1219.5 | 1.02 | 1.6 | 20.4 | 22.7 | 2.4
(Comp B) | 92 | Total Ro. Cone | 4.18 | 806.1 | 1.05 | 2.9 | 24.6 | 27.0 | 4.4
|  | Tails | 0.38 | 64.5 | 0.68 | 97.1 | 75.4 | 73.0 | 95.6
|  | Calc. Head | 0.49 | 85.8 | 0.69 | 100.0 | 100.0 | 100.0 | 100.0
F6 |  | Ro. Cone 1+2 | 7.18 | 1121.9 | 1.01 | 1.9 | 27.5 | 27.3 | 2.8
(Comp B) | 74 | Total Ro. Cone | 5.45 | 867.1 | 1.06 | 2.9 | 32.1 | 32.5 | 4.6
|  | Tails | 0.35 | 54.7 | 0.67 | 97.1 | 67.9 | 67.5 | 95.4
|  | Calc. Head | 0.50 | 78.6 | 0.68 | 100.0 | 100.0 | 100.0 | 100.0

Finer grinding benefited the overall precious metal grades and recoveries, with Ag upgraded by a minimum factor of 11, but less effective for Au despite the good head grade, compared to Composite A. While the best Ag recovery rose to exceed the 30% level, weathering still seemed to be detrimental to flotation of this material as well.

MineStart Management Inc | 29

4.2.2 Diagnostic Flotation Tests - Composite A
As demonstrated in Figure 4.12, both silver and gold recoveries improved with finer grinding. However, the Ag response in Composite B is better than for Composite A. Different degrees of oxidation or mineralogical characteristics in these materials could cause such behavior. The recoveries achieved were not yet satisfactory and additional test conditions were then explored at the finest grind, on Composite A only.
4.2.2.1 Bulk vs. Selective Flotation
The initial baseline flotation was essentially a selective lead recovery attempt with NaCN, and Na2CO 3 additions. Tests were subsequently performed at similar conditions as Test F4, on Composite A at a P80 of ~75 µm . Test F7 was a bulk Pb flotation, without the addition of NaCN to depress other sulphides. While the flotation of Zn and Cu did improve (see Appendix III), the Ag and Pb recoveries deteriorated slightly (Table 4.12). Test F8 was also conducted at near neutral pH, omitting A404 but using a high PAX dosage of 150g/t in a single 3-minute rougher stage. Although the first rougher concentrate grades improved for Au and Pb, the Ag response was very disappointing. Further tests were conducted near the natural pH; i.e., without any additions of soda ash or at lower dosages.
Table 4.11 - Bulk Flotation of Composite A

Test | Reagent | Product | Grade | Recovery
No |  |  | Au | Ag | Pb | Mass | Au | Ag | Pb
|  |  | g/t | g/t | % | % | % | % | %
F4 | Grind with | Ro. Cone 1+2 | 6.27 | 964.0 | 1.67 | 1.7 | 32.1 | 15.4 | 2.3
| Na2CO3 + | Total Ro. Cone | 3.36 | 630.9 | 1.60 | 3.8 | 38.6 | 22.6 | 4.9
| NaCN | Tails | 0.21 | 84.9 | 1.22 | 96.2 | 61.4 | 77.4 | 95.1
| PAX+A404 | Calc. Head | 0.33 | 105.5 | 1.23 | 100.0 | 100.0 | 100.0 | 100.0
F7 | no NaCN | Total Ro. Cone | 5.56 | 654.6 | 1.76 | 2.3 | 34.9 | 16.3 | 3.1
| low Na2CO3 | Tails | 0.25 | 80.8 | 1.30 | 97.7 | 65.1 | 83.7 | 96.9
| PAX+A404 | Calc. Head | 0.37 | 94.3 | 1.31 | 100.0 | 100.0 | 100.0 | 100.0
F8 | no NaCN | First Ro. Cone | 11.91 | 887.2 | 3.6 | 0.9 | 30.7 | 7.8 | 2.4
| low Na2CO3 | Tails | 0.24 | 93.6 | 1.3 | 99.1 | 69.3 | 92.2 | 97.6
| high PAX | Calc. Head | 0.343 | 100.61 | 1.32 | 100.0 | 100.0 | 100.0 | 100.0

MineStart Management Inc | 30

Based on the kinetic flotation results summarized in Figure 4.13, the addition of NaCN to the grind shows a net beneficial effect, where Test F7 without NaCN is considered the new baseline case for Composite A at P80 ~74 µm.
4.2.2.2 Sulphidization and Activation
In Test F9, three-stage conditioning with Na2S to sulphidize oxidized minerals and flotation with PAX, improved the Pb recovery to 22% but the mass pull remained low at 2.7% (Table 4.13). Flotation with soda ash but without any NaCN or Na2S in Test F10, with liberal use of CuSO4 as an activator for sulfide minerals improved flotation of pyrite and sphalerite, and increased the mass floated. In Test F11, the promoter A208 was employed in conjunction with PAX, and CuSo4 was added in the 3rd stage only. This scheme attained the best overall results, recovering 48% Au, 42% Ag and 13% of the Pb in 8.8% of the mass. Further improvements in the recovery of Ag are needed for a viable pre-concentration option.

MineStart Management Inc | 31

Table 4.13 - Activated Bulk Flotation of Composite A

Test | Reagent | Product |  | Grade |  |  | Recovery |
No |  |  | Au | Ag | Pb | Mass | Au | Ag | Pb
|  |  | g/t | g/t | % | % | % | % | %
F9 | no Na2CO3 | Total Ro. Cone | 5.86 | 723.9 | 8.02 | 2.7 | 45.0 | 20.8 | 22.2
| Na2S | Tails | 0.20 | 77.0 | 0.79 | 97.3 | 55.0 | 79.2 | 77.8
| PAX | Calc. Head | 0.35 | 94.6 | 0.98 | 100.0 | 100.0 | 100.0 | 100.0
F10 | Na2CO3 | Total Ro. Cone | 1.62 | 401.3 | 1.51 | 8.9 | 39.8 | 34.6 | 11.0
| CuSO4 | Tails | 0.24 | 74.5 | 1.20 | 91.1 | 60.2 | 65.4 | 89.0
| PAX | Calc. Head | 0.36 | 103.7 | 1.23 | 100.0 | 100.0 | 100.0 | 100.0
F11 | no Na2CO3 | Total Ro. Cone | 1.83 | 484.8 | 1.92 | 8.8 | 48.3 | 42.2 | 13.4
| PAX+A208 | Tails | 0.19 | 64.2 | 1.20 | 91.2 | 51.7 | 57.8 | 86.6
| CuSO4 | Calc. Head | 0.34 | 101.3 | 1.26 | 100.0 | 100.0 | 100.0 | 100.0

The P80 of 83 µm on F9 tailings slightly exceeded the feed size, indicating that flotation of the slimes had occurred. Scrutiny of metal grades in the individual size fractions in Figure 4.13 suggested that much of the residual Au and Ag is still unliberated. Losses in the tailings might be reduced further by addition of a Au promoter, with activation of the sphalerite and pyrite, as explored inTest F11. In general, however, the Ag recovery was deemed unsatisfactory, and the focus of the work was shifted to other processing alternatives.

MineStart Management Inc | 32

4.2.3 Gravity Separation - Composites A, B, C
Gravity separation in three passes through a Falcon concentrator was conducted on Composites A, B and C to explore another alternative of recovering precious metal bearing minerals. Coarse as-received materials and others ground to a P80 of ~75 microns were tested for each composite. Conditions recommended by the manufacturer included the application of a centrifugal force of 100G with a back-flush (fluidization) water pressure of 1.5psig. All products were assayed for Au and Ag only. The test results are tabulated in Table 4.13 and details are also provided in Appendix III.
Table 4.13 - Gravity Separation Test Results

Test | Comp ID | Product | Grade | Recovery
No | (Particle Size, P80) conditions |  | Au g/t | Ag g/t | mass % | Au % | Ag %
GSB 1 | Comp A (269 µm) 100G, 1.5psig | Total Concentrates Calculated Head | 0.52 0.35 | 124.7 93.8 | 24.1 100.0 | 36.5 100.0 | 32.1 100.0
GSB4 | Comp A (76 µm) 150G, 1psig | Total Concentrates Calculated Head | 0.71 0.33 | 126.1 91.2 | 19.7 100.0 | 42.1 100.0 | 27.2 100.0
GSB 2 | Comp B (180 µm) 100G, 1.5psig | Total Concentrates Calculated Head | 0.71 0.50 | 96.9 70.3 | 23.6 100.0 | 33.3 100.0 | 32.5 100.0
GSB 5 | Comp B (77 µm) 150G, 1psig | Total Concentrates Calculated Head | 1.29 0.56 | 96.5 70.5 | 22.4 100.0 | 51.5 100.0 | 30.7 100.0
GSB 3 | Comp C (254 µm) 100G, 1.5psig | Total Concentrates Calculated Head | 0.65 0.33 | 58.0 39.7 | 24.1 100.0 | 47.0 100.0 | 35.2 100.0
GSB 6 | Comp C (79 µm) 150G, 1psig | Total Concentrates Calculated Head | 0.98 0.38 | 65.5 40.7 | 24.8 100.0 | 64.3 100.0 | 39.9 100.0

Tests GSB1 to GSB3 on the as-received (un-ground) materials yielded upgrading factors < 2 in all cases, with recoveries generally on the order of 35% only. Finer grinding in Tests GSB4 to GSB6 and testing at 150G and Ipsig water backpressure, as recommended by the manufacturer, improved the results only marginally. This could indicate that much of the Au and Ag is liberated and of a fine-grained nature to start with. The coarser yet lighter minerals would tend to dilute the concentrate grades and the resulting high mass pulls might not benefit further processing, in an economical sense. The best results were obtained with ground sulphide Composite C, which yielded 64% Au and 40% Ag recoveries in 25% of the mass. Doubling of the Ag recoveries would be difficult to achieve and direct cyanidation might offer a more viable processing option.

MineStart Management Inc | 33

4.3 BATCH CYANIDE LEACHING
Exploratory bottle roll cyanidation tests were conducted on as-received and ground samples on Composites A and B. The tests were undertaken at 1 g/L NaCN in solution and pH ~ 10.5 for a period of 72 hours with dO2 monitoring.
Feed samples, intermediate solutions, and final leach products were assayed for Au and Ag, occasionally by different methods for the latter element. Calculated head assays were generally very consistent with measured head values of the samples split out from the individual feed batches. No size assay analyses were conducted, but product solutions were ICP-scanned and the free NaCN levels were regularly monitored, along with the pH and dissolved oxygen (dO2). The data is summarized in Table 4.14 and more detailed results are provided in Appendix IV. Separate cuts for head assays were taken from the freshly ground feed of each test, matched closely by the back-calculated values shown below.
Table 4.14 - Effect of Particle Size on Extractions

Test No | Comp ID | Particle Size | Calc'd Head | Extraction | Residue | Consumption, kg/t
P80, µm | Au, g/t | Ag, g/t | Au, % | Ag, % | Au, g/t | Ag, g/t | NaCN | Lime
C1 | Comp. A | 269 | 0.32 | 100 | 81.5 | 66.4 | 0.06 | 33.8 | 1.76 | 1.35
C2 | Comp. A | 103 | 0.35 | 95 | 85.7 | 79.3 | 0.05 | 19.8 | 1.63 | 1.84
C3 | Comp. A | 78 | 0.45 | 96 | 89.1 | 80.4 | 0.05 | 18.9 | 2.61 | 1.58
C4 | Comp. B | 180 | 0.50 | 76 | 82.0 | 69.1 | 0.09 | 23.7 | 2.59 | 1.82
C5 | Comp. B | 100 | 0.51 | 73 | 88.3 | 77.1 | 0.06 | 16.8 | 1.74 | 1.81
C6 | Comp. B | 84 | 0.53 | 74 | 86.9 | 77.3 | 0.07 | 16.9 | 1.74 | 1.92

MineStart Management Inc | 34

4.3.1 Baseline Cyanidation Results - Composites A, B
Test C1 on as-received Composite A showed moderate free NaCN consumption levels throughout the whole 72-hour leach period, indicative of active leaching at a relatively coarse size of P80 ~270 µm Encouraging extractions of 81.5% Au and 66.4% Ag were indeed achieved, still on the rise after 72 hours of leaching. Figure 4.15 compares the leach results for Composites A and B at various grind sizes (as percentage passing 150 mesh).
The simultaneous tests showed that Ag extractions were optimal at P80 ~100 µm. Proportionally, more of the gold was soluble than the associated silver, which could indicate the presence of refractory minerals. The final sodium cyanide consumption increased from 1.6 to 2.6kg/t with finer grinds for Composite A, but decreased from 2.6 to 1.7 kg/t for Composite B, again with an optimum near P80 ~100 µm for both materials and correlating with the dissolved Cu and Zn levels, which were on the order of 75-85mg/L and 12-15mg/L. Composites A and B also consumed 1.4 to 1.8 kg/t and 1.8 to 1.9 kg/t of lime, respectively.

MineStart Management Inc | 35

4.3.2 Baseline Leach Kinetics - Composite A, B
Leaching kinetics of as-received Composites A and B (P80 269 and 180 µm) are seen to be respectable, in Figures 4.16 and 4.17. The Ag extractions are still on the rise at the 72-hour mark, but not much is gained after 24 hours of leaching for the finer grinds.
For Composite A (solid lines), finer grinding continued to improve the Ag kinetics, while leaching seemed slightly better at the intermediate grind for Composite B. A 24-hour leach period was adequate for gold extraction as well, with two notable exceptions for Composite A, as shown in Figure 4.17.
For Composite B (broken lines), the intermediate grind was again optimal for Au leaching, while Au leached well from the as-received material already when compared to the coarser as-received Composite A. Fine grinding on Composite A (Test C3) now displayed a strikingly different Au leach pattern, inhibited at first but surpassing all other extractions and still on the rise at the 72-hour mark. The noted Au and Ag leach responses might suggest that tarnishing may have occurred during weathering and finer grinding. Once these surface layers are penetrated, the cyanide will quickly attack until the residual, more refractory minerals further slow down the leaching.

MineStart Management Inc | 36

4.3.3 Effect of NaCN Dosages - Composites A, B, C
Further cyanidation tests were performed to investigate the influence of cyanide dosage on the extractions at P80 ~74 µm and pH 10.5. Initial test results for Composite A as summarized in Table 4.15, show that increasing the free NaCN concentration from 0.5 to 2.0 g/L improved Ag extraction from 79 to 90% at the expense of a 124% rise in free NaCN consumption. The NaCN consumption was seen to increase monotonously with retention time in all of the tests.
Table 4.15 - Effect of NaCN Dosage on Composite A

Test No | NaCN | Calc'd Head | Extraction | Residue | Consumption, kg/t
g/L | Au, g/t | Ag, g/t | Au, % | Ag, % | Au, g/t | Ag, g/t | NaCN | Lime
C7 | 0.5 | 0.34 | 92.0 | 82.7 | 78.6 | 0.06 | 19.8 | 2.27 | 1.83
C3 | 1.0 | 0.45 | 95.7 | 89.1 | 80.4 | 0.05 | 18.9 | 2.61 | 1.58
C8 | 2.0 | 0.34 | 91.3 | 85.5 | 89.7 | 0.05 | 9.5 | 5.08 | 0.75

MineStart Management Inc | 37

Increasing NaCN levels for Composite B also improved Ag extractions from 73% to 80% at the expense of a 73% rise in NaCN consumption, as shown in Table 4.16. The Au extractions were steady between 86 and 87%. Doubling the 1 g/L NaCN level seemed to have a greater effect on Ag and Au extractions from the sulphidic Composite C (Table 4.17).
Table 4.16 - Effect of NaCN Dosage on Composite B

Test No | NaCN | Calc'd Head | Extraction | Residue | Consumption, kg/t
g/L | Au, g/t | Ag, g/t | Au, % | Ag, % | Au, g/t | Ag, g/t | NaCN | Lime
C9 | 0.5 | 0.57 | 73.1 | 86.0 | 73.2 | 0.08 | 19.8 | 2.62 | 1.24
C6 | 1.0 | 0.53 | 74.1 | 86.9 | 77.3 | 0.07 | 16.9 | 1.74 | 1.92
C10 | 2.0 | 0.51 | 76.3 | 86.4 | 79.5 | 0.07 | 15.9 | 4.54 | 0.97

Table 4.17 - Effect of NaCN Dosage on Composite C

Test No | NaCN | Calc'd Head | Extraction | Residue | Consumption, kg/t
g/L | Au, g/t | Ag, g/t | Au, % | Ag, % | Au, g/t | Ag, g/t | NaCN | Lime
C11 | 1.0 | 0.35 | 41.5 | 77.3 | 73.8 | 0.08 | 10.9 | 3.99 | 2.83
C12 | 2.0 | 0.39 | 44.7 | 85.0 | 86.6 | 0.06 | 6.1 | 7.33 | 2.55

Most of the dissolved metals remained on the order noted in the baseline tests for Composites A and B, but the Cu and Zn averages for Composite C rose to 457 and 51.3 mg/L, respectively, while its mean weight loss came in around 1%. For this Composite C, the free NaCN consumption levels rose from 4 kg/t at 1 g/L NaCN to 7.3 kg/t at 2 g/L NaCN, while the lime requirements were 2.8 kg/t and 2.6 kg/t, respectively.
4.3.3.1 NaCN Level Confirmation Tests - Composites A, B
Since the measured and back-calculated head assays in previous test series were lower than expected, tests were repeated at tow NaCN levels for Composites A and B (Tables 4.18 and 4.19). Non-systematic variations in the assays and calculated results likely reflect the subtle variations in mineralogy, fineness of grind and daily temperature profiles.

MineStart Management Inc | 38

Table 4.18 - Check of NaCN Dosage on Composite A

Test No | NaCN | Calc'd | Head | Extraction | Residue | Consumption, kg/t
g/L | Au, g/t | Ag, g/t | Au, % | Ag, % | Au, g/t | Ag, g/t | NaCN | Lime
C7 | 0.5 | 0.34 | 92.0 | 82.7 | 78.6 | 0.06 | 19.8 | 2.27 | 1.83
C13 | 0.5 | 0.38 | 104.7 | 86.8 | 79.7 | 0.05 | 21.3 | 1.54 | 1.25
C8 | 2.0 | 0.34 | 91.3 | 85.5 | 89.7 | 0.05 | 9.5 | 5.08 | 0.75
C14 | 2.0 | 0.42 | 104.9 | 82.1 | 83.1 | 0.08 | 17.8 | 3.73 | 0.84

Table 4.19 - Check of NaCN Dosage on Composite B

Test No | NaCN | Calc'd Head | Extraction | Residue | Consumption, kg/t
g/L | Au, g/t | Ag, g/t | Au, % | Ag, % | Au, g/t | Ag, g/t | NaCN | Lime
C9 | 0.5 | 0.57 | 73.1 | 86.0 | 73.2 | 0.08 | 19.8 | 2.62 | 1.24
C15 | 0.5 | 0.51 | 81.3 | 82.6 | 72.9 | 0.09 | 22.1 | 1.55 | 2.03
C10 | 2.0 | 0.51 | 76.3 | 86.4 | 79.5 | 0.07 | 15.9 | 4.54 | 0.97
C16 | 2.0 | 0.54 | 84.5 | 83.4 | 75.4 | 0.09 | 20.9 | 3.81 | 1.01

4.3.3.2 Comparison of Leach Kinetics - Composites A, B, C
The Au kinetics seem to be most sensitive to variations in grind size and in mineralogy, The duplicated results at 0.5 and 2 g/L NaCN and P80 ~74 µm, are compared in Figure 4.18 for Composite A. The traces from the duplicate tests (broken lines) seem of similar character as those from the original tests, but variably offset towards lower and higher values. Thus the traces at 2 g/L NaCN have leveled off at the 72 hour mark, while those with 0.5 g/L NaCN are still on the rise. The Ag traces are similar, but do not show such a clear distinction.
Different behavior can be noted for Au leach kinetics on Composite B, as shown in Figure 4.19, also for duplicated results at 0.5 and 2 g/L NaCN and P80 ~74 µm. The original run at 2 g/L NaCN (Test C10) was still leaching at the 72-hour mark, while the duplicate (Test C16) had leveled off at a lower degree of Au extraction.

MineStart Management Inc | 39

The Ag and Au results for Composite C at 1 and 2 g/L NaCN confirm the different shape of the Au leaching curves at those levels, in Figure 4.20 A slight drop in d02 levels at 2 g/L NaCN was noticeable on this sulphidic material only.

MineStart Management Inc | 40

4.3.3.3 Leaching at 45% solids - Composites A, B
Two additional 24-hour leach tests were conducted on Composites A and B at a pulp density of 45% solids, with 1 g/L NaCN and P80 ~74 µm, to complement the pulps for settling and filtration tests. The results of these Tests C17 and C18 are compared in Table 4.20 to baseline results C3 and C4 at 40% solids, on the 24-hour mark. Non-systematic variations of the leach data shown again ensued.
Table 4.20 - Effect of Pulp Density on 24-h Leaching of Composites A, B

Test No | PD | Calc'd Head | 24-h Extraction | Final Residue | Consumption, kg/t
| %solids | Au, g/t | Ag, g/t | Au, % | Ag, % | Au, g/t | Ag, g/t | NaCN | Lime
C3 | 40 | 0.45 | 95.7 | 72.3 | 78.0 | 0.05 | 18.9 | 1.37 | 2.02
C17 | 45 | 0.33 | 99.1 | 90.9 | 79.4 | 0.03 | 20.4 | 0.97 | 1.18
C4 | 40 | 0.52 | 74.1 | 85.9 | 73.0 | 0.06 | 16.9 | 0.82 | 2.01
C18 | 45 | 0.42 | 78.7 | 78.6 | 67.7 | 0.09 | 25.4 | 0.91 | 1.34

From these results and the foregoing discussions on duplicate tests at different periods, it would seem that temperature profile and assay differences are likely responsible for different 24-hour extractions, which tend to affect the ultimate 72-hour results. Simultaneous bottle roll results only can be used to derive specific trends, while averages over duplicate leach tests will likely predict the overall responses more accurately.

MineStart Management Inc | 41

4.4 VACUUM FILTRATION TESTS
Settling and filtration requirements of the cyanide leach residues were investigated in an extended series of tests, using a standard 0.1 ft2 circular leaf of coarse-weave polypropylene (Envirotech POPR-901F). An abbreviated summary of the tests is provided in this section, and further details are listed in Appendix VI.
4.4.1 Settling Tests
A simple flocculant-screening test on combined dry cyanide leach residues from Tests C2, C5, C7 to C10, yielded slow settling without the use of flocculants at pH 10.5 to 12. Poor supernatant clarity was obtained at pH 10.5 with 50g/t dosages of Magnafloc reagents 156, 351 and 368. Fast settling and superior clarity resulted when 25g/t Magnafloc 156 at pH 12 was used. A single settling test (ST1) confirmed the settling characteristics as follows. The feed was at 25% solids, and a target underflow of 55% solids would require 0.14 m2 of thickener area per tonne/day of solids (see Appendix VI).
4.4.2 Scoping Tests (VF1,2)
Two equal portions of the 50%-solids underflow of the settling test were used to scope out the filtration and wash cycle efficiencies. In Test VF1, a 1mm cake was formed in 60 seconds, and an equal drying time was allowed prior to washing with 0.5g/L NaCN for 120 seconds and drying for 60 seconds. A water wash then followed under the same conditions, and all of the filtrates were analyzed. The filtrate of the feed (ST1 underflow) contained only 1.6 mg/L Ag and both wash filtrates were measured to contain 1.4 mg/L Ag. In Test VF2, the filtration cycle times were prolonged, which resulted in an increase of the final moisture content, from 26% in VF1 to 32% in VF2. Filtrates were no longer assayed in the second test.

MineStart Management Inc | 42

4.4.3 Scoping Filter Areas (VF3,4)
Larger amounts of pulp at 45% solids were prepared from dry Composite A residues C2 and C13 (Test VF3), as well as dry Composite B residues C5 and C15 (Test VF4). For Composite A residues, filtration with a form time of 60 seconds and a dry time of 120 seconds produced an 8mm cake with 17% residual moisture, and the unit filter areas were calculated at -255 kg/m2/h on a dry solids basis, and -360 U m2/h of solution. For Composite B residues the test yielded an 11mm cake with 17% moisture, a cake capacity of -455 kg/m2/h and a filtrate capacity of -605 U m2/h. The filtrate appeared to be slightly clouded by entrained fines.
4.4.4 Flocculated Pulp Results (VF5,6)
The 24-hour leach pulps at 45% solids of Composite A (C17) and Composite B (C18) were flocculated at pH 10.5 with 25g/t Magnafloc 156, and subjected to filtration with 30 seconds form time and 60 seconds dry time. The cake was washed with 1g/L NaCN with 30 seconds of form time and 60 seconds of dry time, followed by a final water wash. The pregnant filtrate was a bit turbid, but the barren filtrate and the wash water cleared up progressively.
For composite A pulp (VF5), a 2mm washed cake was obtained containing 24% moisture and the calculated unit filter areas were -85 kg/m2/h and -105 U m2/h, respectively. The sequential filtrates (61, 15, 24 mL) were progressively depleted in Ag (51, 37, 10 mg/L), Au (0.24, 0.21, 0.06 mg/L) and Cu (0.58, 0.26, 0.17 mg/L).
For composite B pulp (VF6), a 3mm washed cake was obtained containing 18% moisture and the calculated unit filter areas were -215 kg/m2/h and -120 L/ m2/h, respectively. The sequential filtrates (87, 27, 28 mL) were progressively depleted in Ag (38, 29, 7 mg/L), Au (0.29, 0.25, 0.08 mg/L); other metals were generally below their detection limits.

MineStart Management Inc | 43

4.5 COLUMN LEACHING
Encouraging results with cyanide leaching of the as-received materials prompted an exploratory investigation of the heap leaching potential for the oxidic tailings. A transparent column 4" in diameter with a perforated base plate was set up to simulate heap leaching of agglomerated Composite A + B material with recycled barren cyanide solution.
4.5.1 Column Start Up
Composite A+B was prepared by blending approximately equal residual weights of archived as-received materials, and a triplicate head assay yielded average values of 0.4g/t Au, 90 g/t Ag, 0.13% Cu, 0.96% Pb and 0.15% Zn. Around 31kg of the composite was initially loaded into the column after agglomeration. However, percolation of the fine materials during the pH adjustment period reduced both the solution flowrate and the pH. Therefore, the column contents were emptied and re-agglomerated by mixing with 5kg/t cement and water to bind the fines. The column was reloaded and then conditioned by circulating a pH 10.5 hydrated lime solution at a flowrate of approximately 0.05mL/sec.
After the column attained a pH of higher than 10, the feed solution was spiked with cyanide to a concentration of 0.5g/L NaCN, on day 14 after set up. However, the solution flowrate continued to decrease due to percolation of fines. Further agglomeration was conducted on the sample with cement and lime and the re-agglomerated sample was allowed additional curing time. In order to ensure intensive leaching, the cyanide level was increased to 2.0g/L after 26 days of leaching. The column leach test lasted for 81 days excluding the pH adjustment and agglomeration periods. The ICP head assay data of the feed composite is summarized in Table 4.21 below.

MineStart Management Inc | 44

T able 4.21 - Comparison of ICP Data on Composites A + B

Sample Name | AVG.A* | AVG.B* | AVG.A+B | AVG.A+B | Detection
Element | Unit | F1,F3,F4,A | F2,F5,F6,B | Calculated | Measured | Minimum | Maximum | Method
Al |  |  | ppm |  |  | 40,446.8 |  |  | 30,473.5 |  |  | 35,460.1 |  |  | 32,037.3 |  |  | 100.0 |  |  | 50,000 |  |  | ICPM
Sb |  |  | ppm |  |  | 181.5 |  |  | 128.5 |  |  | 155.0 |  |  | 163.7 |  |  | 5.0 |  |  | 2,000 |  |  | ICPM
As |  |  | ppm |  |  | 0.0 |  |  | 47.3 |  |  | 23.6 |  |  | 10.3 |  |  | 5.0 |  |  | 10,000 |  |  | ICPM
Ba |  |  | ppm |  |  | 697.3 |  |  | 561.0 |  |  | 629.1 |  |  | 601.3 |  |  | 2.0 |  |  | 10,000 |  |  | ICPM
Bi |  |  | ppm |  |  | 241.3 |  |  | 349.8 |  |  | 295.5 |  |  | 283.7 |  |  | 2.0 |  |  | 2,000 |  |  | ICPM
Cd |  |  | ppm |  |  | 0.0 |  |  | 0.0 |  |  | 0.0 |  |  | 0.0 |  |  | 0.2 |  |  | 2,000 |  |  | ICPM
Ca |  |  | ppm |  |  | 16,669.5 |  |  | 2,448.5 |  |  | 9,559.0 |  |  | 12,334.7 |  |  | 100.0 |  |  | 100,000 |  |  | ICPM
Cr |  |  | ppm |  |  | 199.3 |  |  | 173.3 |  |  | 186.3 |  |  | 108.0 |  |  | 1.0 |  |  | 10,000 |  |  | ICPM
Co |  |  | ppm |  |  | 10.8 |  |  | 7.5 |  |  | 9.1 |  |  | 9.3 |  |  | 1.0 |  |  | 10,000 |  |  | ICPM
Cu |  |  | ppm |  |  | 1,321.8 |  |  | 1,059.5 |  |  | 1,190.6 |  |  | 1,283.0 |  |  | 1.0 |  |  | 20,000 |  |  | ICPM
Fe |  |  | ppm |  |  | 75,626.8 |  |  | 83,417.8 |  |  | 79,522.3 |  |  | 73,123.7 |  |  | 100.0 |  |  | 50,000 |  |  | ICPM
La |  |  | ppm |  |  | 11.5 |  |  | 8.8 |  |  | 10.1 |  |  | 9.3 |  |  | 2.0 |  |  | 10,000 |  |  | ICPM
Pb |  |  | ppm |  |  | 11,242.3 |  |  | 6,326.0 |  |  | 8,784.1 |  |  | 9,583.0 |  |  | 2.0 |  |  | 10,000 |  |  | ICPM
Mg |  |  | ppm |  |  | 3,760.3 |  |  | 2,158.3 |  |  | 2,959.3 |  |  | 2,941.7 |  |  | 100.0 |  |  | 100,000 |  |  | ICPM
Mn |  |  | ppm |  |  | 2,941.0 |  |  | 1,806.5 |  |  | 2,373.8 |  |  | 2,190.3 |  |  | 1.0 |  |  | 10,000 |  |  | ICPM
Hg |  |  | ppm |  |  | 0.0 |  |  | 0.0 |  |  | 0.0 |  |  | 0.0 |  |  | 3.0 |  |  | 10,000 |  |  | ICPM
Mo |  |  | ppm |  |  | 33.3 |  |  | 33.0 |  |  | 33.1 |  |  | 17.0 |  |  | 1.0 |  |  | 1,000 |  |  | ICPM
Ni |  |  | ppm |  |  | 101.3 |  |  | 70.8 |  |  | 86.0 |  |  | 0.0 |  |  | 1.0 |  |  | 10,000 |  |  | ICPM
P |  |  | ppm |  |  | 277.3 |  |  | 198.3 |  |  | 237.8 |  |  | 217.7 |  |  | 100.0 |  |  | 50,000 |  |  | ICPM
K |  |  | ppm |  |  | 22,436.8 |  |  | 13,170.3 |  |  | 17,803.5 |  |  | 19,500.7 |  |  | 100.0 |  |  | 100,000 |  |  | ICPM
Sc |  |  | ppm |  |  | 3.0 |  |  | 2.0 |  |  | 2.5 |  |  | 3.0 |  |  | 1.0 |  |  | 10,000 |  |  | ICPM
Ag |  |  | ppm |  |  | 120.3 |  |  | 89.1 |  |  | 104.7 |  |  | 89.6 |  |  | 0.1 |  |  | 100 |  |  | ICPM
Na |  |  | ppm |  |  | 2,503.5 |  |  | 1,888.0 |  |  | 2,195.8 |  |  | 1,153.3 |  |  | 100.0 |  |  | 100,000 |  |  | ICPM
Sr |  |  | ppm |  |  | 52.3 |  |  | 29.3 |  |  | 40.8 |  |  | 49.0 |  |  | 1.0 |  |  | 10,000 |  |  | ICPM
Tl |  |  | ppm |  |  | 0.0 |  |  | 0.0 |  |  | 0.0 |  |  | 0.0 |  |  | 2.0 |  |  | 1,000 |  |  | ICPM
Ti |  |  | ppm |  |  | 791.8 |  |  | 497.8 |  |  | 644.8 |  |  | 1,008.3 |  |  | 100.0 |  |  | 100,000 |  |  | ICPM
W |  |  | ppm |  |  | 10.3 |  |  | 21.3 |  |  | 15.8 |  |  | 18.0 |  |  | 5.0 |  |  | 1,000 |  |  | ICPM
V |  |  | ppm |  |  | 41.5 |  |  | 32.3 |  |  | 36.9 |  |  | 38.3 |  |  | 2.0 |  |  | 10,000 |  |  | ICPM
Zn |  |  | ppm |  |  | 2,264.5 |  |  | 864.8 |  |  | 1,564.6 |  |  | 1,455.0 |  |  | 1.0 |  |  | 10,000 |  |  | ICPM
Zr |  |  | ppm |  |  | 28.8 |  |  | 24.5 |  |  | 26.6 |  |  | 27.0 |  |  | 1.0 |  |  | 10,000 |  |  | ICPM

*averages including measured heads of indicated flotation tests
4.5.2 Column Operation
Pregnant solution was collected and stripped with carbon at regular intervals. The carbon was screened out, washed, dried, weighed and assayed for Au and Ag. The barren solution was adjusted to the target free NaCN and pH levels and recycled to the top of the column at approximately 0.05ml_/s. All reagent additions and measurements were recorded on log sheets, and the on-going performance of the column was evaluated based on the initial head assays. The data was reported to the client, noting that the final evaluation would be based on the calculated material balance at the end of the campaign. The overall performance of the column is shown in Figure 4.21 and leach conditions are listed in Table 4.22 below.

MineStart Management Inc | 45

Table 4.22 - Column Leach Test Conditions

pH: |  | ~11 | Cyanide Concentration |  | 0.5 g/L (Set-up Day 15-40)
Time consumption: |  | 7.13 kg/t |  |  | 2.0 g/L (Set-up Day 40-100)
*Cement consumption: |  | 21.8 kg/t | *NaCN Consumption: |  | 2.32 kg/t
*Agglomeration Lime: |  | 6.6 kg/t | Flowrate: |  | ~ 0.05 mL/sec
®Agglomerated Particle Sze (P80): |  | 2614 mm | Column Size: |  | φ 0.102 m x 3.048 m (φ4" x 10')

*Non-optimzed amounts totaled over separate test segments; @Average parlide size of cdumn leach residue
In the first 41 days, the extraction kinetics were vigorous, and about 67% of the gold and 61% of the silver were recovered on the carbon. These relatively slow extraction rates, as compared to Figures 4.13 and 4.14 are typical of column leaching of porous agglomerates. Increasing the NaCN level from 0.5g/L to 2.0g/L after Day 26 did not significantly benefit the extraction kinetics. The cyanide consumption was 2.32kg/t, which could be reduced substantially if the free cyanide concentration were kept below 0.5g/L NaCN. Lime and cement consumption were 7.1 kg/t and 21.8kg/t respectively. These consumption levels, especially those for the cement, can be decreased by further optimization. Therefore, agglomeration tests were performed as discussed below.

MineStart Management Inc | 46

4.5.3 Column Ending
The column test was ended by 4 displacement washes with pH 10.5 hydrated lime solution. Carefully discharged contents of the column were then separated into sections representing various parts of the column. The wash solutions and residues were assayed separately for Au and Ag, and the overall metallurgical balance was calculated (Table 4.23).
Table 4.23 - Column Leach Metallurgical Balance

| Volume | Weight | NaCN | Grade, mg/L, g/t | Recovery, %
| L | kg | g/L | Au | Ag | Au | Ag
Final Barren Sol'n | 4.0 |  | 1.30 | 0.02 | 0.2 | 0.6 | 0.0
1st Wash Solution | 4.6 |  | 1.10 | 0.05 | 11.0 | 1.7 | 2.1
2nd Wash Solution | 3.7 |  | 0.50 | 0.03 | 5.7 | 0.8 | 0.9
3rd Wash Solution | 5.4 |  | 0.05 | 0.01 | 0.9 | 0.4 | 0.2
4th Wash Solution | 4.4 |  | 0.02 | <0.01 | 0.3 | 0.4 | 0.1
Total Carbon |  |  |  |  |  | 74.8 | 69.7
Total Extraction |  |  |  |  |  | 78.9 | 73.0
Residue |  | 30.94 |  | 0.09 | 21.0 | 21.1 | 27.0
Calculated Head |  |  |  | 0.43 | 77.9 | 100.0 | 100.0
Measured Head |  |  |  | 0.41 | 83.0 |  |

The test results indicate that the composite responded well to the heap leach process. About 79% of the gold and 73% of the silver were leached out after exposure to cyanide for 81 days. The extractions should be compared to the 72-hour bottle roll leach data for as-received Composites A and B (on average 81.8% Au and 67.8% Ag, see Table 4.14).

MineStart Management Inc | 47

4.5.4 Column Residue Analyses
The residues representing the top and bottom parts of the column returned similar grades of 0.08 to 0.10 g/t Au and 21.0 to 21.1 g/t Ag, respectively. Size-assay analyses on these residues, de-agglomerated by rolling, are shown in Figures 4.22 and 4.23 to indicate that most of the Ag is lost in the coarse fractions, suggesting inadequate liberation. Elevated gold levels, however, were also encountered in the undersize, likely associated with refractory clay minerals.

MineStart Management Inc | 48

4.5.5 Column Residue Leaching
Two bottle-roll cyanidation tests on de-agglomerated top- and bottom-column residues (Pso ~215um), were conducted in 1.0g/L NaCN solution at pH -10.5 for 48 hours. The results as shown in Appendix V and summarized in Table 4.24 confirm that most of the gold and silver were leached in the column. The residual cyanide-leachable gold and silver could account for up to 12% of the Au and 2% of the Ag in Composite A+B. However, the gold concentration in solutions was consistently below the detection limit.
Table 4.24 - Cyanidation Leach on De-Agglomerated Column Residues

Test No | Sample ID | Calc'd Head | Extraction | Residue
|  | Au, g/t | Ag, g/t | Au, % | Ag, % | Au, g/t | Ag, g/t
C19 | Col. Residue-Top | <0.11 | 21.5 | <14.6 | 2.6 | 0.09 | 21.0
C20 | Col. Residue-Bottom | <0.10 | 22.3 | <14.4 | 2.1 | 0.09 | 21.9

MineStart Management Inc | 49

4.5.6 Agglomeration Tests
Three agglomeration campaigns were needed using the procedure as described in Section 3.5, to produce stable column performance. This resulted in down time and exaggerated lime and cement consumption levels. The effect of cement dosage and cure time on agglomeration on Composite B was then investigated. The results obtained are presented in Figure 4.24 to suggest that the fine fraction percent (-20mesh) decreased considerably with increasing cement dosage, until the cement addition reached the 7kg/t level. Prolonged curing times further reduced the fines fraction to the 15% mark. Further tests are recommended to study the influence of cement dosage and methods of agglomeration on mechanical strength after prolonged wetting.
4.6 ELECTROWINNING (EMEW)
The EMEW (Electrometals Electrowinning) technology relies on the creation of suitable hydro-dynamic conditions for efficient deposition of metals from solutions that are considered too dilute for conventional electrolysis. Test E1 was performed on pregnant solution generated from cyanidation tests C13 and C14, using a 5L/min solution flow and a current density of 55 A/m2. Depletion of Ag in solution from 58mg/L to 3mg/L was accomplished in 90 minutes. In Test E2, aluminum sulphate (0.5g/L) and sodium hydroxide were added to increase the solution conductivity, but the cathode passivated at 50A/m2 current density. The Ag deposition resumed at 100A/m2 and depletion was halted after 60 minutes, at ~17 mg/L Ag.

MineStart Management Inc | 50

Test E3 was run at 15L/min flow and 100 A/m2 of current density and achieved depletion to ~3mg/L Ag in a shorter time than E1. The results, as described in Figure 4.25 and Table 4.25, suggest that the EMEW system will selectively deposit silver and gold from the pregnant solutions. The results from Tests E1 and E3 indicate that the silver tenor depletes reliably to 3mg/L Ag, but further optimization of plant size vs. current efficiency will be required. At the conditions tested, the deposition was very selective against co-deposition of the base metals. More detailed test data and feed solution identifications are provided in Appendix VI. The NaCN levels were followed in Test E2 only and were found to drop slightly from 0.66mg/L at the start to 0.54mg/L NaCN at the end of the test.
Table 4.25 - EMEW Test Results

Test No | Silver Tenor, mg/L | Time | Current Density | Flowrate
and Feed | Start | End | min | Aim2 | L/min
E1 on C13+C14 PLS | 57.6 | 3.0 | 90 | 55 | ~5
E2 on C5+C6 PLS | 43.1 | 16.8 | 60 | 100 | ~5
E3 onC1+C16PLS | 41.4 | 3.3 | 60 | 100 | ~15

MineStart Management Inc | 51

MineStart Management Inc | 52

5 CONCLUSIONS AND RECOMMENDATIONS
________________________________________________________________________
Cyanidation provided the best option for treatment of the materials tested, including acceptable settling and filtration rates even at the finest grinds. Batch 72-hour bottle roll cyanidation tests extracted approximately 68% of the silver and 82% of the gold from oxidic Composites A and B. Better recoveries of 78% Ag and 87% Au were achieved with grinding to 80% passing around 150 mesh. The sulphidic Composite C yielded extractions of -87% Ag and 85% Au at a finer grind of 80% passing 200 mesh.
Column cyanide leach data on agglomerated Composite A+B was encouraging with 73% of the silver and 79% of the gold extracted over 81 days. Further optimization of the agglomeration method is recommended to prevent percolation of the fines and to reduce lime and cement consumption.
Brief exploration of the EMEW recovery system showed some promise and would benefit from higher solution tenors than were tested.
Bulk flotation recovered less than 50% of the precious metals from the oxidic tailings, even at a fine grind. This disappointing response is probably due to the extensive degree of mineral oxidation present. Using modifiers such as Na2S, NaCN and CUSO4, yielded some improvements but not significant enough for implementation. The primary gravity separation tests (at conditions specified by the manufacturer) fell short of the desired upgrading effect. More detailed work would be required if further pursuit of these pre-concentration methods are to be contemplated.

SAMPLE RECEIVING LOG

Receiving Date: | 30-Jul-04 | Project No: | 0406407
Carrier: | ISAAC Freight Ltd. | Company: | MineStart Management Inc.
Receiver: | Junpool/Julia/Li Cheng | Page: | 1 of 5

Count | Sample Label | New ID | Container Type | Color | Type | Wet | Dry | Top Size | Fine Size | Dry Weight (grams) | Wet Weight (grams) | Moisture Content (%)
1 | S1. S1 | S-1 | Plastic Bag | Brown |  | X |  |  |  | 2,520 | 2,700 | 7.14
2 | S1. S2 | S-2 | Plastic Bag | Brown |  | X |  |  |  | 2,305 | 2,485 | 7.81
3 | S1S3 | S-3 | Plastic Bag | Brown |  | X |  |  |  | 2,495 | 2,675 | 7.21
4 | S2S1 | S-4 | Plastic Bag | Brown |  | X |  |  |  | 2,540 | 2,845 | 12.01
5 | S2S2 | S-5 | Plastic Bag | Brown |  | X |  |  |  | 1,995 | 2,220 | 11.28
6 | S2S3 | S-6 | Plastic Bag | Brown |  | X |  |  |  | 2,750 | 3,100 | 12.73
7 | OL1. S1 | S-7 | Plastic Bag | Brown |  | X |  |  |  | 4,710 | 5,305 | 12.63
8 | OL1/S2 | S-8 | Plastic Bag | Brown |  | X |  |  |  | 3,705 | 4,185 | 12.96
9 | OL1. S3 | S-9 | Plastic Bag | Brown |  | X |  |  |  | 3,090 | 3,455 | 11.81
10 | O3LS. S1 | S-10 | Plastic Bag | Brown |  | X |  |  |  | 3,520 | 3,805 | 8.10
11 | O3LS. S2 | S-11 | Plastic Bag | Brown |  | X |  |  |  | 3,770 | 4,355 | 15.52
12 | O3LS. S3 | S-12 | Plastic Bag | Brown |  | X |  |  |  | 3,915 | 4,380 | 11.88
13 | O3LS. S4 | S-13 | Plastic Bag | Brown |  | X |  |  |  | 3,960 | 4,405 | 11.24
14 | OLS5. S1 | S-18 | Plastic Bag | Brown |  | X |  |  |  | 3,925 | 4,245 | 8.15
15 | OLS5. S2 | S-19 | Plastic Bag | Brown |  | X |  |  |  | 4,030 | 4,330 | 7.44
16 | OLS5. S3 | S-20 | Plastic Bag | Brown |  | X |  |  |  | 4,090 | 4,590 | 12.22
17 | OLS5. S4 | S-21 | Plastic Bag | Brown |  | X |  |  |  | 4,165 | 5,030 | 20.77
18 | OLS6. S1 | S-22 | Plastic Bag | Brown |  | X |  |  |  | 3,500 | 3,725 | 6.43
19 | OLS6. S2 | S-23 | Plastic Bag | Brown |  | X |  |  |  | 3,680 | 4,105 | 11.55
20 | OLS6. S3 | S-24 | Plastic Bag | Brown |  | X |  |  |  | 3,950 | 4,550 | 15.19
Note : | Total | 68,615 | 76,490 | based on wet wt

SAMPLE RECEIVING LOG

Receiving Date: | 30-Jul-04 | Project No: | 0406407
Carrier: | ISAAC Freight Ltd. | Company: | MineStart Management Inc.
Receiver: | Junpool/Julia/Li Cheng | Page: | 2 of 5

Count | Sample Label | New ID | Container Type | Color | Type | Wet | Dry | Top Size | Fine Size | Dry Weight (grams) | Wet Weight (grams) | Moisture Content (%)
1 | OLS6. S4 | S-25 | Plastic Bag | Brown |  | X |  |  |  | 4,100 | 4,930 | 20.24
2 | OLS7. S1 | S-26 | Plastic Bag | Brown |  | X |  |  |  | 3,745 | 4,320 | 15.35
3 | OLS7. S2 | S-27 | Plastic Bag | Brown |  | X |  |  |  | 3,780 | 4,635 | 22.62
4 | OLS7. S3 | S-28 | Plastic Bag | Brown |  | X |  |  |  | 3,160 | 3,820 | 20.89
5 | OLS7. S4 | S-29 | Plastic Bag | Brown |  | X |  |  |  | 5,150 | 6,605 | 28.25
6 | OLS8. S1 | S-30 | Plastic Bag | Brown |  | X |  |  |  | 3,355 | 6,685 | 9.84
7 | OLS8. S2 | S-31 | Plastic Bag | Brown |  | X |  |  |  | 3,430 | 3,710 | 8.16
8 | OLS8. S3 | S-32 | Plastic Bag | Brown |  | X |  |  |  | 3,295 | 3,675 | 11.53
9 | OLSS. S4 | S-33 | Plastic Bag | Brown |  | X |  |  |  | 3,560 | 3,985 | 11.94
10 | OLS9. S1 | S-34 | Plastic Bag | Brown |  | X |  |  |  | 3,075 | 3,470 | 12.85
11 | OLS9. S2 | S-35 | Plastic Bag | Brown |  | X |  |  |  | 2,965 | 3,620 | 22.09
12 | OLS9. S3 | S-36 | Plastic Bag | Brown |  | X |  |  |  | 3,455 | 4,190 | 21.27
13 | OLS9. S4 | S-37 | Plastic Bag | Brown |  | X |  |  |  | 4,445 | 5,360 | 20.58
14 | OLS10. S1 | S-38 | Plastic Bag | Brown |  | X |  |  |  | 3,650 | 3,980 | 9.04
15 | OLS10. S2 | S-39 | Plastic Bag | Brown |  | X |  |  |  | 3,115 | 3,440 | 10.43
16 | OLS10. S3 | S-40 | Plastic Bag | Brown |  | X |  |  |  | 3,095 | 3,775 | 21.97
17 | OLS10. S4 | S-41 | Plastic Bag | Brown |  | X |  |  |  | 3,040 | 3,695 | 21.55
18 | OM1. S1 | S-42 | Plastic Bag | Brown |  | X |  |  |  | 3,605 | 3,980 | 1040
19 | OM1. S2 | S-43 | Plastic Bag | Brown |  | X |  |  |  | 3,475 | 3,835 | 10.36
20 | OM1. S3 | S-44 | Plastic Bag | Brown |  | X |  |  |  | 2,920 | 3,290 | 12.67
Note : | Total | 70,415 | 82,000 | based on wet wt

SAMPLE RECEIVING LOG

Receiving Date: | 30-Jul-04 | Project No: | 0406407
Carrier: | ISAAC Freight Ltd. | Company: | MineStart Management Inc.
Receiver: | Junpool/Julia/Li Cheng | Page: | 3 of 5

Count | Sample Label | New ID | Container Type | Color | Type | Wet | Dryl | Top Size | Fine Size | Dry Weight (grams) | Wet Weight (grams) | Moisture Content (%)
1 | OM1. S4 | S-45 | Plastic Bag | Brown |  | X |  |  |  | 3,255 | 3,635 | 11.67
2 | OM2. S1 | S-46 | Plastic Bag | Brown |  | X |  |  |  | 3,590 | 4,220 | 17.55
3 | OM2. S2 | S-47 | Plastic Bag | Brown |  | X |  |  |  | 2,860 | 3,210 | 12.24
4 | OM2. S3 | S-48 | Plastic Bag | Brown |  | X |  |  |  | 2,880 | 3,305 | 14.76
5 | OM2. S4 | S-49 | Plastic Bag | Brown |  | X |  |  |  | 3,140 | 3,570 | 13.69
6 | OM3. S1 | S-50 | Plastic Bag | Brown |  | X |  |  |  | 3,055 | 3,225 | 5.56
7 | OM3. S2 | S-51 | Plastic Bag | Brown |  | X |  |  |  | 2,880 | 3,140 | 9.03
8 | OM3. S3 | S-52 | Plastic Bag | Brown |  | X |  |  |  | 3,185 | 3,485 | 9.42
9 | OM3. S4 | S-53 | Plastic Bag | Brown |  | X |  |  |  | 2,930 | 3,180 | 8.53
10 | OM4. S1 | S-54 | Plastic Bag | Brown |  | X |  |  |  | 3,375 | 3,870 | 14.67
11 | OM4. S2 | S-55 | Plastic Bag | Brown |  | X |  |  |  | 3,080 | 3,780 | 22.73
12 | OM4. S3 | S-56 | Plastic Bag | Brown |  | X |  |  |  | 2,995 | 3,630 | 21.20
13 | OM4. S4 | S-57 | Plastic Bag | Brown |  | X |  |  |  | 2,975 | 3,695 | 24.20
14 | OM5. S1 | S-58 | Plastic Bag | Brown |  | X |  |  |  | 3,485 | 3,825 | 9.76
15 | OM5. S2 | S-59 | Plastic Bag | Brown |  | X |  |  |  | 2,975 | 3,625 | 21.85
16 | OM5. S3 | S-60 | Plastic Bag | Brown |  | X |  |  |  | 2,750 | 3,410 | 24.00
17 | OM5. S4 | S-61 | Plastic Bag | Brown |  | X |  |  |  | 3,085 | 3,580 | 16.05
18 | OM6. S1 | S-62 | Plastic Bag | Brown |  | X |  |  |  | 3,580 | 4,185 | 16.90
19 | OM6. S2 | S-63 | Plastic Bag | Brown |  | X |  |  |  | 3,445 | 4,180 | 21.34
20 | OM6. S3 | S-64 | Plastic Bag | Brown |  | X |  |  |  | 3,260 | 3,985 | 22.24
Note : | Total | 62,780 | 72,735 | based on wet wt

SAMPLE RECEIVING LOG

Receiving Date: | 30-Jul-04 | Project No: | 0406407
Carrier: | ISAAC Freight Ltd. | Company: | MineStart Management Inc.
Receiver: | Junpool/Julia/Li Cheng | Page: | 4 of 5

Count | Sample Label | New ID | Container Type | Color | Type | Wet | Dry | Top Size | Fine Size | Dry Weight (grams) | Wet Weight (grams) | Moisture Content (%)
1 | OM8. S1 | S-68 | Plastic Bag | Brown |  | X |  |  |  | 3,770 | 4,440 | 17.77
2 | OM8. S2 | S-69 | Plastic Bag | Brown |  | X |  |  |  | 3,915 | 4,375 | 11.75
3 | OM8. S3 | S-70 | Plastic Bag | Brown |  | X |  |  |  | 3,845 | 4,745 | 23.41
4 | OM 9. S1 | S-71 | Plastic Bag | Brown |  | X |  |  |  | 5,390 | 5,935 | 10.11
5 | OM 9. S2 | S-72 | Plastic Bag | Brown |  | X |  |  |  | 3,840 | 4,125 | 7.42
6 | OM 9. S3 | S-73 | Plastic Bag | Brown |  | X |  |  |  | 4,140 | 4,570 | 10.39
7 | O5A/S1 | S-75 | Plastic Bag | Brown |  | X |  |  |  | 4,325 | 4,640 | 7.28
8 | O5A. S2 | S-76 | Plastic Bag | Brown |  | X |  |  |  | 8,760 | 4,260 | 13.30
9 | O5A. S3 | S-77 | Plastic Bag | Brown |  | X |  |  |  | 4,045 | 4,615 | 14.09
10 | O1 S2 |  | Plastic Bag | Brown |  | X |  |  |  | 1,970 | 2,210 | 12.18
11 | O1 S1 |  | Plastic Bag | Brown |  | X |  |  |  | 2,615 | 2,985 | 14.15
12 | 6OC. S1 |  | Plastic Bag | Brown |  | X |  |  |  | 3,745 | 4,260 | 13.75
13 | O1 S3 |  | Plastic Bag | Brown |  | X |  |  |  | 1,075 | 2,370 | 14.22
14 | O2 S3 |  | Plastic Bag | Brown |  | X |  |  |  | 4,510 | 4,985 | 10.53
15 | O2 S1. S4 |  | Plastic Bag | Brown |  | X |  |  |  | 3,465 | 3,925 | 13.28
16 | O2 S1 |  | Plastic Bag | Brown |  | X |  |  |  | 3,690 | 4,190 | 13.55
17 | O3. S3 |  | Plastic Bag | Brown |  | X |  |  |  | 2,755 | 3,010 | 9.26
18 | O3. S1 |  | Plastic Bag | Brown |  | X |  |  |  | 2,465 | 2,605 | 5.68
19 | O3. S2 |  | Plastic Bag | Brown |  | X |  |  |  | 2,895 | 3,115 | 7.60
20 | O4. S3 |  | Plastic Bag | Brown |  | X |  |  |  | 3,880 | 4,650 | 19.85
Note : | Total | 71,095 | 30,010 | based on wet wt

SAMPLE RECEIVING LOG

Receiving Date: | 30-Jul-04 | Project No: | 0406407
Carrier: | ISAAC Freight Ltd. | Company: | MineStart Management Inc.
Receiver: | Junpool/Julia/Li Cheng | Page: | 5 of 5

Count | Sample Label | New ID | Container Type | Color | Type | Wet | Dry | Top Size | Fine Size | Dry Weight (grams) | Wet Weight (grams) | Moisture Content (%)
1 | O4. S1 |  | Plastic Bag | Brown |  | X |  |  |  | 3,895 | 4,305 | 10.53
2 | OL2. S1 |  | Plastic Bag | Brown |  | X |  |  |  | 2,945 | 3,220 | 9.34
3 | O4. S2 |  | Plastic Bag | Brown |  | X |  |  |  | 3,890 | 4,575 | 17.61
4 | O2. S2 |  | Plastic Bag | Brown |  | X |  |  |  | 4,275 | 5,070 | 18.60
5 | O2 S1. S2 |  | Plastic Bag | Brown |  | X |  |  |  | 3,320 | 3,490 | 5.12
6 | O2 S1. S3 |  | Plastic Bag | Brown |  | X |  |  |  | 3,125 | 3,580 | 14.56
7 |  |  |  |  |  |  |  |  |  |  |  |
8 |  |  |  |  |  |  |  |  |  |  |  |
9 |  |  |  |  |  |  |  |  |  |  |  |
10 |  |  |  |  |  |  |  |  |  |  |  |
11 |  |  |  |  |  |  |  |  |  |  |  |
12 |  |  |  |  |  |  |  |  |  |  |  |
13 |  |  |  |  |  |  |  |  |  |  |  |
14 |  |  |  |  |  |  |  |  |  |  |  |
15 |  |  |  |  |  |  |  |  |  |  |  |
16 |  |  |  |  |  |  |  |  |  |  |  |
17 |  |  |  |  |  |  |  |  |  |  |  |
18 |  |  |  |  |  |  |  |  |  |  |  |
19 |  |  |  |  |  |  |  |  |  |  |  |
20 |  |  |  |  |  |  |  |  |  |  |  |
Note : | Total | 21,450 | 24,240 | Based on wet wt

SAMPLE RECEIVING LOG

Receiving Date: | 08-Nov-04 | Project No: | 0406407
Carrier: | Bryan Slim | Company: | MineStart Management Inc.
Receiver: | Boja | Page: | 1 of 1

Count | Sample Label | New ID | Container Type | Color | Type | Wet | Dry | Top Size | Fine Size | Dry Weight (grams) | Wet Weight (grams) | Moisture Content (%)
1 | Oxide Ore |  | Plastic Bag |  | Rock |  | X | ~5 cm |  |  | 8,100 |
2 | Sulphide Tailings |  | 4 Plastic Bags |  | Solids | X |  | < 1mm |  |  | 7,600 |
3 |  |  |  |  |  |  |  |  |  |  |  |
4 |  |  |  |  |  |  |  |  |  |  |  |
5 |  |  |  |  |  |  |  |  |  |  |  |
6 |  |  |  |  |  |  |  |  |  |  |  |
7 |  |  |  |  |  |  |  |  |  |  |  |
8 |  |  |  |  |  |  |  |  |  |  |  |
9 |  |  |  |  |  |  |  |  |  |  |  |
10 |  |  |  |  |  |  |  |  |  |  |  |
11 |  |  |  |  |  |  |  |  |  |  |  |
12 |  |  |  |  |  |  |  |  |  |  |  |
13 |  |  |  |  |  |  |  |  |  |  |  |
14 |  |  |  |  |  |  |  |  |  |  |  |
15 |  |  |  |  |  |  |  |  |  |  |  |
16 |  |  |  |  |  |  |  |  |  |  |  |
17 |  |  |  |  |  |  |  |  |  |  |  |
18 |  |  |  |  |  |  |  |  |  |  |  |
19 |  |  |  |  |  |  |  |  |  |  |  |
20 |  |  |  |  |  |  |  |  |  |  |  |
Nole : | Total | 0 | 15,700 | based on wet wt

BULK DENSITY AND SPECIFIC GRAVITY MEASUREMENT REPORT

Client: | MineStart Management Inc. | Date: | 19-Aug-04
Sample: | as specified | Project: | 0406407

Sample ID | Compact Bulk Density g/cm3 | Specific Gravity
S2 | 1.66 | 2.738
S10 | 1.73 | 2.623
S22 | 1.73 | 2.760
S45 | 1.60 | 2.757
S50 | 1.63 | 2.737
S74 | 1.57 | 2.717

BOND MILL GRINDABILITY TEST REPORT

Client: | MineStart Management Inc. | Date: | 16-Dec-04
Test: | BI-1 | Project: | 0406407
Sample: | Oxide Ore Composite |  |

TEST CONDITIONS

Cycle | Oversize Wt. | Product Wt. | Feed Undersize | Net Product | Product per Rev. | Required Rev.
| grams | grams | grams | grams | grams/rev. | rev.
1 |  | 473 | 369 | 104 | 1.04 | 100
2 | 949 | 393 | 130 | 263 | 1.09 | 242
3 | 942 | 400 | 108 | 292 | 1.15 | 253
4 | 952 | 390 | 110 | 280 | 1.18 | 237
5 | 892 | 449 | 107 | 342 | 1.47 | 233
6 | 958 | 383 | 123 | 260 | 1.48 | 176

| SIZE ANALYSIS |  | TEST RESULTS |
Sieve Size | % Passing |  | Material Charge Wt.-700 mL(g) = |  | 1,342 |
Tyler mesh | µm | Feed | Product | Test Screen (urn) = |  | 74 |
8 | 3,360 | 90.3 |  | Undersize in Feed (%)= |  | 27.5 |
10 | 1,680 | 81.0 |  | Circulating Load (%) = |  | 250 |
14 | 1,190 | 70.9 |  | Gbp (ave.) = |  | 1.47 |
20 | 841 | 64.5 |  | Product P80 (urn) = |  | 57.1 |
28 | 595 | 56.6 |  | Feed F80 (urn) = |  | 1,628 |
35 | 420 | 49.8 |  | W (kWh/ton) = |  | 11.2 |
48 | 297 | 44.0 |  | W (kWh/tonne) = |  | 12.3 |
65 | 210 | 38.7 |  |  |  |  |
100 | 149 | 34.6 |  |  |  |  |
150 | 105 | 30.0 |  |  |  |  |
200 | 74 | 26.8 | 100.0 |  |  |  |
270 | 53 | 23.1 | 75.0 |  |  |  |
325 | 44 | 21.7 | 67.5 |  |  |  |
400 | 37 | 20.7 | 61.9 |  |  |  |

SIZE ANALYSIS REPORT

Client: | MineStart Management Inc. | Date: | 14-Sep-04
Test: | TG1 | Project: | 0406407
Sample: | Comp A head |  |
Grind: | 1kg for 10 minutes @65% solids in Mill #1 stainless steel mill |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micron | % Retained | % Passing
65 | 210 | 0.0 | 100.0
100 | 149 | 0.0 | 100.0
150 | 105 | 3.1 | 96.9
200 | 74 | 14.7 | 82.2
270 | 53 | 21.9 | 60.4
325 | 44 | 6.2 | 54.1
400 | 37 | 6.6 | 47.6
Undersize | -37 | 47.6 | -
TOTAL: |  | 100.0 |

80 % Passing Size (µm) = 72
Size Distribution
Particle Size, µm

SIZE ANALYSIS REPORT

Client: | MineStart Management Inc. | Date: | 14-Sep-04
Test: | TG2 | Project: | 0406407
Sample: | Comp A head |  |
Grind: | 1kg for 7.3 minutes @65% solids in Mill #1 stainless steel mill |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micron | % Retained | % Passing
65 | 210 | 0.0 | 100.0
100 | 149 | 0.5 | 99.5
150 | 105 | 9.1 | 90.3
200 | 74 | 20.7 | 69.7
270 | 53 | 17.0 | 52.6
325 | 44 | 5.2 | 47.4
400 | 37 | 4.1 | 43.3
Undersize | -37 | 43.3 | -
TOTAL: |  | 100.0 |

70 % Passing Size (µm) = 75
Size Distribution
Particle Size, µm

SIZE ANALYSIS REPORT

Client: | MineStart Management Inc. | Date: | 14-Sep-04
Test: | TG3 | Project: | 0406407
Sample: | Comp B head |  |
Grind: | 1kg for 8 minutes @65% solids in Mill #1 stainless steel mill |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micron | % Retained | % Passing
65 | 210 | 0.0 | 100.0
100 | 149 | 0.1 | 99.9
150 | 105 | 1.9 | 98.0
200 | 74 | 12.5 | 85.6
270 | 53 | 22.4 | 63.1
325 | 44 | 7.6 | 55.6
400 | 37 | 6.1 | 49.5
Undersize | -37 | 49.5 | -
TOTAL: |  | 100.0 |

80 % Passing Size (µm) = 69
Size Distribution
Particle Size, µm

SIZE ANALYSIS REPORT

Client: | MineStart Management Inc. | Date: | 14-Sep-04
Test: | TG4 | Project: | 0406407
Sample: | Comp B head |  |
Grind: | 1kg for 5.5 minutes @65% solids in Mill #1 stainless steel mill |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micron | % Retained | % Passing
65 | 210 | 0.0 | 100.0
100 | 149 | 0.1 | 99.8
150 | 105 | 6.1 | 93.7
200 | 74 | 19.2 | 74.5
270 | 53 | 18.7 | 55.7
325 | 44 | 5.9 | 49.9
400 | 37 | 4.1 | 45.8
Undersize | -37 | 45.8 | -
TOTAL: |  | 100.0 |

80 % Passing Size (µm) = 83
Size Distribution
Particle Size, µm

SIZE ANALYSIS REPORT

Client: | MineStart Management Inc. | Date: | 14-Sep-04
Test: | TG5 | Project: | 0406407
Sample: | Comp B head |  |
Grind: | 1kg for 6.75 minutes @65% solids in Mill #1 stainless steel mill |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micron | % Retained | % Passing
65 | 210 | 0.0 | 100.0
100 | 149 | 0.1 | 99.8
150 | 105 | 3.3 | 96.5
200 | 74 | 15.2 | 81.3
270 | 53 | 19.4 | 61.8
325 | 44 | 7.7 | 54.1
400 | 37 | 4.9 | 49.2
Undersize | -37 | 49.2 | -
TOTAL: |  | 100.0 |

80 % Passing Size (µm) = 73
Size Distribution
Particle Size, µm

SIZE ANALYSIS REPORT

Client: | MineStart Management Inc. | Date: | 14-Sep-04
Test: | TG6 | Project: | 0406407
Sample: | Comp C head |  |
Grind: | 1kg for 10 minutes @65% solids in Mill #1 stainless steel mill |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micron | % Retained | % Passing
65 | 210 | 0.0 | 100.0
100 | 149 | 0.9 | 99.1
150 | 105 | 5.0 | 94.1
200 | 74 | 20.4 | 73.6
270 | 53 | 21.7 | 51.9
325 | 44 | 6.6 | 45.3
400 | 37 | 5.9 | 39.4
Undersize | -37 | 39.4 | -
TOTAL: |  | 100.0 |

80 % Passing Size (µm) = 83
Size Distribution
Particle Size, µm

SIZE ANALYSIS REPORT

Client: | MineStart Management Inc. | Date: | 14-Sep-04
Test: | TG7 | Project: | 0406407
Sample: | Comp C head |  |
Grind: | 1kg for 11 minutes @65% solids in Mill #1 stainless steel mill |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micron | % Retained | % Passing
65 | 210 | 0.1 | 99.9
100 | 149 | 0.3 | 99.7
150 | 105 | 5.9 | 93.8
200 | 74 | 16.5 | 77.3
270 | 53 | 16.4 | 60.8
325 | 44 | 9.3 | 51.6
400 | 37 | 6.5 | 45.1
Undersize | -37 | 45.1 | -
TOTAL: |  | 100.0 |

80 % Passing Size (µm) = 79
Size Distribution
Particle Size, µm

SIZE ANALYSIS REPORT

Client: | MineStart Management Inc. | Date: | 18-Aug-04
Test: | S1 | Project: | 0406407
Sample: | S10 |  |
Grind: | as received, dry |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micrometers | % Retained | % Passing
35 | 420 | 1.8 | 98.2
48 | 297 | 22.9 | 75.3
65 | 210 | 11.2 | 64.1
100 | 149 | 14.0 | 50.1
150 | 105 | 13.9 | 36.2
200 | 74 | 8.9 | 27.3
270 | 53 | 7.3 | 20.0
325 | 44 | 2.5 | 17.5
400 | 37 | 2.3 | 15.2
Undersize | -37 | 15.2 | -
TOTAL: |  | 100.0 |

80 % Passing Size (µm) = 321
Size Distribution
Particle Size, µm

SIZE ANALYSIS REPORT

Client: | MineStart Management Inc. | Date: | 18-Aug-04
Test: | S2 | Project: | 0406407
Sample: | S2 |  |
Grind: | as received, dry |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micrometers | % Retained | % Passing
35 | 420 | 1.0 | 99.0
48 | 297 | 9.0 | 90.0
65 | 210 | 12.9 | 77.1
100 | 149 | 16.3 | 60.8
150 | 105 | 16.9 | 44.0
200 | 74 | 11.9 | 32.0
270 | 53 | 10.7 | 21.3
325 | 44 | 2.8 | 18.5
400 | 37 | 2.4 | 16.1
Undersize | -37 | 16.1 | -
TOTAL: |  | 100.0 |

80 % Passing Size (µm) = 228
Size Distribution
Particle Size, µm

SIZE ANALYSIS REPORT

Client: | MineStart Management Inc. | Date: | 18-Aug-04
Test: | S3 | Project: | 0406407
Sample: | S45 |  |
Grind: | as received, dry |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micrometers | % Retained | % Passing
35 | 420 | 0.3 | 99.7
48 | 297 | 13.4 | 86.3
65 | 210 | 14.6 | 71.7
100 | 149 | 18.0 | 53.8
150 | 105 | 17.9 | 35.9
200 | 74 | 11.0 | 24.9
270 | 53 | 8.4 | 16.5
325 | 44 | 2.7 | 13.8
400 | 37 | 2.0 | 11.8
Undersize | -37 | 11.8 | -
TOTAL: |  | 100.0 |

80 % Passing Size (µm) = 258
Size Distribution
Particle Size, µm

SIZE ANALYSIS REPORT

Client: | MineStart Management Inc. | Date: | 18-Aug-04
Test: | S4 | Project: | 0406407
Sample: | S22 |  |
Grind: | as received, dry |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micrometers | % Retained | % Passing
35 | 420 | 1.8 | 98.2
48 | 297 | 32.6 | 65.7
65 | 210 | 20.3 | 45.4
100 | 149 | 14.9 | 30.5
150 | 105 | 10.4 | 20.1
200 | 74 | 5.5 | 14.6
270 | 53 | 3.8 | 10.8
325 | 44 | 1.6 | 9.1
400 | 37 | 1.0 | 8.2
Undersize | -37 | 8.2 | -
TOTAL: |  | 100.0 |

80 % Passing Size (µm) = 352
Size Distribution
Particle Size, µm

SIZE ANALYSIS REPORT

Client: | MineStart Management Inc. | Date: | 18-Aug-04
Test: | S5 | Project: | 0406407
Sample: | S50 |  |
Grind: | as received, dry |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micrometers | % Retained | % Passing
35 | 420 | 1.6 | 98.4
48 | 297 | 7.9 | 90.5
65 | 210 | 9.1 | 81.4
100 | 149 | 13.8 | 67.6
150 | 105 | 18.9 | 48.7
200 | 74 | 14.3 | 34.4
270 | 53 | 12.7 | 21.8
325 | 44 | 3.4 | 18.4
400 | 37 | 2.8 | 15.6
Undersize | -37 | 15.6 | -
TOTAL: |  | 100.0 |

80 % Passing Size (µm) = 203
Size Distribution
Particle Size, µm

SIZE ANALYSIS REPORT

Client: | MineStart Management Inc. | Date: | 18-Aug-04
Test: | S6 | Project: | 0406407
Sample: | S74 |  |
Grind: | as received, dry |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micrometers | % Retained | % Passing
35 | 420 | 1.0 | 99.0
48 | 297 | 20.0 | 79.0
65 | 210 | 25.9 | 53.2
100 | 149 | 23.1 | 30.0
150 | 105 | 15.5 | 14.5
200 | 74 | 6.7 | 7.8
270 | 53 | 3.5 | 4.2
325 | 44 | 1.2 | 3.1
400 | 37 | 0.5 | 2.6
Undersize | -37 | 2.6 | -
TOTAL: |  | 100.0 |

80 % Passing Size (µm) = 303
Size Distribution
Particle Size, µm

SIZE ANALYSIS REPORT

Client: | MineStart Management Inc. | Date: | 14-Sep-04
Test: | SA | Project: | 0106407
Sample: | Comp A head |  |
Grind: | as received, dry |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micron | % Retained | % Passing
35 | 420 | 2.4 | 97.6
48 | 297 | 13.9 | 83.7
65 | 210 | 12.1 | 71.6
100 | 149 | 14.9 | 56.7
150 | 105 | 13.6 | 43.2
200 | 74 | 9.6 | 33.6
270 | 53 | 7.4 | 26.2
325 | 44 | 2.7 | 23.4
400 | 37 | 1.4 | 22.0
Undersize | -37 | 22.0 | -
TOTAL: |  | 100.0 |

80 % Passing Size (µm) = 269
Size Distribution
Particle Size, µm

SIZE ANALYSIS REPORT

Client: | MineStart Management Inc. | Date: | 14-Sep-04
Test: | SB | Project: | 0106407
Sample: | Comp B head |  |
Grind: | as received, dry |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micron | % Retained | % Passing
35 | 420 | 2.0 | 98.0
48 | 297 | 3.8 | 94.3
65 | 210 | 8.0 | 86.3
100 | 149 | 12.9 | 73.4
150 | 105 | 16.5 | 56.8
200 | 74 | 13.2 | 43.7
270 | 53 | 10.8 | 32.9
325 | 44 | 3.8 | 29.0
400 | 37 | 3.4 | 25.7
Undersize | -37 | 25.7 | -
TOTAL: |  | 100.0 |

80 % Passing Size (µm) = 179
Size Distribution
Particle Size, µm

SIZE ANALYSIS REPORT

Client: | MineStart Management Inc. | Date: | 14-Sep-04
Test: | SC | Project: | 0106407
Sample: | Comp C head |  |
Grind: | as received, dry |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micron | % Retained | % Passing
35 | 420 | 4.1 | 95.9
48 | 297 | 9.0 | 86.9
65 | 210 | 14.6 | 72.3
100 | 149 | 17.6 | 54.7
150 | 105 | 15.4 | 39.2
200 | 74 | 9.6 | 29.6
270 | 53 | 7.7 | 21.9
325 | 44 | 2.7 | 19.2
400 | 37 | 1.8 | 17.4
Undersize | -37 | 17.4 | -
TOTAL: |  | 100.0 |

80 % Passing Size (µm) = 254
Size Distribution
Particle Size, µm

HEAD ASSAY REPORT

Client: | MineStart Management Inc. | Date: | 10-Aug-04
Sample: | as specified | Project: | 0406407

| Fire Assays | AA | ICPM |  |  | Fire Assays | AA | ICPM
Sample id | Au | Ag | Ag | Ag |  | Sample id | Au | Ag | Ag | Ag
| g/t | g/t | ppm | ppm |  |  | g/t | g/t | ppm | ppm
S1 | 0.34 | 29 | 40 | 31.5 |  | S42 | 0.62 | 87.4 | 80 | 74.6
S2 | 0.32 | 37.9 | 50 | 46.7 |  | S43 | 0.46 | 79.6 | 70 | 71.1
S3 | 0.38 | 38.7 | 50 | 46.5 |  | S44 | 0.5 | 68.9 | 70 | 71
S4 | 0.27 | 23 | 30 | 36.4 |  | S45 | 0.34 | 86 | 110 | 116.9
S5 | 0.16 | 7.9 | 20 | 15.3 |  | S46 | 0.68 | 79.4 | 100 | 110.5
S6 | 0.19 | 19 | 20 | 17.6 |  | S47 | 0.65 | 85.1 | 100 | 115.6
S7 | 0.39 | 74.2 | 90 | 94.2 |  | S48 | 0.49 | 71 | 90 | 100.3
S8 | 0.3 | 53.9 | 60 | 69.1 |  | S49 | 0.53 | 61.2 | 90 | 94.9
S9 | 0.34 | 67.6 | 80 | 82.8 |  | S50 | 0.5 | 43 | 70 | 68.6
S10 | 0.36 | 76.1 | 95 | 91.8 |  | S51 | 0.45 | 50.7 | 60 | 66.4
S11 | 0.42 | 82.1 | 110 | 111.2 |  | S52 | 0.37 | 68.7 | 80 | 86.6
S12 | 0.3 | 100.2 | 100 | 97.6 |  | S53 | 0.34 | 81.9 | 90 | 93.7
S13 | 0.25 | 100.3 | 90 | 98.6 |  | S54 | 7 | 97.2 | 120 | 109.7
S18 | 1.22 | 127.8 | 150 | 178.6 |  | S55 | 0.6 | 85 | 120 | 104.3
S19 | 0.34 | 111.9 | 110 | 107.7 |  | S56 | 0.57 | 81.1 | 90 | 119.5
S20 | 0.26 | 132.9 | 150 | 147.8 |  | S57 | 0.5 | 62.1 | 70 | 78.7
S21 | 0.31 | 95.7 | 90 | 102.2 |  | S58 | 0.5 | 52.9 | 80 | 69.4
S22 | 0.29 | 145 | 150 | 183.6 |  | S59 | 0.36 | 51.3 | 70 | 63.3
S23 | 0.18 | 78.8 | 110 | 100.5 |  | S60 | 0.38 | 54 | 70 | 70.5
S24 | 0.3 | 88.5 | 90 | 96.7 |  | S61 | 0.35 | 73.2 | 80 | 87
S25 | 0.33 | 83.4 | 100 | 107.9 |  | S62 | 0.62 | 68.6 | 70 | 77.4
S26 | 0.36 | 93.5 | 90 | 100.4 |  | S63 | 0.67 | 73.8 | 90 | 84.1
S27 | 0.4 | 89.1 | 110 | 98.3 |  | S64 | 0.53 | 60 | 70 | 71.6
S28 | 0.29 | 88.4 | 110 | 107.6 |  | S68 | 0.33 | 41.4 | 60 | 60.6
S29 | 0.2 | 100.9 | 100 | 109.2 |  | S69 | 0.44 | 83.5 | 100 | 100.3
S30 | 0.29 | 74.8 | 100 | 88.1 |  | S70 | 0.54 | 61.4 | 70 | 71
S31 | 0.38 | 81.5 | 90 | 95.3 |  | S71 | 0.41 | 42.3 | 50 | 59.4
S32 | 0.42 | 97.2 | 100 | 107.2 |  | S72 | 0.55 | 59.5 | 80 | 75
S33 | 0.35 | 84.9 | 100 | 96.4 |  | S73 | 0.44 | 43.9 | 60 | 62.9
S34 | 0.38 | 114 | 120 | 125 |  | 06C.S1 | 0.54 | 57.1 | 70 | 75.3
S35 | 0.33 | 118.8 | 110 | 112 |  | S75 | 0.37 | 47.2 | 80 | 69.1
S36 | 0.26 | 93.3 | 90 | 90.8 |  | S76 | 0.26 | 40.6 | 60 | 55.5
S37 | 0.36 | 92.1 | 90 | 93.3 |  | S77 | 0.45 | 69.8 | 90 | 101.1
S38 | 0.29 | 69.7 | 90 | 87.5 |  |
S39 | 0.3 | 79.5 | 80 | 83.8 |  | FA = fire assay
S40 | 0.23 | 81.1 | 80 | 78.8 |  | AA = 20% HN03 digestion and AA finish
S41 | 0.21 | 102.3 | 100 | 100.8 |  | ICPM = multi acid digestion and ICP finish

HEAD ASSAY REPORT

Client: | MineStart Management Inc. | Date: | 10-Aug-04
Sample: | as specified | Project: | 0406407

Comparative Silver Analyses, ppm

Sample ID | Fire Assay | Standard AA | Total digestion A
| Original, g/t | Original | Repeat | AM | ICPM
S5 | 7.9 | 20 | 20 | 20 | 15
S20 | 132.9 | 150 | 130 | 150 | 148
S22 | 145.0 | 150 | 140 | 150 | 150
S30 | 74.8 | 100 | 80 | 100 | 88
S50 | 43.0 | 70 | 50 | 70 | 63
S72 | 59.5 | 80 | 60 | 80 | 75

Duplicate Au Assays, g/t

Sample |  |  | Fire Assay Results |  |
ID | Original | R1 | R2 | R3 | R4 | R5
S2 | 0.32 | 0.37 | 0.35 | 0.37 | 0.39 | 0.39
S10 | 0.36 | 0.38 | 0.39 | 0.46 |  |
S22 | 0.29 | 0.43 | 0.34 | 0.34 |  |
S45 | 0.34 | 0.40 | 0.38 | 0.41 |  |
S50 | 0.50 | 0.66 | 0.59 | 0.61 |  |
S74 | 0.54 | 0.49 | 0.43 | 0.51 | 0.50 | 0.54

Duplicate Ag Assays, ppm

Sample |  |  | Multi Acid ICP Results |  |
ID | Original | R1 | R2 | R3 | R4 | R5
S2 | 46.7 | 41.1 | 39.8 | 40.2 | 48.2 | 42.8
S10 | 91.8 | 83.0 | 84.2 | 84.4 |  |
S22 | 183.6 | 139.0 | 141.9 | 136.0 |  |
S45 | 116.9 | 105.2 | 98.0 | 106.5 |  |
S50 | 68.6 | 59.5 | 60.8 | 62.5 |  |
S74 | 75.3 | 70.4 | 67.8 | 63.0 | 63.5 | 61.3

ICP ASSAY REPORT

Client: |  | MineStart Management Inc. | Date: |  | 2-Nov-04
Test: |  | Individual Head ICP | Project: |  | 0406407
Sample: |  | S1-S18 | Page: |  | 1 of 5

Elements | Units | S1 Head | S2 Head | S3 Head | S4 Head | S5 Head | S6 Head | S7 Head | S8 Head | S9 Head | S10 Head | S11 Head | S12 Head | S13 Head | S18 Head |
Al | ppm | 20260 | 30410 | 31148 | 21339 | 27063 | 26464 | 18654 | 24723 | 28938 | 31137 | 35538 | 35129 | 32572 | 29351 |
Sb | ppm | 116 | 102 | 107 | 102 | 86 | 106 | 245 | 216 | 212 | 179 | 184 | 209 | 194 | 196 |
As | ppm | 69 | 41 | 34 | 81 | <5 | <5 | 67 | 27 | 88 | 35 | 21 | 40 | 30 | 85 |
Ba | ppm | 260 | 585 | 557 | 431 | 507 | 449 | 364 | 423 | 485 | 609 | 791 | 730 | 617 | 702 |
Bi | ppm | 192 | 201 | 202 | 184 | 108 | 155 | 333 | 224 | 232 | 259 | 290 | 262 | 190 | 368 |
Cd | ppm | <0.2 | <0.2 | <0.2 | <0.2 | 1.7 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 |
Ca | ppm | 3680 | 4778 | 5526 | 1566 | 3490 | 3651 | 2201 | 1239 | 2761 | 7596 | 9289 | 15174 | 15389 | 10202 |
Cr | ppm | 110 | 151 | 127 | 140 | 112 | 74 | 50 | 112 | 107 | 58 | 57 | 69 | 71 | 101 |
Co | ppm | 9 | 10 | 10 | 10 | 10 | 9 | 5 | 5 | 7 | 8 | 13 | 11 | 9 | 11 |
Cu | ppm | 1168 | 1633 | 1575 | 2099 | 1470 | 1127 | 1665 | 1170 | 1427 | 1294 | 1513 | 1051 | 1339 | 1188 |
Fe | ppm | 6.2 | 6.5 | 6.5 | 6.1 | 5.5 | 5.9 | 4.3 | 4.7 | 5.9 | 5.7 | 6.3 | 6.3 | 5.7 | 7.3 |
La | ppm | 6 | 9 | 10 | 6 | 9 | 8 | 7 | 9 | 10 | 12 | 12 | 13 | 12 | 10 |
Pb | ppm | 1489 | 2892 | 3001 | 1433 | 831 | 1188 | 6810 | 6790 | 6972 | 7911 | 0.012 | 0.013 | 0.01 | 0.013 |
Mg | ppm | 4657 | 5761 | 5894 | 4954 | 6228 | 5765 | 1783 | 2011 | 2029 | 2573 | 3161 | 3185 | 3234 | 2816 |
Mn | ppm | 1309 | 1718 | 1885 | 1176 | 1534 | 1499 | 627 | 637 | 853 | 1875 | 2414 | 3134 | 2001 | 2844 |
Hg | ppm | <3 | <3 | <3 | <3 | <3 | <3 | <3 | <3 | <3 | <3 | <3 | <3 | <3 | <3 |
Mo | ppm | 17 | 18 | 17 | 14 | 12 | 14 | 23 | 22 | 22 | 16 | 14 | 15 | 14 | 17 |
Ni | ppm | <1 | <1 | <1 | <1 | <1 | <1 | 1 | 1 | 3 | <1 | 2 | 3 | <1 | <1 |
P | ppm | <100 | 235 | 207 | 127 | 189 | 175 | 125 | 178 | 244 | 230 | 274 | 285 | 216 | 237 |
K | ppm | 8558 | 17316 | 17307 | 10006 | 14140 | 12333 | 9335 | 14988 | 16096 | 17845 | 19559 | 23237 | 20336 | 18330 |
Sc | ppm | 2 | 3 | 2 | 2 | 2 | 2 | 2 | 2 | 3 | 3 | 3 | 3 | 3 | 3 |
Ag | ppm | 31.5 | 46.7 | 46.5 | 36.4 | 15.3 | 17.6 | 94.2 | 69.1 | 82.8 | 91.8 | 111.2 | 97.6 | 98.6 | 178.6 |
Na | ppm | 491 | 1147 | 1003 | 461 | 666 | 610 | 733 | 686 | 955 | 1077 | 666 | 658 | 712 | 612 |
Sr | ppm | 21 | 44 | 42 | 25 | 29 | 27 | 26 | 32 | 39 | 41 | 45 | 53 | 45 | 40 |
Tl | ppm | <2 | <2 | <2 | <2 | <2 | <2 | <2 | <2 | <2 | <2 | <2 | <2 | <2 | <2 |
Ti | ppm | 531 | 1117 | 907 | 653 | 948 | 719 | 545 | 590 | 797 | 685 | 833 | 1006 | 839 | 780 |
W | ppm | 40 | 23 | 32 | 16 | 24 | 33 | 16 | 16 | 20 | 16 | 18 | 12 | 15 | 18 |
V | ppm | 24 | 35 | 35 | 26 | 31 | 30 | 24 | 30 | 40 | 38 | 42 | 44 | 40 | 42 |
Zn | ppm | 1012 | 1279 | 1396 | 955 | 1245 | 1218 | 760 | 661 | 1067 | 1321 | 1554 | 2048 | 1619 | 1560 |
Zr | ppm | 21 | 38 | 34 | 26 | 36 | 31 | 21 | 34 | 37 | 33 | 30 | 37 | 31 | 32 |

ICP ASSAY REPORT

Client: |  | MineStart Management Inc. | Date: |  | 2-Nov-04
Test: |  | Individual Head ICP | Project: |  | 0406407
Sample: |  | S1-S18 | Page: |  | 2 of 5

Elements | Units | S19 Head | S20 Head | S21 Head | S22 Head | S23 Head | S24 Head | S25 Head | S26 Head | S27 Head | S28 Head | S29 Head | S30 Head | S31 Head | S32 Head |
Al | ppm | 30932 | 35157 | 36938 | 33983 | 37186 | 35525 | 37928 | 35094 | 32087 | 34599 | 40628 | 36599 | 38386 | 34436 |
Sb | ppm | 220 | 213 | 214 | 191 | 198 | 199 | 198 | 216 | 180 | 196 | 199 | 202 | 201 | 217 |
As | ppm | 36 | 16 | 18 | 20 | 12 | 24 | 26 | 36 | <5 | 15 | <5 | 38 | <5 | 38 |
Ba | ppm | 732 | 785 | 780 | 809 | 831 | 682 | 720 | 825 | 775 | 765 | 797 | 814 | 771 | 672 |
Bi | ppm | 245 | 201 | 156 | 236 | 128 | 240 | 246 | 259 | 262 | 242 | 194 | 182 | 159 | 267 |
Cd | ppm | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 |
Ca | ppm | 12293 | 13993 | 14446 | 15605 | 13189 | 15105 | 14834 | 14007 | 9678 | 12094 | 14753 | 13655 | 16060 | 15087 |
Cr | ppm | 77 | 117 | 70 | 135 | 51 | 97 | 46 | 59 | 69 | 37 | 86 | 79 | 69 | 46 |
Co | ppm | 11 | 13 | 11 | 15 | 11 | 10 | 10 | 10 | 11 | 11 | 10 | 10 | 11 | 10 |
Cu | ppm | 1055 | 1294 | 1013 | 1422 | 931 | 1052 | 1135 | 1096 | 1439 | 1160 | 1116 | 856 | 1067 | 1231 |
Fe | ppm | 6.3 | 6.5 | 6 | 6.7 | 5.9 | 6.3 | 6.1 | 5.8 | 5.6 | 5.9 | 5.8 | 6.2 | 6.6 | 6.1 |
La | ppm | 11 | 12 | 13 | 12 | 15 | 12 | 13 | 13 | 12 | 13 | 14 | 14 | 14 | 12 |
Pb | ppm | 0.014 | 0.015 | 0.013 | 0.017 | 0.013 | 9977 | 9703 | 0.011 | 9258 | 9378 | 9924 | 0.01 | 0.014 | 0.011 |
Mg | ppm | 2771 | 2930 | 3370 | 2936 | 3027 | 3215 | 3571 | 3121 | 3101 | 2692 | 3058 | 2952 | 3631 | 3341 |
Mn | ppm | 2971 | 3857 | 2800 | 4157 | 2856 | 2451 | 2360 | 2515 | 2338 | 2906 | 2560 | 2469 | 2538 | 2166 |
Hg | ppm | <3 | <3 | <3 | <3 | <3 | <3 | <3 | <3 | <3 | <3 | <3 | <3 | <3 | <3 |
Mo | ppm | 17 | 13 | 15 | 14 | 13 | 14 | 15 | 15 | 12 | 12 | 13 | 14 | 15 | 16 |
Ni | ppm | 2 | 2 | 7 | <1 | <1 | <1 | <1 | <1 | <1 | <1 | 3 | 2 | <1 | <1 |
P | ppm | 286 | 270 | 274 | 282 | 268 | 249 | 280 | 268 | 243 | 287 | 312 | 282 | 285 | 248 |
K | ppm | 20031 | 22007 | 25474 | 21074 | 26879 | 22108 | 24362 | 24072 | 19486 | 21950 | 24178 | 25831 | 25157 | 22363 |
Sc | ppm | 3 | 3 | 4 | 2 | 3 | 4 | 3 | 3 | 3 | 2 | 4 | 3 | 4 | 3 |
Ag | ppm | 107.7 | 147.8 | 102.2 | 183.6 | 100.5 | 96.7 | 107.9 | 100.4 | 98.3 | 107.6 | 109.2 | 88.1 | 95.3 | 107.2 |
Na | ppm | 647 | 648 | 746 | 627 | 718 | 730 | 779 | 730 | 683 | 658 | 782 | 723 | 772 | 713 |
Sr | ppm | 46 | 54 | 60 | 49 | 59 | 51 | 57 | 52 | 46 | 50 | 57 | 59 | 57 | 51 |
Tl | ppm | <2 | <2 | <2 | <2 | <2 | <2 | <2 | <2 | <2 | <2 | <2 | <2 | <2 | <2 |
Ti | ppm | 750 | 970 | 1036 | 921 | 939 | 965 | 989 | 925 | 776 | 784 | 1015 | 943 | 981 | 841 |
W | ppm | 14 | 13 | 13 | 16 | 15 | 13 | 14 | 10 | 15 | 10 | 7 | 9 | 15 | 16 |
V | ppm | 47 | 45 | 44 | 45 | 44 | 42 | 44 | 41 | 36 | 41 | 45 | 45 | 48 | 43 |
Zn | ppm | 1689 | 1850 | 2040 | 1704 | 1998 | 1820 | 2033 | 1728 | 1308 | 1778 | 2285 | 1918 | 2125 | 1862 |
Zr | ppm | 33 | 37 | 44 | 31 | 41 | 36 | 36 | 35 | 33 | 33 | 40 | 35 | 46 | 39 |

ICP ASSAY REPORT

Client: |  | MineStart Management Inc. | Date: |  | 2-Nov-04
Test: |  | Individual Head ICP | Project: |  | 0406407
Sample: |  | S1-S18 | Page: |  | 3 of 5

Elements | Units | S33 Head | S34 Head | S35 Head | S36 Head | S37 Head | S38 Head | S39 Head | S40 Head | S41 Head | S42 H ead | S43 Head | S44 Head | S45 Head | S46 Head |
Al | ppm | 37679 | 35172 | 33391 | 37011 | 35470 | 38450 | 36691 | 36312 | 36713 | 21022 | 24400 | 24856 | 28293 | 25450 |
Sb | ppm | 206 | 202 | 231 | 200 | 218 | 197 | 206 | 187 | 225 | 126 | 135 | 141 | 183 | 159 |
As | ppm | 20 | 24 | 37 | 9 | 21 | 20 | 8 | 12 | 11 | 82 | 73 | 99 | 66 | 105 |
Ba | ppm | 753 | 749 | 707 | 765 | 670 | 766 | 798 | 753 | 673 | 452 | 560 | 630 | 673 | 462 |
Bi | ppm | 225 | 283 | 271 | 204 | 248 | 152 | 140 | 121 | 146 | 348 | 290 | 295 | 265 | 832 |
Cd | ppm | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 |
Ca | ppm | 14328 | 11787 | 14915 | 13607 | 15831 | 12050 | 15738 | 16050 | 17444 | 4042 | 2050 | 2400 | 6070 | 2409 |
Cr | ppm | 62 | 97 | 44 | 70 | 61 | 65 | 75 | 69 | 63 | 54 | 73 | 115 | 37 | 50 |
Co | ppm | 9 | 11 | 10 | 9 | 9 | 11 | 10 | 9 | 9 | 6 | 6 | 6 | 10 | 7 |
Cu | ppm | 1136 | 1210 | 1052 | 978 | 1185 | 938 | 943 | 993 | 1223 | 1078 | 966 | 976 | 945 | 1311 |
Fe | ppm | 6.1 | 6 | 5.7 | 5.7 | 5.6 | 5.9 | 6.2 | 5.3 | 5.7 | 6.9 | 6.4 | 6.9 | 5.8 | 6.3 |
La | ppm | 13 | 12 | 12 | 13 | 13 | 15 | 13 | 13 | 13 | 7 | 9 | 9 | 10 | 8 |
Pb | ppm | 0.011 | 8786 | 0.01 | 9904 | 8854 | 0.012 | 0.015 | 8855 | 0.011 | 4044 | 4481 | 4676 | 0.011 | 7654 |
Mg | ppm | 3439 | 2943 | 3039 | 3276 | 3776 | 3092 | 2886 | 3180 | 3395 | 2614 | 1889 | 1827 | 2266 | 1846 |
Mn | ppm | 2173 | 3028 | 3313 | 2369 | 1989 | 2774 | 2657 | 1953 | 1958 | 1377 | 1150 | 1341 | 2260 | 1465 |
Hg | ppm | <3 | <3 | <3 | <3 | <3 | <3 | <3 | <3 | <3 | <3 | <3 | <3 | <3 | <3 |
Mo | ppm | 15 | 14 | 15 | 14 | 15 | 13 | 18 | 12 | 14 | 17 | 16 | 21 | 21 | 17 |
Ni | ppm | 3 | <1 | <1 | 4 | 2 | <1 | <1 | <1 | <1 | <1 | <1 | <1 | <1 | 4 |
P | ppm | 280 | 268 | 242 | 270 | 273 | 282 | 291 | 258 | 266 | 139 | 171 | 184 | 223 | 154 |
K | ppm | 25059 | 23164 | 22188 | 25312 | 22220 | 25575 | 24914 | 26013 | 22115 | 9754 | 12551 | 13918 | 17887 | 12260 |
Sc | ppm | 3 | 4 | 3 | 4 | 3 | 4 | 3 | 3 | 3 | 2 | 2 | 3 | 2 | 2 |
Ag | ppm | 96.4 | 125 | 112 | 90.8 | 93.3 | 87.5 | 83.8 | 78.8 | 100.8 | 74.6 | 71.1 | 71 | 116.9 | 110.5 |
Na | ppm | 198 | 689 | 657 | 755 | 711 | 897 | 762 | 983 | 943 | 568 | 528 | 184 | 223 | 154 |
Sr | ppm | 59 | 56 | 53 | 58 | 51 | 56 | 54 | 60 | 48 | 26 | 28 | 31 | 38 | 28 |
Tl | ppm | <2 | <2 | <2 | <2 | <2 | <2 | <2 | <2 | <2 | <2 | <2 | <2 | <2 | <2 |
Ti | ppm | 914 | 962 | 856 | 992 | 932 | 914 | 870 | 1032 | 993 | 433 | 559 | 571 | 562 | 495 |
W | ppm | 14 | 14 | 15 | 14 | 20 | 7 | 8 | 14 | 11 | 33 | 26 | 29 | 11 | 17 |
V | ppm | 45 | 42 | 39 | 43 | 41 | 46 | 44 | 40 | 42 | 28 | 30 | 33 | 35 | 30 |
Zn | ppm | 1899 | 1720 | 1657 | 1805 | 1752 | 1878 | 1912 | 1674 | 1651 | 738 | 777 | 807 | 1508 | 918 |
Zr | ppm | 38 | 34 | 37 | 42 | 38 | 44 | 40 | 43 | 38 | 22 | 25 | 26 | 29 | 28 |

ICP ASSAY REPORT

Client: |  | MineStart Management Inc. | Date: |  | 2-Nov-04
Test: |  | Individual Head ICP | Project: |  | 0406407
Sample: |  | S1-S18 | Page: |  | 4 of 5

Elements | Units | S47 Head | S48 Head | S49 Head | S50 Head | S51 Head | S52 Head | S53 Head | S54 Head | S55 Head | S56 Head | S57 Head | S58 Head | S59 Head | S60 Head |
Al | ppm | 19325 | 26080 | 24350 | 22557 | 21351 | 26685 | 35601 | 26559 | 24074 | 25550 | 29866 | 40127 | 35105 | 34352 |
Sb | ppm | 181 | 160 | 147 | 133 | 147 | 165 | 163 | 125 | 156 | 169 | 137 | 102 | 124 | 127 |
As | ppm | 111 | 86 | 94 | 121 | 138 | 80 | 28 | 76 | 136 | 100 | 83 | 92 | 105 | 105 |
Ba | ppm | 369 | 457 | 527 | 575 | 517 | 700 | 800 | 522 | 482 | 488 | 583 | 671 | 750 | 747 |
Bi | ppm | 666 | 449 | 328 | 241 | 212 | 261 | 246 | 473 | 665 | 560 | 284 | 378 | 296 | 288 |
Cd | ppm | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 |
Ca | ppm | 2558 | 1684 | 1270 | 1063 | 1044 | 3946 | 5374 | 4687 | 2594 | 3380 | 1409 | 1381 | 1273 | 1532 |
Cr | ppm | 47 | 132 | 44 | 62 | 93 | 164 | 102 | 39 | 35 | 56 | 36 | 95 | 104 | 45 |
Co | ppm | 7 | 7 | 7 | 6 | 6 | 8 | 10 | 7 | 8 | 6 | 7 | 8 | 8 | 8 |
Cu | ppm | 1167 | 1275 | 1130 | 844 | 564 | 697 | 1012 | 1551 | 1047 | 1318 | 1161 | 1398 | 864 | 807 |
Fe | ppm | 6.7 | 6.8 | 7.5 | 7.6 | 6.6 | 5.9 | 6.1 | 6.7 | 6.9 | 6.7 | 7.6 | 8.5 | 7.1 | 6.9 |
La | ppm | 6 | 10 | 8 | 8 | 8 | 9 | 12 | 11 | 8 | 9 | 9 | 12 | 12 | 11 |
Pb | ppm | 7663 | 6122 | 5752 | 4778 | 5595 | 7818 | 8368 | 6705 | 7332 | 7843 | 5219 | 6128 | 6051 | 6517 |
Mg | ppm | 1314 | 1551 | 1829 | 1351 | 982 | 1876 | 3267 | 2629 | 1528 | 1837 | 1943 | 3024 | 1966 | 1807 |
Mn | ppm | 1778 | 1511 | 1327 | 946 | 1220 | 1416 | 2187 | 1583 | 1926 | 1572 | 1247 | 1296 | 1798 | 1760 |
Hg | ppm | <3 | <3 | <3 | <3 | <3 | <3 | <3 | <3 | <3 | <3 | <3 | <3 | <3 | <3 |
Mo | ppm | 17 | 17 | 18 | 14 | 22 | 27 | 19 | 16 | 21 | 19 | 19 | 19 | 25 | 25 |
Ni | ppm | <1 | <1 | <1 | <1 | <1 | <1 | <1 | <1 | <1 | <1 | <1 | <1 | <1 | <1 |
P | ppm | 148 | 148 | 163 | 203 | 150 | 213 | 248 | 167 | 160 | 166 | 183 | 285 | 272 | 258 |
K | ppm | 8325 | 10582 | 10161 | 9677 | 10436 | 17610 | 24486 | 13888 | 10914 | 11456 | 11816 | 13542 | 17092 | 17651 |
Sc | ppm | 1 | 2 | 2 | 2 | 3 | 2 | 4 | 2 | 2 | 1 | 3 | 3 | 3 | 2 |
Ag | ppm | 115.6 | 100.3 | 94.9 | 68.6 | 66.4 | 86.6 | 93.7 | 109.7 | 104.3 | 119.5 | 78.7 | 69.4 | 63.3 | 70.5 |
Na | ppm | 148 | 148 | 163 | 203 | 150 | 213 | 248 | 167 | 160 | 166 | 183 | 285 | 272 | 258 |
Sr | ppm | 21 | 24 | 24 | 23 | 23 | 37 | 48 | 34 | 25 | 27 | 27 | 31 | 35 | 36 |
Tl | ppm | <2 | <2 | <2 | <2 | <2 | <2 | <2 | <2 | <2 | <2 | <2 | <2 | <2 | <2 |
Ti | ppm | 371 | 554 | 482 | 593 | 539 | 830 | 883 | 472 | 377 | 435 | 536 | 791 | 698 | 604 |
W | ppm | 18 | 22 | 33 | 28 | 19 | 16 | 18 | 25 | 17 | 22 | 33 | 35 | 21 | 17 |
V | ppm | 26 | 29 | 32 | 35 | 29 | 34 | 42 | 31 | 31 | 30 | 34 | 48 | 40 | 40 |
Zn | ppm | 821 | 878 | 730 | 599 | 629 | 1034 | 1467 | 836 | 907 | 905 | 822 | 975 | 971 | 953 |
Zr | ppm | 21 | 36 | 28 | 27 | 31 | 30 | 34 | 31 | 24 | 28 | 32 | 43 | 40 | 39 |

ICP ASSAY REPORT

Client: |  | MineStart Management Inc. | Date: |  | 2-Nov-04
Test: |  | Individual Head ICP | Project: |  | 0406407
Sample: |  | S1-S18 | Page: |  | 5 of 5

Elements | Units | S61 Head | S62 Head | S63 Head | S64 Head | S68 Head | S69 Head | S70 Head | S71 Head | S72 Head | S73 Head | S74 Head | S75 Head | S76 Head | S77 Head |
Al | ppm | 26610 | 19716 | 24345 | 22189 | 32372 | 19233 | 31110 | 31325 | 26884 | 26378 | 23726 | 24304 | 26686 | 29027 |
Sb | ppm | 166 | 143 | 153 | 158 | 125 | 202 | 119 | 122 | 135 | 126 | 136 | 129 | 122 | 148 |
As | ppm | 78 | 100 | 128 | 124 | 110 | 92 | 99 | 120 | 80 | 91 | 106 | 88 | 122 | 95 |
Ba | ppm | 608 | 400 | 433 | 448 | 733 | 406 | 541 | 616 | 537 | 595 | 438 | 580 | 708 | 726 |
Bi | ppm | 258 | 350 | 601 | 494 | 396 | 521 | 263 | 264 | 419 | 244 | 421 | 277 | 196 | 356 |
Cd | ppm | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 |
Ca | ppm | 3292 | 4133 | 3075 | 3626 | 1549 | 2173 | 954 | 871 | 1306 | 922 | 5469 | 1250 | 1367 | 2104 |
Cr | ppm | 107 | 56 | 128 | 124 | 37 | 123 | 112 | 63 | 86 | 457 | 105 | 88 | 59 | 49 |
Co | ppm | 8 | 7 | 8 | 7 | 9 | 8 | 7 | 6 | 6 | 8 | 7 | 7 | 6 | 7 |
Cu | ppm | 678 | 1157 | 1200 | 1012 | 1053 | 1163 | 902 | 748 | 1020 | 735 | 1347 | 993 | 594 | 934 |
Fe | ppm | 5.8 | 6.4 | 6.7 | 6.4 | 6.2 | 6.4 | 8.2 | 7.5 | 6.6 | 6.9 | 6.7 | 6.8 | 6.6 | 6.1 |
La | ppm | 10 | 7 | 8 | 8 | 13 | 7 | 10 | 9 | 9 | 9 | 8 | 9 | 10 | 11 |
Pb | ppm | 8768 | 5515 | 6756 | 6163 | 5505 | 7273 | 4605 | 4841 | 6043 | 4866 | 5515 | 4598 | 4218 | 7905 |
Mg | ppm | 1572 | 1863 | 1729 | 1580 | 2104 | 1212 | 1690 | 1393 | 1796 | 1464 | 2313 | 1676 | 1128 | 1570 |
Mn | ppm | 1575 | 1579 | 1641 | 1470 | 2592 | 2115 | 1161 | 1101 | 1365 | 1629 | 1387 | 1499 | 1530 | 1270 |
Hg | ppm | <3 | <3 | <3 | <3 | <3 | <3 | <3 | <3 | <3 | <3 | <3 | <3 | <3 | <3 |
Mo | ppm | 22 | 20 | 18 | 19 | 24 | 20 | 20 | 22 | 17 | 23 | 19 | 17 | 32 | 18 |
Ni | ppm | <1 | <1 | <1 | <1 | <1 | <1 | <1 | <1 | <1 | <1 | <1 | <1 | <1 | <1 |
P | ppm | 198 | 140 | 150 | 150 | 191 | 113 | 233 | 225 | 181 | 178 | 165 | 187 | 218 | 211 |
K | ppm | 16414 | 9289 | 9467 | 9759 | 19123 | 8167 | 8432 | 11995 | 13284 | 13234 | 10516 | 12061 | 15868 | 16532 |
Sc | ppm | 4 | 2 | 2 | 2 | 4 | 2 | 2 | 1 | 2 | 2 | 3 | 2 | 2 | 4 |
Ag | ppm | 87 | 77.4 | 84.1 | 71.6 | 60.6 | 100.3 | 71 | 59.4 | 75 | 62.9 | 75.3 | 69.1 | 55.5 | 101.1 |
Na | ppm | 198 | 140 | 150 | 150 | 191 | 113 | 233 | 225 | 181 | 178 | 165 | 187 | 218 | 211 |
Sr | ppm | 34 | 26 | 24 | 25 | 38 | 19 | 21 | 26 | 29 | 28 | 30 | 27 | 30 | 34 |
Tl | ppm | <2 | <2 | <2 | <2 | <2 | <2 | <2 | <2 | <2 | <2 | <2 | <2 | <2 | <2 |
Ti | ppm | 702 | 443 | 558 | 531 | 564 | 479 | 692 | 547 | 613 | 675 | 556 | 669 | 605 | 615 |
W | ppm | 13 | 31 | 23 | 22 | 15 | 19 | 41 | 26 | 27 | 19 | 25 | 22 | 10 | 19 |
V | ppm | 34 | 27 | 31 | 28 | 33 | 25 | 36 | 36 | 32 | 35 | 31 | 33 | 34 | 33 |
Zn | ppm | 1115 | 744 | 886 | 816 | 888 | 878 | 702 | 684 | 791 | 658 | 875 | 756 | 713 | 956 |
Zr | ppm | 38 | 25 | 25 | 27 | 42 | 21 | 36 | 36 | 30 | 32 | 28 | 32 | 40 | 38 |

SIZE ASSAY ANALYSIS REPORT

Client: |  | MineStart Management Inc. | Date: |  | 20-Aug-04
Test: |  | SA1 | Project: |  | 0406407
Sample: |  | S2 |  |  |

Size Fraction | Weight | Assay | Distribution
Mesh | Microns | g |  | % |  | Au, g/t | Ag, g/t | Au, % | Ag, % |
+ 48 | +297 | 23.6 |  | 9.1 |  | 0.32 | 39.9 | 7.8 | 5.8 |
-48 + 65 | -297+210 | 33.7 |  | 13.0 |  | 0.39 | 41.8 | 13.9 | 8.7 |
-65 + 100 | -210+149 | 42.5 |  | 16.4 |  | 0.29 | 149.8 | 13.0 | 39.2 |
- 100+ 150 | -149+105 | 44.1 |  | 17.0 |  | 0.48 | 47.5 | 22.3 | 12.9 |
- 150 + 200 | -105+74 | 31.2 |  | 12.1 |  | 0.40 | 49.0 | 13.2 | 9.4 |
- 200 + 270 | -74+53 | 27.9 |  | 10.8 |  | 0.36 | 41.2 | 10.6 | 7.1 |
- 270 + 325 | -53+44 | 7.4 |  | 2.9 |  | 0.36 | 41.1 | 2.8 | 1.9 |
-325 + 400 | -44+37 | 6.3 |  | 2.4 |  | 0.39 | 41.2 | 2.6 | 1.6 |
-400 | -37 | 42.1 |  | 16.3 |  | 0.31 | 52.2 | 13.8 | 13.5 |
Calculated | 258.8 |  | 100.0 |  | 0.37 | 62.8 | 100.0 | 100.0 |
Average measured |  |  |  |  | 0.37 | 45.9 |  |  |

SIZE ASSAY ANALYSIS REPORT

Client: |  | MineStart Management Inc. | Date: |  | 20-Aug-04
Test: |  | SA2 | Project: |  | 0406407
Sample: |  | S10 |  |  |

Size Fraction | Weight | Assay | Distribution
Mesh | Microns | g |  | % |  | Au, g/t | Ag, g/t | Au, % | Ag, % |
+ 48 | +297 | 57.3 |  | 23.3 |  | 0.23 | 69.7 | 12.2 | 20.2 |
-48 + 65 | -297+210 | 28.2 |  | 11.4 |  | 0.46 | 90.3 | 12.0 | 12.9 |
-65 + 100 | -210+149 | 35.0 |  | 14.2 |  | 0.49 | 80.0 | 15.9 | 14.1 |
- 100+ 150 | -149+105 | 34.8 |  | 14.1 |  | 0.57 | 72.2 | 18.4 | 12.7 |
- 150 + 200 | -105+74 | 22.3 |  | 9.1 |  | 0.59 | 76.4 | 12.2 | 8.6 |
- 200 + 270 | -74+53 | 18.4 |  | 7.5 |  | 0.37 | 71.7 | 6.3 | 6.7 |
- 270 + 325 | -53+44 | 6.3 |  | 2.6 |  | 0.36 | 73.9 | 2.1 | 2.4 |
-325 + 400 | -44+37 | 5.8 |  | 2.3 |  | 0.60 | 75.2 | 3.2 | 2.2 |
-400 | -37 | 38.1 |  | 15.5 |  | 0.50 | 105.5 | 17.7 | 20.3 |
Calculated | 246.3 |  | 100.0 |  | 0.44 | 80.4 | 100.0 | 100.0 |
Average measured |  |  |  |  | 0.41 | 84.8 |  |  |

SIZE ASSAY ANALYSIS REPORT

Client: |  | MineStart Management Inc. | Date: |  | 20-Aug-04
Test: |  | SA3 | Project: |  | 0406407
Sample: |  | S22 |  |  |

Size Fraction | Weight | Assay | Distribution
Mesh | Microns | g |  | % |  | Au, g/t | Ag, g/t | Au, % | Ag, % |
+ 48 | +297 | 67.8 |  | 33.2 |  | 0.37 | 38.1 | 33.2 | 12.7 |
-48 + 65 | -297+210 | 42.3 |  | 20.7 |  | 0.40 | 130.9 | 22.4 | 27.2 |
-65 + 100 | -210+149 | 31.0 |  | 15.2 |  | 0.32 | 129.1 | 13.2 | 19.7 |
- 100+ 150 | -149+105 | 21.6 |  | 10.6 |  | 0.42 | 117.9 | 12.0 | 12.5 |
- 150 + 200 | -105+74 | 11.4 |  | 5.6 |  | 0.35 | 110.8 | 5.3 | 6.2 |
- 200 + 270 | -74+53 | 8.0 |  | 3.9 |  | 0.34 | 106.1 | 3.6 | 4.2 |
- 270 + 325 | -53+44 | 3.4 |  | 1.7 |  | 0.32 | 102.6 | 1.4 | 1.7 |
-325 + 400 | -44+37 | 2.0 |  | 1.0 |  | 0.28 | 103.2 | 0.7 | 1.0 |
-400 | -37 | 17.0 |  | 8.3 |  | 0.36 | 175.9 | 8.1 | 14.7 |
Calculated Average measured | 204.4 |  | 100.0 |  | 0.37 0.35 | 99.4 140.0 | 100.0 | 100.0 |

SIZE ASSAY ANALYSIS REPORT

Client: |  | MineStart Management Inc. | Date: |  | 20-Aug-04
Test: |  | SA4 | Project: |  | 0406407
Sample: |  | S45 |  |  |

Size Fraction | Weight | Assay | Distribution
Mesh | Microns | g |  | % |  | Au, g/t | Ag, g/t | Au, % | Ag, % |
+ 48 | +297 | 25.9 |  | 13.5 |  | 0.50 | 146.1 | 15.9 | 19.1 |
-48 + 65 | -297+210 | 28.1 |  | 14.6 |  | 0.48 | 131.4 | 16.5 | 18.6 |
-65 + 100 | -210+149 | 34.6 |  | 18.0 |  | 0.41 | 105.5 | 17.4 | 18.4 |
- 100+ 150 | -149+105 | 34.4 |  | 17.9 |  | 0.56 | 86.2 | 23.7 | 15.0 |
- 150 + 200 | -105+74 | 21.2 |  | 11.0 |  | 0.35 | 72.5 | 9.1 | 7.8 |
- 200 + 270 | -74+53 | 16.3 |  | 8.5 |  | 0.36 | 68.2 | 7.2 | 5.6 |
- 270 + 325 | -53+44 | 5.1 |  | 2.7 |  | 0.42 | 74.1 | 2.6 | 1.9 |
-325 + 400 | -44+37 | 3.8 |  | 2.0 |  | 0.40 | 83.8 | 1.9 | 1.6 |
-400 | -37 | 22.8 |  | 11.9 |  | 0.20 | 103.9 | 5.6 | 12.0 |
Calculated | 192.1 |  | 100.0 |  | 0.42 | 103.0 | 100.0 | 100.0 |
Average measured |  |  |  |  | 0.39 | 104.6 |  |  |

SIZE ASSAY ANALYSIS REPORT

Client: |  | MineStart Management Inc. | Date: |  | 20-Aug-04
Test: |  | SA4 | Project: |  | 0406407
Sample: |  | S50 |  |  |

Size Fraction | Weight | Assay | Distribution
Mesh | Microns | g | % | Au, g/t | Ag, g/t | Au, % | Ag, % |
+ 48 | +297 | 19.7 |  | 8.0 |  | 0.38 | 94.3 | 6.5 | 12.2 |
-48 + 65 | -297+210 | 22.7 |  | 9.2 |  | 0.38 | 78.1 | 7.5 | 11.7 |
-65 + 100 | -210+149 | 34.5 |  | 14.0 |  | 0.32 | 68.0 | 9.6 | 15.5 |
- 100+ 150 | -149+105 | 47.2 |  | 19.2 |  | 0.58 | 63.5 | 23.7 | 19.7 |
- 150 + 200 | -105+74 | 35.6 |  | 14.5 |  | 0.54 | 49.2 | 16.8 | 11.5 |
- 200 + 270 | -74+53 | 31.7 |  | 12.9 |  | 0.51 | 43.8 | 14.1 | 9.1 |
- 270 + 325 | -53+44 | 8.4 |  | 3.4 |  | 0.45 | 42.1 | 3.3 | 2.3 |
-325 + 400 | -44+37 | 7.0 |  | 2.8 |  | 0.47 | 43.2 | 2.8 | 2.0 |
-400 | -37 | 38.9 |  | 15.9 |  | 0.46 | 62.2 | 15.6 | 16.0 |
Calculated | 245.7 |  | 100.0 |  | 0.47 | 61.8 | 100.0 | 100.0 |
Average measured |  |  |  |  | 0.57 | 62.6 |  |  |

SIZE ASSAY ANALYSIS REPORT

Client: |  | MineStart Management Inc. | Date: |  | 20-Aug-04
Test: |  | SA6 | Project: |  | 0406407
Sample: |  | S74 |  |  |

Size Fraction | Weight | Assay | Distribution
Mesh | Microns | g | % | Au, g/t | Ag, g/t | Au, % | Ag, % |
+ 48 | +297 | 44.8 |  | 20.2 |  | 0.32 | 57.2 | 19.1 | 18.7 |
-48 + 65 | -297+210 | 58.0 |  | 26.1 |  | 0.24 | 52.0 | 18.5 | 22.0 |
-65 + 100 | -210+149 | 51.9 |  | 23.4 |  | 0.26 | 54.9 | 17.9 | 20.8 |
- 100+ 150 | -149+105 | 34.8 |  | 15.7 |  | 0.44 | 70.8 | 20.4 | 18.0 |
- 150 + 200 | -105+74 | 15.1 |  | 6.8 |  | 0.50 | 77.6 | 10.1 | 8.6 |
- 200 + 270 | -74+53 | 7.9 |  | 3.5 |  | 0.56 | 74.9 | 5.9 | 4.3 |
- 270 + 325 | -53+44 | 2.7 |  | 1.2 |  | 1.23 | 82.6 | 4.4 | 1.6 |
-325 + 400 | -44+37 | 1.0 |  | 0.5 |  | 0.38 | 83.2 | 0.5 | 0.6 |
-400 | -37 | 5.9 |  | 2.6 |  | 0.43 | 126.0 | 3.3 | 5.4 |
Calculated | 222.0 |  | 100.0 |  | 0.34 | 61.7 | 100.0 | 100.0 |
Average measured |  |  |  |  | 0.48 | 64.6 |  |  |

SIZE-ASSAY ANALYSIS REPORT

Client: |  | MineStart Management Inc. | Date: |  | 30-Aug-04
Test: |  | SA1-R | Project: |  | 0406407
Sample: |  | S2 |  |  |

Size Fraction | Weight | Assay | Distribution
Mesh | Microns | g | % | Au, g/t | Ag, g/t | Au, % | Ag, % |
+35 | +420 | 5.5 |  | 2.8 |  | 0.40 | 36.0 | 2.2 | 2.4 |
-35+48 | -420+297 | 12.6 |  | 6.4 |  | 0.52 | 33.4 | 6.7 | 5.1 |
-48+65 | -297+210 | 25.8 |  | 13.2 |  | 0.36 | 36.5 | 9.6 | 11.4 |
-65+100 | -210+149 | 31.4 |  | 16.0 |  | 0.42 | 39.0 | 13.6 | 14.8 |
-100+150 | -149+105 | 32.7 |  | 16.7 |  | 0.52 | 49.1 | 17.5 | 19.4 |
-150+200 | -105+74 | 23.4 |  | 11.9 |  | 0.64 | 41.7 | 15.4 | 11.8 |
-200+270 | -74+53 | 20.7 |  | 10.6 |  | 0.49 | 41.5 | 10.5 | 10.4 |
-270+325 | -53+44 | 6.0 |  | 3.1 |  | 0.58 | 40.0 | 3.6 | 2.9 |
-325+400 | -44+37 | 4.8 |  | 2.5 |  | 0.67 | 39.6 | 3.3 | 2.3 |
Undersize | -37 | 33.0 |  | 16.8 |  | 0.52 | 48.5 | 17.7 | 19.4 |
| Total | 196.0 |  | 100.0 |  | 0.50 | 42.1 | 100.0 | 100.0 |
Average measured |  |  |  |  | 0.37 | 45.9 |  |  |

SIZE-ASSAY ANALYSIS REPORT

Client: |  | MineStart Management Inc. | Date: |  | 30-Aug-04
Test: |  | SA2-R | Project: |  | 0406407
Sample: |  | S10 |  |  |

Size Fraction | Weight | Assay | Distribution
Mesh | Microns | g | % | Au, g/t | Ag, g/t | Au, % |  | Ag, % |
+20 | +841 | 19.9 |  | 9.1 |  | 0.22 | 33.8 | 4.2 |  | 4.0 |
-20+28 | -841+595 | 4.6 |  | 2.1 |  | 0.47 | 72.9 | 2.1 |  | 2.0 |
-28+35 | -595+420 | 8.9 |  | 4.1 |  | 0.56 | 91.8 | 4.7 |  | 4.9 |
-35+48 | -420+297 | 14.7 |  | 6.7 |  | 0.49 | 92.7 | 6.8 |  | 8.2 |
-48+65 | -297+210 | 24.3 |  | 11.1 |  | 0.46 | 88.4 | 10.6 |  | 12.9 |
-65+100 | -210+149 | 29.7 |  | 13.6 |  | 0.63 | 74.8 | 17.8 |  | 13.3 |
-100+150 | -149+105 | 29.9 |  | 13.7 |  | 0.42 | 66.6 | 11.9 |  | 11.9 |
-150+200 | -105+74 | 19.4 |  | 8.9 |  | 0.44 | 64.6 | 8.1 |  | 7.5 |
-200+270 | -74+53 | 16.5 |  | 7.6 |  | 0.41 | 63.0 | 6.4 |  | 6.2 |
-270+325 | -53+44 | 4.8 |  | 2.2 |  | 0.89 | 65.4 | 4.1 |  | 1.9 |
-325+400 | -44+37 | 4.2 |  | 1.9 |  | 0.61 | 66.6 | 2.4 |  | 1.7 |
Undersize | -37 | 41.6 |  | 19.0 |  | 0.53 | 102.1 | 20.9 |  | 25.5 |
Total | 218.5 |  | 100.0 |  | 0.48 | 76.3 | 100.0 |  | 100.0 |
Average measured |  |  |  |  | 0.41 | 84.8 |  |  |  |

SIZE-ASSAY ANALYSIS REPORT

Client: |  | MineStart Management Inc. | Date: |  | 30-Aug-04
Test: |  | SA3-R | Project: |  | 0406407
Sample: |  | S22 |  |  |

Size Fraction | Weight | Assay | Distribution
Mesh | Microns | g | % | Au, g/t | Ag, g/t | Au, % |  | Ag, % |
+28 | +595 | 11.0 |  | 5.0 |  | 0.41 | 164.5 | 4.8 |  | 6.4 |
-28+35 | -595+420 | 21.1 |  | 9.7 |  | 0.52 | 141.7 | 11.7 |  | 10.6 |
-35+48 | -420+297 | 38.8 |  | 17.7 |  | 0.41 | 133.0 | 16.9 |  | 18.3 |
-48+65 | -297+210 | 45.5 |  | 20.8 |  | 0.44 | 126.9 | 21.2 |  | 20.5 |
-65+100 | -210+149 | 33.3 |  | 15.2 |  | 0.35 | 120.9 | 12.4 |  | 14.3 |
-100+150 | -149+105 | 23.5 |  | 10.8 |  | 0.52 | 116.6 | 13.0 |  | 9.7 |
-150+200 | -105+74 | 12.7 |  | 5.8 |  | 0.37 | 100.6 | 5.0 |  | 4.5 |
-200+270 | -74+53 | 9.6 |  | 4.4 |  | 0.36 | 96.9 | 3.7 |  | 3.3 |
-270+325 | -53+44 | 2.9 |  | 1.3 |  | 0.61 | 87.6 | 1.9 |  | 0.9 |
-325+400 | -44+37 | 1.9 |  | 0.9 |  | 0.86 | 94.0 | 1.8 |  | 0.6 |
Undersize | -37 | 18.4 |  | 8.4 |  | 0.40 | 162.5 | 7.8 |  | 10.6 |
Total | 218.6 |  | 100.0 |  | 0.43 | 128.6 | 100.0 |  | 100.0 |
Average measured |  |  |  |  | 0.35 | 140.0 |  |  |  |

SIZE-ASSAY ANALYSIS REPORT

Client: |  | MineStart Management Inc. | Date: |  | 30-Aug-04
Test: |  | SA4-R | Project: |  | 0406407
Sample: |  | S45 |  |  |

Size Fraction | Weight | Assay | Distribution
Mesh | Microns | g | % | Au, g/t | Ag, g/t | Au, % |  | Ag, % |
+35 | +420 | 8.7 |  | 4.7 |  | 0.84 | 150.8 | 8.4 |  | 7.1 |
-35+48 | -420+297 | 14.4 |  | 7.8 |  | 0.45 | 134.9 | 7.5 |  | 10.6 |
-48+65 | -297+210 | 26.2 |  | 14.2 |  | 0.50 | 119.7 | 15.0 |  | 17.1 |
-65+100 | -210+149 | 32.2 |  | 17.4 |  | 0.42 | 103.4 | 15.5 |  | 18.1 |
-100+150 | -149+105 | 33.1 |  | 17.9 |  | 0.43 | 83.4 | 16.3 |  | 15.0 |
-150+200 | -105+74 | 21.0 |  | 11.3 |  | 0.44 | 71.1 | 10.6 |  | 8.1 |
-200+270 | -74+53 | 16.0 |  | 8.6 |  | 0.47 | 73.1 | 8.6 |  | 6.3 |
-270+325 | -53+44 | 4.8 |  | 2.6 |  | 0.46 | 73.7 | 2.5 |  | 1.9 |
-325+400 | -44+37 | 3.2 |  | 1.7 |  | 0.94 | 84.1 | 3.5 |  | 1.5 |
Undersize | -37 | 25.6 |  | 13.8 |  | 0.41 | 102.8 | 12.1 |  | 14.3 |
Total | 185.1 |  | 100.0 |  | 0.47 | 99.3 | 100.0 |  | 100.0 |
Average measured |  |  |  |  | 0.39 | 104.6 |  |  |  |

SIZE-ASSAY ANALYSIS REPORT

Client: |  | MineStart Management Inc. | Date: |  | 30-Aug-04
Test: |  | SA5-R | Project: |  | 0406407
Sample: |  | S50 |  |  |

Size Fraction | Weight | Assay | Distribution
Mesh | Microns | g | % | Au, g/t | Ag, g/t | Au, % |  | Ag, % |
+35 | +420 | 6.0 |  | 2.8 |  | 0.75 | 85.5 | 3.2 |  | 4.1 |
-35+48 | -420+297 | 11.4 |  | 5.3 |  | 0.93 | 84.4 | 7.5 |  | 7.5 |
-48+65 | -297+210 | 20.1 |  | 9.3 |  | 0.72 | 75.6 | 10.2 |  | 11.9 |
-65+100 | -210+149 | 29.9 |  | 13.9 |  | 0.62 | 69.0 | 13.1 |  | 16.2 |
-100+150 | -149+105 | 41.1 |  | 19.1 |  | 0.79 | 56.8 | 22.9 |  | 18.3 |
-150+200 | -105+74 | 30.6 |  | 14.2 |  | 0.60 | 48.5 | 13.0 |  | 11.6 |
-200+270 | -74+53 | 26.9 |  | 12.5 |  | 0.53 | 43.2 | 10.1 |  | 9.1 |
-270+325 | -53+44 | 7.3 |  | 3.4 |  | 0.68 | 41.6 | 3.5 |  | 2.4 |
-325+400 | -44+37 | 6.1 |  | 2.8 |  | 0.69 | 42.2 | 3.0 |  | 2.0 |
Undersize | -37 | 35.8 |  | 16.6 |  | 0.54 | 60.0 | 13.6 |  | 16.8 |
Total | 215.3 |  | 100.0 |  | 0.66 | 59.2 | 100.0 |  | 100.0 |
Average measured |  |  |  |  | 0.57 | 62.6 |  |  |  |

SIZE-ASSAY ANALYSIS REPORT

Client: |  | MineStart Management Inc. | Date: |  | 30-Aug-04
Test: |  | SA6-R | Project: |  | 0406407
Sample: |  | S74 |  |  |

Size Fraction | Weight | Assay | Distribution
Mesh | Microns | g | % | Au, g/t | Ag, g/t | Au, % |  | Ag, % |
+35 | +420 | 12.5 |  | 5.8 |  | 0.41 | 62.0 | 4.0 |  | 5.7 |
-35+48 | -420+297 | 30.7 |  | 14.3 |  | 0.43 | 55.7 | 10.3 |  | 12.7 |
-48+65 | -297+210 | 53.7 |  | 25.1 |  | 0.37 | 56.0 | 15.5 |  | 22.3 |
-65+100 | -210+149 | 47.7 |  | 22.3 |  | 0.56 | 54.9 | 20.8 |  | 19.4 |
-100+150 | -149+105 | 32.6 |  | 15.2 |  | 0.82 | 68.9 | 20.9 |  | 16.6 |
-150+200 | -105+74 | 15.5 |  | 7.2 |  | 0.84 | 75.3 | 10.2 |  | 8.7 |
-200+270 | -74+53 | 9.1 |  | 4.2 |  | 1.16 | 80.5 | 8.2 |  | 5.4 |
-270+325 | -53+44 | 4.3 |  | 2.0 |  | 0.86 | 77.2 | 2.9 |  | 2.5 |
-325+400 | -44+37 | 2.9 |  | 1.3 |  | 2.12 | 85.5 | 4.7 |  | 1.8 |
Undersize | -37 | 5.3 |  | 2.5 |  | 0.62 | 126.9 | 2.5 |  | 4.9 |
Total | 214.3 |  | 100.0 |  | 0.60 | 63.0 | 100.0 |  | 100.0 |
Average measured |  |  |  |  | 0.48 | 64.6 |  |  |  |

SIZE-ASSAY ANALYSIS REPORT

Client: |  | MineStart Management Inc. | Date: |  | 30-Aug-04
Test: |  | SA 9 | Project: |  | 0406407
Sample: |  | Composite A Head |  |  |

Size Fraction | Weight | Assay | Distribution
Tyler Mesh | Microns | g | % | Au, g/t | Ag, g/t | Au, % |  | Ag, % |
+ 65 | +210 | 53.8 |  | 28.1 |  | 0.37 | 108.1 | 29.6 |  | 30.4 |
- 65 +100 | -210+149 | 30.0 |  | 15.6 |  | 0.38 | 87.9 | 16.9 |  | 13.8 |
- 100 +150 | -149+105 | 29.3 |  | 15.3 |  | 0.35 | 84.4 | 15.2 |  | 12.9 |
- 150 + 200 | -105+74 | 18.4 |  | 9.6 |  | 0.33 | 87.9 | 9.2 |  | 8.5 |
- 200 + 270 | -74+53 | 16.9 |  | 8.8 |  | 0.30 | 74.1 | 7.5 |  | 6.6 |
- 270 + 325 | -53+44 | 5.6 |  | 2.9 |  | 0.28 | 73.9 | 2.3 |  | 2.2 |
-325 + 400 | -44+37 | 3.6 |  | 1.9 |  | 0.38 | 79.3 | 2.0 |  | 1.5 |
Undersize | -37 | 34.2 |  | 17.8 |  | 0.34 | 135.5 | 17.2 |  | 24.2 |
Total |  | 191.7 |  | 100.0 |  | 0.35 | 99.7 | 100.0 |  | 100.0 |
Measured |  |  |  |  |  | 0.37 | 99.8 |  |  |  |

HEAD ASSAY REPORT

Client: |  | MineStart Management Inc. | Date: |  | 17-Nov-04
Test: |  | SA 9 | Project: |  | 0406407
Sample: |  | Screen Fractions of Composite A Head |  |  |

Elements | Units | Sample ID | Detection Limits | Analytical
+210 µm | -210+149 µm | -149+105 µm | -105+74 µm | 74+53 µm | -53+44 µm | -44+37 µm | -37 µm | Head | Minimum | Maximum | Method
| Au | g/mt | 0.37 | 0.38 | 0.35 | 0.33 | 0.30 | 0.28 | 0.38 | 0.34 | 0.37 | 0.01 | 5000 | FA/AAS
| Al | ppm | 39175 | 37701 | 31294 | 32770 | 33633 | 31436 | 31601 | 53619 | 36594 | 100 | 50000 | ICPM
| Sb | ppm | 188 | 214 | 213 | 213 | 195 | 200 | 203 | 200 | 203 | 5 | 2000 | ICPM
| As | ppm | 0 | 11 | 12 | 49 | 84 | 113 | 131 | 40 | <5 | 5 | 10000 | ICPM
| Ba | ppm | 633 | 592 | 596 | 639 | 636 | 669 | 733 | 791 | 650 | 2 | 10000 | ICPM
| Bi | ppm | 135.5 | 154 | 175 | 200 | 230 | 230 | 289 | 367 | 221 | 2 | 2000 | ICPM
| Cd | ppm | 0 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | 0.2 | 2000 | ICPM
| Ca | ppm | 8477 | 16593 | 16516 | 19599 | 20598 | 20969 | 22100 | 19686 | 15510 | 100 | 100000 | ICPM
| Cr | ppm | 110 | 148 | 166 | 13 | 13 | 15 | 16 | 26 | 161 | 1 | 10000 | ICPM
| Co | ppm | 8 | 9 | 12 | 10 | 10 | 10 | 11 | 12 | 10 | 1 | 10000 | ICPM
| Cu | ppm | 919.5 | 957 | 1152 | 1212 | 986 | 998 | 1204 | 2165 | 1319 | 1 | 20000 | ICPM
| Fe | ppm | 67024.5 | 73407 | 67078 | 71775 | 72329 | 69244 | 73857 | 98352 | 70760 | 100 | 50000 | ICPM
| La | ppm | 11.5 | 10 | 10 | 10 | 10 | 11 | 11 | 15 | 11 | 2 | 10000 | ICPM
| Pb | ppm | 8119 | 10887 | 12668 | 18252 | 19964 | 18601 | 23435 | 20824 | 12956 | 2 | 10000 | ICPM
| Mg | ppm | 3593 | 3588 | 2837 | 2923 | 2888 | 2629 | 2647 | 5348 | 3473 | 100 | 100000 | ICPM
| Mn | ppm | 2167.5 | 3132 | 3275 | 3674 | 3507 | 3203 | 3587 | 3338 | 2804 | 1 | 10000 | ICPM
| Hg | ppm | 0 | <3 | <3 | <3 | <3 | <3 | <3 | <3 | <3 | 3 | 10000 | ICPM
| Mo | ppm | 10 | 11 | 12 | 12 | 13 | 14 | 16 | 18 | 13 | 1 | 1000 | ICPM
| Ni | ppm | 5 | 3 | 6 | 1 | 4 | 8 | 36 | 71 | 31 | 1 | 10000 | ICPM
| P | ppm | 239.5 | 240 | 223 | 255 | 267 | 287 | 313 | 422 | 290 | 100 | 50000 | ICPM
| K | ppm | 24360.5 | 21731 | 20237 | 20339 | 19959 | 19851 | 19812 | 21992 | 21774 | 100 | 100000 | ICPM
| Sc | ppm | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 4 | 3 | 1 | 10000 | ICPM
| Ag | ppm | 108.05 | 87.9 | 84.4 | 87.9 | 74.1 | 73.9 | 79.3 | 135.5 | 99.8 | 0.1 | 1000 | ICPM
| Na | ppm | 1589 | 1404 | 1254 | 1417 | 1298 | 1311 | 1382 | 2121 | 1495 | 100 | 100000 | ICPM
| Sr | ppm | 54 | 48 | 45 | 46 | 46 | 45 | 46 | 52 | 49 | 1 | 10000 | ICPM
| Tl | ppm | 0 | <2 | <2 | <2 | <2 | <2 | <2 | <2 | <2 | 2 | 1000 | ICPM
| Ti | ppm | 973.5 | 1011 | 1047 | 837 | 846 | 1002 | 1125 | 1196 | 1129 | 100 | 100000 | ICPM
| W | ppm | 8.5 | 11 | <5 | 14 | <5 | <5 | <5 | <5 | 8 | 5 | 1000 | ICPM
| V | ppm | 37.5 | 38 | 38 | 38 | 37 | 40 | 44 | 59 | 42 | 1 | 10000 | ICPM
| Zn | ppm | 2063.5 | 2224 | 1849 | 1979 | 2014 | 1952 | 2017 | 3541 | 2169 | 1 | 10000 | ICPM
| Zr | ppm | 30.5 | 29 | 26 | 27 | 28 | 25 | 27 | 37 | 29 | 1 | 10000 | ICPM

SIZE ANALYSIS REPORT

Client: |  | MineStart Management Inc. | Date: |  | 10-Nov-04
Test: |  | S9 | Project: |  | 0406407
Sample: |  | Composite A |  |  |
Grind: |  | as received, dry |  |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micrometers | % Retained | % Passing
65 | 210 | 28.1 | 71.9
100 | 149 | 15.6 | 56.3
150 | 105 | 15.3 | 41.0
200 | 74 | 9.6 | 31.4
270 | 53 | 8.8 | 22.6
325 | 44 | 2.9 | 19.7
400 | 37 | 1.9 | 17.8
Undersize | -37 | 17.8 | -
TOTAL: |  | 100.0 |

SIZE-ASSAY ANALYSIS REPORT

Client: |  | MineStart Management Inc. | Date: |  | 17-Nov-04
Test: |  | SA 10 | Project: |  | 0406407
Sample: |  | Composite B Head |  |  |

Size Fraction | Weight | Assay | Distribution
Tyler Mesh | Microns | g | % | Au, g/t | Ag, g/t | Au, % |  | Ag, % |
+ 65 | +210 | 23.5 |  | 13.6 |  | 0.57 | 133.7 | 15.2 |  | 23.8 |
- 65 +100 | -210+149 | 20.5 |  | 11.8 |  | 0.55 | 109.4 | 12.7 |  | 17.0 |
- 100 +150 | -149+105 | 28.1 |  | 16.2 |  | 0.50 | 72.9 | 16.0 |  | 15.5 |
- 150 + 200 | -105+74 | 20.3 |  | 11.7 |  | 0.51 | 64.9 | 11.7 |  | 10.0 |
- 200 + 270 | -74+53 | 20.7 |  | 12.0 |  | 0.52 | 55.0 | 12.3 |  | 8.6 |
- 270 + 325 | -53+44 | 7.2 |  | 4.1 |  | 0.41 | 53.5 | 3.3 |  | 2.9 |
-325 + 400 | -44+37 | 3.9 |  | 2.2 |  | 0.40 | 51.6 | 1.7 |  | 1.5 |
Undersize | -37 | 49.1 |  | 28.3 |  | 0.49 | 55.2 | 27.1 |  | 20.6 |
Total | 173.3 |  | 100.0 |  | 0.51 | 76.1 | 100.0 |  | 100.0 |
Measured |  |  |  |  | 0.55 | 88.3 |  |  |  |

HEAD ASSAY REPORT

Client: |  | MineStart Management Inc. | Date: |  | 17-Nov-04
Test: |  | SA 10 | Project: |  | 0406407
Sample: |  | Screen Fractions of Composite B Head |  |  |

Elements | Units | Sample ID | Detection Limits | Analytical
+210 µm | -210+149 µm | -149+105 µm | -105+74 µm | -74+53 µm | -53+44 µm | -44+37 µm | -37 µm | Head | Minimum | Maximum | Method
Au | g/mt | 0.57 | 0.55 | 0.50 | 0.51 | 0.52 | 0.41 | 0.40 | 0.49 | 0.55 | 0.01 | 5000 | FA/AAS
Al | ppm | 24313 | 21958 | 22070 | 21522 | 21572 | 22673 | 23061 | 21150 | 25970 | 100 | 50000 | ICPM
Sb | ppm | 150 | 155 | 142 | 147 | 146 | 143 | 148 | 140 | 150 | 5 | 2000 | ICPM
As | ppm | 12 | 22 | 40 | 63 | 89 | 92 | 103 | 111 | 56 | 5 | 10000 | ICPM
Ba | ppm | 453 | 442 | 430 | 488 | 554 | 598 | 632 | 647 | 515 | 2 | 10000 | ICPM
Bi | ppm | 202 | 188 | 226 | 292 | 388 | 448 | 445 | 490 | 379 | 2 | 2000 | ICPM
Cd | ppm | <0.2 | 5.5 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | 0.2 | 2000 | ICPM
Ca | ppm | 1705 | 1990 | 2269 | 2442 | 2686 | 2761 | 2800 | 3080 | 2435 | 100 | 100000 | ICPM
Cr | ppm | 151 | 208 | 94 | 10 | 11 | 11 | 12 | 14 | 210 | 1 | 10000 | ICPM
Co | ppm | 12 | 5 | 7 | 6 | 7 | 8 | 8 | 8 | 7 | 1 | 10000 | ICPM
Cu | ppm | 955 | 829 | 785 | 823 | 882 | 889 | 889 | 919 | 1085 | 1 | 20000 | ICPM
Fe | ppm | 54607 | 54554 | 66654 | 78999 | 91771 | 100343 | 99485 | 91952 | 75991 | 100 | 50000 | ICPM
La | ppm | 7 | 6 | 6 | 7 | 7 | 7 | 8 | 9 | 8 | 2 | 10000 | ICPM
Pb | ppm | 4965 | 5225 | 5327 | 6648 | 8316 | 9126 | 8815 | 8653 | 7065 | 2 | 10000 | ICPM
Mg | ppm | 1972 | 1658 | 1619 | 1537 | 1500 | 1520 | 1488 | 1375 | 1906 | 100 | 100000 | ICPM
Mn | ppm | 872 | 961 | 1461 | 1882 | 2290 | 2565 | 2564 | 2306 | 1664 | 1 | 10000 | ICPM
Hg | ppm | <3 | <3 | <3 | <3 | <3 | <3 | <3 | <3 | <3 | 3 | 10000 | ICPM
Mo | ppm | 13 | 12 | 14 | 18 | 19 | 23 | 21 | 24 | 18 | 1 | 1000 | ICPM
Ni | ppm | 9 | 3 | 7 | <1 | 1 | 4 | <1 | 1 | 12 | 1 | 10000 | ICPM
P | ppm | 132 | 131 | 140 | 171 | 197 | 191 | 224 | 240 | 194 | 100 | 50000 | ICPM
K | ppm | 13711 | 13094 | 12376 | 12191 | 11878 | 11626 | 11850 | 12064 | 12499 | 100 | 100000 | ICPM
Sc | ppm | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 1 | 10000 | ICPM
Ag | ppm | 133.7 | 109.4 | 72.9 | 64.9 | 55 | 53.5 | 51.6 | 55.2 | 88.3 | 0.1 | 1000 | ICPM
Na | ppm | 974 | 948 | 843 | 824 | 899 | 815 | 852 | 796 | 1022 | 100 | 100000 | ICPM
Sr | ppm | 30 | 29 | 27 | 26 | 26 | 26 | 26 | 28 | 28 | 1 | 10000 | ICPM
Tl | ppm | <2 | <2 | <2 | <2 | <2 | <2 | <2 | <2 | <2 | 2 | 1000 | ICPM
Ti | ppm | 530 | 540 | 578 | 501 | 569 | 615 | 680 | 678 | 753 | 100 | 100000 | ICPM
W | ppm | 21 | 16 | 16 | 17 | 17 | 20 | 19 | 21 | 15 | 5 | 1000 | ICPM
V | ppm | 24 | 24 | 25 | 28 | 32 | 33 | 34 | 35 | 33 | 1 | 10000 | ICPM
Zn | ppm | 692 | 968 | 730 | 768 | 812 | 819 | 820 | 832 | 860 | 1 | 10000 | ICPM
Zr | ppm | 22 | 21 | 20 | 19 | 20 | 20 | 20 | 21 | 25 | 1 | 10000 | ICPM

SIZE ANALYSIS REPORT

Client: |  | MineStart Management Inc. | Date: |  | 10-Nov-04
Test: |  | S10 | Project: |  | 0406407
Sample: |  | Composite B |  |  |
Grind: |  | as received, dry |  |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micrometers | % Retained | % Passing
65 | 210 | 13.6 | 86.4
100 | 149 | 11.8 | 74.6
150 | 105 | 16.2 | 58.4
200 | 74 | 11.7 | 46.7
270 | 53 | 12.0 | 34.7
325 | 44 | 4.1 | 30.6
400 | 37 | 2.2 | 28.3
Undersize | -37 | 28.3 | -
TOTAL: |  | 100.0 |

Method of Gold And Silver Analysis By Fire Assav/AAS

(a) | 20 to 30 grams of samples is weighed into a fusion pot with fluxes such as lead oxide, sodium carbonate, borax, silica flour, baking flour or potassium nitrate. After the sample and fluxes have been mixed thoroughly, some silver in quart and a thin layer of borax is added on top.

(b) | The sample is then charged into a fire assay furnace at 2000 F for one hour, at this stage, lead oxide would be reduced to elemental lead and slowly sink down to the bottom of the fusion pot and collected the gold and silver along the way.

(c) | After one hour of fusion, the sample is taken out and pour into a conical cast iron mould. The elemental lead which contains precious metals would stay at the bottom of the mould and any unwanted materials called slag would float on top and be removed by hammering, a "lead button" is formed.

(d) | The lead button is then put back in the furnace onto a preheated cupel for a second stage of separation, at 1650 F, the lead button become liquefied and absorbed by the cupel, but gold and silver which have higher melting points would stay on top of the cupel.

(e) | After 45 minutes of cupellation, the cupel is then taken out and cooled, the dore bead which contains precious metals is then weighed and transferred into a test tube and dissolved in hot Aqua Regia solution heated by a hot water bath.

(f) | The gold in solution is determined with an Atomic Absorption Spectrometer. The gold value, in parts-per-billion, or grams-per-tonne is calculated by comparison with a set of known gold standards.

(g) | The silver result is determined by subtracting the gold value from the dore bead, and then reported in ppm or g/mt.

Quality Control
Every fusion of 24 pots contains 22 samples, one internal standard or blank, and a random reweigh of one of the samples. Samples with anomalous gold values greater than 500 ppb are automatically checked by Fire Assay/AA methods. Samples with gold values greater than 10000 ppb are automatically checked by Fire Assay/Gravimetric methods.

CHEM MET: Muti-Acid Digestion Assay Method for Aq

(a) | Weigh O.5.... g sample in teflon beaker.
(b) | Add 5 ml cone HCI, then add 5 ml cone HN03, then add 8 ml 1:1 H2S04
(c) | Heat on hot plate.
(d) | When the reaction subsides, add 5 - 10 ml cone HF.
(e) | Heat on hot plate.
(f) | Evaporate to dryness.
(g) | Add 25 ml 50% HCI.
(h) | Heat up to dissolve all salts.
(i) | Transfer to 50 ml volumetric flask.
(J) | Make up to volume with distilled water.
(k) | Read on AA.

Accuracy: limits of accuracy (x ±5) g/t

Method of Ore Grade Elements By Multi-Acid Diqestion/ICP
(a) 0.25 to 1.0 grams of sample is weighed accurately and transferred into a 250 ml beaker, HCI, HNO3, HCLO4 and HF acid solutions are added and digested on a hot plate to dryness then re-boiled with 80 ml of 5% HCI for 10 minutes and let cooled, bulked up to a fixed volume wide mineralized water, and thoroughly mixed.
(b) The specifc elements are determined using an Inductively Coupled Plasma spectrophotmeter. All elements are corrected for inter-element interference. All data is subsequently stored onto a computer diskkette.
Quality Control
The machne is frst calibrated using three known standards and a blank. The test samples are then run in batches.
A sample batch consists of 38 or less samples. Two tubes are placed before each set, then are an in-buse standard and an acid blanket with are both digested with the sample set. A known standard with characteristics best matching the samples is chosen and placed after every fifteenth sample. After every 38 sample (not including standards) two samples, chosen at random, are re-weighed and analyzed. At the end of a batch the standard and blanks used at the beginning is re-run for a check. The results are compared with pre-rack knowns,to determine if there is any calibration drif.

FLOTATION TEST PROCEDURE

Client: |  | MineStart Management Inc. | Date: |  | 15-Oct-04
Test: |  | F1 | Project: |  | 0406407
Sample: |  | Composite A |  |  |

Objective: Scoping flotation test to recover Au and Ag without grind at P80=238 µm

STAGE | TIME | pH | ADDITION | COMMENTS
| min |  | Reagent | g/tonne |
Rougher Flotation |  | 5.6 |  |  |
Condition | 5 | 8.0 | Na2C03 | 1360 |
|  |  | NaCN | 50 |
|  |  | A404 | 25 |
Rougher float 1 | 2 | 7.8 | DF250 | 12 | some black in the
|  |  |  |  | corner of the cell.
|  |  |  |  | Problem with impeller,
|  |  |  |  | piece of rock stuck in,
|  |  |  |  | impeller changed.
Condition | 2 | 8.0 | Na2CO3 | 500 |
|  |  | PAX | 50 |
Rougher float 2 | 3 | 9.4 | DF250 | 7 | some black in the
|  |  |  |  | corner of the cell
Condition | 2 | 9.6 | Na2CO3 | - |
|  | 9.8 | PAX | 25 |
|  |  | A404 | 12 |
Rougher float 3 | 3 | 9.0 | DF250 | - | nothing visible

FLOTATION TEST METALLURGICAL BALANCE

Client: |  | MineStart Management Inc. | Date: |  | 15-Oct-04
Test: |  | F1 | Project: |  | 0406407
Sample: |  | Composite A |  |  |

Objective: Scoping flotation test to recover Au and Ag without grind at P80=238 µm

Product | Weight | Assay | Distribution
|  |  | Au | Ag | Pb(T) | Au |  | Ag |  | Pb(T) |
| g | % | g/t | g/t | % | % |  | % |  | % |
Rougher Concentrate 1 | 12.1 |  | 0.6 |  | 3.20 | 997.5 | 2.00 | 5.7 |  | 6.0 |  | 1.0 |
Rougher Concentrate 2 | 14.4 |  | 0.8 |  | 5.22 | 1294.1 | 2.96 | 10.9 |  | 9.2 |  | 1.8 |
Rougher Concentrate 1+2 | 26.5 |  | 1.4 |  | 4.30 | 1158.4 | 2.52 | 16.6 |  | 15.1 |  | 2.8 |
Rougher Concentrate 3 | 13.4 |  | 0.7 |  | 0.93 | 413.3 | 2.34 | 1.8 |  | 2.7 |  | 1.3 |
Total Flotation Concentrate | 39.9 |  | 2.1 |  | 3.17 | 908.7 | 2.46 | 18.4 |  | 17.8 |  | 4.1 |
Final Tails | 1865.5 |  | 97.9 |  | 0.30 | 89.5 | 1.23 | 81.6 |  | 82.2 |  | 95.9 |
Calculated Head | 1905.4 |  | 100.0 |  | 0.36 | 106.6 | 1.26 | 100.0 |  | 100.0 |  | 100.0 |
Measured Head |  |  |  |  | 0.35 | 112.2 | 1.13 |  |  |  |  |  |

SIZE ANALYSIS REPORT

Client: |  | MineStart Management Inc. | Date: |  | 15-Oct-04
Test: |  | F1 | Project: |  | 0406407
Sample: |  | Flotation Head |  |  |
Grind: |  | n/a |  |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micron | % Retained | % Passing
65 | 210 | 29.5 | 70.5
100 | 149 | 13.2 | 57.4
150 | 105 | 13.8 | 43.6
200 | 74 | 8.9 | 34.7
270 | 53 | 7.9 | 26.8
325 | 44 | 1.3 | 25.5
400 | 37 | 2.8 | 22.7
Undersize | -37 | 22.7 | -
TOTAL: |  | 100.0 |

FLOTATION TEST PROCEDURE

Client: |  | MineStart Management Inc. | Date: |  | 15-Oct-04
Test: |  | F2 | Project: |  | 0406407
Sample: |  | Composite B |  |  |

Objective: Scoping flotation test to recover Au and Ag without grind at P80 = 173

STAGE | TIME | pH | ADDI TION | COMMENTS
| min |  | Reagent | g/tonne |
Rougher Flotation |  | 5.3 |  |  |
Condition | 5 | 8.1 | Na2C03 | 1100 |
|  |  | NaCN | 50 |
|  |  | A404 | 25 |
Rougher float 1 | 2 | 8.1 | DF250 | 9 | nothing visible
Condition | 2 | 8.0 | Na2CO3 |  |
|  |  | PAX | 50 |
Rougher float 2 | 3 | 8.1 | DF250 | 2 |
Condition | 2 | 8.0 | Na2CO3 | - |
|  |  | PAX | 25 |
|  |  | A404 | 12 |
Rougher float 3 | 3 | 8.1 | DF250 | 2 |

FLOTATION TEST METALLURGICAL BALANCE

Client: |  | MineStart Management Inc. | Date: |  | 15-Oct-04
Test: |  | F2 | Project: |  | 0406407
Sample: |  | Composite B |  |  |

Objective: Scoping flotation test to recover Au and Ag without grind at P80 = 173

Product | Weight | Assay | Distribution
|  | Au | Ag | Pb(T) | Au | Ag | Pb(T)
| g | % | g/t | g/t | % | % | % | %
Rougher Concentrate 1 | 19.6 |  | 1.0 |  | 3.46 |  | 995.1 |  | 1.08 |  | 6.2 |  | 12.1 |  | 1.5 |
Rougher Concentrate 2 | 13.6 |  | 0.7 |  | 3.20 |  | 747.4 |  | 1.39 |  | 4.0 |  | 6.3 |  | 1.3 |
Rougher Concentrate 1+2 | 33.1 |  | 1.7 |  | 3.35 |  | 893.5 |  | 1.21 |  | 10.1 |  | 18.5 |  | 2.8 |
Rougher Concentrate 3 | 17.7 |  | 0.9 |  | 1.32 |  | 324.6 |  | 1.30 |  | 2.1 |  | 3.6 |  | 1.6 |
Total Flotation Concentrate | 50.9 |  | 2.6 |  | 2.65 |  | 695.4 |  | 1.24 |  | 12.2 |  | 22.0 |  | 4.5 |
Final Tails | 1928.0 |  | 97.4 |  | 0.50 |  | 64.9 |  | 0.70 |  | 87.8 |  | 78.0 |  | 95.5 |
Calculated Head | 1978.9 |  | 100.0 |  | 0.56 |  | 81.1 |  | 0.71 |  | 100.0 |  | 100.0 |  | 100.0 |
Measured Head |  |  |  |  | 0.42 |  | 88.4 |  | 0.67 |  |  |  |  |  |  |

SIZE ANALYSIS REPORT

Client: |  | MineStart Management Inc. | Date: |  | 15-Oct-04
Test: |  | F2 | Project: |  | 0406407
Sample: |  | Composite B |  |  |
Grind: |  | n/a |  |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micron | % Retained | % Passing
65 | 210 | 13.6 | 86.4
100 | 149 | 10.9 | 75.4
150 | 105 | 15.6 | 59.9
200 | 74 | 11.8 | 48.1
270 | 53 | 11.3 | 36.8
325 | 44 | 3.6 | 33.2
400 | 37 | 2.4 | 30.8
Undersize | -37 | 30.8 | -
TOTAL: |  | 100.0 |

FLOTATION TEST PROCEDURE

Client: |  | MineStart Management Inc. | Date: |  | 15-Oct-04
Test: |  | F3 | Project: |  | 0406407
Sample: |  | Composite A |  |  |

Objective: Scoping flotation test to recover Au and Ag without grind at P60 = 71µm

STAGE | TIME | pH | ADDITION | COMMENTS
| min |  | Reagent | g/tonne |
Grind (2x1kg) | 6 | 7.7 | Na2CO3 | 1360 |
|  |  | NaCN | 50 |
Rougher Flotation |  |  |  |  |
Condition | 2 | 8.0 | Na2CO3 | 80 |
|  |  | A404 | 25 |
Rougher float 1 | 3 | 8.0 | DF250 | 9 | black visible in cell corners
Condition | 2 | 8.1 | Na2CO3 | 15 |
|  |  | PAX | 50 |
Rougher float 2 | 3 | 8.1 | DF250 | 5 | not much visible
Condition | 2 | 8.0 | Na2CO3 | - |
|  |  | PAX | 25 |
|  |  | A404 | 12 |
Rougher float 3 | 2 | 8.1 | DF250 | - |
|  |  | Pine oil | 2d |
Rougher float 4 | 2 | 8.1 | DF250 |  |

FLOTATION TEST METALLURGICAL BALANCE

Client: |  | MineStart Management Inc. | Date: |  | 15-Oct-04
Test: |  | F3 | Project: |  | 0406407
Sample: |  | Composite A |  |  |

Objective: Scoping flotation test to recover Au and Ag without grind at P60 = 71 µm

Product | Weight | Assay | Distribution
|  |  | Au |  | Ag |  | Pb(T) |  | Au |  | Ag |  | Pb(T) |
|  |  | % |  | g/t |  | g/t |  | % |  | % |  | % |  | % |
Rougher Concentrate 1 | 13.7 |  | 0.7 |  | 9.76 |  | 1150.0 |  | 1.87 |  | 21.7 |  | 9.3 |  | 1.2 |
Rougher Concentrate 2 | 15.6 |  | 0.9 |  | 1.94 |  | 746.1 |  | 1.67 |  | 4.9 |  | 6.9 |  | 1.2 |
Rougher Concentrate 1+2 | 29.4 |  | 1.6 |  | 5.59 |  | 934.8 |  | 1.76 |  | 26.6 |  | 16.2 |  | 2.4 |
Rougher Concentrate 3 | 9.4 |  | 0.5 |  | 1.54 |  | 547.4 |  | 1.73 |  | 2.3 |  | 3.0 |  | 0.7 |
Rougher Concentrate 1+2+3 | 38.8 |  | 2.1 |  | 4.61 |  | 841.0 |  | 1.76 |  | 29.0 |  | 19.3 |  | 3.1 |
Rougher Concentrate 4 | 9.6 |  | 0.5 |  | 0.94 |  | 304.2 |  | 1.67 |  | 1.5 |  | 1.7 |  | 0.7 |
Total Flotation Concentrate | 48.3 |  | 2.6 |  | 3.88 |  | 734.6 |  | 1.74 |  | 30.4 |  | 21.0 |  | 3.8 |
Final Tails | 1786.7 |  | 97.4 |  | 0.24 |  | 74.8 |  | 1.18 |  | 69.6 |  | 79.0 |  | 96.2 |
Calculated Head | 1835.0 |  | 100.0 |  | 0.34 |  | 92.2 |  | 1.19 |  | 100.0 |  | 100.0 |  | 100.0 |
Measured Head |  |  |  |  | 0.39 |  | 119.2 |  | 1.23 |  |  |  |  |  |  |

SIZE ANALYSIS REPORT

Client: |  | MineStart Management Inc. | Date: |  | 15-Oct-04
Test: |  | F3 | Project: |  | 0406407
Sample: |  | Composite A |  |  |
Grind: |  | 2x1 kg sample ground for 6 minutes in Mill #1 |  |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micron | % Retained | % Passing
65 | 210 | 0.1 | 99.9
100 | 149 | 2.4 | 97.5
150 | 105 | 16.3 | 81.2
200 | 74 | 18.8 | 62.4
270 | 53 | 15.9 | 46.5
325 | 44 | 4.6 | 41.9
400 | 37 | 3.4 | 38.5
Undersize | -37 | 38.5 | -
TOTAL: |  | 100.0 |

FLOTATION TEST PROCEDURE

Client: |  | MineStart Management Inc. | Date: |  | 15-Oct-04
Test: |  | F4 | Project: |  | 0406407
Sample: |  | Composite A |  |  |

Objective: Scoping flotation test to recover Au and Ag at P60 = 72 µm

STAGE | TIME | pH | ADDITION |  | COMMENTS
| min |  | Reagent | g/tonne |
Grind (2x1kg) | 9.5 | 7.7 | Na2CO3 | 1100 |
|  |  | NaCN | 50 |
Rougher Flotation |  |  |  |  |
Condition | 2 | 8.1 | Na2CO3 | 120 |
|  |  | A404 | 25 |
Rougher foat 1 | 3 | 8.0 | DF250 | 9 | some black visible
Condition | 2 | 8.1 | Na2CO3 | - |
|  |  | PAX | 50 |
Rougher foat 2 | 2 | 8.1 | DF250 | 5 | slightly in the corner
Condition | 2 | 8.1 | Na2CO3 | - |
|  |  | PAX | 25 |
|  |  | A404 | 12 |
Rougher foat 3 | 3 | 8.1 | DF250 | 5 |
|  |  | Pine oil | 2d |
Rougher foat 4 | 2 | 8.1 | DF250 | - |

FLOTATION TEST METALLURGICAL BALANCE

Client: |  | MineStart Management Inc. | Date: |  | 15-Oct-04
Test: |  | F4 | Project: |  | 0406407
Sample: |  | Composite A |  |  |

Objective: Scoping flotation test to recover Au and Ag at P80 = 72 µm

Product | Weight | Assay | Distribution
|  |  | Au |  | Ag |  | Pb(T) |  | Au |  | Ag |  | Pb(T) |
|  |  | % |  | g/t |  | g/t |  | % |  | % |  | % |  | % |
Rougher Concentrate 1 | 18.3 |  | 1.0 |  | 9.16 |  | 1048.1 |  | 1.75 |  | 27.1 |  | 9.7 |  | 1.4 |
Rougher Concentrate 2 | 13.3 |  | 0.7 |  | 2.30 |  | 848.1 |  | 1.56 |  | 4.9 |  | 5.7 |  | 0.9 |
Rougher Concentrate 1+2 | 31.6 |  | 1.7 |  | 6.27 |  | 964.0 |  | 1.67 |  | 32.1 |  | 15.4 |  | 2.3 |
Rougher Concentrate 3 | 21.6 |  | 1.1 |  | 1.15 |  | 383.0 |  | 1.55 |  | 4.0 |  | 4.2 |  | 1.4 |
Rougher Concentrate 1+2+3 | 53.1 |  | 2.8 |  | 4.19 |  | 728.1 |  | 1.62 |  | 36.1 |  | 19.5 |  | 3.7 |
Rougher Concentrate 4 | 17.7 |  | 0.9 |  | 0.88 |  | 339.4 |  | 1.55 |  | 2.5 |  | 3.0 |  | 1.2 |
Total Flotation Concentrate | 70.8 |  | 3.8 |  | 3.36 |  | 630.9 |  | 1.60 |  | 38.6 |  | 22.6 |  | 4.9 |
Final Tails | 1805.2 |  | 96.2 |  | 0.21 |  | 84.9 |  | 1.22 |  | 61.4 |  | 77.4 |  | 95.1 |
Calculated Head | 1876.0 |  | 100.0 |  | 0.33 |  | 105.5 |  | 1.23 |  | 100.0 |  | 100.0 |  | 100.0 |
Measured Head |  |  |  |  | 0.40 |  | 104.6 |  | 1.20 |  |  |  |  |  |  |

SIZE ANALYSIS REPORT

Client: |  | MineStart Management Inc. | Date: |  | 15-Oct-04
Test: |  | F4 | Project: |  | 0406407
Sample: |  | Composite A |  |  |
Grind: |  | 2x1 kg sample ground for 9.5 minutes in Mill #1 |  |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micron | % Retained | % Passing
65 | 210 | 0.0 | 100.0
100 | 149 | 0.1 | 99.9
150 | 105 | 3.4 | 96.5
200 | 74 | 14.9 | 81.6
270 | 53 | 21.0 | 60.7
325 | 44 | 6.9 | 53.7
400 | 37 | 4.3 | 49.4
Undersize | -37 | 49.4 | -
TOTAL: |  | 100.0 |

SIZE-ASSAY ANALYSIS REPORT

Client: |  | MineStart Management Inc. | Date: |  | 03-Nov-04
Test: |  | SA7 | Project: |  | 0406407
Sample: |  | F4 Tails |  |  |

Size Fraction | Weight | Assay | Distribution
Tyler Mesh | Microns | g | % | Au, g/t | Ag, g/t | Au, % |  | Ag, % |
+ 150 | +105 | 6.8 |  | 4.0 |  | 0.94 | 59.9 | 14.5 |  | 3.4 |
-150 +200 | -105+74 | 25.6 |  | 15.3 |  | 0.24 | 69.1 | 14.0 |  | 14.8 |
-200 + 270 | -74+53 | 38.7 |  | 23.1 |  | 0.23 | 61.4 | 20.3 |  | 19.9 |
-270 +325 | -53+44 | 11.8 |  | 7.1 |  | 0.20 | 52.0 | 5.4 |  | 5.1 |
-325 +400 | -44+37 | 6.8 |  | 4.1 |  | 0.20 | 51.1 | 3.1 |  | 2.9 |
-400 | -37 | 77.6 |  | 46.4 |  | 0.24 | 82.7 | 42.6 |  | 53.8 |
Total | 167.2 |  | 100.0 |  | 0.26 | 71.3 | 100.0 |  | 100.0 |
Measured |  |  |  |  | 0.21 | 84.9 |

ICP ASSAY REPORT

Client: |  | MineStart Management Inc. | Date: |  | 03-Nov-04
Test: |  | SA7 | Project: |  | 0406407
Sample: |  | F4 Tails |  |  |

Elements | Units | Fractions Sample ID | Detection Limits | Analytical
|  | -65+150 | -150+200 | -200+270 | -270+325 | -325+400 | -400 | Minimum | Maximum | Method
Au | g/mt | 0.94 | 0.24 | 0.23 | 0.2 | 0.2 | 0.24 | 0.01 | 5000 | FA/AAS
Al | ppm | 32443 | 32526 | 28735 | 25357 | 26589 | 45365 | 100 | 50000 | ICPM
Sb | ppm | 220 | 209 | 226 | 231 | 242 | 221 | 5 | 2000 | ICPM
As | ppm | 10 | 131 | 76 | 219 | 17 | 56 | 5 | 10000 | ICPM
Ba | ppm | 593 | 623 | 619 | 540 | 560 | 755 | 2 | 10000 | ICPM
Bi | ppm | 96 | 112 | 141 | 138 | 150 | 303 | 2 | 2000 | ICPM
Cd | ppm | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | 0.2 | 2000 | ICPM
Ca | ppm | 7614 | 14374 | 17382 | 15314 | 15935 | 17218 | 100 | 100000 | ICPM
Cr | ppm | 156 | 43 | 30 | 56 | 77 | 705 | 1 | 10000 | ICPM
Co | ppm | 11 | 9 | 8 | 7 | 7 | 15 | 1 | 10000 | ICPM
Cu | ppm | 815 | 748 | 689 | 638 | 660 | 1723 | 1 | 20000 | ICPM
Fe | ppm | 73608 | 69783 | 61017 | 54861 | 57664 | 95125 | 100 | 50000 | ICPM
La | ppm | 10 | 10 | 9 | 8 | 8 | 14 | 2 | 10000 | ICPM
Pb | ppm | 9498 | 11090 | 12404 | 12669 | 14152 | 17054 | 2 | 10000 | ICPM
Mg | ppm | 3002 | 2715 | 2269 | 2055 | 2156 | 4847 | 100 | 100000 | ICPM
Mn | ppm | 3504 | 3306 | 2827 | 2490 | 2600 | 3234 | 1 | 10000 | ICPM
Hg | ppm | <3 | 23 | 5 | <3 | <3 | <3 | 3 | 10000 | ICPM
Mo | ppm | 16 | 13 | 15 | 16 | 20 | 97 | 1 | 1000 | ICPM
Ni | ppm | 23 | 8 | 18 | 37 | 44 | 417 | 1 | 10000 | ICPM
P | ppm | 209 | 213 | 205 | 205 | 202 | 363 | 100 | 50000 | ICPM
K | ppm | 22598 | 22593 | 20729 | 17955 | 17974 | 22687 | 100 | 100000 | ICPM
Sc | ppm | 3 | 3 | 2 | 2 | 2 | 4 | 1 | 10000 | ICPM
Ag | ppm | 59.9 | 69.1 | 61.4 | 52 | 51.1 | 82.7 | 0.1 | 1000 | ICPM
Na | ppm | 1893 | 1638 | 1442 | 1337 | 1222 | 2765 | 100 | 100000 | ICPM
Sr | ppm | 54 | 53 | 48 | 42 | 42 | 54 | 1 | 10000 | ICPM
TI | ppm | <2 | <2 | <2 | <2 | <2 | <2 | 2 | 1000 | ICPM
Ti | ppm | 866 | 927 | 869 | 743 | 754 | 1068 | 100 | 100000 | ICPM
W | ppm | 9 | 12 | 16 | 14 | 11 | 17 | 5 | 1000 | ICPM
V | ppm | 37 | 34 | 31 | 29 | 30 | 56 | 1 | 10000 | ICPM
Zn | ppm | 2220 | 1946 | 1533 | 1361 | 1428 | 2976 | 1 | 10000 | ICPM
Zr | ppm | 29 | 30 | 27 | 23 | 22 | 39 | 1 | 10000 | ICPM

FLOTATION TEST PROCEDURE

Client: |  | MineStart Management Inc. | Date: |  | 15-Oct-04
Test: |  | F5 | Project: |  | 0406407
Sample: |  | Composite B |  |  |

Objective: Scoping flotation test to recover Au and Ag at P60 = 62 µm

STAGE | TIME min | pH | ADDITION | COMMENTS
Reagent | g/tonne
Grind (2x1kg) | 4.4 | 7.3 | Na2CO3 | 1100 |
|  |  | NaCN | 50 |
Rougher Flotation |  |  |  |  |
Condition | 2 | 8.1 | Na2CO3 | 280 |
|  |  | A404 | 25 |
Rougher float 1 | 3 | 8.0 | DF250 | 9 | not much visible
Condition | 2 | 8.0 | Na2CO3 | - |
|  |  | PAX | 50 |
Rougher float 2 | 2 | 8.0 | DF250 | 5 |
Condition | 2 |  | Na2CO3 | 10 |
|  |  | PAX | 25 |
|  |  | A404 | 12 |
Rougher float 3 | 2 | 8.1 | DF250 | 5 |
|  |  | Pine oil | 2d |
Rougher float 4 | 2 | 8.1 | DF250 | - |

FLOTATION TEST METALLURGICAL BALANCE

Client: |  | MineStart Management Inc. | Date: |  | 15-Oct-04
Test: |  | F5 | Project: |  | 0406407
Sample: |  | Composite B |  |  |

Objective: Scoping flotation test to recover Au and Ag at P60 = 62 µm

Product | Weight | Assay | Distribution
|  |  |  |  | Au |  | Ag |  | Pb(T) |  | Au |  | Ag |  | Pb(T) |
| g |  | % |  | g/t |  | g/t |  | % |  | % |  | % |  | % |
Rougher Concentrate 1 | 17.6 |  | 0.9 |  | 8.04 |  | 1591.4 |  | 0.99 |  | 15.4 |  | 17.4 |  | 1.3 |
Rougher Concentrate 2 | 12.4 |  | 0.7 |  | 3.74 |  | 689.1 |  | 1.07 |  | 5.0 |  | 5.3 |  | 1.0 |
Rougher Concentrate 1+2 | 30.0 |  | 1.6 |  | 6.27 |  | 1219.5 |  | 1.02 |  | 20.4 |  | 22.7 |  | 2.4 |
Rougher Concentrate 3 | 15.2 |  | 0.8 |  | 1.68 |  | 289.5 |  | 1.08 |  | 2.8 |  | 2.7 |  | 1.3 |
Rougher Concentrate 1+2+3 | 45.2 |  | 2.4 |  | 4.73 |  | 907.1 |  | 1.04 |  | 23.2 |  | 25.4 |  | 3.6 |
Rougher Concentrate 4 | 8.9 |  | 0.5 |  | 1.41 |  | 294.1 |  | 1.10 |  | 1.4 |  | 1.6 |  | 0.8 |
Total Flotation Concentrate | 54.1 |  | 2.9 |  | 4.18 |  | 806.1 |  | 1.05 |  | 24.6 |  | 27.0 |  | 4.4 |
Final Tails | 1825.2 |  | 97.1 |  | 0.38 |  | 64.5 |  | 0.68 |  | 75.4 |  | 73.0 |  | 95.6 |
Calculated Head | 1879.3 |  | 100.0 |  | 0.49 |  | 85.8 |  | 0.69 |  | 100.0 |  | 100.0 |  | 100.0 |
Measured Head |  |  |  |  | 0.47 |  | 89.7 |  | 0.70 |  |  |  |  |  |  |

SIZE ANALYSIS REPORT

Client: |  | MineStart Management Inc. | Date: |  | 15-Oct-04
Test: |  | F5 | Project: |  | 0406407
Sample: |  | Composite B |  |  |
Grind: |  | 2x1 kg sample ground for 4.42 minutes in Mill #1 |  |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micron | % Retained | % Passing
65 | 210 | 0.0 | 100.0
100 | 149 | 1.0 | 99.0
150 | 105 | 11.9 | 87.1
200 | 74 | 17.8 | 69.3
270 | 53 | 17.1 | 52.2
325 | 44 | 5.5 | 46.6
400 | 37 | 3.1 | 43.5
Undersize | -37 | 43.5 | -
TOTAL: |  | 100.0 |

EOTATION TEST PROCEDURE

Client: |  | MineStart Management Inc. | Date: |  | 15-Oct-04
Test: |  | F6 | Project: |  | 0406407
Sample: |  | Composite B |  |  |

Objective: Scoping flotation test to recover Au and Ag at P80 = 74 µm

STAGE | TIME | pH | ADDITION | COMMENTS
| min |  | Reagent | g/tonne |
Grind (§) | 6.6 | 7.3 | Na2CO3 | 1100 |
|  |  | NaCN | 50 |
Rougher Flotation |  |  |  |  |
Condition | 2 | 8.1 | Na2CO3 | 280 |
|  |  | A404 | 25 |
Rougher float 1 | 3 | 8.0 | DF250 | 9 | not much visible
Condition | 2 | 8.0 | Na2CO3 | - |
|  |  | PAX | 50 |
Rougher float 1 | 3 | 8.0 | DF250 | 5 |
Condition | 2 |  | Na2CO3 | - |
|  |  | PAX | 25 |
|  |  | A404 | 12 |
Rougher float 1 | 3 | 8.1 | DF250 |  |
|  |  | Pine oil | 2d |
Rougher float 1 | 2 | 8.1 | DF250 | - |

EOTATION TEST METALLEIGICAL ILANCE

Client: |  | MineStart Management Inc. | Date: |  | 15-Oct-04
Test: |  | F6 | Project: |  | 0406407
Sample: |  | Composite B |  |  |

Objective: Scoping flotation test to recover Au and Ag at P80 = 74 µm

Product | Weight | Assay | Distribution
|  |  |  |  | Au |  | Ag |  | Pb(T) |  | Au |  | Ag |  | Pb(T) |
| g |  | % |  | gt |  | gt |  | % |  | % |  | % |  | % |
Rougher Concentrate 1 | 19.8 |  | 1.1 |  | 10.10 |  | 1547.8 |  | 1.02 |  | 21.3 |  | 20.8 |  | 1.6 |
Rougher Concentrate 2 | 16.1 |  | 0.9 |  | 3.58 |  | 597.0 |  | 1.00 |  | 6.1 |  | 6.5 |  | 1.3 |
Rougher Concentrate 1+2 | 9 |  | 2 |  | 01 |  | 3 |  | 3 |  |  |  |  |  |  |
Rougher Concentrate 3 | 12.7 |  | 0.7 |  | 2.48 |  | 435.0 |  | 1.16 |  | 3.4 |  | 3.7 |  | 1.2 |
Rougher Concentrate 1+2+3 | 9 |  | II |  | 05 |  | 08 |  | 0 |  |  |  |  |  |  |
Rougher Concentrate 4 | 6.6 |  | 0.4 |  | 1.79 |  | 314.4 |  | 1.15 |  | 1.3 |  | 1.4 |  | 0.6 |
Total Flotation Concentrate | 5 |  | 5 |  | 35 |  | 2 |  | 5 |  |  |  |  |  |  |
Final Tails | 1824.0 |  | 97.1 |  | 0.35 |  | 54.7 |  | 0.67 |  | 67.9 |  | 67.5 |  | 95.4 |
Calculated Head | 39 |  | 100 |  | 86 |  | 06 |  |  |  | 100 |  |  |  |  |
Measured Head |  |  |  |  | 0.51 |  | 89.9 |  | 0.67 |  |  |  |  |  |  |

SIZE ANALYSIS REPORT

Client: |  | MineStart Management Inc. | Date: |  | 15-Oct-04
Test: |  | F6 | Project: |  | 0406407
Sample: |  | Composite B |  |  |
Grind: |  | 2x1 kg sample ground for 6.63 minutes in Mill #1 |  |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micron | % Retained | % Passing
65 | 210 | 0.0 | 100.0
100 | 149 | 0.2 | 99.8
150 | 105 | 4.3 | 95.5
200 | 74 | 15.3 | 80.2
270 | 53 | 20.2 | 60.0
325 | 44 | 6.6 | 53.4
400 | 37 | 3.9 | 49.5
Undersize | - 37 | 49.5 | -
TOTAL: |  | 100.0 |

FLOTATION TEST PROCEDURE

Client: |  | MineStart Management Inc. | Date: |  | 25-Oct-04
Test: |  | F7 | Project: |  | 0406407
Sample: |  | Composite A |  |  |

Objective: Scoping flotation test to recover Au and Ag at P80 = 75 µm

STAGE | TIME | pH | ADDITION | COMMENTS
| min |  | Reagent | g/tonne |
Grind (2x1kg) | 9.5 | 7.2 | Na2CO3 | 450 |
Rougher Flotation |  |  |  |  |
Condition | 2 |  | Na2CO3 | 190 |
|  |  | A404 | 25 |
Rougher float 1 | 3 | 8.0 | DF250 | 9 | some black in the corner of the cell.
Condition | 2 | 8.0 | Na2CO3 | 20 |
|  |  | PAX | 50 |
Rougher float 2 | 3 | 8.0 | DF250 | 5 | not much visible
Condition | 2 |  | Na2CO3 | - |
|  |  | PAX | 25 |
|  |  | A404 | 12 |
Rougher float 3 | 3 | 8.0 | DF250 | - |
|  |  | Pine oil | 2d |
Rougher float 4 | 2 | 8.0 | DF250 | - |

FLOTATION TEST METALLURGICAL BALANCE

Client: |  | MineStart Management Inc. | Date: |  | 25-Oct-04
Test: |  | F7 | Project: |  | 0406407
Sample: |  | Composite A |  |  |

Objective: Scoping flotation test to recover Au and Ag at P80 = 75 µm

Product | Weight | Assay | Distribution
|  |  |  |  | Au |  | Ag |  | Pb(T) |  | Au |  | Ag |  | Pb(T) |
| g |  | % |  | g/t |  | g/t |  | % |  | % |  | % |  |  |
Rougher Concentrate 1 | 16.3 |  | 0.9 |  | 11.29 |  | 742.7 |  | 1.80 |  | 26.2 |  | 6.8 |  | 1.2 |
Rougher Concentrate 2 | 12.8 |  | 0.7 |  | 2.89 |  | 701.1 |  | 1.70 |  | 5.2 |  | 5.0 |  | 0.9 |
Rougher Concentrate 1+2 | 29.1 |  | 1.5 |  | 7.61 |  | 724.5 |  | 1.76 |  | 31.4 |  | 11.9 |  | 2.1 |
Rougher Concentrate 3 | 8.2 |  | 0.4 |  | 1.90 |  | 603.1 |  | 1.80 |  | 2.2 |  | 2.8 |  | 0.6 |
Rougher Concentrate 1+2+3 | 37.3 |  | 2.0 |  | 6.35 |  | 697.7 |  | 1.77 |  | 33.6 |  | 14.7 |  | 2.7 |
Rougher Concentrate 4 | 6.9 |  | 0.4 |  | 1.27 |  | 420.2 |  | 1.70 |  | 1.2 |  | 1.6 |  | 0.5 |
Total Flotation Concentrate | 44.2 |  | 2.3 |  | 5.56 |  | 654.6 |  | 1.76 |  | 34.9 |  | 16.3 |  | 3.1 |
Final Tails | 1835.0 |  | 97.7 |  | 0.25 |  | 80.8 |  | 1.30 |  | 65.1 |  | 83.7 |  | 96.9 |
Calculated Head | 1879.1 |  | 100.0 |  | 0.37 |  | 94.3 |  | 1.31 |  | 100.0 |  | 100.0 |  | 100.0 |
Measured Head* |  |  |  |  | 1.39 |  | 111.9 |  | 1.30 |  |  |  |  |  |  |

* pulp cut from ground flotation feed consisting of fresh composite;re-checked Au,seggregation is evident!

SIZE ANALYSIS REPORT

Client: |  | MineStart Management Inc. | Date: |  | 25-Oct-04
Test: |  | F7 | Project: |  | 0406407
Sample: |  | Flotation Head |  |  |
Grind: |  | 2x1 kg sample ground for 9.5 minutes in Mill #1 |  |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micron | % Retained | % Passing
65 | 210 | 0.0 | 100.0
100 | 149 | 0.1 | 99.9
150 | 105 | 4.3 | 95.6
200 | 74 | 16.3 | 79.3
270 | 53 | 21.7 | 57.6
325 | 44 | 6.8 | 50.8
400 | 37 | 4.1 | 46.7
Undersize | -37 | 46.7 | -
TOTAL: |  | 100.0 |

EOTATION TEST PROCEDURE

Client: | MineStart Management Inc. | Date: | 25-Oct-04
Test: | F8 | Project: | 0406407
Sample: | Compsite A |  |
Objective: | Scoping flotation test to recover Au and Ag at P80 = 74 µm |  |

STAGE | TIME min | pH | ADDITION | COMMENTS
Reagent | g/tonne
Grind ( ) | 9.5 | 7.3 | Na2CO3 | 450 |
Rougher Rytation |  |  |  |  |
Condition | 2 |  | PAX | 150 |
Rougher float 1 | 3 | 8.0 | B250 | 9 | more grey on surface, initially thicker froth

EOTATION TEST METALLURGICAL BALANCE

Client: | MineStart Management Inc. | Date: | 25-Oct-04
Test: | F8 | Project: | 0406407
Sample: | Compsite A |  |
Objective: | Scoping flotation test to recover Au and Ag at P80 = 74 µm |  |

Product | Weight | Assay | Distribution
|  |  | Au | Ag | Pb(T, | Au | Ag | Pb(T)
| g | % | g/t | g/t | % | % | % | %
Rougher Concentrate 1 | 16.6 | 0.9 | 11.91 | 887.2 | 3.60 | 30.7 | 7.8 | 2.4
Total Fotation Concentrate | 16 | 0.9 | 19 | 887.2 | 3.6 | 30.7 | 7.8 | 2.4
Final Tails | 1863.3 | 99.1 | 0.24 | 93.6 | 1.30 | 69.3 | 92.2 | 97.6
Calculated Head |  | 100.0 |  | 100.6 |  | 100.0 | 100.0 | 100.0
Measured Head* |  |  | 2.38 | 108.5 | 1.30 |  |  |

* pulp cut from ground flotation feed consisting of fresh composite;re-checked Au,seggregation is evident!

SIZE ANALYSIS REPORT

Client: | MineStart Management Inc. | Date: | 25-Oct-04
Test: | F8 | Project: | 0406407
Sample: | Compsite A |  |
Grind: | 2×1 kg sample ground for 9.5 minutes in Mill # 1 |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micron | % Retained | % Passing
65 | 210 | 0.0 | 100.0
100 | 149 | 0.2 | 99.8
150 | 105 | 3.7 | 96.1
200 | 74 | 15.5 | 80.6
270 | 53 | 22.2 | 58.4
325 | 44 | 7.3 | 51.1
400 | 37 | 4.3 | 46.8
Undersize | - 37 | 46.8 | -
TOTAL: |  | 100.0 |

FLOTATION TEST PROCEDURE

Client: | MineStart Management Inc. | Date: | 25-Oct-04
Test: | F9 | Project: | 0406407
Sample: | Compsite A |  |
Objective: | Scoping flotation test to recover Au and Ag at P80 = 74 µm |  |

STAGE | TIME min | pH | ADDITION | COMMENTS
Reagent | g/tonne
Grind (2kg) | 2×9'30" | 7.1 | Na2CO3 |  |
Rougher Flotation |  |  |  |  |
Condition | 5 | 9.0 | Na2S | 250 |
| 2 | 8.9 | PAX | 50 |
Rougher float 1 | 5 | 8.7 | ED250 | 9 | all surface greyish, froth look the best so far
Condition | 5 | 9.4 | Na2S | 125 |
| 2 | 9.4 | PAX | 50 |
Rougher float 2 | 4 | 9.3 | ED250 | 7 | brownish froth surface
Condition | 5 | 9.9 | Na2S | 125 |
| 2 | 9.9 | PAX | 50 |
Rougher float 3 | 4 | 9.7 | ED250 | 7 |

FLOTATION TEST METALLURGICAL BALANCE

Client: | MineStart Management Inc. | Date: | 25-Oct-04
Test: | F9 | Project: | 0406407
Sample: | Compsite A |  |
Objective: | Scoping flotation test to recover Au and Ag at P80 = 74 µm |  |

Product | Weight | Assay | Distribution
|  |  | Au | Ag | Pb(T, | Au | Ag | Pb(T)
| g | % | g/t | g/t | % | % | % | %
Rougher Concentrate 1 | 15.7 | 0.8 | 14.47 | 837.8 | 8.40 | 34.1 | 7.4 | 7.1
Rougher Concentrate 2 | 21.1 | 1.1 | 2.57 | 721.1 | 8.30 | 8.1 | 8.5 | 9.4
Rougher Concentrate 1+2 | 36.8 | 2.0 | 7.65 | 770.9 | 8.34 | 42.2 | 15.9 | 16.5
Rougher Concentrate 3 | 14.6 | 0.8 | 1.32 | 604.9 | 7.20 | 2.9 | 4.9 | 5.6
Total Flotation Concentrate | 51.4 | 2.7 | 5.86 | 723.9 | 8.02 | 45.0 | 20.8 | 22.2
Final Tails | 1836.9 | 97.3 | 0.20 | 77.0 | 0.79 | 55.0 | 79.2 | 77.8
Calculated Head | 1888.3 | 100.0 | 0.35 | 94.6 | 0.98 | 100.0 | 100.0 | 100.0
Measured Head* |  |  | 1.67 | 114.5 | 1.30 |  |  |

* pulp cut from ground flotation feed consisting of fresh composite;re-checked Au,seggregation is evident!

SIZE ANALYSIS REPORT

Client: | MineStart Management Inc. | Date: | 25-Oct-04
Test: | F9 | Project: | 0406407
Sample: | Compsite A |  |
Grind: | 2×1 kg sample ground for 9.5 minutes in Mill # 1 |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micron | % Retained | % Passing
65 | 210 | 0.0 | 100.0
100 | 149 | 0.1 | 99.9
150 | 105 | 4.0 | 95.8
200 | 74 | 15.8 | 80.1
270 | 53 | 22.2 | 57.8
325 | 44 | 7.0 | 50.8
400 | 37 | 4.1 | 46.7
Undersize | - 37 | 46.7 | -
TOTAL: |  | 100.0 |

SIZE-ASSAY ANALYSIS REPORT

Client: | MineStart Management Inc. | Date: | 3-Nov-04
Test: | SA8 | Project: | 0406407
Sample: | F9 Tails |  |

Size Fraction | Weight | Assay | Distribution
Tyler Mesh | Microns | g | % | Au, g/t | Ag, g/t | Au, % | Ag, %
+150 | +105 | 7.2 | 5.7 | 0.24 | 88.1 | 6.2 | 7.2
- 150 +200 | -105 +74 | 26.2 | 20.8 | 0.25 | 54.2 | 23.4 | 16.2
- 200 +270 | -74 +53 | 36.7 | 29.1 | 0.25 | 50.3 | 32.8 | 21.0
- 270 +325 | -53 +44 | 11.8 | 9.3 | 0.20 | 128.8 | 8.4 | 17.3
-325 +400 | -44 +37 | 5.8 | 4.6 | 0.21 | 48.8 | 4.4 | 3.2
-400 | -37 | 38.5 | 30.5 | 0.18 | 80.0 | 24.8 | 35.1
Total | 126.1 | 100.0 | 0.22 | 69.6 | 100.0 | 100.0
Measured |  |  | 0.20 | 77.0 |  |

ICP ASSAY REPORT

Client: | MineStart Management Inc. | Date: | 3-Nov-04
Test: | SA8 | Project: | 0406407
Sample: | F9 Tails |  |

Elements |  | Units | Fractions Sample ID | Detection Limits | Analytical
|  |  | -65+150 | -150+200 | -200+270 | -270+325 | -325+400 | -400 | Minimum | Maximum | Method
Au |  | g/mt | 0.24 | 0.25 | 0.25 | 0.2 | 0.21 | 0.18 | 0.01 | 5000 | FA/AAS
Al |  | ppm | 31719 | 29215 | 26759 | 26421 | 26134 | 48677 | 100 | 50000 | ICPM
Sb |  | ppm | 221 | 218 | 228 | 226 | 230 | 219 | 5 | 2000 | ICPM
As |  | ppm | 33 | 25 | 84 | 8 | 34 | 39 | 5 | 10000 | ICPM
Ba |  | ppm | 593 | 605 | 590 | 567 | 635 | 762 | 2 | 10000 | ICPM
Bi |  | ppm | 88 | 112 | 137 | 130 | 141 | 244 | 2 | 2000 | ICPM
Cd |  | ppm | 47.7 | 6.9 | <0.2 | <0.2 | <0.2 | <0.2 | 0.2 | 2000 | ICPM
Ca |  | ppm | 7438 | 9683 | 15809 | 19047 | 20073 | 18162 | 100 | 100000 | ICPM
Cr |  | ppm | 187 | 52 | 29 | 56 | 72 | 664 | 1 | 10000 | ICPM
Co |  | ppm | 11 | 9 | 8 | 7 | 8 | 15 | 1 | 10000 | ICPM
Cu |  | ppm | 1683 | 880 | 670 | 626 | 676 | 1905 | 1 | 20000 | ICPM
Fe |  | ppm | 73137 | 62451 | 57574 | 54353 | 57421 | 100374 | 100 | 50000 | ICPM
La |  | ppm | 10 | 9 | 9 | 8 | 8 | 14 | 2 | 10000 | ICPM
Pb |  | ppm | 10130 | 7874 | 7160 | 6421 | 7026 | 11871 | 2 | 10000 | ICPM
Mg |  | ppm | 2917 | 2397 | 2089 | 2015 | 2061 | 5344 | 100 | 100000 | ICPM
Mn |  | ppm | 3577 | 3033 | 2889 | 2429 | 2656 | 3377 | 1 | 10000 | ICPM
Hg |  | ppm | <3 | <3 | <3 | <3 | <3 | <3 | 3 | 10000 | ICPM
Mo |  | ppm | 15 | 13 | 15 | 16 | 18 | 89 | 1 | 1000 | ICPM
Ni |  | ppm | 26 | 10 | 14 | 30 | 42 | 402 | 1 | 10000 | ICPM
P |  | ppm | 209 | 209 | 197 | 186 | 211 | 376 | 100 | 50000 | ICPM
K |  | ppm | 22262 | 21969 | 20132 | 19156 | 19277 | 23274 | 100 | 100000 | ICPM
Sc |  | ppm | 3 | 3 | 2 | 2 | 2 | 4 | 1 | 10000 | ICPM
Ag |  | ppm | 88.1 | 54.2 | 50.3 | 128.8 | 48.8 | 80 | 0.1 | 1000 | ICPM
Na |  | ppm | 1719 | 1534 | 1469 | 1422 | 1426 | 2851 | 100 | 100000 | ICPM
Sr |  | ppm | 54 | 51 | 47 | 45 | 45 | 55 | 1 | 10000 | ICPM
Tl |  | ppm | <2 | <2 | <2 | <2 | <2 | <2 | 2 | 1000 | ICPM
Ti |  | ppm | 931 | 842 | 703 | 711 | 843 | 1025 | 100 | 100000 | ICPM
W |  | ppm | 8 | 12 | 10 | 12 | 15 | 14 | 5 | 1000 | ICPM
V |  | ppm | 37 | 33 | 31 | 28 | 31 | 55 | 1 | 10000 | ICPM
Zn |  | ppm | 3978 | 2247 | 1419 | 1327 | 1368 | 3235 | 1 | 10000 | ICPM
Zr |  | ppm | 28 | 27 | 24 | 23 | 23 | 38 | 1 | 10000 | ICPM

FLOTATION TEST PROCEDURE

Client: | MineStart Management Inc. | Date: | 27-Oct-04
Test: | F10 | Project: | 0406407
Sample: | CompsiteA |  |
Objective: | Scoping flotation test to recover Au and Ag at P80 = 74 µm using sodium carbonate to adjust pH and CuS04 to activate sulphide minerals

STAGE | TIME min | pH | ADDITI ON | COMMENTS
Reagent | g/tonne
Grind (2kg) | 2×9'30" | 7.3 | Na2CO3 | 450 |
Rougher Flotation |  |  |  |  |
Condition | 5 | 7.0 | CuS04.5H2 0 | 250 |
| 2 | 7.1 | PAX | 50 |
Rougher float 1 | 4 | 7.3 | ED 250 | 9 | slightly grey in corners
Condition | 5 | 6.8 | CuS04.5H2 0 | 125 |
| 2 | 7.0 | PAX | 50 |
Rougher float 2 | 4 | 7.3 | ED 250 | 7 | thick froth, not mineralized
Condition | 5 | 6.6 | CuS04.5H20 | 125 |
| 2 | 6.6 | PAX | 50 |
|  | 6.9 | Na2C03 | 70 |
Rougher float 3 | 5 | 7.1 | ED 250 | 7 | as RO2

FLOTATION TEST METALLURGICAL BALANCE

Client: | MineStart Management Inc. | Date: | 27-Oct-04
Test: | F10 | Project: | 0406407
Sample: | CompsiteA |  |
Objective: | Scoping flotation test to recover Au and Ag at P80 = 74 µm using sodium carbonate to adjust pH and CuS04 to activate sulphide minerals

Product | Weight | Assay | Distribution
|  |  | Au | Ag | Pb(T, | Au | Ag | Pb(T)
| g | % | g/t | g/t | % | % | % | %
Rougher Concentrate 1 | 25.0 | 1.3 | 6.30 | 1200.0 | 1.60 | 22.9 | 15.3 | 1.7
Rougher Concentrate 2 | 60.7 | 3.2 | 1.20 | 337.8 | 1.50 | 10.6 | 10.5 | 3.9
Rougher Concentrate 1+2 | 85.7 | 4.5 | 2.68 | 588.8 | 1.53 | 33.5 | 25.8 | 5.6
Rougher Concentrate 3 | 83.2 | 4.4 | 0.52 | 208.3 | 1.50 | 6.3 | 8.8 | 5.4
Total Flotation Concentrate | 168.9 | 8.9 | 1.62 | 401.3 | 1.51 | 39.8 | 34.6 | 11.0
Final Tails | 1720.2 | 91.1 | 0.24 | 74.5 | 1.20 | 60.2 | 65.4 | 89.0
Calculated Head | 1889.1 | 100.0 | 0.36 | 103.7 | 1.23 | 100.0 | 100.0 | 100.0
Measured Head |  |  | 0.58 | 103.5 | 1.20 |  |  |

SIZE ANALYSIS REPORT

Client: | MineStart Management Inc. | Date: | 27-Oct-04
Test: | F10 | Project: | 0406407
Sample: | Compsite A |  |
Grind: | 2×1 kg sample ground for 9.5 minutes in Mill # 1 |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micron | % Retained | % Passing
65 | 210 | 0.0 | 100.0
100 | 149 | 0.3 | 99.7
150 | 105 | 4.0 | 95.7
200 | 74 | 15.2 | 80.5
270 | 53 | 22.1 | 58.4
325 | 44 | 6.8 | 51.6
400 | 37 | 4.2 | 47.4
Undersize | -37 | 47.4 | -
TOTAL: |  | 100.0 |

ICP ASSAY REPORT

Client: | MineStart Management Inc. | Date: | 28-Oct-04
Test: | F10 | Project: | 0406407
Sample: | As per id |  |

|  |  | Sample ID | Detection Limits | Analytical
Elements |  | Units | Ro Cone 1 | Ro Cone 2 | Ro Cone 3 | Tails | Head | Minimum | Maximum | Method
Au |  | g/mt | 6.3 | 1.2 | 0.52 | 0.24 | 0.36 | 0.01 | 5000 | FA/AAS
Al |  | PPm | 47668 | 48431 | 49409 | 32045 | 33204 | 100 | 50000 | ICPM
Sb |  | PPm | 194 | 188 | 201 | 209 | 201 | 5 | 2000 | ICPM
As |  | PPm | 40 | <5 | <5 | <5 | <5 | 5 | 10000 | ICPM
Ba |  | PPm | 702 | 742 | 757 | 665 | 661 | 2 | 10000 | ICPM
Bi |  | PPm | 637 | 466 | 415 | 210 | 223 | 2 | 2000 | ICPM
Cd |  | PPm | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | 0.2 | 2000 | ICPM
Ca |  | PPm | 13125 | 13927 | 14834 | 14752 | 14530 | 100 | 100000 | ICPM
Cr |  | PPm | 767 | 826 | 846 | 281 | 329 | 1 | 10000 | ICPM
Co |  | PPm | 22 | 18 | 17 | 11 | 11 | 1 | 10000 | ICPM
Cu |  | PPm | 4255 | 2638 | 2699 | 1304 | 1237 | 1 | 20000 | ICPM
Fe |  | ppm | 110000 | 98000 | 99000 | 69000 | 71000 | 100 | 50000 | ICPM
La |  | ppm | 16 | 15 | 17 | 11 | 11 | 2 | 10000 | ICPM
Pb |  | ppm | 16000 | 15000 | 15000 | 12000 | 12000 | 2 | 10000 | ICPM
Mg |  | ppm | 5690 | 5811 | 5880 | 3108 | 3371 | 100 | 100000 | ICPM
Mn |  | ppm | 2871 | 2948 | 3052 | 2805 | 2744 | 1 | 10000 | ICPM
Hg |  | ppm | <3 | <3 | <3 | <3 | <3 | 3 | 10000 | ICPM
Mo |  | ppm | 106 | 113 | 114 | 46 | 53 | 1 | 1000 | ICPM
Ni |  | ppm | 464 | 502 | 513 | 166 | 195 | 1 | 10000 | ICPM
P |  | ppm | 352 | 378 | 356 | 262 | 247 | 100 | 50000 | ICPM
K |  | ppm | 25267 | 26848 | 26848 | 25013 | 25549 | 100 | 100000 | ICPM
Sc |  | ppm | 4 | 5 | 5 | 3 | 3 | 1 | 10000 | ICPM
Ag |  | ppm | 1200 | 208.3 | 208.3 | 74.5 | 103.5 | 0.1 | 1000 | ICPM
Na |  | ppm | 2882 | 2819 | 2819 | 1505 | 1594 | 100 | 100000 | ICPM
Sr |  | ppm | 52 | 56 | 56 | 51 | 50 | 1 | 10000 | ICPM
Tl |  | ppm | <2 | <2 | <2 | <2 | <2 | 2 | 1000 | ICPM
Ti |  | ppm | 1069 | 1090 | 1081 | 888 | 906 | 100 | 100000 | ICPM
W |  | ppm | 8 | 11 | 9 | 17 | 16 | 5 | 1000 | ICPM
V |  | ppm | 61 | 63 | 63 | 41 | 41 | 1 | 10000 | ICPM
Zn |  | ppm | 4732 | 3437 | 3446 | 1925 | 2063 | 1 | 10000 | ICPM
Zr |  | ppm | 48 | 42 | 42 | 27 | 26 | 1 | 10000 | ICPM

FLOTATION TEST PROCEDURE

Client: | MineStart Management Inc. | Date: | 2-Nov-04
Test: | F11 | Project: | 0406407
Sample: | CompsiteA |  |
Objective: | Scoping flotation test to recover Au and Ag at P80 = 75 µm using pocedure from 2003 project # 0302303

STAGE | TIME min | pH | ADDITI ON | COMMENTS
Reagent | g/tonne
Grind (2kg) | 2×9'30" | 6.1 |  |  |
Rougher Flotation |  |  |  |  |
Condition | 3 | 6.3 | PAX | 50 |
|  |  | A208 | 25 |
Rougher float 1 | 7 | 6.6 | MIBC | 17 | thicker froth, initially slightly grey
Condition | 3 | 6.6 | PAX | 25 |
|  |  | A208 | 10 |
Rougher float 2 | 5 | 6.6 | MIBC | 5 | thick froth, not mineralized
Condition | 3 | 6.4 | CuS04.5H20 | 100 |
| 2 | 6.5 | PAX | 25 |
|  | 6.9 | A208 | 10 |
Rougher float 3 | 5 | 7.1 | MIBC | 3 | as Ro2

FLOTATION TEST METALLURGICAL BALANCE

Client: | MineStart Management Inc. | Date: | 2-Nov-04
Test: | F11 | Project: | 0406407
Sample: | CompsiteA |  |
Objective: | Scoping flotation test to recover Au and Ag at P80 = 75 µm using pocedure from 2003 project # 0302303

Product | Weight | Assay | Distribution
|  |  | Au | Ag | Pb(T, | Au | Ag | Pb(T)
| g | % | g/t | g/t | % | % | % | %
Rougher Concentrate 1 | 94.0 | 5.0 | 2.72 | 623.2 | 1.90 | 40.8 | 30.9 | 7.6
Rougher Concentrate 2 | 43.6 | 2.3 | 0.64 | 279.5 | 1.90 | 4.4 | 6.4 | 3.5
Rougher Concentrate 1+2 | 137.6 | 7.3 | 2.06 | 514.3 | 1.90 | 45.2 | 37.3 | 11.1
Rougher Concentrate 3 | 27.6 | 1.5 | 0.70 | 337.7 | 2.00 | 3.1 | 4.9 | 2.3
Total Flotation Concentrate | 165.2 | 8.8 | 1.83 | 484.8 | 1.92 | 48.3 | 42.2 | 13.4
Final Tails | 1707.3 | 91.2 | 0.19 | 64.2 | 1.20 | 51.7 | 57.8 | 86.6
Calculated Head | 1872.5 | 100.0 | 0.34 | 101.3 | 1.26 | 100.0 | 100.0 | 100.0
Measured Head |  |  | 0.34 | 99.6 | 1.40 |  |  |

SIZE ANALYSIS REPORT

Client: | MineStart Management Inc. | Date: | 2-Nov-04
Test: | F11 | Project: | 0406407
Sample: | Compsite A |  |
Grind: | 2×1 kg sample ground for 9.5 minutes in Mill # 1 |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micron | % Retained | % Passing
65 | 210 | 0.0 | 100.0
100 | 149 | 0.0 | 100.0
150 | 105 | 5.0 | 95.0
200 | 74 | 15.3 | 79.7
270 | 53 | 22.1 | 57.7
325 | 44 | 7.3 | 50.4
400 | 37 | 4.2 | 46.2
Undersize | -37 | 46.2 | -
TOTAL: |  | 100.0 |

ICP ASSAY REPORT

Client: | MineStart Management Inc. | Date: | 2-Nov-04
Test: | F11 | Project: | 0406407
Sample: | As per id |  |

|  |  | Sample ID | Detection Limits | Analytical
Elements |  | Units | Ro Cone 1 | Ro Cone 2 | Ro Cone 3 | Tails | Head | Minimum | Maximum | Method
Au |  | g/mt | 2.72 | 0.64 | 0.7 | 0.19 | 0.34 | 0.01 | 5000 | FA/AAS
Al |  | ppm | 58167 | 66603 | 69243 | 31747 | 37434 | 100 | 50000 | ICPM
Sb |  | ppm | 197 | 193 | 180 | 206 | 219 | 5 | 2000 | ICPM
As |  | ppm | <5 | <5 | <5 | <5 | <5 | 5 | 10000 | ICPM
Ba |  | ppm | 825 | 783 | 790 | 646 | 670 | 2 | 10000 | ICPM
Bi |  | ppm | 812 | 571 | 552 | 167 | 218 | 2 | 2000 | ICPM
Cd |  | ppm | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | 0.2 | 2000 | ICPM
Ca |  | ppm | 13446 | 14820 | 13876 | 14795 | 16131 | 100 | 100000 | ICPM
Cr |  | ppm | 943 | 1500 | 971 | 260 | 340 | 1 | 10000 | ICPM
Co |  | ppm | 22 | 21 | 21 | 10 | 11 | 1 | 10000 | ICPM
Cu |  | ppm | 3346 | 3120 | 3370 | 961 | 1376 | 1 | 20000 | ICPM
Fe |  | ppm | 119206 | 131873 | 132862 | 68021 | 79716 | 100 | 50000 | ICPM
La |  | ppm | 18 | 18 | 20 | 11 | 11 | 2 | 10000 | ICPM
Pb |  | ppm | 18830 | 19424 | 19827 | 11881 | 13669 | 2 | 10000 | ICPM
Mg |  | ppm | 6979 | 8095 | 8572 | 3025 | 3645 | 100 | 100000 | ICPM
Mn |  | ppm | 3419 | 3912 | 3966 | 2741 | 3041 | 1 | 10000 | ICPM
Hg |  | ppm | <3 | <3 | <3 | <3 | <3 | 3 | 10000 | ICPM
Mo |  | ppm | 138 | 153 | 136 | 43 | 50 | 1 | 1000 | ICPM
Ni |  | ppm | 575 | 681 | 590 | 160 | 198 | 1 | 10000 | ICPM
P |  | ppm | 447 | 460 | 539 | 264 | 252 | 100 | 50000 | ICPM
K |  | ppm | 25490 | 28887 | 26749 | 24371 | 26498 | 100 | 100000 | ICPM
Sc |  | ppm | 5 | 5 | 6 | 3 | 3 | 1 | 10000 | ICPM
Ag |  | ppm | 623.2 | 279.5 | 337.7 | 64.2 | 99.6 | 0.1 | 1000 | ICPM
Na |  | ppm | 2024 | 2453 | 2306 | 1229 | 1397 | 100 | 100000 | ICPM
Sr |  | ppm | 56 | 56 | 56 | 50 | 50 | 1 | 10000 | ICPM
Tl |  | ppm | <2 | <2 | <2 | <2 | <2 | 2 | 1000 | ICPM
Ti |  | ppm | 1202 | 1110 | 1190 | 784 | 879 | 100 | 100000 | ICPM
W |  | ppm | 8 | 13 | 8 | 10 | 9 | 5 | 1000 | ICPM
V |  | ppm | 76 | 77 | 84 | 39 | 43 | 1 | 10000 | ICPM
Zn |  | ppm | 4590 | 4730 | 5024 | 1891 | 2262 | 1 | 10000 | ICPM
Zr |  | ppm | 49 | 50 | 53 | 25 | 28 | 1 | 10000 | ICPM

ICP ASSAY REPORT

Client: | MineStart Management Inc. | Date: | 2-Nov-04
Test: | Flotation Head Assays | Project: | 0406407
Sample: | Composite A | Page: | 1 of 2

Elements |  | Units | F1 | F3 | F4 | F7 | F8 | F9 | F10 | F11
|  |  | Head | Head | Head | Head | Head | Head | Head | Head
Al |  | ppm | 40730 | 43415 | 41048 | 34406 | 36795 | 35128 | 33204 | 37434
Sb |  | ppm | 164 | 180 | 179 | 183 | 200 | 197 | 201 | 219
As |  | ppm | <5 | <5 | <5 | <5 | <5 | <5 | <5 | <5
Ba |  | ppm | 714 | 725 | 700 | 737 | 721 | 706 | 661 | 670
Bi |  | ppm | 298 | 226 | 220 | 238 | 238 | 234 | 223 | 218
Cd |  | ppm | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2
Ca |  | ppm | 16080 | 18006 | 17082 | 14845 | 15450 | 15086 | 14530 | 16131
Cr |  | ppm | 20 | 234 | 382 | 373 | 408 | 353 | 329 | 340
Co |  | ppm | 10 | 11 | 12 | 13 | 15 | 13 | 11 | 11
Cu |  | ppm | 1320 | 1484 | 1164 | 1233 | 1224 | 1217 | 1237 | 1376
Fe |  | ppm | 73247 | 81730 | 76770 | 71000 | 75000 | 71000 | 71000 | 79716
La |  | ppm | 11 | 12 | 12 | 12 | 13 | 12 | 11 | 11
Pb |  | ppm | 9984 | 11090 | 10939 | 13000 | 13000 | 13000 | 12000 | 13669
Mg |  | ppm | 3714 | 4028 | 3826 | 3530 | 3630 | 3524 | 3371 | 3645
Mn |  | ppm | 2736 | 3228 | 2996 | 2736 | 2932 | 2783 | 2744 | 3041
Hg |  | ppm | <3 | <3 | <3 | <3 | <3 | <3 | <3 | <3
Mo |  | ppm | 19 | 43 | 58 | 60 | 62 | 56 | 53 | 50
Ni |  | ppm | 3 | 138 | 233 | 232 | 246 | 217 | 195 | 198
P |  | ppm | 272 | 280 | 267 | 282 | 278 | 306 | 247 | 252
K |  | ppm | 22831 | 22609 | 22533 | 23093 | 23412 | 22973 | 25549 | 26498
Sc |  | ppm | 3 | 3 | 3 | 3 | 4 | 3 | 3 | 3
Ag |  | ppm | 135.7 | 131.5 | 114.3 | 111.9 | 108.5 | 114.5 | 103.5 | 99.6
Na |  | ppm | 2643 | 3011 | 2865 | 814 | 827 | 805 | 1594 | 1397
Sr |  | ppm | 54 | 53 | 53 | 53 | 53 | 53 | 50 | 50
Tl |  | ppm | <2 | <2 | <2 | <2 | <2 | <2 | <2 | <2
Ti |  | ppm | 683 | 723 | 632 | 1025 | 1029 | 1018 | 906 | 879
W |  | ppm | 13 | 9 | 11 | 12 | 12 | 17 | 16 | 9
V |  | ppm | 40 | 42 | 42 | 45 | 46 | 45 | 41 | 43
Zn |  | ppm | 2194 | 2407 | 2288 | 2119 | 2223 | 2140 | 2063 | 2262
Zr |  | ppm | 28 | 30 | 28 | 31 | 35 | 36 | 26 | 28

ICP ASSAY REPORT

Client: | MineStart Management Inc. | Date: | 2-Nov-04
Test: | Flotation Head Assays | Project: | 0406407
Sample: | Composite B vs. A | Page: | 2 of 2

Elements | Units | F2-B | F5-B | F6-B | Measured Heads | Analytical
|  | Head | Head | Head | Comp.B | Comp.A | Method
Al | ppm | 32579 | 33322 | 30023 | 25970 | 36594 | ICPM
Sb | ppm | 122 | 122 | 120 | 150 | 203 | ICPM
As | ppm | 47 | 40 | 46 | 56 | <5 | ICPM
Ba | ppm | 585 | 564 | 580 | 515 | 650 | ICPM
Bi | ppm | 342 | 332 | 346 | 379 | 221 | ICPM
Cd | ppm | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | ICPM
Ca | ppm | 2561 | 2472 | 2326 | 2435 | 15510 | ICPM
Cr | ppm | 12 | 196 | 275 | 210 | 161 | ICPM
Co | ppm | 6 | 8 | 9 | 7 | 10 | ICPM
Cu | ppm | 992 | 1213 | 948 | 1085 | 1319 | ICPM
Fe | ppm | 85609 | 91029 | 81042 | 75991 | 70760 | ICPM
La | ppm | 9 | 9 | 9 | 8 | 11 | ICPM
Pb | ppm | 6212 | 5986 | 6041 | 7065 | 12956 | ICPM
Mg | ppm | 2251 | 2380 | 2096 | 1906 | 3473 | ICPM
Mn | ppm | 1855 | 1953 | 1754 | 1664 | 2804 | ICPM
Hg | ppm | <3 | <3 | <3 | <3 | <3 | ICPM
Mo | ppm | 21 | 42 | 51 | 18 | 13 | ICPM
Ni | ppm | <1 | 112 | 159 | 12 | 31 | ICPM
P | ppm | 213 | 182 | 204 | 194 | 290 | ICPM
K | ppm | 13725 | 13206 | 13251 | 12499 | 21774 | ICPM
Sc | ppm | 2 | 2 | 2 | 2 | 3 | ICPM
Ag | ppm | 88.4 | 87.8 | 92 | 88.3 | 99.8 | ICPM
Na | ppm | 2065 | 2296 | 2169 | 1022 | 1495 | ICPM
Sr | ppm | 31 | 29 | 29 | 28 | 49 | ICPM
Tl | ppm | <2 | <2 | <2 | <2 | <2 | ICPM
Ti | ppm | 378 | 420 | 440 | 753 | 1129 | ICPM
W | ppm | 23 | 25 | 22 | 15 | 8 | ICPM
V | ppm | 32 | 32 | 32 | 33 | 42 | ICPM
Zn | ppm | 880 | 859 | 860 | 860 | 2169 | ICPM
Zr | ppm | 25 | 24 | 24 | 25 | 29 | ICPM

SIZE ANALYSIS REPORT

Client: | MineStart Management Inc. | Date: | 10-Nov-04
Test: | C16 | Project: | 0406407
Sample: | C16 Residue (Comp B) |  |
Grind: | 1.0kg for 4.6 minutes @65% solids in Mill #1 stainless steel mill |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micron | % Retained | % Passing
65 | 210 | 0.2 | 99.8
100 | 149 | 0.6 | 99.2
150 | 105 | 10.7 | 88.5
200 | 74 | 18.5 | 70.0
270 | 53 | 18.9 | 51.1
325 | 44 | 6.2 | 44.9
400 | 37 | 3.4 | 41.5
Undersize | -37 | 41.5 | -
TOTAL: |  | 100.0 |

GRAVITY CONCENTRATION TEST REPORT

Client: | MineStart Management Inc. | Date: | 17-Sep-04
Test: | GSB1 | Project: | 0406407
Sample: | Comp A |  |
Objective: | To determine the precious metal recoveries using Falcon SB40 Concentrator without grinding

Products | Weight | Assay, g/t | Distribution, %
| g | % | Au | Ag | Au | Ag
Concentrate 1 | 87.8 | 8.8 | 0.63 | 141.4 | 15.9 | 13.3
Concentrate 2 | 76.6 | 7.7 | 0.49 | 123.9 | 10.9 | 10.2
Concentrate 1+2 | 164.4 | 16.5 | 0.56 | 133.2 | 26.8 | 23.4
Concentrate 3 | 76.0 | 7.6 | 0.44 | 106.2 | 9.7 | 8.6
Total Concentrate | 240.4 | 24.1 | 0.52 | 124.7 | 36.5 | 32.1
Final Tail | 756.0 | 75.9 | 0.29 | 84.0 | 63.5 | 67.9
Calculated Head | 996.4 | 100.0 | 0.35 | 93.8 | 100.0 | 100.0
Measured Head |  |  | 0.37 | 89.7 |  |

Three-pass Falcon SB40 Test Flowchart

Test Conditions
Pulp density | Bowl | Back water pressure | Speed
20% | 28° | 1.5 psi | ~50Hz | 100 G

SIZE ANALYSIS REPORT

Client: | MineStart Management Inc. | Date: | 17-Sep-04
Test: | GSB1 | Project: | 0406407
Sample: | GSB1 Feed |  |
Grind: | n/a (as received) |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micron | % Retained | % Passing
35 | 420 | 2.4 | 97.6
48 | 297 | 13.9 | 83.7
65 | 210 | 12.1 | 71.6
100 | 149 | 14.9 | 56.7
150 | 105 | 13.6 | 43.2
200 | 74 | 9.6 | 33.6
270 | 53 | 7.4 | 26.2
325 | 44 | 2.7 | 23.4
400 | 37 | 1.4 | 22.0
Undersize | -37 | 22.0 | -
TOTAL: |  | 100.0 |

GRAVITY CONCENTRATION TEST REPORT

Client: | MineStart Management Inc. | Date: | 17-Sep-04
Test: | GSB2 | Project: | 0406407
Sample: | Comp B |  |
Objective: | To determine the precious metal recoveries using Falcon SB40 Concentrator without grinding

Products | Weight | Assay, g/t | Distribution, %
| g | % | Au | Ag | Au | Ag
Concentrate 1 | 83.8 | 8.4 | 0.76 | 121.0 | 12.7 | 14.5
Concentrate 2 | 73.9 | 7.4 | 0.69 | 87.5 | 10.2 | 9.3
Concentrate 1+2 | 157.7 | 15.9 | 0.73 | 105.3 | 22.9 | 23.8
Concentrate 3 | 76.4 | 7.7 | 0.68 | 79.5 | 10.4 | 8.7
Total Concentrate | 234.2 | 23.6 | 0.71 | 96.9 | 33.3 | 32.5
Final Tail | 759.4 | 76.4 | 0.44 | 62.1 | 66.7 | 67.5
Calculated Head | 993.6 | 100.0 | 0.50 | 70.3 | 100.0 | 100.0
Measured Head |  |  | 0.51 | 69.5 |  |

Three-pass Falcon SB40 Test Flowchart

Test Conditions
Pulp density | Bowl | Back water pressure | Speed
20% | 28° | 1.5 psi | ~50Hz | 100 G

SIZE ANALYSIS REPORT

Client: | MineStart Management Inc. | Date: | 17-Sep-04
Test: | GSB2 | Project: | 0406407
Sample: | GSB2 Feed |  |
Grind: | n/a (as received) |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micron | % Retained | % Passing
35 | 420 | 2.1 | 97.9
48 | 297 | 3.8 | 94.1
65 | 210 | 8.0 | 86.1
100 | 149 | 12.9 | 73.2
150 | 105 | 16.5 | 56.7
200 | 74 | 13.2 | 43.6
270 | 53 | 10.8 | 32.7
325 | 44 | 3.8 | 28.9
400 | 37 | 3.4 | 25.6
Undersize | -37 | 25.6 | -
TOTAL: |  | 100.0 |

GRAVITY CONCENTRATION TEST REPORT

Client: | MineStart Management Inc. | Date: | 17-Sep-04
Test: | GSB3 | Project: | 0406407
Sample: | Comp C |  |
Objective: | To determine the precious metal recoveries using Falcon SB40 Concentrator without grinding

Products | Weight | Assay, g/t | Distribution, %
| g | % | Au | Ag | Au | Ag
Concentrate 1 | 84.5 | 8.5 | 0.89 | 65.1 | 22.9 | 13.9
Concentrate 2 | 73.5 | 7.4 | 0.59 | 59.4 | 13.2 | 11.1
Concentrate 1+2 | 158.0 | 15.9 | 0.75 | 62.4 | 36.2 | 25.0
Concentrate 3 | 81.2 | 8.2 | 0.44 | 49.4 | 10.9 | 10.2
Total Concentrate | 239.2 | 24.1 | 0.65 | 58.0 | 47.0 | 35.2
Final Tail | 755.0 | 75.9 | 0.23 | 33.9 | 53.0 | 64.8
Calculated Head | 994.2 | 100.0 | 0.33 | 39.7 | 100.0 | 100.0
Measured Head |  |  | 0.39 | 39.8 |  |

Three-pass Falcon SB40 Test Flowchart

Test Conditions
Pulp density | Bowl | Back water pressure | Speed
20% | 28° | 1.5 psi | ~50Hz | 100 G

SIZE ANALYSIS REPORT

Client: | MineStart Management Inc. | Date: | 17-Sep-04
Test: | GSB3 | Project: | 0406407
Sample: | GSB3 Feed |  |
Grind: | n/a (as received) |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micron | % Retained | % Passing
35 | 420 | 4.1 | 95.9
48 | 297 | 9.0 | 86.9
65 | 210 | 14.6 | 72.3
100 | 149 | 17.6 | 54.7
150 | 105 | 15.4 | 39.2
200 | 74 | 10.2 | 29.1
270 | 53 | 7.7 | 21.3
325 | 44 | 2.7 | 18.7
400 | 37 | 1.8 | 16.8
Undersize | -37 | 16.8 | -
TOTAL: |  | 100.0 |

GRAVITY CONCENTRATION TEST REPORT

Client: | MineStart Management Inc. | Date: | 17-Sep-04
Test: | GSB4 | Project: | 0406407
Sample: | Comp A |  |
Objective: | To determine the precious metal recoveries using Falcon SB40 Concentrator at a target grind size of P80-75 microns

Products | g | % | Assay, g/t | Distribution, %
| (g) | (%) | Au | Ag | Au | Ag
Concentrate 1 | 61.2 | 6.2 | 1.35 | 166.9 | 25.0 | 11.3
Concentrate 2 | 72.7 | 7.3 | 0.50 | 127.7 | 11.0 | 10.3
Concentrate 1+2 | 133.8 | 13.5 | 0.89 | 145.6 | 36.0 | 21.6
Concentrate 3 | 61.5 | 6.2 | 0.33 | 83.6 | 6.1 | 5.7
Total Concentrate | 195.3 | 19.7 | 0.71 | 126.1 | 42.1 | 27.2
Final Tail | 796.6 | 80.3 | 0.24 | 82.6 | 57.9 | 72.8
Calculated Head | 991.9 | 100.0 | 0.33 | 91.2 | 100.0 | 100.0
Measured Head |  |  | 0.34 | 86.4 |  |

Three-pass Falcon SB40 Test Flowchart

Test Conditions
Pulp density | Bowl | Back water pressure | Speed
20% | 28° | 1.0 psi | ~59Hz | 150 G

SIZE ANALYSIS REPORT

Client: | MineStart Management Inc. | Date: | 17-Sep-04
Test: | GSB4 | Project: | 0406407
Sample: | GSB4 Feed |  |
Grind: | 1.0kg for 10 minutes @65% solids in stainless steel mill #1 |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micron | % Retained | % Passing
65 | 210 | 0.0 | 100.0
100 | 149 | 0.2 | 99.8
150 | 105 | 4.4 | 95.3
200 | 74 | 16.4 | 78.9
270 | 53 | 17.8 | 61.1
325 | 44 | 7.3 | 53.9
400 | 37 | 4.5 | 49.4
Undersize | -37 | 49.4 | -
TOTAL: |  | 100.0 |

GRAVITY CONCENTRATION TEST REPORT

Client: | MineStart Management Inc. | Date: | 17-Sep-04
Test: | GSB5 | Project: | 0406407
Sample: | Comp B |  |
Objective: | To determine the precious metal recoveries using Falcon SB40 Concentrator at a target grind size of P80-75 microns

Products | g | % | Assay, g/t | Distribution, %
| (g) | (%) | Au | Ag | Au | Ag
Concentrate 1 | 81.9 | 8.2 | 2.48 | 133.3 | 36.4 | 15.5
Concentrate 2 | 69.5 | 7.0 | 0.68 | 88.5 | 8.5 | 8.8
Concentrate 1+2 | 151.3 | 15.2 | 1.65 | 112.7 | 44.9 | 24.3
Concentrate 3 | 71.6 | 7.2 | 0.52 | 62.2 | 6.7 | 6.3
Total Concentrate | 223.0 | 22.4 | 1.29 | 96.5 | 51.5 | 30.7
Final Tail | 772.7 | 77.6 | 0.35 | 63.0 | 48.5 | 69.3
Calculated Head | 995.7 | 100.0 | 0.56 | 70.5 | 100.0 | 100.0
Measured Head |  |  | 0.54 | 68.6 |  |

Three-pass Falcon SB40 Test Flowchart

Test Conditions
Pulpdensity | Bol/v | Bactei/ter pessure | Sped
20% | 28 0 | 1.0 psi | ~59Hz | 150 G

SIZE ANALYSIS REPORT

Client: | MineStart Management Inc. | Date: | 17-Sep-04
Test: | GSB5 | Project: | 0406407
Sample: | GSB5 Feed |  |
Grind: | 1.0kg for 7.5 minutes @65% solids in stainless steel mill #1 |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micron | % Retained | % Passing
65 | 210 | 0.0 | 100.0
100 | 149 | 0.4 | 99.6
150 | 105 | 4.6 | 95.0
200 | 74 | 16.7 | 78.3
270 | 53 | 20.8 | 57.5
325 | 44 | 7.2 | 50.3
400 | 37 | 5.0 | 45.4
Undersize | -37 | 45.4 | -
TOTAL: |  | 100.0 |

GRAVITY CONCENTRATION TEST REPORT

Client: | MineStart Management Inc. | Date: | 17-Sep-04
Test: | GSB6 | Project: | 0406407
Sample: | Comp C |  |
Objective: | To determine the precious metal recoveries using Falcon SB40 Concentrator at a target grind size of P80-75 microns

Products | g | % | Assay, g/t | Distribution, %
| (g) | (%) | Au | Ag | Au | Ag
Concentrate 1 | 78.3 | 7.9 | 2.16 | 110.5 | 44.9 | 21.4
Concentrate 2 | 107.0 | 10.8 | 0.49 | 51.3 | 13.9 | 13.6
Concentrate 1+2 | 185.3 | 18.6 | 1.20 | 76.3 | 58.8 | 35.0
Concentrate 3 | 61.2 | 6.2 | 0.34 | 32.7 | 5.5 | 4.9
Total Concentrate | 246.5 | 24.8 | 0.98 | 65.5 | 64.3 | 39.9
Final Tail | 748.2 | 75.2 | 0.18 | 32.5 | 35.7 | 60.1
Calculated Head | 994.7 | 100.0 | 0.38 | 40.7 | 100.0 | 100.0
Measured Head |  |  | 0.38 | 38.9 |  |

Three-pass Falcon SB40 Test Flowchart

Test Conditions
Pulp density | Bowl | Back water pressure | Speed
20% | 28° | 1.0 psi | ~59Hz | 150 G

SIZE ANALYSIS REPORT

Client: | MineStart Management Inc. | Date: | 17-Sep-04
Test: | GSB6 | Project: | 0406407
Sample: | GSB6 Feed |  |
Grind: | 1.0kg for 11 minutes @65% solids in stainless steel mill #1 |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micron | % Retained | % Passing
65 | 210 | 0.1 | 99.9
100 | 149 | 0.3 | 99.7
150 | 105 | 5.9 | 93.8
200 | 74 | 16.5 | 77.3
270 | 53 | 16.4 | 60.8
325 | 44 | 9.3 | 51.6
400 | 37 | 6.5 | 45.1
Undersize | -37 | 45.1 | -
TOTAL: |  | 100.0 |

CYANIDATION TEST SUMMARY

Client: | MineStart Management Inc. | Date: | 23-Sep-04
Test: | C1-C6 | Project: | 0406407
Sample: | as specified |  |

|  | % Passing | Measured Head | Calculated Head | Extraction | Residue | Consumption, kg/t
Test No | Sample ID | 105 µm | g/t Au | g/t Ag | g/t Au | g/t Ag | Au, % | Ag, % | Au, g/t | Ag, g/t | NaCN | Lime
C1 | Comp A | 43.2 | 0.35 | 95 | 0.32 | 100 | 81.5 | 66.4 | 0.06 | 33.8 | 1.76 | 1.35
C2 | Comp A | 81.7 | 0.35 | 94 | 0.35 | 95 | 85.7 | 79.3 | 0.05 | 19.8 | 1.63 | 1.84
C3 | Comp A | 95.7 | 0.36 | 94 | 0.45 | 96 | 89.1 | 80.4 | 0.05 | 18.9 | 2.61 | 1.58
C4 | Comp B | 56.7 | 0.52 | 76 | 0.50 | 76 | 82.0 | 69.1 | 0.09 | 23.7 | 2.59 | 1.82
C5 | Comp B | 83.6 | 0.49 | 71 | 0.51 | 73 | 88.3 | 77.1 | 0.06 | 16.8 | 1.74 | 1.81
C6 | Comp B | 90.2 | 0.50 | 71 | 0.53 | 74 | 86.9 | 77.3 | 0.07 | 16.9 | 1.74 | 1.92

CYANIDATION TEST REPORT

Client: | MineStart Management Inc. | Date: | 23-Sep-04
Test: | C1 | Project: | 0406407
Sample: | Comp A |  |
Objective: | To determine Au and Ag extraction by direct cyanidation on as received sample

TEST CONDITIONS |  |  |  | TEST DESCRIPTION
Solids: | 950 | g |  | - | repulped to 40% solids
Solution: | 1,425 | g |  | - | adjusted to and maintained pH 10.5
Solids: | 40 | % |  | - | adjusted to and maintained at 1.0g/L NaCN
Grind Size - P80: | 269 | µm |  | - | sampled at 24,48 hours
Initial NaCN: | 1.0 | g/L |  | - | test ended after 72 hours
Target pH: | 10.5 |  |  | - | filtered and displacement washed with hot cyanide solution followed by two hot water displacement washes
Test Duration: | 72 | hours |  | - | solution and solids assayed for Au and Ag content

HEAD GRADE

| Au | Ag |
Calculated Total: | 0.32 g/t | 100.3 g/t |
Measured Total: | 0.35 g/t | 95.2 g/t |

LEACH TEST DATA

Time | NaCN | Lime | PH | dO2 | Slurry | Solution
|  |  |  |  |  |  | Weight | Vol. | Assay Vol. | Au | Ag
hours | g/L | g | g | before | after | mg/L | g | mL | mL | mg/L | mg | mg/L | mg
0 | 1.00 | 1.43 | 0.65 | 6.4 | 10.6 |  | 2,375 | 1,429 |  |  |  |  |
1 | 1.00 |  |  | 10.6 |  |  |  |  | 5 |  |  |  |
3 | 0.60 | 0.57 | 0.20 | 10.1 | 10.7 |  |  |  | 5 |  |  |  |
5 | 1.00 |  |  | 10.6 |  |  |  |  | 5 |  |  |  |
7 | 1.00 |  | 0.13 | 10.5 | 10.8 |  |  |  | 5 |  |  |  |
24 | 0.58 | 0.59 | 0.18 | 10.3 | 11.0 | 8.4 | 2,344 | 1,398 | 30 | 0.16 | 0.23 | 38.0 | 53.9
31 | 0.80 | 0.28 |  | 10.5 |  |  |  |  | 5 |  |  |  |
48 | 0.96 | 0.06 | 0.13 | 10.2 | 11.0 | 9.3 | 2,319 | 1,373 | 30 | 0.17 | 0.24 | 42.0 | 59.8
72 | 0.90 |  |  |  | 10.3 | 9.2 | 2,339 | 1,393 |  | 0.17 | 0.25 | 43.0 | 63.3
Total |  | 2.93 | 1.29 |  |  |  |  |  |  |  |  |  |

SOLIDS

Time | Residue
| Weight | Au | Ag
hours | g | g/t | mg | g/t | mg
72 | 946.0 | 0.06 | 0.06 | 33.8 | 32.0

CYANIDATION RESULTS

Time | Distribution | Reagent Consumption | Reducing Power
| Au | Ag | NaCN | Ca(OH)2 | 0.1 N KMn04/L
hours | % | % | kg/t | kg/t | mL
24 | 73.8 | 56.6 | 1.25 |  |
48 | 78.8 | 62.8 | 1.63 |  |
72 | 81.5 | 66.4 | 1.76 | 1.35 | 20
Residue | 18.5 | 33.6 |  |  |
Total | 100.0 | 100.0 |

SIZE ANALYSIS REPORT

Client: | MineStart Management Inc. | Date: | 23-Sep-04
Test: | C1 | Project: | 0406407
Sample: | C1 Head (Comp A) |  |
Grind: | n/a |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micron | % Retained | % Passing
35 | 420 | 2.4 | 97.6
48 | 297 | 13.9 | 83.7
65 | 210 | 12.1 | 71.6
100 | 149 | 14.9 | 56.7
150 | 105 | 13.6 | 43.2
200 | 74 | 9.6 | 33.6
270 | 53 | 7.4 | 26.2
325 | 44 | 2.7 | 23.4
400 | 37 | 1.4 | 22.0
Undersize | -37 | 22.0 | -
TOTAL: |  | 100.0 |

CYANIDATION TEST REPORT

Client: | MineStart Management Inc. | Date: | 23-Sep-04
Test: | C2 | Project: | 0406407
Sample: | Comp A |  |
Objective: | To determine Au and Ag extraction by direct cyanidation at a target grind size of P60=74 microns

TEST CONDITIONS |  |  |  | TEST DESCRIPTION
Solids: | 951 | g |  | - | repulped to 40% solids
Solution: | 1,427 | g |  | - | adjusted to and maintained pH 10.5
Solids: | 40 | % |  | - | adjusted to and maintained at 1.0g/L NaCN
Grind Size - P6 0: | 103 | µm |  | - | sampled at 24,48 hours
Initial NaCN: | 1.0 | g/L |  | - | test ended after 72 hours
Target pH: | 10.5 |  |  | - | filtered and displacement washed with hot cyanide solution followed by two hot water displacement washes
Test Duration: | 72 | hours |  | - | solution and solids assayed for Au and Ag content

HEAD GRADE

| Au | Ag |
Calculated Total: | 0.35 g/t | 95.3 g/t |
Measured Total: | 0.35 g/t | 94.2 g/t |

LEACH TEST DATA

Time | NaCN | Lime | PH | d02 | Slurry | Solution |
|  |  |  |  |  |  | Weight | Vol. | Assay Vol. | Au | Ag
hours | g/L | g | g | before | after | mg/L | g | mL | mL | mg/L | mg | mg/L | mg
0 | 1.00 | 1.43 | 0.65 | 6.4 | 10.7 |  | 2,378 | 1,430 |  |  |  |  |
1 | 1.00 |  | 0.26 | 10.1 | 10.7 |  |  |  | 5 |  |  |  |
3 | 0.70 | 0.43 | 0.20 | 10.2 | 10.7 |  |  |  | 5 |  |  |  |
5 | 1.00 |  | 0.13 | 10.4 | 10.8 |  |  |  | 5 |  |  |  |
7 | 1.00 |  | 0.07 | 10.4 | 10.8 |  |  |  | 5 |  |  |  |
24 | 0.74 | 0.36 | 0.23 | 10.2 | 10.7 | 8.0 | 2,386 | 1,438 | 30 | 0.19 | 0.28 | 47.0 | 69
31 | 0.84 | 0.23 | 0.03 | 10.5 | 10.7 |  |  |  | 5 |  |  |  |
48 | 0.90 | 0.15 | 0.20 | 10.4 | 10.6 | 9.0 | 2,356 | 1,408 | 30 | 0.19 | 0.3 | 49.0 | 72
72 | 0.74 |  |  | 10.2 |  | 9.4 | 2,361 | 1,413 |  | 0.19 | 0.3 | 48.0 | 72
Total |  | 2.60 | 1.76 |  |  |  |  |  |  |  |  |  |

SOLIDS

Time | Residue
| Weight | Au | Ag
hours | g | g/t | mg | g/t | mg
72 | 948.2 | 0.05 | 0.05 | 19.8 | 18.8

CYANIDATION RESULTS

Time | Distribution | Reagent Consumption | Reducing Power
| Au | Ag | NaCN | Ca(OH)2 | 0.1 N KMn04/L
hours | % | % | kg/t | kg/t | mL
24 | 83.4 | 75.6 | 0.84 |  |
48 | 83.7 | 79.0 | 1.24 |  |
72 | 85.7 | 79.3 | 1.63 | 1.84 | 20
Residue | 14.3 | 20.7 |  |  |
Total | 100.0 | 100.0 |

SIZE ANALYSIS REPORT

Client: | MineStart Management Inc. | Date: | 23-Sep-04
Test: | C2 | Project: | 0406407
Sample: | C2 Residue (CompA) |  |
Grind: | 1.0kg for 7.3 minutes @65% solids in Mill # 1 stainless steel mill |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micron | % Retained | % Passing
65 | 210 | 0.0 | 100.0
100 | 149 | 3.4 | 96.6
150 | 105 | 14.9 | 81.7
200 | 74 | 21.8 | 59.8
270 | 53 | 15.2 | 44.6
325 | 44 | 10.5 | 34.1
400 | 37 | 7.5 | 26.7
Undersize | -37 | 26.7 | -
TOTAL: |  | 100.0 |

CYANIDATION TEST REPORT

Client: | MineStart Management Inc. | Date: | 23-Sep-04
Test: | C3 | Project: | 0406407
Sample: | Comp A |  |
Objective: | To determine Au and Ag extraction by direct cyanidation at a target grind size of P75=74 microns

TEST CONDITIONS |  |  |  | TEST DESCRIPTION
Solids: | 952 | g |  | - | repulped to 40% solids
Solution: | 1,428 | g |  | - | adjusted to and maintained pH 10.5
Solids: | 40 | % |  | - | adjusted to and maintained at 1.0g/L NaCN
Grind Size - P75: | 78 | µm |  | - | sampled at 24,48 hours
Initial NaCN: | 1.0 | g/L |  | - | test ended after 72 hours
Target pH: | 10.5 |  |  | - | filtered and displacement washed with hot cyanide solution followed by two hot water displacement washes
Test Duration: | 72 | hours |  | - | solution and solids assayed for Au and Ag content

HEAD GRADE

| Au | Ag |
Calculated Total: | 0.45 g/t | 95.7 g/t |
Measured Total: | 0.36 g/t | 94.1 g/t |

LEACH TEST DATA

Time | NaCN | Lime | PH | dO2 | Slurry | Solution
|  |  |  |  |  |  | Weight | Vol. | Assay Vol. | Au | Ag
hours | g/L | g | g | before | after | mg/L | g | mL | mL | mg/L | mg | mg/L | mg
0 | 1.00 | 1.43 | 0.65 | 6.4 | 10.8 |  | 2,380 | 1,434 |  |  |  |  |
1 | 1.00 |  | 0.26 | 10.1 | 10.8 |  |  |  | 5 |  |  |  |
3 | 0.66 | 0.49 | 0.20 | 10.2 | 10.7 |  |  |  | 5 |  |  |  |
5 | 1.00 |  |  | 10.6 |  |  |  |  | 5 |  |  |  |
7 | 1.00 |  | 0.07 | 10.5 | 10.8 |  |  |  | 5 |  |  |  |
24 | 0.44 | 0.78 | 0.21 | 10.2 | 11.0 | 7.6 | 2,348 | 1,402 | 30 | 0.22 | 0.31 | 50.0 | 71.1
31 | 0.78 | 0.31 |  | 10.6 |  |  |  |  | 5 |  |  |  |
48 | 0.90 | 0.15 | 0.13 | 10.4 | 11.0 | 9.0 | 2,313 | 1,367 | 30 | 0.26 | 0.37 | 51.0 | 72.5
72 | 0.50 |  |  |  | 10.2 | 9.5 | 2,298 | 1,352 |  | 0.27 | 0.39 | 51.0 | 73.2
Total |  | 3.16 | 1.51 |

SOLIDS

Time | Residue
| Weight | Au | Ag
hours | g | g/t | mg | g/t | mg
72 | 945.8 | 0.05 | 0.05 | 18.9 | 17.9

CYANIDATION RESULTS

Time | Distribution | Reagent Consumption | Reducing Power
| Au | Ag | NaCN | Ca(OH)2 | 0.1 N KMn04/L
hours | % | % | kg/t | kg/t | mL
24 | 72.3 | 78.0 | 1.37 |  |
48 | 85.0 | 79.5 | 1.87 |  |
72 | 89.1 | 80.4 | 2.61 | 1.58 | 20
Residue | 10.9 | 19.6 |  |  |
Total | 100.0 | 100.0 |

SIZE ANALYSIS REPORT

Client: | MineStart Management Inc. | Date: | 23-Sep-04
Test: | C3 | Project: | 0406407
Sample: | C3 Residue (CompA) |  |
Grind: | 1.0kg for 9 minutes @65% solids in Mill #1 stainless steel mill |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micron | % Retained | % Passing
65 | 210 | 0.0 | 100.0
100 | 149 | 0.0 | 99.9
150 | 105 | 4.2 | 95.7
200 | 74 | 18.1 | 77.7
270 | 53 | 19.2 | 58.4
325 | 44 | 5.9 | 52.5
400 | 37 | 5.0 | 47.5
Undersize | -37 | 47.5 | -
TOTAL: |  | 100.0 |

CYANIDATION TEST REPORT

Client: | MineStart Management Inc. | Date: | 23-Sep-04
Test: | C4 | Project: | 0406407
Sample: | Comp B |  |

Objective: To determine Au and Ag extraction by direct cyanidation on as received sample

TEST CONDITIONS |  |  |  | TEST DESCRIPTION
Solids: | 950 | g |  | - | repulped to 40% solids
Solution: | 1,425 | g |  | - | adjusted to and maintained pH 10.5
Solids: | 40 | % |  | - | adjusted to and maintained at 1.0g/L NaCN
Grind Size - P 8 0: | 180 | µrn |  | - | sampled at 24,48 hours
Initial NaCN: | 2.0 | g/L |  | - | test ended after 72 hours
Target pH: | 10.5 |  |  | - | filtered and displacement washed with hot cyanide solution followed by two hot water displacement washes
Test Duration: | 72 | hours |  | - | solution and solids assayed for Au and Ag content

HEAD GRADE |  |  |
| Au | Ag |
Calculated Total: | 0.50 g/t | 76.2 g/t |
Measured Total: | 0.52 g/t | 76.3 g/t |

LEACH TEST DATA

Time | NaCN | Lime | PH | d02 | Slurry | Solution
|  |  |  |  |  |  | Weight | Vol. | Assay Vol. | Au | Ag
hours | g/L | g | g | before | after | mg/L | g | mL | mL | mg/L | mg | mg/L | mg
0 | 1.00 | 1.43 | 0.65 | 7.2 | 10.7 |  | 2,375 | 1,431 |  |  |  |  |
1 | 1.00 |  | 0.26 | 10.2 |  |  |  |  | 5 |  |  |  |
3 | 0.56 | 0.63 | 0.26 | 10.1 | 10.6 |  |  |  | 5 |  |  |  |
5 | 1.00 |  | 0.13 | 10.1 | 10.6 |  |  |  | 5 |  |  |  |
7 | 1.00 |  | 0.10 | 10.4 | 10.7 |  |  |  | 5 |  |  |  |
24 | 0.54 | 0.64 | 0.16 | 10.4 | 10.7 | 8.1 | 2,350 | 1,406 | 30 | 0.27 | 0.38 | 30.0 | 42.8
31 | 0.82 | 0.26 | 0.10 | 10.6 |  |  |  |  | 5 |  |  |  |
48 | 0.88 | 0.18 | 0.07 | 10.4 | 10.6 | 9.2 | 2,305 | 1,361 | 30 | 0.27 | 0.38 | 35.0 | 49.3
72 | 0.50 |  |  |  | 10.5 | 9.3 | 2,295 | 1,351 |  | 0.27 | 0.39 | 35.0 | 50.0
Total |  | 3.14 | 1.73 |  |  |  |  |  |  |  |  |  |

SOLIDS

Time | Residue
| Weight | Au | Ag
hours | g | g/t | mg | g/t | mg
72 | 944.0 | 0.09 | 0.08 | 23.7 | 22.4

CYANIDATION RESULTS

Time | Distribution | Reagent Consumption | Reducing Power
| Au | Ag | NaCN | Ca(OH)2 | 0.1 N KMn04/L
hours | % | % | kg/t | kg/t | mL
24 | 81.5 | 59.1 | 1.37 |  |
48 | 80.9 | 68.1 | 1.86 |  |
72 | 82.0 | 69.1 | 2.59 | 1.82 | 20
Residue | 18.0 | 30.9 |  |  |
Total | 100.0 | 100.0 |

SIZE ANALYSIS REPORT

Client: | MineStart Management Inc. | Date: | 23-Sep-04
Test: | C4 | Project: | 0406407
Sample: | C4 Head (Comp B) |  |
Grind: | n/a |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micron | % Retained | % Passing
35 | 420 | 2.1 | 97.9
48 | 297 | 3.8 | 94.1
65 | 210 | 8.0 | 86.1
100 | 149 | 12.9 | 73.2
150 | 105 | 16.5 | 56.7
200 | 74 | 13.2 | 43.6
270 | 53 | 10.8 | 32.7
325 | 44 | 3.8 | 28.9
400 | 37 | 3.4 | 25.6
Undersize | -37 | 25.6 | -
TOTAL: |  | 100.0 |

CYANIDATION TEST REPORT

Client: | MineStart Management Inc. | Date: | 23-Sep-04
Test: | C5 | Project: | 0406407
Sample: | Comp B |  |

Objective: To determine Au and Ag extraction by direct cyanidation at a target grind size of P60=74 microns

TEST CONDITIONS |  |  |  | TEST DESCRIPTION
Solids: | 955 | g |  | - | repulped to 40% solids
Solution: | 1,433 | g |  | - | adjusted to and maintained pH 10.5
Solids: | 40 | % |  | - | adjusted to and maintained at 1.0g/L NaCN
Grind Size - P 60: | 100 | µrn |  | - | sampled at 24,48 hours
Initial NaCN: | 1.0 | g/L |  | - | test ended after 72 hours
Target pH: | 10.5 |  |  | - | filtered and displacement washed with hot cyanide solution followed by two hot water displacement washes
Test Duration: | 72 | hours |  | - | solution and solids assayed for Au and Ag content

HEAD GRADE |  |  |
| Au | Ag |
Calculated Total: | 0.50 g/t | 72.9 g/t |
Measured Total: | 0.49 g/t | 70.6 g/t |

LEACH TEST DATA

Time | NaCN | Lime | PH | dO2 | Slurry | Solution
|  |  |  |  |  |  | Weight | Vol. | Assay Vol. | Au | Ag
hours | g/L | g | g | before | after | mg/L | g | mL | mL | mg/L | mg | mg/L | mg
0 | 1.00 | 1.43 | 0.78 | 5.8 | 10.7 |  | 2,388 | 1,438 |  |  |  |  |
1 | 1.00 |  | 0.26 | 9.8 | 10.7 |  |  |  | 5 |  |  |  |
3 | 0.60 | 0.57 | 0.26 | 10.1 | 10.8 |  |  |  | 5 |  |  |  |
5 | 1.00 |  |  | 10.5 |  |  |  |  | 5 |  |  |  |
7 | 1.00 |  | 0.13 | 10.3 | 10.8 |  |  |  | 5 |  |  |  |
24 | 0.88 | 0.17 | 0.18 | 10.2 | 10.8 | 7.8 | 2,392 | 1,441 | 30 | 0.29 | 0.4 | 36.0 | 53
31 | 0.80 | 0.28 | 0.05 | 10.5 | 10.8 |  |  |  | 5 |  |  |  |
48 | 0.96 | 0.06 | 0.07 | 10.5 | 10.9 | 8.2 | 2,377 | 1,426 | 30 | 0.29 | 0.4 | 36.0 | 53
72 | 0.60 |  |  |  | 10.4 | 9.0 | 2,357 | 1,406 |  | 0.29 | 0.4 | 36.0 | 54
Total |  | 2.51 | 1.73 |  |  |  |  |  |  |  |  |  |

SOLIDS

Time | Residue
| Weight | Au | Ag
hours | g | g/t | mg | g/t | mg
72 | 950.8 | 0.06 | 0.06 | 16.8 | 16.0

CYANIDATION RESULTS

Time | Distribution | Reagent Consumption | Reducing Power
| Au | Ag | NaCN | Ca(OH)2 | 0.1 N KMn04/L
hours | % | % | kg/t | kg/t | mL
24 | 86.6 | 75.5 | 0.77 |  |
48 | 87.8 | 76.5 | 1.13 |  |
72 | 88.3 | 77.1 | 1.74 | 1.81 | 20
Residue | 11.7 | 22.9 |  |  |
Total | 100.0 | 100.0 |

SIZE ANALYSIS REPORT

Client: | MineStart Management Inc. | Date: | 23-Sep-04
Test: | C5 | Project: | 0406407
Sample: | C5 Residue (Comp B) |  |
Grind: | 1.0kg for 5.0 minutes @65% solids in Mill #1 stainless steel mill |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micron | % Retained | % Passing
65 | 210 | 0.1 | 99.9
100 | 149 | 6.3 | 93.7
150 | 105 | 10.1 | 83.6
200 | 74 | 24.3 | 59.3
270 | 53 | 19.8 | 39.5
325 | 44 | 7.4 | 32.0
400 | 37 | 7.1 | 24.9
Undersize | -37 | 24.9 | -
TOTAL: |  | 100.0 |

CYANIDATION TEST REPORT

Client: | MineStart Management Inc. | Date: | 23-Sep-04
Test: | C6 | Project: | 0406407
Sample: | Comp B |  |

Objective: To determine Au and Ag enaction by direct cyanidation at a target grind sie of P75?4 microns

TEST CONDITIONS |  |  |  | TEST DESCRIPTION
Solids: | 955 | g |  | - | repulped to 40% solids
Solution: | 1,434 | g |  | - | adjusted to and maintained pH 10.5
Solids: | 40 | % |  | - | adjusted to and maintained at 1.0g/L NaCN
Grind Size - P 75: | 84 | µrn |  | - | sampled at 24,48 hours
Initial NaCN: | 1.0 | g/L |  | - | test ended after 72 hours
Target pH: | 10.5 |  |  | - | filtered and displacement washed with hot cyanide solution followed by two hot water displacement washes
Test Duration: | 72 | hours |  | - | solution and solids assayed for Au and Ag content

HEAD GRADE |  |  |
| Au | Ag |
Calculated Total: | 0.50 g/t | 72.9 g/t |
Measured Total: | 0.49 g/t | 70.6 g/t |

LEACH TEST DATA

Time | NaCN | Lime | pH | dO2 | Slurry | Solution
|  |  |  |  |  |  | Weight | Vol. | Assay Vol. | Au | Ag
hours | g/L | g | g | before | after | mg/L | g | mL | mL | mg/L | mg | mg/L | mg
0 | 1.00 | 1.43 | 0.78 | 5.9 | 10.7 |  | 2389 | 1438 |  |  |  |  |
1 | 1.00 |  | 0.26 | 9.8 | 10.8 |  |  |  | 5 |  |  |  |
3 | 0.66 | 0.49 | 0.26 | 10.1 | 10.6 |  |  |  | 5 |  |  |  |
5 | 1.00 |  |  | 10.5 |  |  |  |  | 5 |  |  |  |
7 | 1.00 |  | 0.13 | 10.4 | 11.0 |  |  |  | 5 |  |  |  |
24 | 0.78 | 0.32 | 0.21 | 10.1 | 11.0 | 8.2 | 2408 | 1457 | 30 | 0.29 | 0.43 | 35.0 | 51.7
31 | 0.80 | 0.28 | 0.13 | 10.4 | 10.9 |  |  |  | 5 |  |  |  |
48 | 0.90 | 0.15 | 0.07 | 10.5 | 10.9 | 9.4 | 2383 | 1432 | 30 | 0.29 | 0.43 | 36.0 | 53.5
72 | 0.70 |  |  |  | 10.3 | 9.2 | 2388 | 1437 |  | 0.29 | 0.44 | 36.0 | 54.7
Total | 2.67 | 1.83 |

SOLIDS

Time | Residue
| Weight | Au | Ag |
hours | g | g/t | mg | g/t | mg
72 | 951.2 | 0.07 | 0.07 | 16.9 | 16.1

CYANIDATION RESULTS

Time | Distribution | Reagent Consumption | Reducing Power
| Au | Ag | NaCN | Ca(OH)2 | 0.1 N KMnO4/L
hours | % | % | kg/t | kg/t | mL
24 | 84.3 | 73.0 | 0.82 |  |
48 | 84.9 | 75.5 | 1.28 |  |
72 | 86.9 | 77.3 | 1.74 | 1.92 | 20
Rsidue | 13.1 | 22.7 |  |  |
Total | 100.0 | 100.0 |

SIZE ANALYSIS REPORT

Client: | MineStart Management Inc. | Date: | 23-Sep-04
Test: | C6 | Project: | 0406407
Sample: | C6 Residue (Comp B) |  |
Grind: | 1.0kg for 6.75 minutes @65% solids in Mill #2 stainless steel mill |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micron | % Retained | % Passing
65 | 210 | 0.0 | 100.0
100 | 149 | 3.2 | 96.8
150 | 105 | 6.6 | 90.2
200 | 74 | 15.4 | 74.8
270 | 53 | 17.4 | 57.5
325 | 44 | 6.9 | 50.6
400 | 37 | 9.5 | 41.1
Undersize | -37 | 41.1 | -
TOTAL: |  | 100.0 |

CYANIDE LEACH FINAL SOLUTION ASSAY REPORT

Client: | MineStart Management Inc. | Date: | 30-Sep-04
Test: | C1-C6 | Project: | 0406407
Sample: | Cyanide leach final PLS |  |

|  | Sample ID | Analytical
Elements | Units | C-1 PLS | C-2 PLS | C-3 PLS | C-4 PLS | C-5 PLS | C-6 PLS | Method
Al | mg/L | 0.3 | 0.4 | 0.3 | <0.2 | 0.3 | 0.6 | ICPH20
Sb | mg/L | <0.1 | 0.2 | <0.1 | <0.1 | 0.1 | 0.3 | ICPH20
As | mg/L | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | ICPH20
Ba | mg/L | <0.01 | <0.01 | 0.03 | 0.03 | <0.01 | <0.01 | ICPH20
Bi | mg/L | 0.2 | <0.1 | <0.1 | <0.1 | <0.1 | 0.1 | ICPH20
Cd | mg/L | 0.41 | 0.32 | 0.36 | 0.31 | 0.22 | 0.18 | ICPH20
Ca | mg/L | 14.5 | 8.6 | 5.5 | 33 | 73.6 | 54.3 | ICPH20
Cr | mg/L | <0.01 | <0.01 | <0.01 | <0.01 | <0.01 | <0.01 | ICPH20
Co | mg/L | 0.15 | 0.15 | 0.18 | 0.3 | 0.24 | 0.26 | ICPH20
Cu | mg/L | 75.23 | 77.45 | 85.29 | 87.66 | 78.56 | 80.73 | ICPH20
Fe | mg/L | 0.72 | 0.72 | 1.71 | <0.03 | 0.48 | 0.48 | ICPH20
La | mg/L | 0.21 | 0.21 | 0.21 | 0.21 | 0.15 | 0.23 | ICPH20
Pb | mg/L | 0.56 | 0.5 | 0.47 | 0.15 | 0.24 | 0.3 | ICPH20
Mg | mg/L | 1.5 | 1.3 | 1.4 | 1.4 | 1.6 | 1.5 | ICPH20
Mn | mg/L | 2.77 | 0.66 | 0.03 | 0.01 | 0.59 | 1.91 | ICPH20
Hg | mg/L | <0.05 | <0.05 | <0.05 | <0.05 | <0.05 | <0.05 | ICPH20
Mo | mg/L | 0.49 | 0.61 | 0.87 | 0.64 | 0.89 | 1.07 | ICPH20
Ni | mg/L | <0.02 | 0.98 | 1.23 | 0.13 | 1.15 | 1.22 | ICPH20
P | mg/L | 0.3 | 0.5 | 0.6 | 0.5 | <0.1 | 0.6 | ICPH20
K | mg/L | 27 | 29 | 28 | 26 | 27 | 29 | ICPH20
Sc | mg/L | <0.01 | <0.01 | <0.01 | <0.01 | <0.01 | <0.01 | ICPH20
Ag | mg/L | 48.99 | 56.78 | 61.13 | 38.05 | 41.64 | 41.29 | ICPH20
Na | mg/L | 758 | 608 | 664 | 956 | 773 | 777 | ICPH20
Sr | mg/L | 0.14 | 0.04 | 0.04 | 0.17 | 0.31 | 0.27 | ICPH20
Tl | mg/L | 0.6 | <0.2 | 1 | 0.4 | <0.2 | 0.7 | ICPH20
Ti | mg/L | <0.1 | <0.1 | <0.1 | <0.1 | <0.1 | <0.1 | ICPH20
W | mg/L | 0.1 | <0.1 | <0.1 | 0.1 | 0.2 | <0.1 | ICPH20
V | mg/L | <0.01 | <0.01 | <0.01 | <0.01 | <0.01 | <0.01 | ICPH20
Zn | mg/L | 12.98 | 13.26 | 14.79 | 15.32 | 12.89 | 11.77 | ICPH20
Zr | mg/L | <0.01 | <0.01 | 0.02 | <0.01 | <0.01 | <0.01 | ICPH20

CYANIDATION TEST SUMMARY

Client: | MineStart Management Inc. | Date: | 6-Oct-04
Test: | C7-C12 | Project: | 0406407
Sample: | as spcified |  |

Test No | Sample ID | 70% Passing µm | NaCN g/L | Measured Head | Calculated Head | Extraction | Residue | Consumption, kg/t
|  |  |  | g/t Au | g/t Ag | g/t Au | g/t Ag | Au, % | Ag, % | Au, g/t | Ag, g/t | NaCN | Lime
C7 | ComjA | 74 | 0.5 | 0.36 | 89 | 0.34 | 92 | 82.7 | 78.6 | 0.06 | 19.8 | 2.27 | 1.83
C8 | ComjA | 73 | 2.0 | 0.36 | 89 | 0.34 | 91 | 85.5 | 89.7 | 0.05 | 9.5 | 5.08 | 0.75
C9 | CompB | 75 | 0.5 | 0.52 | 70 | 0.57 | 73 | 86.0 | 73.2 | 0.08 | 19.8 | 2.62 | 1.24
C10 | CompB | 73 | 2.0 | 0.52 | 70 | 0.51 | 76 | 86.4 | 79.5 | 0.07 | 15.9 | 4.54 | 0.97
C11 | CompC | 69 | 1.0 | 0.34 | 40 | 0.35 | 42 | 77.3 | 73.8 | 0.08 | 10.9 | 3.99 | 2.83
C12 | CompC | 67 | 2.0 | 0.34 | 40 | 0.39 | 45 | 85.0 | 86.6 | 0.06 | 6.1 | 7.33 | 2.55

CYANIDATION TEST REPORT

Client: | MineStart Management Inc. | Date: | 6-Oct-04
Test: | C7 | Project: | 0406407
Sample: | Comp A |  |

Objective: To determine Au and Ag extraction by direct cyanidation at 0.5g/l NaCN

TEST CONDITIONS |  |  |  | TEST DESCRIPTION
Solids: | 483 | g |  | - | repulped to 40% solids
Solution: | 723 | g |  | - | adjusted to and maintained pH 10.5
Solids: | 40 | % |  | - | adjusted to and maintained at 0.5g/L NaCN
Grind Size - P 70: | 74 | µrn |  | - | sampled at 24,48 hours
Initial NaCN: | 0.5 | g/L |  | - | test ended after 72 hours
Target pH: | 10.5 |  |  | - | filtered and displacement washed with hot cyanide solution followed by two hot water displacement washes
Test Duration: | 72 | hours |  | - | solution and solids assayed for Au and Ag content

HEAD GRADE |  |  |
| Au | Ag |
Calculated Total: | 0.50 g/t | 72.9 g/t |
Measured Total: | 0.49 g/t | 70.6 g/t |

LEACH TEST DATA

Time | NaCN | Lime | PH | d02 | Slurry | Solution
|  |  |  |  |  |  | Weight | Vol. | Assay Vol. | Au | Ag
hours | g/L | g | g | before | after | mg/L | g | mL | mL | mg/L | mg | mg/L | mg
0 | 0.50 | 0.36 | 0.36 | 5.7 | 10.6 |  | 1,206 | 725 |  |  |  |  |
1 | 0.26 | 0.17 | 0.08 | 10.1 | 10.9 |  |  |  | 5 |  |  |  |
3 | 0.34 | 0.11 | 0.05 | 10.3 | 10.9 |  |  |  | 5 |  |  |  |
7 | 0.44 | 0.06 | 0.05 | 10.2 | 11.0 |  |  |  | 5 |  |  |  |
24 | 0.12 | 0.27 | 0.08 | 10.0 | 10.9 | 9.1 | 1,240 | 759 | 30 | 0.16 | 0.12 | 41.0 | 31.7
30 | 0.32 | 0.13 | 0.13 | 10.0 | 11.0 |  |  |  | 5 |  |  |  |
48 | 0.26 | 0.18 | 0.13 | 10.4 | 11.6 | 9.2 | 1,305 | 824 | 30 | 0.15 | 0.13 | 39.0 | 34.2
54 | 0.50 |  |  |  |  |  |  |  | 5 |  |  |  |
72 | 0.22 |  |  |  | 10.8 | 9.0 | 1,315 | 834 |  | 0.15 | 0.14 | 38.0 | 34.9
Total |  | 1.28 | 0.88 |

SOLIDS

Time | Residue
| Weight | Au | Ag
hours | g | g/t | mg | g/t | mg
72 | 481 | 0.06 | 0.03 | 19.8 | 9.53

CYANIDATION RESULTS

Time | Distribution | Reagent Consumption | Reducing Power
| Au | Ag | NaCN | Ca(OH)2 | 0.1 N KMn04/L
hours | % | % | kg/t | kg/t | mL
24 | 74.4 | 71.5 | 1.26 |  |
48 | 79.1 | 76.9 | 1.83 |  |
72 | 82.7 | 78.6 | 2.27 | 1.83 | 16
Residue | 17.3 | 21.4 |  |  |
Total | 100.0 | 100.0 |

SIZE ANALYSIS REPORT

Client: | MineStart Management Inc. | Date: | 6-Oct-04
Test: | C7 | Project: | 0406407
Sample: | C7 Residue (Comp A) |  |
Grind: | 1.0 kg for 7.3 minutes @65% solids in Mill #1 stainless steel mill |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micron | % Retained | % Passing
65 | 210 | 0.0 | 100.0
100 | 149 | 0.6 | 99.4
150 | 105 | 10.1 | 89.3
200 | 74 | 19.4 | 69.9
270 | 53 | 18.0 | 51.9
325 | 44 | 6.1 | 45.8
400 | 37 | 3.0 | 42.8
Undersize | -37 | 42.8 | -
TOTAL: |  | 100.0 |

CYANIDATION TEST REPORT

Client: | MineStart Management Inc. | Date: | 6-Oct-04
Test: | C8 | Project: | 0406407
Sample: | Comp A |  |

Objective: To determine Au and Ag extraction by direct cyanidation at 2g/l NaCN

TEST CONDITIONS |  |  |  | TEST DESCRIPTION
Solids: | 484 | g |  | - | repulped to 40% solids
Solution: | 730 | g |  | - | adjusted to and maintained pH 10.5
Solids: | 40 | % |  | - | adjusted to and maintained at 2.0g/L NaCN
Grind Size - P 70: | 73 | µrn |  | - | sampled at 24,48 hours
Initial NaCN: | 2.0 | g/L |  | - | test ended after 72 hours
Target pH: | 10.5 |  |  | - | filtered and displacement washed with hot cyanide solution followed by two hot water displacement washes
Test Duration: | 72 | hours |  | - | solution and solids assayed for Au and Ag content

HEAD GRADE |  |  |
| Au | Ag |
Calculated Total: | 0.34 g/t | 91.3 g/t |
Measured Total: | 0.36 g/t | 88.7 g/t |

LEACH TEST DATA

Time | NaCN | Lime | PH | d02 | Slurry | Solution
|  |  |  |  |  |  | Weight | Vol. | Assay Vol. |  | Au |  | Ag
hours | g/L | g | g | before | after | mg/L | g | mL | mL | mg/L | mg | mg/L | mg
0 | 2.00 | 1.46 | 0.36 | 5.8 | 10.8 |  | 1,214 | 737 |  |  |  |  |
1 | 0.94 | 0.77 |  | 10.8 | 10.8 |  |  |  | 5 |  |  |  |
3 | 2.00 |  |  | 11.0 | 11.0 |  |  |  | 5 |  |  |  |
7 | 1.94 | 0.04 |  | 11.2 | 11.2 |  |  |  | 5 |  |  |  |
24 | 1.18 | 0.60 |  | 11.2 | 11.2 | 9.3 | 1,208 | 732 | 30 | 0.18 | 0.13 | 49.0 | 37
30 | 1.70 | 0.22 |  | 11.0 | 11.0 |  |  |  | 5 |  |  |  |
48 | 1.36 | 0.47 |  | 11.0 | 11.0 | 9.4 | 1,245 | 768 | 30 | 0.17 | 0.1 | 47.0 | 39
54 | 1.84 | 0.12 |  |  |  |  |  |  | 5 |  |  |  |
72 | 1.48 |  |  |  | 11.3 | 9.2 | 1,221 | 745 |  | 0.17 | 0.1 | 48.0 | 40
Total |  | 3.68 | 0.36 |

SOLIDS

Time | Residue
| Weight | Au |  | Ag
hours | g | g/t | mg | g/t | mg
72 | 477 | 0.05 | 0.02 | 9.5 | 4.54

CYANIDATION RESULTS

Time | Distribution | Reagent Consumption | Reducing Power
| Au | Ag | NaCN | Ca(OH)2 | 0.1 N KMn04/L
hours | % | % | kg/t | kg/t | mL
24 | 81.7 | 82.9 | 2.91 |  |
48 | 84.8 | 87.3 | 4.23 |  |
72 | 85.5 | 89.7 | 5.08 | 0.75 | 16
Residue | 14.5 | 10.3 |  |  |
Total | 100.0 | 100.0 |

SIZE ANALYSIS REPORT

Client: | MineStart Management Inc. | Date: | 6-Oct-04
Test: | C8 | Project: | 0406407
Sample: | C8 Residue (Comp A) |  |
Grind: | 1.0kg for 7.3 minutes @65% solids in Mill #1 stainless steel mill |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micron | % Retained | % Passing
65 | 210 | 0.0 | 100.0
100 | 149 | 0.6 | 99.4
150 | 105 | 8.9 | 90.6
200 | 74 | 19.8 | 70.7
270 | 53 | 17.3 | 53.5
325 | 44 | 5.3 | 48.1
400 | 37 | 4.6 | 43.5
Undersize | -37 | 43.5 | -
TOTAL: |  | 100.0 |

CYANIDATION TEST REPORT

Client: | MineStart Management Inc. | Date: | 6-Oct-04
Test: | C9 | Project: | 0406407
Sample: | Comp B |  |
Objective: | To determine Au and Ag extraction by direct cyanidation at 0.5g/l NaCN |  |

TEST CONDITIONS |  |  |  | TEST DESCRIPTION
Solids: | 482 | g |  | - | repulped to 40% solids
Solution: | 767 | g |  | - | adjusted to and maintained pH 10.5
Solids: | 39 | % |  | - | adjusted to and maintained at 0.5g/L NaCN
Grind Size - P80: | 75 | µm |  | - | sampled at 24,48 hours
Initial NaCN: | 0.5 | g/L |  | - | test ended after 72 hours
Target pH: | 10.5 |  |  | - | filtered and displacement washed with hot cyanide solution followed by two hot water displacement washes
Test Duration: | 72 | hours |  | - | solution and solids assayed for Au and Ag content

HEAD GRADE

|  | Au |  | Ag |
Calculated Total: |  | 0.57 g/t |  | 73.1 g/t |
Measured Total: |  | 0.52 g/t |  | 70.3 g/t |

LEACH TEST DATA

Time | NaCN | Lime | pH | d02 | Slurry | Solution
|  |  |  |  |  |  | Weight | Vol. | Assay Vol. | Au | Ag
hours | g/L | g | g | before | after | mg/L | 9 | ml | mL | mg/L | mg | mg/L | mg
0 | 0.50 | 0.38 | 0.47 | 5.2 | 10.9 |  | 1,249 | 772 |  |  |  |  |
1 | 0.24 | 0.20 | 0.08 | 10.1 | 11.0 |  |  |  | 5 |  |  |  |
3 | 0.46 | 0.03 |  | 10.7 | 10.7 |  |  |  | 5 |  |  |  |
7 | 0.34 | 0.12 |  | 10.6 | 10.6 |  |  |  | 5 |  |  |  |
24 | 0.14 | 0.28 |  | 10.5 | 10.5 | 9.1 | 1,228 | 750 | 30 | 0.27 | 0.21 | 29.0 | 22.2
30 | 0.26 | 0.18 | 0.05 | 10.4 | 10.9 |  |  |  | 5 |  |  |  |
48 | 0.20 | 0.23 |  | 10.5 | 10.5 | 9.3 | 1,244 | 767 | 30 | 0.28 | 0.23 | 31.0 | 25.2
54 | 0.40 | 0.08 |  | 10.6 | 10.6 |  |  |  | 5 |  |  |  |
72 | 0.22 |  |  |  | 10.6 | 9.2 | 1,187 | 709 |  | 0.30 | 0.23 | 33.0 | 25.8
Total |  | 1.50 | 0.60 |

SOLIDS

Time | Residue
| Weight | Au | Ag |
hours | g | g/t | mg | g/t | mg
72 | 478 | 0.08 | 0.04 | 19.8 | 9.45

CYANIDATION RESULTS

Time | Distribution | Reagent Consumption | Reducing Power
| Au | Ag | NaCN | Ca(OH)2 | 0.1 N KMn04/L
hours | % | % | kg/t | kg/t | mL
24 | 75.7 | 63.0 | 1.30 |  |
48 | 83.6 | 71.6 | 2.15 |  |
72 | 86.0 | 73.2 | 2.62 | 1.24 | 16
Residue | 14.0 | 26.8 |  |  |
Total | 100.0 | 100.0 |

SIZE ANALYSIS REPORT

Client: | MineStart Management Inc. | Date: | 6-Oct-04
Test: | C9 | Project: | 0406407
Sample: | C9 Residue (Comp B) |  |
Grind: | 1.0 kg for 4.6 minutes @65% solids in Mill # 1 stainless steel mill |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micron | % Retained | % Passing
65 | 210 | 0.0 | 100.0
100 | 149 | 0.6 | 99.4
150 | 105 | 9.8 | 89.7
200 | 74 | 20.0 | 69.7
270 | 53 | 17.0 | 52.7
325 | 44 | 6.6 | 46.1
400 | 37 | 3.9 | 42.2
Undersize | -37 | 42.2 | -
TOTAL: |  | 100.0 |

CYANIDATION TEST REPORT

Client: | MineStart Management Inc. | Date: | 6-Oct-04
Test: | C10 | Project: | 0406407
Sample: | Comp B |  |
Objective: | To determine Au and Ag extraction by direct cyanidation at 2g/L NaCN |  |

TEST CONDITIONS |  |  |  | TEST DESCRIPTION
Solids: | 482 | g |  | - | repulped to 40% solids
Solution: | 723 | g |  | - | adjusted to and maintained pH 10.5
Solids: | 40 | % |  | - | adjusted to and maintained at 2.0g/L NaCN
Grind Size - P7 0: | 73 | µm |  | - | sampled at 24,48 hours
Initial NaCN: | 2.0 | g/L |  | - | test ended after 72 hours
Target pH: | 10.5 |  |  | - | filtered and displacement washed with hot cyanide solution followed by two hot water displacement washes
Test Duration: | 72 | hours |  | - | solution and solids assayed for Au and Ag content

HEAD GRADE

|  | Au |  | Ag |
Calculated Total: |  | 0.51 g/t |  | 76.3 g/t |
Measured Total: |  | 0.52 g/t |  | 70.3 g/t |

LEACH TEST DATA

Time | NaCN | Lime | PH | dO2 | Slurry | Solution
|  |  |  |  |  |  | Weight | Vol. | Assay Vol. | Au | Ag
hours | g/L | g | g | before | after | mg/L | g | mL | mL | mg/L | mg | mg/L | mg
0 | 2.00 | 1.45 | 0.47 | 5.2 | 10.7 |  | 1205 | 731 |  |  |  |  |
1 | 1.30 | 0.51 |  | 10.8 | 10.8 |  |  |  | 5 |  |  |  |
3 | 1.92 | 0.06 |  | 11.1 | 11.1 |  |  |  | 5 |  |  |  |
7 | 1.74 | 0.19 |  | 11.2 | 11.2 |  |  |  | 5 |  |  |  |
24 | 1.46 | 0.39 |  | 11.6 | 11.6 | 9.1 | 1,179 | 705 | 30 | 0.28 | 0.20 | 37.0 | 26.6
31 | 1.62 | 0.27 |  | 11.2 | 11.2 |  |  |  | 5 |  |  |  |
48 | 1.60 | 0.29 |  | 11.4 | 11.4 | 9.3 | 1205 | 731 | 30 | 0.26 | 0.20 | 36.0 | 28.1
54 | 1.90 | 0.07 |  | 11.5 | 11.5 |  |  |  | 5 |  |  |  |
72 | 1.44 |  |  |  | 11.6 | 9.1 | 1,149 | 675 |  | 0.28 | 0.21 | 39.0 | 29.2
Total |  | 3.23 | 0.47 |

SOLIDS

Time | Residue
| Weight | Au | Ag
hours | g | g/t | mg | g/t | mg
72 | 474 | 0.07 | 0.03 | 15.9 | 7.54

CYANIDATION RESUTS

Time | Distribution | Reagent Consumption | Reducing Power
| Au | Ag | NaCN | Ca(O)H 2 | 0.1 N KMn04/L
hours | % | % | kg/t | kg/t | mL
24 | 82.7 | 72.4 | 2.45 |  |
48 | 83.6 | 76.5 | 3.53 |  |
72 | 86.4 | 79.5 | 4.54 | 0.97 | 16
Residue | 13.6 | 20.5 |  |  |
Total | 100.0 | 100.0 |

SIZE ANALYSIS REPORT

Client: | MineStart Management Inc. | Date: | 6-Oct-04
Test: | C10 | Project: | 0406407
Sample: | C10 Residue (Comp B) |  |
Grind: | 1.0 kg for 4.6 minutes @65% solids in Mill # 1 stainless steel mill |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micron | % Retained | % Passing
65 | 210 | 0.0 | 100.0
100 | 149 | 0.6 | 99.4
150 | 105 | 9.4 | 90.0
200 | 74 | 18.9 | 71.1
270 | 53 | 16.8 | 54.3
325 | 44 | 5.4 | 48.9
400 | 37 | 5.6 | 43.3
Undersize | -37 | 43.3 | -
TOTAL: |  | 100.0 |

CYANIDATION TEST REPORT

Client: | MineStart Management Inc. | Date: | 6-Oct-04
Test: | C11 | Project: | 0406407
Sample: | Comp C |  |
Objective: | To determine Au and Ag extraction by direct cyanidation at 1g/L NaCN |  |

TEST CONDITIONS |  |  |  | TEST DESCRIPTION
Solids: | 459 | g |  | - | repulped to 40% solids
Solution: | 688 | g |  | - | adjusted to and maintained pH 10.5
Solids: | 40 | % |  | - | adjusted to and maintained at 1.0g/L NaCN
Grind Size - P7 0: | 69 | µm |  | - | sampled at 24,48 hours
Initial NaCN: | 1.0 | g/L |  | - | test ended after 72 hours
Target pH: | 10.5 |  |  | - | filtered and displacement washed with hot cyanide solution followed by two hot water displacement washes
Test Duration: | 72 | hours |  | - | solution and solids assayed for Au and Ag content

HEAD GRADE

|  | Au |  | Ag |
Calculated Total: |  | 0.35 g/t |  | 41.5 g/t |
Measured Total: |  | 0.34 g/t |  | 39.8 g/t |

LEACH TEST DATA

Time | NaCN | Lime | PH | dO2 | Slurry | Solution
|  |  |  |  |  |  | Weight | Vol. | Assay Vol. | Au | Ag
hours | g/L | g | g | before | after | mg/L | g | mL | mL | mg/L | mg | mg/L | mg
0 | 1.00 | 0.69 | 1.30 | 3.5 | 11.0 |  | 1,147 | 689 |  |  |  |  |
1 | 0.46 | 0.37 |  | 10.9 | 10.9 |  |  |  | 5 |  |  |  |
3 | 0.58 | 0.29 |  | 11.1 | 11.1 |  |  |  | 5 |  |  |  |
7 | 0.84 | 0.11 |  | 11.1 | 11.1 |  |  |  | 5 |  |  |  |
24 | 0.62 | 0.26 |  | 11.0 | 11.0 | 9.1 | 1,117 | 659 | 30 | 0.18 | 0.12 | 14.0 | 9.44
30 | 0.68 | 0.22 |  | 10.7 | 10.7 |  |  |  | 5 |  |  |  |
48 | 0.60 | 0.27 |  | 10.8 | 10.8 | 9.1 | 1,129 | 671 | 30 | 0.17 | 0.12 | 16.0 | 11.5
54 | 1.00 |  |  | 10.9 | 10.9 |  |  |  | 5 |  |  |  |
72 | 0.62 |  |  |  | 11.0 | 9.1 | 1p71 | 613 |  | 0.18 | 0.12 | 21.0 | 14.1
Total |  | 2.21 | 1.30 |

SOLIDS

Time | Residue
| Weight | Au | Ag
hours | g | g/t | mg | g/t | mg
72 | 458 | 0.08 | 0.04 | 10.9 | 4.99

CYANIDATION RESUTS

Time | Distribution | Reagent Consumption | Reducing Power
| Au | Ag | NaCN | Ca(O)H 2 | 0.1 N KMn04/L
hours | % | % | kg/t | kg/t | mL
24 | 75.3 | 49.5 | 2.29 |  |
48 | 76.4 | 60.1 | 3.35 |  |
72 | 77.3 | 73.8 | 3.99 | 2.83 | 96
Residue | 22.7 | 26.2 |  |  |
Total | 100.0 | 100.0 |

SIZE ANALYSIS REPORT

Client: | MineStart Management Inc. | Date: | 6-Oct-04
Test: | C11 | Project: | 0406407
Sample: | C11 Residue (Comp C) |  |
Grind: | 1.0 kg for 9.5 minutes @65% solids in Mill # 1 stainless steel mill |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micron | % Retained | % Passing
65 | 210 | 0.1 | 99.9
100 | 149 | 0.2 | 99.7
150 | 105 | 5.1 | 94.6
200 | 74 | 19.7 | 74.9
270 | 53 | 20.6 | 54.3
325 | 44 | 7.9 | 46.4
400 | 37 | 5.2 | 41.2
Undersie | -37 | 41.2 | -
TOTAL: |  | 100.0 |

CYANIDATION TEST REPORT

Client: | MineStart Management Inc. | Date: | 6-Oct-04
Test: | C12 | Project: | 0406407
Sample: | Comp C |  |
Objective: | To determine Au and Ag extraction by direct cyanidation at 2g/L NaCN |  |

TEST CONDITIONS |  |  |  | TEST DESCRIPTION
Solids: | 459 | g |  | - | repulped to 40% solids
Solution: | 689 | g |  | - | adjusted to and maintained pH 10.5
Solids: | 40 | % |  | - | adjusted to and maintained at 2.0g/L NaCN
Grind Size - P7 0: | 67 | µm |  | - | sampled at 24,48 hours
Initial NaCN: | 2.0 | g/L |  | - | test ended after 72 hours
Target pH: | 10.5 |  |  | - | filtered and displacement washed with hot cyanide solution followed by two hot water displacement washes
Test Duration: | 72 | hours |  | - | solution and solids assayed for Au and Ag content

HEAD GRADE

|  | Au |  | Ag |
Calculated Total: |  | 0.39 g/t |  | 44.7 g/t |
Measured Total: |  | 0.34 g/t |  | 39.8 g/t |

LEACFTEST

Time | NaCN | Lime | PH | dO2 | Slurry | Solution
|  |  |  |  |  |  | Weight | Vol. | Assay Vol. | Au | Ag
hours | g/L | g | g | before | after | mg/L | g | mL | mL | mg/L | mg | mg/L | mg
0 | 2.00 | 1.38 | 1.17 | 3.4 | 11.0 |  | 1,148 | 697 |  |  |  |  |
1 | 1.08 | 0.63 |  | 10.7 | 10.7 |  |  |  | 5 |  |  |  |
3 | 1.44 | 0.39 |  | 11.1 | 11.1 |  |  |  | 5 |  |  |  |
7 | 1.66 | 0.23 |  | 11.2 | 11.2 |  |  |  | 5 |  |  |  |
24 | 1.20 | 0.55 |  | 11.1 | 11.1 | 8.9 | 1,140 | 689 | 30 | 0.18 | 0.13 | 23.0 | 16.2
30 | 1.42 | 0.40 |  | 10.8 | 10.8 |  |  |  | 5 |  |  |  |
48 | 1.46 | 0.37 |  | 10.8 | 10.8 | 8.7 | 1,195 | 744 | 30 | 0.19 | 0.15 | 22.0 | 17.5
54 | 1.70 | 0.21 |  | 10.8 | 10.8 |  |  |  | 5 |  |  |  |
72 | 0.80 |  |  |  | 10.8 | 8.7 | 1,177 | 727 |  | 0.19 | 0.15 | 22.0 | 17.8
Total |  | 4.16 | 1.17 |

SOLIDS

Time | Residue
| Weight | Au | Ag
hours | g | gt | mg | gt | mg
72 | 451 | 0.06 | 0.03 | 6.10 | 2.75

CYANIDATION RESUTS

Time | Distribution | Reagent Consumption | Reducing Power
| Au | Ag | NaCN | Ca(O)H 2 | 0.1 N KMn04/L
hours | % | % | kg/t | kg/t | mL
24 | 70.5 | 78.9 | 3.92 |  |
48 | 83.7 | 85.3 | 5.43 |  |
72 | 85.0 | 86.6 | 7.33 | 2.55 | 134
Residue | 15.0 | 13.4 |  |  |
Total | 100.0 | 100.0 |

SIZE ANALYSIS REPORT

Client: | MineStart Management Inc. | Date: | 6-Oct-04
Test: | C12 | Project: | 0406407
Sample: | C12 Residue (Comp C) |  |
Grind: | 1.0 kg for 9.5 minutes @65% solids in Mill # 1 stainless steel mill |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micron | % Retained | % Passing
65 | 210 | 0.0 | 100.0
100 | 149 | 0.1 | 99.9
150 | 105 | 4.9 | 95.0
200 | 74 | 17.8 | 77.2
270 | 53 | 22.1 | 55.1
325 | 44 | 7.7 | 47.4
400 | 37 | 3.4 | 44.0
Undersize | -37 | 44.0 | -
TOTAL: |  | 100.0 |

CYANIDE LEACH FINAL SOLUTION ASSAY REPORT

Client: | MineStart Management Inc. | Date: | 14-Oct-04
Test: | C7-C12 | Project: | 0406407
Sample: | Cyanide leach final PLS |  |

|  | Sample ID | Analytical
Elements | Units | C-7 PLS | C-8 PLS | C-9 PLS | C-10 PLS | C-11 PLS | C-12 PLS | Method
Al | mg/L | 1.2 | 4.6 | 2.1 | 15.2 | 14 | 10 | ICPH20
Sb | mg/L | <0.1 | <0.1 | <0.1 | <0.1 | <0.1 | <0.1 | ICPH20
As | mg/L | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | ICPH20
Ba | mg/L | <0.01 | 0.04 | 0.02 | <0.01 | <0.01 | <0.01 | ICPH20
Bi | mg/L | <0.1 | 0.6 | 0.2 | 0.4 | 0.5 | 1 | ICPH20
Cd | mg/L | 0.19 | 0.45 | 0.1 | 0.32 | 0.19 | 0.77 | ICPH20
Ca | mg/L | 6.2 | 0.7 | 3.2 | 1.1 | 31.4 | 1.7 | ICPH20
Cr | mg/L | <0.01 | <0.01 | <0.01 | <0.01 | <0.01 | <0.01 | ICPH20
Co | mg/L | 0.13 | 0.11 | 0.16 | 0.28 | 0.25 | 0.37 | ICPH20
Cu | mg/L | 47.7 | 80.22 | 56.19 | 78.08 | 471.88 | 442.4 | ICPH20
Fe | mg/L | 1.43 | 14.55 | 0.54 | 12.7 | 1.43 | 24.77 | ICPH20
La | mg/L | 0.21 | 0.11 | 0.2 | 0.25 | 0.15 | 0.11 | ICPH20
Pb | mg/L | 0.24 | 0.64 | 0.17 | 1.37 | 0.54 | 0.63 | ICPH20
Mg | mg/L | 1.7 | 0.7 | 1.3 | 1.6 | 1.2 | 1.4 | ICPH20
Mn | mg/L | <0.01 | 4.95 | 0.09 | 0.84 | 0.04 | 0.18 | ICPH20
Hg | mg/L | <0.05 | <0.05 | <0.05 | <0.05 | <0.05 | <0.05 | ICPH20
Mo | mg/L | 0.6 | 2.57 | 0.75 | 3.25 | 0.68 | 1.83 | ICPH20
Ni | mg/L | 0.44 | 0.75 | 0.5 | 0.95 | 0.94 | 1.37 | ICPH20
P | mg/L | 0.4 | <0.1 | <0.1 | 0.3 | <0.1 | <0.1 | ICPH20
K | mg/L | 27 | 16 | 22 | 30 | 23 | 22 | ICPH20
Sc | mg/L | <0.01 | <0.01 | <0.01 | <0.01 | <0.01 | <0.01 | ICPH20
Ag | mg/L | 38.9 | 47.71 | 35.71 | 39.86 | 20.86 | 22.9 | ICPH20
Na | mg/L | 449 | 2067 | 790 | 2280 | 1585 | 2740 | ICPH20
Sr | mg/L | 0.03 | <0.01 | 0.03 | 0.02 | 0.28 | 0.02 | ICPH20
Tl | mg/L | <0.2 | 0.3 | <0.2 | <0.2 | <0.2 | <0.2 | ICPH20
Ti | mg/L | <0.1 | <0.1 | <0.1 | <0.1 | <0.1 | <0.1 | ICPH20
W | mg/L | <0.1 | 1.2 | <0.1 | 0.7 | <0.1 | <0.1 | ICPH20
V | mg/L | <0.01 | <0.01 | <0.01 | <0.01 | <0.01 | <0.01 | ICPH20
Zn | mg/L | 10.09 | 12.61 | 9.48 | 11.39 | 44.07 | 58.54 | ICPH20
Zr | mg/L | <0.01 | <0.01 | <0.01 | <0.01 | <0.01 | <0.01 | ICPH2Q

CYANIDATION TEST SUMMARY

Client: | MineStart Management Inc. | Date: | 6-Oct-04
Test: | C13-C16 | Project: | 0406407
Sample: | as specified |  |

Test No | Sample ID | 70% Passing | NaCN | Measured Head | Calculated Head | Extraction | Residue | Consumption, kg/t
|  | µm | g/L | g/t Au | g/t Ag | g/t Au | g/t Ag | Au, % | Ag, % | Au, g/t | Ag, g/t | NaCN | Lime
C13 | Comp A | 77 | 0.5 | 0.28 | 96 | 0.38 | 105 | 86.8 | 79.7 | 0.05 | 21.3 | 1.54 | 1.25
C14 | Comp A | 78 | 2.0 | 0.37 | 99 | 0.42 | 105 | 82.1 | 83.1 | 0.08 | 17.8 | 3.73 | 0.84
C15 | Comp B | 72 | 0.5 | 0.49 | 77 | 0.51 | 81 | 82.6 | 72.9 | 0.09 | 22.1 | 1.55 | 2.03
C16 | Comp B | 74 | 2.0 | 0.52 | 78 | 0.54 | 85 | 83.4 | 75.4 | 0.09 | 20.9 | 3.81 | 1.01

CYAN ID ATI ON TEST REPORT

Client: | MineStart Management Inc. | Date: | 10-Nov-04
Test: | C13 | Project: | 0406407
Sample: | Comp A |  |
Objective: | To determine Au and Ag extraction by direct cyanidation at 0.5g/l NaCN |  |

TEST CONDITIONS |  |  |  | TEST DESCRIPTION
Solids: | 958 | g |  | - | repulped to 40% solids
Solution: | 1,435 | g |  | - | adjusted to and maintained pH 10.5
Solids: | 40 | % |  | - | adjusted to and maintained at 0.5g/L NaCN
Grind Size - P7 0: | 77 | µm |  | - | sampled at 24,48 hours
Initial NaCN: | 0.5 | g/L |  | - | test ended after 72 hours
Target pH: | 10.5 |  |  | - | filtered and displacement washed with hot cyanide solution followed by two hot water displacement washes
Test Duration: | 72 | hours |  | - | solution and solids assayed for Au and Ag content

HEAD GRADE

|  | Au |  | Ag |
Calculated Total: |  | 0.38 g/t |  | 104.7 g/t |
Measured Total: |  | 0.28 g/t |  | 95.9 g/t |

LEACFTEST

Time | NaCN | Lime | PH | d02 | Slurry | Solution
|  |  |  |  |  |  | Weight | Vol. | Assay Vol. | Au | Ag
hours | g/L | g | g | before | after | mg/L | g | mL | mL | mg/L | mg | mg/L | mg
0 | 0.50 | 0.72 | 0.55 | 5.8 |  |  | 2,393 | 1,436 |  |  |  |  |
1 | 0.34 | 0.23 | 0.10 | 9.9 | 10.5 |  |  |  | 5 |  |  |  |
3 | 0.40 | 0.14 | 0.08 | 10.3 | 10.7 |  |  |  | 5 |  |  |  |
7 | 0.48 | 0.03 | 0.08 | 10.4 | 10.8 |  |  |  | 5 |  |  |  |
24 | 0.22 | 0.40 | 0.10 | 10.0 | 10.7 | 9.1 | 2,410 | 1,453 | 30 | 0.20 | 0.29 | 46.0 | 67.5
30 | 0.48 | 0.03 | 0.13 | 9.9 | 10.8 |  |  |  | 5 |  |  |  |
48 | 0.26 | 0.34 | 0.16 | 9.7 | 10.8 | 9.2 | 2,375 | 1,418 | 30 | 0.21 | 0.31 | 53.0 | 77.5
54 | 0.38 | 0.17 |  | 9.8 | 10.9 |  |  |  | 5 |  |  |  |
72 | 0.30 |  |  |  | 10.0 | 9.0 | 2,350 | 1,393 |  | 0.22 | 0.32 | 54.6 | 79.9
Total |  | 2.06 | 1.20 |

SOLIDS

Time | Residue
| Weight | Au | Ag
hours | g | g/t | mg | g/t | mg
72 | 958 | 0.05 | 0.05 | 21.3 | 20.4

CYANIDATION RESULTS

Time | Distribution | Reagent Consumption | Reducing Power
| Au | Ag | NaCN | Ca(OH)2 | 0.1 N KMn04/L
hours | % | % | kg/t | kg/t | mL
24 | 80.7 | 67.3 | 0.84 |  |
48 | 84.6 | 77.2 | 1.23 |  |
72 | 86.8 | 79.7 | 1.54 | 1.25 | 20
Residue | 13.2 | 20.3 |  |  |
Total | 100.0 | 100.0 |

SIZE ANALYSIS REPORT

Client: | MineStart Management Inc. | Date: | 10-Nov-04
Test: | C13 | Project: | 0406407
Sample: | C13 Residue (Comp A) |  |
Grind: | 1.0kg for 7.3 minutes @65% solids in Mill #1 stainless steel mill |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micron | % Retained | % Passing
65 | 210 | 0.0 | 100.0
100 | 149 | 0.8 | 99.2
150 | 105 | 11.6 | 87.5
200 | 74 | 19.3 | 68.3
270 | 53 | 18.9 | 49.4
325 | 44 | 5.9 | 43.5
400 | 37 | 3.1 | 40.4
Undersize | -37 | 40.4 | -
TOTAL: |  | 100.0 |

CYAN ID ATI ON TEST REPORT

Client: | MineStart Management Inc. | Date: | 10-Nov-04
Test: | C14 | Project: | 0406407
Sample: | Comp A |  |
Objective: | To determine Au and Ag extraction by direct cyanidation at 2g/l NaCN |  |

TEST CONDITIONS |  |  |  | TEST DESCRIPTION
Solids: | 956 | g |  | - | repulped to 40% solids
Solution: | 1,435 | g |  | - | adjusted to and maintained pH 10.5
Solids: | 40 | % |  | - | adjusted to and maintained at 2.0g/L NaCN
Grind Size - P7 0: | 78 | µm |  | - | sampled at 24,48 hours
Initial NaCN: | 2.0 | g/L |  | - | test ended after 72 hours
Target pH: | 10.5 |  |  | - | filtered and displacement washed with hot cyanide solution followed by two hot water displacement washes
Test Duration: | 72 | hours |  | - | solution and solids assayed for Au and Ag content

HEAD GRADE

|  | Au |  | Ag |
Calculated Total: |  | 0.42 g/t |  | 104.9 g/t |
Measured Total: |  | 0.37 g/t |  | 98.9 g/t |

LEACH TEST DATA

Time | NaCN | Lime | pH | dO2 | Slurry | Solution
|  |  |  |  |  |  | Weight | Vol. | Assay Vol. | Au | Ag
hours | g/L | g | g | before | after | mg/L | g | mL | mL | mg/L | mg | mg/L | mg
0 | 2.00 | 2.87 | 0.65 | 5.8 |  |  | 2,391 | 1,436 |  |  |  |  |
1 | 1.58 | 0.60 |  | 10.7 | 10.7 |  |  |  | 5 |  |  |  |
3 | 1.80 | 0.29 | 0.03 | 10.4 | 10.7 |  |  |  | 5 |  |  |  |
7 | 1.80 | 0.29 |  | 10.7 | 10.7 |  |  |  | 5 |  |  |  |
24 | 1.60 | 0.57 |  | 10.6 | 10.6 | 9.1 | 2,410 | 1,455 | 30 | 0.22 | 0.32 | 54.0 | 79
30 | 1.74 | 0.37 | 0.03 | 10.4 | 10.7 |  |  |  | 5 |  |  |  |
48 | 1.52 | 0.69 | 0.05 | 10.3 | 10.7 | 9.2 | 2,385 | 1,430 | 30 | 0.22 | 0.3 | 55.0 | 81
54 | 1.84 | 0.23 | 0.05 | 10.4 | 10.8 |  |  |  | 5 |  |  |  |
72 | 1.50 |  |  |  | 10.4 | 9.2 | 2,365 | 1,410 |  | 0.22 | 0.3 | 56.0 | 83
Total |  | 5.91 | 0.81 |

SOLIDS

Time | Residue
| Weight | Au | Ag
hours | g | g/t | mg | g/t | mg
72 | 955 | 0.08 | 0.07 | 17.8 | 17.0

CYANIDATION RESULTS

Time | Distribution | Reagent Consumption | Reducing Power
| Au | Ag | NaCN | Ca(OH)2 | 0.1 N KMn04/L
hours | % | % | kg/t | kg/t | mL
24 | 81.0 | 79.1 | 1.80 |  |
48 | 81.5 | 81.1 | 2.95 |  |
72 | 82.1 | 83.1 | 3.73 | 0.84 | 20
Residue | 17.9 | 16.9 |  |  |
Total | 100.0 | 100.0 |

SIZE ANALYSIS REPORT

Client: | MineStart Management Inc. | Date: | 10-Nov-04
Test: | C14 | Project: | 0406407
Sample: | C14 Residue (Comp A) |  |
Grind: | 1.0kg for 7.3 minutes @65% solids in Mill #1 stainless steel mill |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micron | % Retained | % Passing
65 | 210 | 0.2 | 99.8
100 | 149 | 0.8 | 99.0
150 | 105 | 11.9 | 87.1
200 | 74 | 19.3 | 67.8
270 | 53 | 18.2 | 49.6
325 | 44 | 5.7 | 43.9
400 | 37 | 3.2 | 40.7
Undersize | -37 | 40.7 | -
TOTAL: |  | 100.0 |

CYANIDATION TEST REPORT

Client: | MineStart Management Inc. | Date: | 10-Nov-04
Test: | C15 | Project: | 0406407
Sample: | Comp B |  |
Objective: | To determine Au and Ag extraction by direct cyanidation at 0.5g/l NaCN |  |

TEST CONDITIONS |  |  |  | TEST DESCRIPTION
Solids: | 962 | g |  | - | repulped to 40% solids
Solution: | 1,557 | g |  | - | adjusted to and maintained pH 10.5
Solids: | 38 | % |  | - | adjusted to and maintained at 0.5g/L NaCN
Grind Size - P7 0: | 72 | µm |  | - | sampled at 24,48 hours
Initial NaCN: | 0.5 | g/L |  | - | test ended after 72 hours
Target pH: | 10.5 |  |  | - | filtered and displacement washed with hot cyanide solution followed by two hot water displacement washes
Test Duration: | 72 | hours |  | - | solution and solids assayed for Au and Ag content

HEAD GRADE

|  | Au |  | Ag |
Calculated Total: |  | 0.51 g/t |  | 81.3 g/t |
Measured Total: |  | 0.49 g/t |  | 77.2 g/t |

LEACH TEST DATA

Time | NaCN | Lime | PH | d02 | Slurry | Solution
|  |  |  |  |  |  | Weight | Vol. | Assay Vol. | Au | Ag
hours | g/L | g | g | before | after | mg/L | g | mL | mL | mg/L | mg | mg/L | mg
0 | 0.50 | 0.78 | 0.81 | 5.4 |  |  | 2,519 | 1,559 |  |  |  |  |
1 | 0.36 | 0.22 | 0.16 | 10.0 | 10.6 |  |  |  | 5 |  |  |  |
3 | 0.42 | 0.12 | 0.18 | 10.1 | 10.6 |  |  |  | 5 |  |  |  |
7 | 0.44 | 0.09 | 0.10 | 10.4 | 10.7 |  |  |  | 5 |  |  |  |
24 | 0.24 | 0.40 | 0.13 | 10.1 | 10.8 | 9.0 | 2,540 | 1,580 | 30 | 0.25 | 0.40 | 27.9 | 44.4
30 | 0.42 | 0.12 | 0.18 | 9.9 | 10.7 |  |  |  | 5 |  |  |  |
48 | 0.32 | 0.28 | 0.21 | 9.7 | 10.8 | 9.1 | 2,515 | 1,555 | 30 | 0.25 | 0.40 | 34.7 | 55.4
54 | 0.48 | 0.03 | 0.18 | 10.0 | 10.9 |  |  |  | 5 |  |  |  |
72 | 0.34 |  |  |  | 10.0 | 9.2 | 2,485 | 1,525 |  | 0.26 | 0.41 | 35.8 | 57.0
Total |  | 2.04 | 1.95 |

SOLIDS

Time | Residue
| Weight | Au | Ag
hours | g | g/t | mg | g/t | mg
72 | 960 | 0.09 | 0.09 | 22.1 | 21.2

CYANIDATION RESULTS

Time | Distribution | Reagent Consumption | Reducing Power
| Au | Ag | NaCN | Ca(OH)2 | 0.1 N KMn04/L
hours | % | % | kg/t | kg/t | mL
24 | 80.5 | 56.8 | 0.86 |  |
48 | 81.0 | 70.8 | 1.28 |  |
72 | 82.6 | 72.9 | 1.55 | 2.03 | 18
Residue | 17.4 | 27.1 |  |  |
Total | 100.0 | 100.0 |

SIZE ANALYSIS REPORT

Client: | MineStart Management Inc. | Date: | 10-Nov-04
Test: | C15 | Project: | 0406407
Sample: | C15 Residue (Comp B) |  |
Grind: | 1.0kg for 4.6 minutes @65% solids in Mill #1 stainless steel mill |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micron | % Retained | % Passing
65 | 210 | 0.1 | 99.9
100 | 149 | 0.6 | 99.3
150 | 105 | 10.3 | 89.0
200 | 74 | 17.5 | 71.5
270 | 53 | 18.8 | 52.7
325 | 44 | 6.2 | 46.5
400 | 37 | 3.3 | 43.2
Undersize | -37 | 43.2 | -
TOTAL: |  | 100.0 |

CYANIDATION TEST REPORT

Client: | MineStart Management Inc. | Date: | 10-Nov-04
Test: | C16 | Project: | 0406407
Sample: | Comp B |  |
Objective: | To determine Au and Ag extraction by direct cyanidation at 2g/l NaCN |  |

TEST CONDITIONS |  |  |  | TEST DESCRIPTION
Solids: | 957 | g |  | - | repulped to 40% solids
Solution: | 1,370 | g |  | - | adjusted to and maintained pH 10.5
Solids: | 41 | % |  | - | adjusted to and maintained at 2.0g/L NaCN
Grind Size - P7 0: | 74 | µm |  | - | sampled at 24,48 hours
Initial NaCN: | 2.0 | g/L |  | - | test ended after 72 hours
Target pH: | 10.5 |  |  | - | filtered and displacement washed with hot cyanide solution followed by two hot water displacement washes
Test Duration: | 72 | hours |  | - | solution and solids assayed for Au and Ag content

HEAD GRADE

|  | Au |  | Ag |
Calculated Total: |  | 0.54 g/t |  | 84.5 g/t |
Measured Total: |  | 0.52 g/t |  | 78.3 g/t |

LEACH TEST DATA

Time | NaCN | Lime | PH | d02 | Slurry | Solution
|  |  |  |  |  |  | Weight | Vol. | Assay Vol. | Au | Ag
hours | g/L | g | g | before | after | mg/L | g | mL | mL | mg/L | mg | mg/L | mg
0 | 2.00 | 2.74 | 0.81 | 5.4 |  |  | 2,327 | 1,376 |  |  |  |  |
1 | 1.58 | 0.58 |  | 10.6 | 10.6 |  |  |  | 5 |  |  |  |
3 | 1.86 | 0.19 | 0.03 | 10.5 | 10.6 |  |  |  | 5 |  |  |  |
7 | 1.78 | 0.30 |  | 10.7 | 10.7 |  |  |  | 5 |  |  |  |
24 | 1.56 | 0.60 |  | 10.6 | 10.6 | 9.0 | 2,310 | 1,359 | 30 | 0.30 | 0.41 | 42.0 | 57.7
31 | 1.72 | 0.38 | 0.03 | 10.4 | 10.7 |  |  |  | 5 |  |  |  |
48 | 1.38 | 0.85 | 0.05 | 10.3 | 10.8 | 9.0 | 2,285 | 1,334 | 30 | 0.31 | 0.43 | 43.0 | 59.5
54 | 1.86 | 0.19 | 0.05 | 10.4 | 10.8 |  |  |  | 5 |  |  |  |
72 | 1.52 |  |  |  | 10.5 | 9.1 | 2,260 | 1,309 |  | 0.31 | 0.43 | 44.0 | 61.0
Total |  | 5.83 | 0.96 |

SOLIDS

Time | Residue
| Weight | Au | Ag
hours | g | g/t | mg | g/t | mg
72 | 951 | 0.09 | 0.09 | 20.9 | 19.9

CYANIDATION RESULTS

Time | Distribution | Reagent Consumption | Reducing Power
| Au | Ag | NaCN | Ca(OH)2 | 0.1 N KMn04/L
hours | % | % | kg/t | kg/t | mL
24 | 79.9 | 71.4 | 1.77 |  |
48 | 83.1 | 73.5 | 3.08 |  |
72 | 83.4 | 75.4 | 3.81 | 1.01 | 18
Residue | 16.6 | 24.6 |  |  |
Total | 100.0 | 100.0 |

CYANIDE LEACH FINAL SOLUTION ASSAY REPORT

Client: | MineStart Management Inc. | Date: | 10-Nov-04
Test: | C13-C16 | Project: | 0406407
Sample: | Cyanide leach final PLS |  |

|  | Sample ID | Analytical
Elements | Units | C-13 PLS | C-14PLS | C-15 PLS | C-16 PLS | Method
Al | mg/L | 1.3 | 3 | 0.4 | 2.4 | ICPH20
Sb | mg/L | <0.1 | <0.1 | <0.1 | <0.1 | ICPH20
As | mg/L | <0.2 | <0.2 | <0.2 | <0.2 | ICPH20
Ba | mg/L | <0.01 | 0.05 | 0.05 | <0.01 | ICPH20
Bi | mg/L | <0.1 | 0.9 | 0.3 | <0.1 | ICPH20
Cd | mg/L | 0.22 | 0.55 | 0.13 | 0.27 | ICPH20
Ca | mg/L | 10.5 | 1.9 | 98 | 2 | ICPH20
Cr | mg/L | <0.01 | <0.01 | <0.01 | <0.01 | ICPH20
Co | mg/L | 0.14 | 0.14 | 0.22 | 0.21 | ICPH20
Cu | mg/L | 67.03 | 80.79 | 65.16 | 92.4 | ICPH20
Fe | mg/L | 2.34 | 24.72 | <0.03 | 14.42 | ICPH20
La | mg/L | 0.18 | 0.14 | 0.23 | 0.13 | ICPH20
Pb | mg/L | 0.21 | 0.61 | 0.3 | 0.47 | ICPH20
Mg | mg/L | 1.7 | 1.2 | 2.9 | 0.9 | ICPH20
Mn | mg/L | 0.1 | 15.15 | 0.13 | 39.43 | ICPH20
Hg | mg/L | <0.05 | <0.05 | <0.05 | <0.05 | ICPH20
Mo | mg/L | 0.34 | 1.5 | 0.19 | 1.38 | ICPH20
Ni | mg/L | 0.98 | 1.07 | 0.57 | 1.09 | ICPH20
P | mg/L | <0.1 | 0.3 | 0.3 | <0.1 | ICPH20
K | mg/L | 23 | 25 | 36 | 17 | ICPH20
Sc | mg/L | <0.01 | <0.01 | <0.01 | <0.01 | ICPH20
Ag | mg/L | 54.57 | 56 | 35.78 | 44 | ICPH20
Na | mg/L | 486 | 1412 | 571 | 1758 | ICPH20
Sr | mg/L | 0.03 | 0.03 | 0.36 | 0.03 | ICPH20
Tl | mg/L | 0.9 | 0.5 | 0.5 | <0.2 | ICPH20
Ti | mg/L | <0.1 | <0.1 | <0.1 | <0.1 | ICPH20
W | mg/L | <0.1 | 0.2 | <0.1 | <0.1 | ICPH20
V | mg/L | <0.01 | 0.01 | <0.01 | <0.01 | ICPH20
Zn | mg/L | 12.78 | 16.14 | 14.82 | 15.16 | ICPH20
Zr | mg/L | <0.01 | <0.01 | <0.01 | <0.01 | ICPH20

CYANIDATION TEST REPORT

Client: | MineStart Management Inc. | Date: | 12-Dec-04
Test: | C17 | Project: | 0406407
Sample: | Comp A |  |
Objective: | To produce slurry for filtration test |  |

TEST CONDITIONS |  |  |  | TEST DESCRIPTION
Solids: | 1,000 | g |  | - | repulped to 45% solids
Solution: | 1,217 | g |  | - | adjusted to and maintained pH 10.5
Solids: | 45 | % |  | - | adjusted to and maintained at 1.0g/L NaCN
Grind Size - P7 0: | 77 | µm |  | - | test ended after 24 hours
Initial NaCN: | 1.0 | g/L |  | - | slurry used for filtration test
Target pH: | 10.5 |  |  |  |
Test Duration: | 24 | hours |  |  |

HEAD GRADE

|  | Au |  | Ag |
Calculated Total: |  | 0.33 g/t |  | 84.1 g/t |
Measured Total: |  | 0.35 g/t |  | 95.2 g/t |

LEACH TEST DATA

Time | NaCN | Lime | PH | d02 | Slurry | Solution
|  |  |  |  |  |  | Weight | Vol. | Assay Vol. | Au | Ag
hours | g/L | g | g | before | after | mg/L | g | mL | mL | mg/L | mg | mg/L | mg
0 | 1.00 | 1.21 | 0.53 | 6.1 | 10.6 |  | 2,217 | 1,217 |  |  |  |  |
2 | 0.74 | 0.32 | 0.38 | 9.7 | 11.0 |  |  |  | 5 |  |  |  |
5 | 0.80 | 0.24 | 0.13 | 10.1 | 10.8 |  |  |  | 5 |  |  |  |
19 | 0.80 | 0.24 | 0.14 | 10.0 | 10.9 |  |  |  | 5 |  |  |  |
24 | 0.84 |  |  |  | 10.5 | 9.2 | 2,234 | 1,234 |  | 0.24 | 0.30 | 51.0 | 63.7
Total |  | 2.01 | 1.18 |

SOLIDS

Time | Residue
| Weight | Au | Ag
hours | g | g/t | mg | g/t | mg
72 | 1,000.0 | 0.03 | 0.03 | 20.4 | 20.4

CYANIDATION RESULTS

Time | Distribution | Reagent Consumption | Reducing Power
| Au | Ag | NaCN | Ca(OH)2 | 0.1 N KMn04/L
hours | % | % | kg/t | kg/t | mL
24 | 90.9 | 75.7 | 0.97 | 1.18 |
Residue | 9.1 | 24.3 |  |  |
Total | 100.0 | 100.0 |

SIZE ANALYSIS REPORT

Client: | MineStart Management Inc. | Date: | 12-Dec-04
Test: | C17 | Project: | 0406407
Sample: | Comp A |  |
Grind: | 1.0kg for 7.3 minutes @65% solids in Mill #1 stainless steel mill |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micron | % Retained | % Passing
65 | 210 | 0.0 | 100.0
100 | 149 | 0.8 | 99.2
150 | 105 | 11.6 | 87.5
200 | 74 | 19.3 | 68.3
270 | 53 | 18.9 | 49.4
325 | 44 | 5.9 | 43.5
400 | 37 | 3.1 | 40.4
Undersize | -37 | 40.4 | -
TOTAL: |  | 100.0 |

CYANIDATION TEST REPORT

Client: | MineStart Management Inc. | Date: | 12-Dec-04
Test: | C18 | Project: | 0406407
Sample: | Comp B |  |
Objective: | To produce slurry for filtration test |  |

TEST CONDITIONS |  |  |  | TEST DESCRIPTION
Solids: | 1,000 | g |  | - | repulped to 45% solids
Solution: | 1,200 | g |  | - | adjusted to and maintained pH 10.5
Solids: | 45 | % |  | - | adjusted to and maintained at 1.0g/L NaCN
Grind Size - P7 0: | 72 | µm |  | - | test ended after 24 hours
Initial NaCN: | 1.0 | g/L |  | - | slurry used for filtration test
Target pH: | 10.5 |  |  |  |
Test Duration: | 24 | hours |  |  |

HEAD GRADE

|  | Au |  | Ag |
Calculated Total: |  | 0.42 g/t |  | 70.4 g/t |
Measured Total: |  | 0.49 g/t |  | 77.2 g/t |

LEACH TEST DATA

Time | NaCN | Lime | PH | dO2 | Slurry | Solution
|  |  |  |  |  |  | Weight | Vol. | Assay Vol. | Au | Ag
hours | g/L | g | g | before | after | mg/L | g | mL | mL | mg/L | mg | mg/L | mg
0 | 1.00 | 1.15 | 0.69 | 6.1 | 10.6 |  | 2,200 | 1,200 |  |  |  |  |
2 | 0.62 | 0.44 | 0.34 | 9.7 | 11.0 |  |  |  | 5 |  |  |  |
5 | 0.82 | 0.21 | 0.19 | 10.1 | 10.8 |  |  |  | 5 |  |  |  |
19 | 0.90 | 0.12 | 0.13 | 10.0 | 10.9 |  |  |  | 5 |  |  |  |
24 | 0.86 |  |  |  | 10.5 | 9.2 | 2,169 | 1,169 |  | 0.28 | 0.33 | 38.0 | 45.0
Total |  | 1.92 | 1.34 |

SOLIDS

Time | Residue
| Weight | Au | Ag
hours | g | g/t | mg | g/t | mg
72 | 1,000.0 | 0.09 | 0.09 | 25.4 | 25.4

CYANIDATION RESULTS

Time | Distribution | Reagent Consumption | Reducing Power
| Au | Ag | NaCN | Ca(OH)2 | 0.1 N KMn04/L
hours | % | % | kg/t | kg/t | mL
24 | 78.6 | 63.9 | 0.91 | 1.34 |
Residue | 21.4 | 36.1 |  |  |
Total | 100.0 | 100.0 |

SIZE ANALYSIS REPORT

Client: | MineStart Management Inc. | Date: | 12-Dec-04
Test: | C18 | Project: | 0406407
Sample: | Comp B |  |
Grind: | 1.0kg for 4.6 minutes @65% solids in Mill #1 stainless steel mill |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micron | % Retained | % Passing
65 | 210 | 0.1 | 99.9
100 | 149 | 0.6 | 99.3
150 | 105 | 10.3 | 89.0
200 | 74 | 17.5 | 71.5
270 | 53 | 18.8 | 52.7
325 | 44 | 6.2 | 46.5
400 | 37 | 3.3 | 43.2
Undersize | -37 | 43.2 | -
TOTAL: |  | 100.0 |

SOLUTION ASSAY REPORT

Client: | MineStart Management Inc. | Date: | 20-Dec-04
Test: | C17, C18 | Project: | 0406407
Sample: | Cyanide leach final PLS |  |

|  | Sample ID | Detection Limits | Analytical
Elements | Units | C17 PLS | C18 PLS | Minimum | Maximum | Method
Au | mg/L | 0.24 | 0.285 | 0.01 | 5000.00 | FA/AAS
Ag | mg/L | 51.00 | 38.00 | 0.01 | 20000.00 | AA/ICP
Al | mg/L | <0.2 | <0.2 | 0.2 | 9999 | ICPH20
Sb | mg/L | <0.1 | <0.1 | 0.1 | 9999 | ICPH20
As | mg/L | <0.2 | <0.2 | 0.2 | 9999 | ICPH20
Ba | mg/L | <0.01 | <0.01 | 0.01 | 999 | ICPH20
Bi | mg/L | <0.1 | <0.1 | 0.1 | 9999 | ICPH20
Cd | mg/L | <0.01 | <0.01 | 0.01 | 999 | ICPH20
Ca | mg/L | 0.5 | <0.1 | 0.1 | 9999 | ICPH20
Cr | mg/L | <0.01 | <0.01 | 0.01 | 9999 | ICPH20
Co | mg/L | 0.07 | 0.05 | 0.01 | 9999 | ICPH20
Cu | mg/L | 0.58 | <0.01 | 0.01 | 9999 | ICPH20
Fe | mg/L | <0.03 | <0.03 | 0.03 | 9999 | ICPH20
La | mg/L | 0.09 | 0.06 | 0.05 | 999 | ICPH20
Pb | mg/L | <0.05 | <0.05 | 0.05 | 9999 | ICPH20
Mg | mg/L | <0.1 | <0.1 | 0.1 | 9999 | ICPH20
Mn | mg/L | 0.06 | <0.01 | 0.01 | 999 | ICPH20
Hg | mg/L | <0.05 | <0.05 | 0.05 | 9999 | ICPH20
Mo | mg/L | <0.02 | <0.02 | 0.02 | 9999 | ICPH20
Ni | mg/L | <0.02 | <0.02 | 0.02 | 9999 | ICPH20
P | mg/L | <0.1 | 0.4 | 0.1 | 9999 | ICPH20
K | mg/L | <2 | <2 | 2 | 9999 | ICPH20
Sc | mg/L | <0.01 | <0.01 | 0.01 | 100 | ICPH20
Na | mg/L | 4 | 3 | 1 | 9999 | ICPH20
Sr | mg/L | <0.01 | <0.01 | 0.01 | 999 | ICPH20
Tl | mg/L | <0.2 | 0.6 | 0.2 | 999 | ICPH20
Ti | mg/L | <0.1 | <0.1 | 0.1 | 999 | ICPH20
W | mg/L | <0.1 | 0.3 | 0.1 | 9999 | ICPH20
V | mg/L | <0.01 | <0.01 | 0.01 | 999 | ICPH20
Zn | mg/L | 0.1 | <0.01 | 0.01 | 9999 | ICPH20
Zr | mg/L | <0.01 | <0.01 | 0.01 | 999 | ICPH20

HEAD ASSAY REPORT

Client: | MineStart Management Inc. | Date: | 20-Nov-04
Test: | Cyanidation etc. Head Comparison | Project: | 0406407
Sample: | Composite A | Page: | 1 of 2

| Fire Assays | ICPM | Leach | Wet Ch. | Wet Ch. | Leco
Sample | Au | Ag | Ag | Ox.Pb | Pb | S"S04 | S-Total
ID | g/t | g/t | ppm | % | % | % | %
C1 | 0.35 | 86.1 | 95.2 |  |  |  |
C2 | 0.35 | 96.5 | 94.9 |  |  |  |
C3 | 0.36 | 94.6 | 94.1 |  |  |  |
Comp.A | 0.36 |  | 88.7 |  |  | 0.07 | 0.14
GSB-1 | 0.37 |  | 89.7 |  |  |  |
GSB-4 | 0.35 |  | 88.3 |  |  |  |
F1 | 0.35 |  | 112.2 | 0.59 | 1.13 | 0.06 | 0.12
F3 | 0.39 |  | 119.2 | 0.75 | 1.23 | 0.06 | 0.11
F4 | 0.40 |  | 104.6 | 0.76 | 1.20 | 0.05 | 0.18
F7* | 0.37 |  | 94.3 |  |  |  |
F8* | 0.34 |  | 100.6 |  |  |  |
F9* | 0.35 |  | 94.6 |  |  |  |
F10 | 0.58 |  | 103.5 |  |  |  |
F11 | 0.34 |  | 99.6 |  |  |  |

* back-calculated head assays; pulp cut grade was much higher

HEAD ASSAY REPORT

Client: | MineStart Management Inc. | Date: | 20-Nov-04
Test: | Cyanidation etc. Head Comparison | Project: | 0406407
Sample: | Composite B, C | Page: | 2 of 2

| Fire Assays | ICPM | Leach | Wet Ch. | Wet Ch. | Leco
Sample | Au | Ag | Ag | Ox.Pb | Pb | S"S04 | S-Total
ID | g/t | g/t | ppm | % | % | % | %
C4 | 0.52 | 68.8 | 76.3 |  |  |  |
C5 | 0.49 | 69.7 | 70.6 |  |  |  |
C6 | 0.50 | 64.8 | 71.4 |  |  |  |
Comp.B | 0.52 |  | 70.3 |  |  | 0.12 | 0.20
GSB-2 | 0.51 |  | 69.5 |  |  |  |
GSB-5 | 0.54 |  | 68.6 |  |  |  |
F2 | 0.42 |  | 79.8 | 0.34 | 0.67 | 0.11 | 0.21
F5 | 0.47 |  | 89.7 | 0.35 | 0.7 | 0.09 | 0.19
F6 | 0.51 |  | 89.9 | 0.35 | 0.67 | 0.08 | 0.19
Comp.C | 0.34 |  | 39.8 |  |  | 0.23 | 1.65
GSB-3 | 0.39 |  | 39.8 |  |  |  |
GSB-6 | 0.38 |  | 38.9 |  |  |  |

HEAD ASSAY REPORT

Client: | MineStart Management Inc. | Date: | 10-Oct-04
Sample: | Composite B, C | Project: | 0406407

|  | Sample ID | Detection Limits | Analytical
Elements | Units | Comp A+B | Comp A+B | Comp A+B (repeat) | Minimum | Maximum | Method
Au | g/mt | 0.42 | 0.4 | 0.42 | 0.01 | 5000 | FA/AAS
Ag | g/mt | 84 | 81 | 84 | 0.3 | 9999 | FAGrav
Al | ppm | 31476 | 32046 | 32590 | 100 | 50000 | ICPM
Sb | ppm | 158 | 167 | 166 | 5 | 2000 | ICPM
As | ppm | 7 | 16 | 8 | 5 | 10000 | ICPM
Ba | ppm | 602 | 597 | 605 | 2 | 10000 | ICPM
Bi | ppm | 267 | 298 | 286 | 2 | 2000 | ICPM
Cd | ppm | <0.2 | <0.2 | <0.2 | 0.2 | 2000 | ICPM
Ca | ppm | 12407 | 12056 | 12541 | 100 | 100000 | ICPM
Cr | ppm | 117 | 90 | 117 | 1 | 10000 | ICPM
Co | ppm | 9 | 10 | 9 | 1 | 10000 | ICPM
Cu | ppm | 1210 | 1305 | 1334 | 1 | 20000 | ICPM
Fe | ppm | 71184 | 74402 | 73785 | 100 | 50000 | ICPM
La | ppm | 9 | 10 | 9 | 2 | 10000 | ICPM
Pb | ppm | 9529 | 9524 | 9696 | 2 | 10000 | ICPM
Mg | ppm | 2957 | 2946 | 2922 | 100 | 100000 | ICPM
Mn | ppm | 2149 | 2208 | 2214 | 1 | 10000 | ICPM
Hg | ppm | <3 | <3 | <3 | 3 | 10000 | ICPM
Mo | ppm | 16 | 17 | 18 | 1 | 1000 | ICPM
Ni | ppm | <1 | <1 | <1 | 1 | 10000 | ICPM
P | ppm | 216 | 216 | 221 | 100 | 50000 | ICPM
K | ppm | 19660 | 19512 | 19330 | 100 | 100000 | ICPM
Sc | ppm | 3 | 3 | 3 | 1 | 10000 | ICPM
Ag | ppm | 87.4 | 90.1 | 91.4 | 0.1 | 1000 | ICPM
Na | ppm | 1194 | 1174 | 1092 | 100 | 100000 | ICPM
Sr | ppm | 49 | 49 | 49 | 1 | 10000 | ICPM
Tl | ppm | <2 | <2 | <2 | 2 | 1000 | ICPM
Ti | ppm | 1025 | 969 | 1031 | 100 | 100000 | ICPM
W | ppm | 18 | 19 | 17 | 5 | 1000 | ICPM
V | ppm | 38 | 38 | 39 | 1 | 10000 | ICPM
Zn | ppm | 1444 | 1435 | 1486 | 1 | 10000 | ICPM
Zr | ppm | 27 | 27 | 27 | 1 | 10000 | ICPM

AGGLOMERATION REPORT

Client: | MineStart Management Inc. | Date: | 2-Nov-04
Test: | AG 1-9 | Project: | 0406407
Sample: | Composite B |  |

Lime (Ca(OH)2) kg/t | Cement kg/t | Moisture % | Curing Time days | Weight | Fines %-20 mesh
Start | End
18 | 3 | 10 | 3 | 183.75 | 50.27 | 72.64
18 | 5 | 10 | 3 | 191.32 | 95.88 | 49.89
18 | 7 | 10 | 3 | 192.88 | 130.37 | 32.41
18 | 10 | 10 | 3 | 192.88 | 140.43 | 27.19
18 | 15 | 10 | 3 | 188.47 | 143.65 | 23.78
18 | 20 | 10 | 3 | 193.86 | 158.15 | 18.42
18 | 25 | 10 | 3 | 196.49 | 177.58 | 9.62
18 | 10 | 10 | 5 | 185.24 | 156.05 | 15.76
18 | 15 | 10 | 5 | 184.71 | 151.08 | 18.21

Test Description:
Riffle Comp B into approximately 200g.portions
Add Lime and Cement to the sample as indicated in the table above.
Mix for 15 minutes to homogenize components.
Spray water to the mixture while tumbling in a reactor as fines clump into spheres.
Allow to cure for the time specified in the table.
Place agglomerates on a 20 mesh screen, gently immerse into water 10 times.
Dry +20 mesh and obtain dried weight.
Calculate fines dissolved and pass through 20 mesh.

COLUMN LEACH TEST SUMMARY

Client: | MineStart Management Inc. | Date: | 25-Feb-05
Test: | Column 1 | Project: | 0406407
Sample: | Composite A+B | Page: | 1 of 9
Objective: | Determine Au and Ag extraction by column leaching, with barren solution recycle |  |

Summary of Leach Conditions

pH: | ~11 | Cyanide Concentration | 0.5 g/L (Set-up Day 15-40)
*Lime consumption: | 7.13 kg/t |  | 2.0 g/L (Set-up Day 40-100)
*Cement consumption: | 21.8 kg/t | *NaCN Consumption: | 2.32 kg/t
*Agglomeration Lime: | 6.6 kg/t | Flowrate: | ~ 0.05 mL/sec
@Agglomerated Particle Size (P80): | 2.614 mm | Column Size: | Ø0.102 m × 3.048 m (Ø4" × 10')

*Non-optimized amounts totaled over separate test segments; @Average particle size of column leach residue
Recovery on Carbon

Set up | Cyanide Leach | Carbon | Recovery, %
Day | Day | g | Au, g/t | Ag, g/t | Au | Ag
15 | 1 | 48.3 | 2.42 | 0.3 | 0.9 | 0.0
16 | 2 | 46.0 | 3.64 | 0.6 | 2.2 | 0.0
18 | 4 | 74.9 | 7.38 | 199.5 | 6.4 | 0.6
19 | 5 | 28.1 | 21.35 | 1287.8 | 10.9 | 2.1
21 | 7 | 50.5 | 19.14 | 1436.9 | 18.3 | 5.1
28 | 9 | 64.4 | 7.15 | 1776.2 | 21.8 | 9.9
29 | 10 | 74.7 | 20.17 | 4400.0 | 33.3 | 23.6
32 | 13 | 42.6 | 15.13 | 2743.1 | 38.2 | 28.4
34 | 15 | 48.9 | 16.85 | 3541.2 | 44.4 | 35.6
36 | 17 | 62.5 | 5.60 | 1117.5 | 47.1 | 38.5
39 | 20 | 48.9 | 7.67 | 1604.2 | 50.0 | 41.8
43 | 24 | 40.4 | 11.43 | 2259.6 | 53.5 | 45.6
46 | 27 | 38.7 | 12.73 | 2446.2 | 57.2 | 49.5
50 | 31 | 35.1 | 8.05 | 1783.7 | 59.4 | 52.2
53 | 34 | 48.5 | 8.32 | 1826.8 | 62.5 | 55.8
56 | 37 | 58.6 | 6.20 | 1263.2 | 65.2 | 58.9
60 | 41 | 49.9 | 5.39 | 1084.6 | 67.3 | 61.2
68 | 49 | 48.4 | 4.90 | 1098.5 | 69.1 | 63.4
74 | 55 | 38.2 | 6.40 | 1344.1 | 70.9 | 65.5
78 | 59 | 48.8 | 1.48 | 290.8 | 71.5 | 66.1
85 | 66 | 48.5 | 2.01 | 351.3 | 72.2 | 66.8
92 | 73 | 66.4 | 1.85 | 355.5 | 73.2 | 67.8
100 | 81 | 77.6 | 2.84 | 603.8 | 74.8 | 69.7

Summary of Leach Results

| Volume | Mass | NaCN | Grade, mg/L, g/t | #Distribution, %
| L | kg | q/L | Au | Ag | Au | Ag
Final Barren Solution | 3.98 |  | 1.30 | 0.02 | 0.2 | 0.6 | 0.03
1st Wash Solution | 4.60 |  | 1.10 | 0.05 | 11.0 | 1.7 | 2.1
2nd Wash Solution | 3.70 |  | 0.50 | 0.03 | 5.7 | 0.8 | 0.9
3rd Wash Solution | 5.40 |  | 0.05 | 0.01 | 0.9 | 0.4 | 0.2
4th Wash Solution | 4.40 |  | 0.02 | <0.01 | 0.3 | 0.4 | 0.05
Total Recovery on Carbon |  |  |  |  |  | 74.8 | 69.7
Total Extraction |  |  |  |  |  | 78.9 | 73.0
Residue/Column Top |  |  |  | 0.08 | 21.0 |  |
Residue/Column Middle |  |  |  | 0.09 | 21.0 |  |
Residue/Column Bottom |  |  |  | 0.10 | 21.1 |  |
Residue/Average |  | 30.94 |  | 0.09 | 21.0 | 21.1 | 27.0
Back-calculated Head |  |  |  | 0.43 | 77.9 | 100.0 | 100.0
Measured Head |  |  |  | 0.41 | 83.0 |  |

#The recoveries on carbon are based on data in above table, and back-calculated head.

COLUMN LEACH TEST SUMMARY

Client: | MineStart Management Inc. | Date: | 25-Feb-05
Test: | Column 1 | Project: | 0406407
Sample: | Composite A+B | Page: | 2 of 9
Objective: | Determine Au and Ag column leach kinetics |  |

COLUMN LEACH WORK SHEET (1)

Client: | MineStart Management Inc. | Date: | 25-Feb-05
Test: | Column 1 | Project: | 0406407
Sample: | Composite A+B | Page: | 3 of 9
Objective: | Determine Au and Ag column leach kinetics |  |

Column Diameter: | 0.102 m | Sample Mass: | 30.9 kg
Charge Height: | 2.730 m | Agglomeration Lime (Ca(OH)2): | 6.6 kg/t
Bulk Density: | 1398 kg/m3 | Cement: | 21.8 kg/t

Date | 3et-up Day | Feed Solution | Pregnant Solution | Strip Solution | Carbon Mass | Cumulative Reagent Consumption | Comments
VoL | PH | NaCN | NaCN | Ca(OH)2 | Flow | Vol. | pH* | NaCN | Vol. | PH | NaCN | NaCN kg/t | Ca(OH)2 kg/t
L |  | g/L | g | g | mL/sec | L |  | g/L | L |  | g/L | g
10/28/04 | 0 | 8.00 | 11.0 |  |  | 52.96 | 0.050 |  |  |  |  |  |  |  |  | 1.71 | Agglomeration:
10/29/04 | 1 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1.71 | Cement:180g
10/30/04 | 2 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1.71 | +Lime 52.8g
10/31/04 | 3 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1.71 |
11/01/04 | 4 | 2.30 | 9.7 |  |  | 0.08 | 0.050 |  |  |  |  |  |  |  |  | 1.71 |
11/02/04 | 5 |  | 12.0 |  |  | 0.16 | 0.050 |  | 9.6 |  |  |  |  |  |  | 1.72 |
11/03/04 | 6 |  | 12.5 |  |  | 1.60 | 0.050 |  |  |  |  |  |  |  |  | 1.77 |
11/04/04 | 7 |  | 12.2 |  |  | 70.80 | 0.050 |  | 9.6 |  |  |  |  |  |  | 4.06 | Agglomeration:
11/05/04 | 8 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 4.06 | Cement:160g
11/06/04 | 9 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 4.06 | +Lime 70g
11/07/04 | 10 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 4.06 |
11/08/04 | 11 | 5.00 | 12.0 |  |  | 1.60 | 0.050 |  | 9.8 |  |  |  |  |  |  | 4.11 |
11/09/04 | 12 | 2.00 | 12.1 |  |  | 0.80 | 0.043 |  | 10.1 |  |  |  |  |  |  | 4.14 |
11/10/04 | 13 | 2.50 | 12.1 |  |  | 0.80 | 0.035 |  | 10.2 |  |  |  |  |  |  | 4.16 |
11/11/04 | 14 | 4.00 | 12.1 | 0.50 | 2.00 | 1.20 | 0.035 |  | 10.3 |  |  |  |  |  | 0.06 | 4.20 |
11/12/04 | 15 | 3.90 | 12.1 | 0.50 | 1.40 | 1.28 | 0.0333 | 2.92 | 9.6 | 0.03 | 2.96 | 9.1 | 0.03 | 48.3 | 0.11 | 4.24 |
11/13/04 | 16 | 3.68 | 12.2 | 0.50 | 0.89 | 2.00 | 0.033 | 1.90 | 10.4 | 0.04 | 1.90 | 9.3 | 0.03 | 46.0 | 0.14 | 4.31 |
11/14/04 | 17 |  |  |  |  |  |  |  |  |  |  |  |  |  | 0.14 | 4.31 |
11/15/04 | 18 | 3.80 | 12.2 | 0.50 | 1.61 | 0.64 |  | 3.80 | 10.8 | 0.08 | 3.80 | 10.8 | 0.08 | 74.9 | 0.19 | 4.33 |
11/16/04 | 19 | 3.03 | 12.0 | 0.50 | 0.50 | 0.24 | 0.020 | 1.26 | 10.3 | 0.10 | 1.26 | 9.7 | 0.10 | 28.1 | 0.21 | 4.34 |
11/17/04 | 20 |  |  |  |  |  |  |  |  |  |  |  |  |  | 0.21 | 4.34 |
11/18/04 | 21 |  |  |  |  | 80.00 | 0.017 | 2.20 | 10.3 | 0.09 | 2.20 | 9.3 | 0.09 | 50.5 | 0.21 | 6.92 | Agglomeration:
11/19/04 | 22 |  |  |  |  |  |  |  |  |  |  |  |  |  | 0.21 | 6.92 | Cement: 336g
11/20/04 | 23 |  |  |  |  |  |  |  |  |  |  |  |  |  | 0.21 | 6.92 | + Lime 80g
11/21/04 | 24 |  |  |  |  |  |  |  |  |  |  |  |  |  | 0.21 | 6.92 |
11/22/04 | 25 |  |  |  |  |  |  |  |  |  |  |  |  |  | 0.21 | 6.92 |
11/23/04 | 26 | 4.30 | 12.1 | 0.50 | 0.69 | 0.80 | 0.083 |  |  |  |  |  |  |  | 0.23 | 6.95 |
11/24/04 | 27 | 4.00 | 12.1 | 0.50 | 2.00 | 2.40 | 0.075 |  |  |  |  |  |  |  | 0.29 | 7.02 |
11/25/04 | 28 | 2.00 | 12.1 | 0.50 | 1.75 | 1.60 | 0.075 | 1.86 | 10.6 | 0.08 | 1.80 | 10.3 | 0.08 | 64.4 | 0.35 | 7.08 |
11/26/04 | 29 | 3.48 | 12.1 | 0.50 | 1.40 | 0.80 | 0.050 | 3.48 | 10.5 | 0.12 | 3.50 | 10.4 | 0.10 | 74.7 | 0.40 | 7.10 |
11/27/04 | 30 |  |  |  |  |  |  |  |  |  |  |  |  |  | 0.40 | 7.10 |
11/28/04 | 31 |  |  |  |  |  |  |  |  |  |  |  |  |  | 0.40 | 7.10 |
11/29/04 | 32 | 1.91 | 12.1 | 0.50 | 0.74 | 0.32 | 0.047 | 1.91 | 11.0 | 0.11 | 1.90 | 10.6 | 0.11 | 42.6 | 0.42 | 7.11 |
11/30/04 | 33 | 4.15 | 11.5 | 0.50 | 0.68 |  | 0.050 | 2.25 | 10.7 | 0.20 |  |  |  |  | 0.44 | 7.11 |
12/01/04 | 34 | 3.10 | 10.8 | 0.50 | 0.84 |  | 0.050 | 2.10 | 10.9 | 0.13 | 2.10 | 10.5 | 0.10 | 48.9 | 0.47 | 7.11 |
12/02/04 | 35 |  | 10.8 | 0.50 | 0.05 |  | 0.048 | 0.10 | 10.8 | 0.05 |  |  |  |  | 0.47 | 7.11 |
12/03/04 | 36 | 1.48 | 10.8 | 0.50 | 0.71 |  | 0.048 | 1.48 | 10.9 | 0.03 | 1.48 | 10.6 | 0.02 | 62.5 | 0.49 | 7.11 |
12/04/04 | 37 |  |  |  |  |  |  |  |  |  |  |  |  |  | 0.49 | 7.11 |
12/05/04 | 38 |  |  |  |  |  |  |  |  |  |  |  |  |  | 0.49 | 7.11 |
12/06/04 | 39 | 1.91 | 10.8 | 0.50 | 0.94 |  | 0.050 | 1.91 | 10.9 | 0.02 | 1.91 | 10.6 | 0.01 | 48.9 | 0.52 | 7.11 |
12/07/04 | 40 | 1.48 | 10.8 | 2.00 | 2.44 |  | 0.050 | 1.48 | 10.8 | 0.35 |  |  |  |  | 0.60 | 7.11 |
12/08/04 | 41 | 2.00 | 10.8 | 2.00 | 4.00 |  | 0.048 |  |  |  |  |  |  |  | 0.73 | 7.11 |
12/09/04 | 42 | 2.05 | 10.8 | 2.00 | 2.87 |  | 0.048 | 2.05 | 10.9 | 0.60 |  |  |  |  | 0.82 | 7.11 |
12/10/04 | 43 | 2.15 | 10.8 | 2.00 | 2.32 |  | 0.048 | 2.15 | 10.8 | 1.02 | 2.15 | 10.8 | 0.92 | 40.4 | 0.90 | 7.11 |
12/11/04 | 44 |  |  |  |  |  |  |  |  |  |  |  |  |  | 0.90 | 7.11 |
12/12/04 | 45 |  |  |  |  |  |  |  |  |  |  |  |  |  | 0.90 | 7.11 |
12/13/04 | 46 | 2.48 | 10.8 | 2.00 | 2.73 |  | 0.050 | 2.48 | 11.3 | 1.05 | 2.48 | 10.7 | 0.90 | 38.7 | 0.99 | 7.11 |
12/14/04 | 47 | 3.00 | 11.3 | 2.00 | 2.28 |  | 0.050 | 3.00 | 11.3 | 1.24 |  |  |  |  | 1.06 | 7.11 |
12/15/04 | 48 | 2.35 | 11.3 | 2.00 | 1.97 |  | 0.050 | 2.35 | 11.3 | 1.16 |  |  |  |  | 1.12 | 7.11 |
12/16/04 | 49 | 2.30 | 11.3 | 2.00 | 2.07 |  | 0.048 | 2.30 | 11.3 | 1.10 |  |  |  |  | 1.19 | 7.11 |
12/17/04 | 50 | 2.15 | 11.3 | 2.00 | 1.61 |  | 0.050 | 2.15 | 11.3 | 1.35 | 2.15 | 11.3 | 1.25 | 35.1 | 1.24 | 7.11 |
12/18/04 | 51 |  |  |  |  |  |  |  |  |  |  |  |  |  | 1.24 | 7.11 |
12/19/04 | 52 |  |  |  |  |  |  |  |  |  |  |  |  |  | 1.24 | 7.11 |

COLUMN LEACH WORK SHEET (2)

Client: |  | MineStart Management Inc. | Date: |  | 25-Feb-05
Test: |  | Column 1 | Project: |  | 0406407
Sample: |  | Composite A+B | Page: |  | 4 to 9

Column Diameter: |  | 0.102 | m | Sample Mass: |  | 30.9 | kg
Charge Height: |  | 2.730 | m | Agglomeration Lime (Ca(OH)2): |  | 6.6 | kg/t
Bulk Density: |  | 1398 | kg/m3 | Cement: |  | 21.8 | kg/t

Date | Set-up Day | Feed Solution | Precanant Solution | Strip Solution | Carbon Mass | Cumulative Reagent Consumption | Comments
VoL | pH | NaCN | NaCN | Ca(OH)2 | Flow | Vol. | pH* | NaCN | Vol. | pH | NaCN | NaCN | Ca(OH)2
L |  | g/L | g | g | mL/sec | L |  | g/L | L |  | g/L | g | kg/t | kg/t
12/20/04 | 53 | 2.75 | 11.1 | 2.00 | 2.48 |  | 0.050 | 2.75 | 11.1 | 1.20 | 2.75 | 11.1 | 1.10 | 48.5 | 1.32 | 7.11 |
12/21/04 | 54 | 2.00 | 11.1 | 2.00 | 1.40 |  | 0.050 | 2.00 | 11.1 |  |  |  |  |  | 1.37 | 7.11 |
12/22/04 | 55 | 2.05 | 11.1 | 2.00 | 1.39 |  | 0.050 | 2.05 | 11.1 | 1.32 |  |  |  |  | 1.41 | 7.11 |
12/23/04 | 56 | 3.50 | 10.8 | 2.00 | 4.20 | 0.08 | 0.050 | 2.00 | 10.9 | 1.45 | 2.00 | 10.9 | 1.40 | 58.6 | 1.55 | 7.12 |
12/24/04 | 57 |  |  |  |  |  |  |  |  |  |  |  |  |  | 1.55 | 7.12 |
12/25/04 | 58 |  |  |  |  |  |  |  |  |  |  |  |  |  | 1.55 | 7.12 |
12/26/04 | 59 |  |  |  |  |  |  |  |  |  |  |  |  |  | 1.55 | 7.12 |
12/27/04 | 60 | 3.79 | 11.0 | 2.00 | 0.84 | 0.08 | 0.048 | 3.79 | 11.1 | 1.80 | 3.79 | 11.0 | 1.78 | 49.9 | 1.58 | 7.12 |
12/28/04 | 61 | 4.28 | 11.1 | 2.30 |  |  | 0.048 | 4.28 | 11.1 | 2.30 |  |  |  |  | 1.58 | 7.12 |
12/29/04 | 62 |  |  |  |  |  |  |  |  |  |  |  |  |  | 1.58 | 7.12 |
12/30/04 | 63 |  |  |  |  |  |  |  |  |  |  |  |  |  | 1.58 | 7.12 |
12/31/04 | 64 |  |  |  |  |  |  |  |  |  |  |  |  |  | 1.58 | 7.12 |
01/01/05 | 65 | 0.60 | 11.3 | 2.00 | 0.12 |  | 0.050 | 0.60 | 11.3 | 1.80 |  |  |  |  | 1.58 | 7.12 |
01/02/05 | 66 |  |  |  |  |  |  |  |  |  |  |  |  |  | 1.58 | 7.12 |
01/03/05 | 67 |  |  |  |  |  |  |  |  |  |  |  |  |  | 1.58 | 7.12 |
01/04/05 | 68 | 2.00 | 11.0 | 2.00 | 1.36 |  | 0.050 | 2.00 | 11.1 | 1.45 | 2.00 | 11.0 | 1.32 | 48.4 | 1.62 | 7.12 |
01/05/05 | 69 | 3.40 | 11.1 | 2.00 | 4.10 |  | 0.048 | 1.90 | 11.0 | 1.42 |  |  |  |  | 1.76 | 7.12 |
01/06/05 | 70 | 2.10 | 11.2 | 2.00 | 1.05 |  | 0.050 | 2.10 | 11.2 | 1.50 |  |  |  |  | 1.79 | 7.12 |
01/07/05 | 71 | 3.20 | 11.2 | 2.00 | 1.60 |  | 0.050 | 3.20 | 11.2 | 1.50 |  |  |  |  | 1.84 | 7.12 |
01/08/05 | 72 |  |  |  |  |  |  |  |  |  |  |  |  |  | 1.84 | 7.12 |
01/09/05 | 73 |  |  |  |  |  |  |  |  |  |  |  |  |  | 1.84 | 7.12 |
01/10/05 | 74 | 3.10 | 11.2 | 2.00 | 1.86 |  | 0.050 | 3.10 | 11.1 | 1.50 | 3.10 | 10.9 | 1.40 | 38.2 | 1.90 | 7.12 |
01/11/05 | 75 | 2.03 | 11.2 | 2.00 | 0.20 |  | 0.050 | 2.03 | 11.2 | 1.90 |  |  |  |  | 1.91 | 7.12 |
01/12/05 | 76 | 1.95 | 11.2 | 2.00 | 0.16 |  | 0.048 | 1.95 | 11.2 | 1.92 |  |  |  |  | 1.91 | 7.12 |
01/13/05 | 77 | 1.78 | 11.2 | 2.00 | 0.09 |  | 0.050 | 1.78 | 11.2 | 1.95 |  |  |  |  | 1.92 | 7.12 |
01/14/05 | 78 | 3.52 | 11.0 | 2.00 | 4.30 |  | 0.050 | 1.52 | 11.2 | 1.90 | 1.52 | 11.0 | 1.80 | 48.8 | 2.06 | 7.12 |
01/15/05 | 79 |  |  |  |  |  |  |  |  |  |  |  |  |  | 2.06 | 7.12 |
01/16/05 | 80 |  |  |  |  |  |  |  |  |  |  |  |  |  | 2.06 | 7.12 |
01/17/05 | 81 | 2.24 | 11.2 | 2.00 | 1.66 |  | 0.047 | 2.24 | 11.2 | 1.26 |  |  |  |  | 2.11 | 7.12 |
01/18/05 | 82 | 2.68 | 11.2 | 2.00 | 1.47 |  | 0.048 | 2.68 | 11.2 | 1.45 |  |  |  |  | 2.16 | 7.12 |
01/19/05 | 83 | 2.50 | 11.2 | 2.00 | 1.50 |  | 0.050 | 2.50 | 11.2 | 1.40 |  |  |  |  | 2.21 | 7.12 |
01/20/05 | 84 | 3.60 | 11.2 | 2.00 | 2.16 |  | 0.050 | 3.60 | 11.2 | 1.40 |  |  |  |  | 2.28 | 7.12 |
01/21/05 | 85 | 1.50 | 11.2 | 2.00 | 0.75 |  | 0.050 | 1.50 | 11.2 | 1.52 | 1.50 | 11.2 | 1.50 | 48.5 | 2.30 | 7.12 |
01/22/05 | 86 |  |  |  |  |  |  |  |  |  |  |  |  |  | 2.30 | 7.12 |
01/23/05 | 87 |  |  |  |  |  |  |  |  |  |  |  |  |  | 2.30 | 7.12 |
01/24/05 | 88 | 3.00 | 11.2 | 2.00 | 4.40 |  | 0.050 | 1.00 | 11.2 | 1.60 |  |  |  |  | 2.44 | 7.12 |
01/25/05 | 89 | 2.90 | 11.2 | 2.00 | 0.68 |  | 0.052 | 2.90 | 11.2 | 1.78 |  |  |  |  | 2.46 | 7.12 |
01/26/05 | 90 | 2.75 | 11.2 | 2.00 | 1.38 |  | 0.050 | 2.75 | 11.2 | 1.50 |  |  |  |  | 2.51 | 7.12 |
01/27/05 | 91 | 2.70 | 11.2 | 2.00 | 1.13 |  | 0.052 | 2.70 | 11.2 | 1.58 |  |  |  |  | 2.55 | 7.12 |
01/28/05 | 92 | 2.58 | 11.1 | 2.00 | 1.16 |  | 0.050 | 2.58 | 11.2 | 1.65 | 2.58 | 11.1 | 1.55 | 66.4 | 2.58 | 7.12 |
01/29/05 | 93 |  |  |  |  |  |  |  |  |  |  |  |  |  | 2.58 | 7.12 |
01/30/05 | 94 |  |  |  |  |  |  |  |  |  |  |  |  |  | 2.58 | 7.12 |
01/31/05 | 95 | 2.45 | 11.1 | 2.00 | 1.47 |  | 0.052 | 2.45 | 11.1 | 1.40 |  |  |  |  | 2.63 | 7.12 |
02/01/05 | 96 | 2.35 | 11.1 | 2.00 | 1.13 |  | 0.050 | 2.35 | 11.1 | 1.52 |  |  |  |  | 2.67 | 7.12 |
02/02/05 | 97 | 2..31 | 11.1 | 2.00 | 1.16 |  | 0.053 | 2..31 | 11.1 | 1.50 |  |  |  |  | 2.70 | 7.12 |
02/03/05 | 98 | 2.30 | 11.1 | 2.00 | 0.69 |  | 0.050 | 2.30 | 11.1 | 1.70 |  |  |  |  | 2.73 | 7.12 |
02/04/05 | 99 |  |  |  |  |  |  |  |  |  |  |  |  |  | 2.73 | 7.12 |
02/05/05 | 100 | 5.00 | 11.1 |  |  | 0.08 | 0.083 | 3.98 | 11.1 | 1.50 | 3.98 | 10.7 | 1.30 | 77.6 | 2.56 | 7.12 | 1 st wash
02/06/05 | 101 |  |  |  |  |  |  |  |  |  |  |  |  |  | 2.56 | 7.12 |
02/07/05 | 102 | 5.00 | 10.5 |  |  | 0.08 | 0.083 | 4.60 |  | 1.10 |  |  |  |  | 2.40 | 7.12 | 2nd wash
02/08/05 | 103 | 5.00 | 10.5 |  |  | 0.08 | 0.083 | 3.70 |  | 0.56 |  |  |  |  | 2.33 | 7.13 | 3rd wash
02/09/05 | 104 | 5.00 | 10.5 |  |  | 0.08 | 0.083 | 5.40 |  | 0.05 |  |  |  |  | 2.32 | 7.13 | 4th wash
02/10/05 | 105 |  |  |  |  |  |  | 4.40 |  | 0.02 |  |  |  |  | 2.32 | 7.13 |
Total |  |  |  |  | 84.38 | 220.56 |  |  |  |  |  |  |  |  | 2.32 | 7.13 |

SIZE-ASSAY ANALYSIS REPORT

Client: |  | MineStart Management Inc. | Date: |  | 25-Feb-05
Test: |  | Column 1 | Project: |  | 0406407
Sample: |  | Column Leach Residue - Top Section | Page: |  | 5 to 9
|  | (De-agglomerated by manual rolling) |  |  |

Size Fraction | Weight | Assay | Distribution
Mesh | Microns | g | % | Au, g/t | Ag, g/t | Au, % | Ag, %
+65 | +210 | 58.4 | 26.8 | 0.14 | 31.5 | 28.6 | 38.5
-65+100 | -210+149 | 31.7 | 14.5 | 0.12 | 22.6 | 13.3 | 15.0
-100+150 | -149+105 | 33.3 | 15.3 | 0.16 | 20.4 | 18.6 | 14.2
-150+200 | -105+74 | 22.4 | 10.3 | 0.09 | 18.7 | 7.0 | 8.8
-200+270 | -74+53 | 19.5 | 9.0 | 0.09 | 17.6 | 6.1 | 7.2
-270+325 | -53+44 | 6.6 | 3.0 | 0.08 | 17.0 | 1.8 | 2.4
-325+400 | -44+37 | 4.7 | 2.2 | 0.08 | 16.4 | 1.3 | 1.6
-400 | -37 | 41.6 | 19.0 | 0.16 | 14.2 | 23.2 | 12.4
Total | 218.2 | 100.0 | 0.13 | 21.9 | 100.0 | 100.0
Measured |  |  | 0.08 | 21.0 |  |

SIZE-ASSAY ANALYSIS REPORT

Client: |  | MineStart Management Inc. | Date: |  | 25-Feb-05
Test: |  | Column 1 | Project: |  | 0406407
Sample: |  | Column Leach Residue - Top Section | Page: |  | 6 to 9
|  | (De-agglomerated by manual rolling) |  |  |

Size Fraction | Weight | Assay | Distribution
Mesh | Microns | g | % | Au, g/t | Ag, g/t | Au, % | Ag, %
+65 | +210 | 50.1 | 27.5 | 0.12 | 30.7 | 29.1 | 38.3
-65+100 | -210+149 | 24.6 | 13.5 | 0.10 | 22.6 | 11.9 | 13.9
-100+150 | -149+105 | 26.1 | 14.3 | 0.10 | 20.5 | 12.6 | 13.3
-150+200 | -105+74 | 18.1 | 9.9 | 0.08 | 19.4 | 7.0 | 8.7
-200+270 | -74+53 | 16.3 | 8.9 | 0.08 | 18.1 | 6.3 | 7.3
-270+325 | -53+44 | 5.5 | 3.0 | 0.08 | 17.0 | 2.1 | 2.3
-325+400 | -44+37 | 3.7 | 2.0 | 0.08 | 17.4 | 1.4 | 1.6
-400 | -37 | 38.0 | 20.9 | 0.16 | 15.2 | 29.5 | 14.4
Total | 182.3 | 100.0 | 0.11 | 22.0 | 100.0 | 100.0
Measured |  |  | 0.10 | 21.1 |  |

SIZE ANALYSIS REPORT

Client: |  | MineStart Management Inc. | Date: |  | 25-Feb-05
Test: |  | Column 1 | Project: |  | 0406407
Sample: |  | Column Leach Residue - Top Section | Page: |  | 7 to 9
|  | (As unloaded, without de-agglomeration) |  |  |
Grind: |  | No Crushing and Grinding |  |  |

Sieve Size | Mass | Individual | Cumulative
Tyler Mesh | Microns | g | % Retained | % Passing
3 | 6730 | 10.14 | 6.2 | 93.8
4 | 4760 | 6.17 | 3.8 | 90.0
6 | 3360 | 8.16 | 5.0 | 85.1
10 | 1680 | 16.25 | 9.9 | 75.1
14 | 1190 | 7.38 | 4.5 | 70.6
20 | 840 | 6.42 | 3.9 | 66.7
28 | 590 | 5.69 | 3.5 | 63.2
35 | 420 | 6.71 | 4.1 | 59.2
48 | 297 | 10.14 | 6.2 | 53.0
65 | 210 | 15.11 | 9.2 | 43.7
100 | 149 | 18.09 | 11.0 | 32.7
150 | 105 | 19.66 | 12.0 | 20.7
200 | 74 | 11.69 | 7.1 | 13.6
270 | 53 | 9.55 | 5.8 | 7.7
325 | 44 | 2.74 | 1.7 | 6.1
400 | 37 | 2.10 | 1.3 | 4.8
-400 | '-37 | 7.83 | 4.8 | -
TOTAL: |  | 163.83 | 100.0 |

SIZE ANALYSIS REPORT

Client: |  | MineStart Management Inc. | Date: |  | 25-Feb-05
Test: |  | Column 1 | Project: |  | 0406407
Sample: |  | Column Leach Residue - Top Section | Page: |  | 8 to 9
|  | (As unloaded, without de-agglomeration) |  |  |
Grind: |  | No Crushing and Grinding |  |  |

Sieve Size | Mass | Individual | Cumulative
Tyler Mesh | Microns | g | % Retained | % Passing
3 |  | 6730 |  | 17.07 |  | 5.9 |  | 94.1
4 |  | 4760 |  | 15.95 |  | 5.5 |  | 88.7
6 |  | 3360 |  | 16.79 |  | 5.8 |  | 82.9
10 |  | 1680 |  | 40.58 |  | 13.9 |  | 69.0
14 |  | 1190 |  | 18.33 |  | 6.3 |  | 62.7
20 |  | 840 |  | 12.45 |  | 4.3 |  | 58.4
28 |  | 590 |  | 10.77 |  | 3.7 |  | 54.7
35 |  | 420 |  | 11.65 |  | 4.0 |  | 50.8
48 |  | 297 |  | 17.38 |  | 6.0 |  | 44.8
65 |  | 210 |  | 23.75 |  | 8.1 |  | 36.6
100 |  | 149 |  | 32.11 |  | 11.0 |  | 25.6
150 |  | 105 |  | 28.99 |  | 9.9 |  | 15.7
200 |  | 74 |  | 17.52 |  | 6.0 |  | 9.7
270 |  | 53 |  | 13.75 |  | 4.7 |  | 5.0
325 |  | 44 |  | 3.22 |  | 1.1 |  | 3.9
400 |  | 37 |  | 2.56 |  | 0.9 |  | 3.0
-400 |  | '-37 |  | 8.70 |  | 3.0 |  | -
TOTAL: |  |  | 291.57 |  | 100.0 |  |

SIZE ANALYSIS REPORT

Client: |  | MineStart Management Inc. | Date: |  | 25-Feb-05
Test: |  | Column 1 | Project: |  | 0406407
Sample: |  | Column Leach Residue - Botton Section | Page: |  | 9 to 9
|  | (As unloaded, without de-agglomeration) |  |  |
Grind: |  | No Crushing and Grinding |  |  |

Sieve Size | Mass | Individual | Cumulative
Tyler Mesh | Microns | g | % Retained | % Passing
3 |  | 6730 |  | 12.64 |  | 6.3 |  | 93.7 |
4 |  | 4760 |  | 7.97 |  | 4.0 |  | 89.7 |
6 |  | 3360 |  | 10.39 |  | 5.2 |  | 84.6 |
10 |  | 1680 |  | 21.36 |  | 10.6 |  | 73.9 |
14 |  | 1190 |  | 11.14 |  | 5.5 |  | 68.4 |
20 |  | 840 |  | 9.22 |  | 4.6 |  | 63.8 |
28 |  | 590 |  | 7.59 |  | 3.8 |  | 60.0 |
35 |  | 420 |  | 9.29 |  | 4.6 |  | 55.4 |
48 |  | 297 |  | 13.05 |  | 6.5 |  | 48.9 |
65 |  | 210 |  | 17.08 |  | 8.5 |  | 40.4 |
100 |  | 149 |  | 21.56 |  | 10.7 |  | 29.6 |
150 |  | 105 |  | 22.57 |  | 11.2 |  | 18.4 |
200 |  | 74 |  | 13.69 |  | 6.8 |  | 11.6 |
270 |  | 53 |  | 10.61 |  | 5.3 |  | 6.3 |
325 |  | 44 |  | 3.21 |  | 1.6 |  | 4.7 |
400 |  | 37 |  | 2.61 |  | 1.3 |  | 3.4 |
-400 |  | '-37 |  | 6.85 |  | 3.4 |  | - |
TOTAL: |  |  | 200.83 |  | 100.0 |  |  |

CYANIDATION TEST REPORT

Client: |  | MineStart Management Inc. | Date: |  | 27-Feb-05
Test: |  | C19 | Project: |  | 0406407
Sample: |  | Column Leach Residue - Top Section |  |  |

Objective: To determine cyanide leachable gold and silver in the column leach residues

TEST CONDITIONS | TEST DESCRIPTION |
Solids: | 2,000 | g | - | repulped to 40% solids |
Solution: | 3,000 | g | - | adjusted to and maintained pH 10.5 |
Solids: | 40 | % | - | adjusted to and maintained at 1.0g/L NaCN |
Feed Size - P80: | 218 | µm | - | test ended after 48 hours |
Initial NaCN: | 1.0 | g/L | - | filtered and displacement washed with hot cyanide solution |
Target pH: | 10.5 |  |  | followed by two hot water displacement washes |
Test Duration: | 48 | hours | - | solution and solids assayed for Au and Ag content |
HEAD GRADE |  |  |
| A | u | A | g |  |  |
Calculated Total: | 0.11 | g/t | 21.5 | g/t |  |  |
Measured Total: | 0.08 | g/t | 21.0 | g/t |  |  |

LEACH TEST DATA

Time | NaCN | Lime | pH | dO2 | Slurry | Solution
|  |  |  |  |  |  | Weight | Vol. | Assay Vol. | Au | Ag
hours | g/L | g | g | before | after | mg/L | g | mL | mL | mg/L | mg | mg/L | mg
0 | 1.00 | 3.00 | 0.12 | 9.3 | 10.9 | 9.9 | 5,000 | 2,000 |  |  |  |  |
1 | 1.00 |  | 0.08 | 10.3 | 10.8 |  |  |  | 5 |  |  |  |
3 | 1.00 |  | 0.16 | 10.2 | 10.8 |  |  |  | 5 |  |  |  |
6 | 0.90 | 0.30 | 0.16 | 10.2 | 10.8 |  |  |  | 5 |  |  |  |
24 | 0.90 | 0.30 | 0.16 | 10.2 | 10.8 | 9.6 | 5,066 | 3,072 | 30 | <0.01 | 0.03 | 0.3 | 0.8
30 | 1.00 |  | 0.16 | 10.2 | 10.8 |  |  |  | 5 |  |  |  |
48 | 0.90 |  |  | 10.3 |  | 9.7 | 5,026 | 3,032 |  | <0.01 | 0.03 | 0.4 | 1.1
Total |  | 3.60 | 0.84 |

SOLIDS

Time hours | Residue
Weight | Au | Ag
g | g/t | mg | g/t | mg
48 | 1,993.9 | 0.09 | 0.18 | 21.0 | 41.9

CYANIDATION RESULTS

Time hours | Distribution | Reagent Consumption | Reducing Power
Au | Ag | NaCN | Ca(OH)2 | 0.1 N KMnO4 / L
% | % | kg/t | kg/t | mL
24 | 14.7 | 1.8 | 0.27 |  |
48 | 14.6 | 2.6 | 0.44 | 0.42 | 20
Residue | 85.4 | 97.4 |  |  |
Total | 100.0 | 100.0 |

SIZE ANALYSIS REPORT

Client: |  | MineStart Management Inc. | Date: |  | 27-Feb-05
Test: |  | C19 | Project: |  | 0406407
Sample: |  | Column Leach Residue (Top Section) |  |  |
Grind: |  | N/A |  |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micron | % Retained | % Passing
65 | 210 | 22.0 | 78.0
100 | 149 | 13.1 | 64.9
150 | 105 | 14.6 | 50.4
200 | 74 | 9.2 | 41.2
270 | 53 | 9.5 | 31.6
325 | 44 | 3.2 | 28.4
400 | 37 | 5.0 | 23.4
Undersize | - 37 | 23.4 | -
TOTAL: |  | 100.0 |

CYANIDATION TEST REPORT

Client: |  | MineStart Management Inc. | Date: |  | 27-Feb-05
Test: |  | C20 | Project: |  | 0406407
Sample: |  | Column Leach Residue - (Bottom Section) |  |  |

Objective: To determine cyanide leachable gold and silver in the column leach residues

TEST CONDITIONS | TEST DESCRIPTION |
Solids: | 2,000 | g | - | repulped to 40% solids |
Solution: | 3,000 | g | - | adjusted to and maintained pH 10.5 |
Solids: | 40 | % | - | adjusted to and maintained at 1.0g/L NaCN |
Feed Size - P80: | 218 | µm | - | test ended after 48 hours |
Initial NaCN: | 1.0 | g/L | - | filtered and displacement washed with hot cyanide solution |
Target pH: | 10.5 |  |  | followed by two hot water displacement washes |
Test Duration: | 48 | hours | - | solution and solids assayed for Au and Ag content |
HEAD GRADE |  |  |
| A | u | A | g |  |  |
Calculated Total: | 0.10 | g/t | 22.3 | g/t |  |  |
Measured Total: | 0.10 | g/t | 21.1 | g/t |  |  |

LEACH TEST DATA

Time | NaCN | Lime | pH | dO2 | Slurry | Solution
|  |  |  |  |  |  | Weight | Vol. | Assay Vol. | Au | Ag
hours | g/L | g | g | before | after | mg/L | g | mL | mL | mg/L | mg | mg/L | mg
0 | 1.00 | 3.00 | 0.12 | 9.4 | 10.9 | 9.9 | 5,000 | 2,000 |  |  |  |  |
1 | 1.00 |  | 0.08 | 10.5 | 10.9 |  |  |  | 5 |  |  |  |
3 | 1.00 |  | 0.16 | 10.2 | 10.7 |  |  |  | 5 |  |  |  |
6 | 0.94 | 0.18 | 0.16 | 10.2 | 10.8 |  |  |  | 5 |  |  |  |
24 | 0.90 | 0.30 | 0.16 | 10.2 | 10.8 | 9.7 | 5,018 | 3,024 | 30 | <0.01 | 0.03 | 0.3 | 0.9
30 | 1.00 |  | 0.16 | 10.3 | 10.8 |  |  |  | 5 |  |  |  |
48 | 0.90 |  |  | 10.3 |  | 9.7 | 4,978 | 2,984 |  | <0.01 | 0.03 | 0.3 | 0.9
Total |  | 3.48 | 0.84 |

SOLIDS

Time | Residue
| Weight | Au | Ag
hours | g | g/t | mg | g/t | mg
48 | 1,993.9 | 0.09 | 0.18 | 21.9 | 43.7

CYANIDATION RESULTS

Time hours | Distribution | Reagent Consumption | Reducing Power
Au | Ag | NaCN | Ca(OH)2 | 0.1 N KMnO4 / L
% | % | kg/t | kg/t | mL
24 | 14.5 | 2.1 | 0.23 |  |
48 | 14.4 | 2.1 | 0.40 | 0.42 | 20
Residue | 85.6 | 97.9 |  |  |
Total | 100.0 | 100.0 |

SIZE ANALYSIS REPORT

Client: |  | MineStart Management Inc. | Date: |  | 27-Feb-05
Test: |  | C20 | Project: |  | 0406407
Sample: |  | Column Leach Residue - (Bottom Section) |  |  |
Grind: |  | N/A |  |  |

Sieve Size | Individual | Cumulative
Tyler Mesh | Micron | % Retained | % Passing
65 | 210 | 20.6 | 79.4
100 | 149 | 11.1 | 68.3
150 | 105 | 14.7 | 53.6
200 | 74 | 9.2 | 44.4
270 | 53 | 9.7 | 34.7
325 | 44 | 3.4 | 31.3
400 | 37 | 2.0 | 29.3
Undersize | - 37 | 29.3 | -
TOTAL: |  | 100.0 |

FLOCCULANT SCREENING TEST REPORT

Client: |  | MineStart Management Inc. | Date: |  | 25-Nov-04
Sample: |  | Cyanide Leach Slurry (from residues C2,C5,C7,C8,C9,C10) | Project: |  | 0406407

Objective: |  | To evaluate flocculant type and dosage |
Test description: |  | -dry residues (250g) from test C2,C5,C7,C8,C9 and C10 combined and repulped to 25%solids -pH adjusted to 10.5 with lime and NaCN concentration adjusted to 1g/L -slurry cuts to the volumetric cylinders to test different flocculants -flocculant tested: Magnaflox 156; 351; 368 at 50g/t dosage -scoping test with increasing pH to 12 using lime |
Test data: |  |  |

| Lime | Magnafloc 156 | Magnafloc 351 | Magnafloc 368 | Lime to pH 12 |
| to pH 12 | 50g/t | 50g/t | 50g/t | and25g/tof 156 |
Time, Minutes | READ ml | READ ml | READ ml | READ ml | READ ml |
0 | 180 | 180 | 178 | 182 | 180 |
1 | 168 | 126 | 154 | 170 | 150 |
2 | 160 | 100 | 145 | 160 | 120 |
3 | 152 | 87 | 116 | 152 | 112 |
4 | 145 | 80 | 104 |  | 103 |
5 | 137 | 75 | 95 | 130 |  |
Clarity scale (0-5) | 0 | 3 | 4 | 4-5 | 0 | Clarity scale (0-5)

Observations: |  | Good clarity achieved at pH 12 and with 25g/t of Magnafloc 156 This combination was selected for the settling test

SETTLING TEST REPORT

Client: |  | MineStart Management Inc. | Date: |  | 29-Nov-04
Test: |  | ST1 | Project: |  | 0406407
Sample: |  | Cyanide Slurry (from residues C2,C5,C7,C8,C9,C10) | Page: |  | 1 of 2

Time | Height | Sludge Density |  | Slurry pH: | 10.8 |
(min.) | (cm) | (w/w % solids) |  | Lime: | 727 | g/t to pH
0.0 |  | 40.3 |  | 24.8 |  | Flocculant: | 25.0 | g/t Magnafloc 156
0.5 |  | 38.2 |  | 25.9 |  |  |  |
1.5 |  | 35.4 |  | 27.6 |  | Dry Solids Density: | 2.70 | g/cm3
3.0 |  | 31.7 |  | 30.2 |  | Liquid Density: | 0.99 | g/cm3
5.0 |  | 27.0 |  | 34.3 |  | Weight of Dry Solids: | 572.0 | g
6.0 |  | 24.8 |  | 36.7 |  |  |  |
7.0 |  | 22.7 |  | 39.3 |  | Initial Slurry Weight: | 2290 | g
8.0 |  | 21.0 |  | 41.5 |  | Initial Slurry Volume: | 1966 | ml_
10.0 |  | 18.6 |  | 45.4 |  | Initial Slurry Height: | 40.3 | cm
12.0 |  | 17.2 |  | 47.9 |  | Initial Weight Percent Solids: | 25.0 | w/w % solids
15.0 |  | 15.7 |  | 51.0 |  | Initial Settling Rate: | 2.5 | m/h
25.0 |  | 13.2 |  | 57.2 |  |  |  |
30.0 |  | 12.7 |  | 58.6 |  | Final Sediment Volume: | 427 | ml_
40.0 |  | 12.3 |  | 59.8 |  | Final Sediment Height: | 8.8 | cm
62.0 |  | 12.0 |  | 60.9 |  |  |  |
900.0 |  | 8.9 |  | 72.2 |  | Supernatant Clarity: | 0 |
1,440.0 |  | 8.8 |  | 72.9 |  | Floe Size: | 1 |
|  |  |  |  |  | Supernatant Clarity Scale |  | Floe Size Scale
|  |  |  |  |  | 0 | Crystal Clear, zero suspended solids | 1 | Very fine particles
|  |  |  |  |  | 1 | Transparent - some suspended solids | 2 to 9 | Floe size increasing
|  |  |  |  |  | 2 | Somewhat transparent solution | 10 | Very large floes
|  |  |  |  |  | 3 | Less cloudy, non-transparent solution |  |
|  |  |  |  |  | 4 | Very cloudy discernible solid/liquid interface |  |
|  |  |  |  |  | 5 | Opaque, no solid/liquid interface visible |  |

Unit Thickener Area Determination
Modified Coe and Clevenger Method/ Oltman Technique

Required Underflow Pulp Density: |  | 55 | w/w % solids
Compression Point: |  | 13.0 | cm
|  | 25 | min
Slope (Settling Rate), R: |  | 15.7 | m/d
Feed Dilution, : |  | 3.00 | (weight solution/weight solids)
Underflow Dilution, Du: |  | 0.82 | (weight solution/weight solids)
Liquid Relative Density, L: |  | 0.99 |
Unit Thickener Area, A: |  | 0.14 | m /tpd solids | A = | (F-D u) |
|  |  |  |  | RL |

SETTLING TEST REPORT

Client: |  | MineStart Management Inc. | Date: |  | 29-Nov-04
Test: |  | ST1 | Project: |  | 0406407
Sample: |  | Cyanide Slurry (from residues C2,C5,C7,C8,C9,C10) | Page: |  | 2 of 2

VACUUM FILTRATION TEST REPORT

Client: |  | MineStart Management Inc. | Pulp density: |  | 50% | Date: |  | 1-Dec-04
Sample id: |  | ST1 Slurry | Pulp temperature: |  | 16°C | Project: |  | 0406407
Filter area: |  | 94.12cm2 (0.1013sq.ft.) | Pulp pH |  | 11.45 | Technician: |  | BG
Filter cloth: |  | Envirotech POPR-901F | Test series: |  | VF-1 |  |  |

Test | Vacuum |  | Time |  |  | Cake |  |  | Crust |  | Filtrate
No. | Form | Dry | Form | Dry | Cracks | Thickness | Wet | Dry | Moisture | Wet | Dry | Moisture | Volume | Clarity
| in Hg | in Hg | sec | sec | sec | mm | g | g | % | g | g | % | mL |
1 | 25 | 26 | 60 | 60 | - |  |  |  |  |  |  |  | 30 | 4
Wash 1 | NaCN | 0.50g/L |  |  |  |  |  |  |  |  |  |  |  |
| 28 | 29 | 120 | 60 |  |  |  |  |  |  |  |  | 30 | 2-3
Wash 2 | 27 | 30 | 120 | 60 |  | 1 | 10.74 | 7.99 | 25.6 | none |  |  | 25 | 2

| Cake Capacity Determination |  |  |  |  | Filtrate Clarity Scale
|  |  |  |  |  | 0 Crystal Clear, zero suspended solids
| Dry lbs/sq.ft./h= | 3.5 | kg/m2/h | 17.0 |  | 1 Transparent - some suspended solids
|  |  |  |  |  | 2 Somewhat transparent solution
| Filtrate Capacity Determination |  |  |  |  | 3 Less cloudy, non-transparent solution
|  |  |  |  |  | 4 Very cloudy discernible solid/liquid interface
| Gal/sq.ft./h= | 1.3 | L/m2/h | 53 |  | 5 Opaque, no solid/liquid interface visible

VACUUM FILTRATION TEST REPORT

Client: |  | MineStart Management Inc. | Pulp density: |  | 50% | Date: |  | 1-Dec-04
Sample id: |  | ST1 Slurry | Pulp temperature: |  | 16°C | Project: |  | 0406407
Filter area: |  | 94.12cm2 (0.1013sq.ft.) | Pulp pH |  | 11.45 | Technician: |  | BG
Filter cloth: |  | Envirotech POPR-901F | Test series: |  | VF-2 |  |  |

Test | Vacuum |  | Time |  |  | Cake |  |  | Crust |  | Filtrate
No. | Form Dry | Form | Dry | Cracks | Thickness | Wet | Dry | Moisture | Wet | Dry | Moisture | Volume | Clarity
| in Hg | in Hg | sec | sec | sec | mm | g | g | % | g | g | % | mL |
2 | 28 | 26 | 120 | 75 | - |  |  |  |  |  |  |  | 25 | 3-4
Wash 1 | NaCN L | 0.50g/ |  |  |  |  |  |  |  |  |  |  |  |
| 26 | 29 | 180 | 75 |  |  |  |  |  |  |  |  | 27 | 3
Wash 2 | 28 | 30 | 180 | 75 |  | 1 | 9.2 | 6.26 | 32.0 | none |  |  | 19 | 2

| Cake Capacity Determination |  |  |  |  | Filtrate Clarity Scale
|  |  |  |  |  | 0 Crystal Clear, zero suspended solids
| Dry lbs/sq.ft./h= | 1.9 | kg/m2/h | 9.4 |  | 1 Transparent - some suspended solids
|  |  |  |  |  | 2 Somewhat transparent solution
| Filtrate Capacity Determination |  |  |  |  | 3 Less cloudy, non-transparent solution
|  |  |  |  |  | 4 Very cloudy discernible solid/liquid interface
| Gal/sq.ft./h= | 10.7 | L/m2/h | 28 |  | 5 Opaque, no solid/liquid interface visible

VACUUM FILTRATION TEST REPORT

Client: |  | MineStart Management Inc. | Pulp density: |  | 45% | Date: |  | 6-Dec-04
Sample id: |  | Comp. A Slurry (C2 and C13 residues) | Pulp temperature: |  | 15°C | Project: |  | 0406407
Filter area: |  | 94.12cm2 (0.1013sq.ft.) | Pulp pH |  | 12.0 | Technician: |  | BG
Filter cloth: |  | Envirotech POPR-901F | Test series: |  | VF-3 |  |  |

Test | Vacuum |  | Time |  |  | Cake |  |  | Crust |  | Filtrate
No. | Form | Dry | Form | Dry | Cracks | Thickness | Wet | Dry | Moisture | Wet | Dry | Moisture | Volume | Clarity
| in Hg | in Hg | sec | sec | sec | mm | g | g | % | g | g | % | mL |
1 | 27 | 28 | 60 | 120 |  | 8 | 145.2 | 120.3 | 17.1 | 1.6 | 1.22 | 23.8 | 171 | 2-3
2 |  |  |  |  |  |  |  |  |  |  |  |  |  |

| Cake Capacity Determination |  |  |  |  | Filtrate Clarity Scale
|  |  |  |  |  | 0 Crystal Clear, zero suspended solids
| Dry lbs/sq.ft./h= | 52.3 | kg/m2/h | 255.7 |  | 1 Transparent - some suspended solids
|  |  |  |  |  | 2 Somewhat transparent solution
| Filtrate Capacity Determination |  |  |  |  | 3 Less cloudy, non-transparent solution
|  |  |  |  |  | 4 Very cloudy discernible solid/liquid interface
| Gal/sq.ft./h= | 8.9 | L/m2/h | 363 |  | 5 Opaque, no solid/liquid interface visible

VACUUM FILTRATION TEST REPORT

Client: |  | MineStart Management Inc. | Pulp density: |  | 45% | Date: |  | 6-Dec-04
Sample id: |  | Comp. A Slurry (C5 and C15 residues) | Pulp temperature: |  | 15°C | Project: |  | 0406407
Filter area: |  | 94.12cm2 (0.1013sq.ft.) | Pulp pH |  | 12.0 | Technician: |  | BG
Filter cloth: |  | Envirotech POPR-901F | Test series: |  | VF-4 |  |  |

Test | Vacuum |  | Time |  |  | Cake |  |  | Crust |  | Filtrate
No. | Form | Dry | Form | Dry | Cracks | Thickness | Wet | Dry | Moisture | Wet | Dry | Moisture | Volume | Clarity
| in Hg | in Hg | sec | sec | sec | mm | g | g | % | g | g | % | mL |
1 | 27 | 29 | 60 | 110 |  | 11 | 244.1 | 202.6 | 17.0 | 32.56 | 26.77 | 17.8 | 270 | 1-2
2 |  |  |  |  |  |  |  |  |  |  |  |  |  |

| Cake Capacity Determination |  |  |  |  | Filtrate Clarity Scale
|  |  |  |  |  | 0 Crystal Clear, zero suspended solids
| Dry lbs/sq.ft./h= | 93.3 | kg/m2/h | 455.8 |  | 1 Transparent - some suspended solids
|  |  |  |  |  | 2 Somewhat transparent solution
| Filtrate Capacity Determination |  |  |  |  | 3 Less cloudy, non-transparent solution
|  |  |  |  |  | 4 Very cloudy discernible solid/liquid interface
| Gal/sq.ft./h= | 14.9 | L/m2/h | 607 |  | 5 Opaque, no solid/liquid interface visible

VACUUM FILTRATION TEST REPORT

Client: |  | MineStart Management Inc. | Pulp density: |  | 45% | Date: |  | 10-Dec-04
Sample id: |  | C 17 Leach Slurry (Composite A) | Pulp temperature: |  | 15°C | Project: |  | 0406407
Filter area: |  | 94.12cm2 (0.1013sq.ft.) | Pulp pH |  | 12.0 | Technician: |  | BG
Filter cloth: |  | Envirotech POPR-901F | Test series: |  | VF-5 |  |  |

Test | Vacuum |  | Time |  |  | Cake |  |  | Crust |  | Filtrate | Filtrate
No. | Form | Dry | Form | Dry | Cracks | Thickness | Wet | Dry | Moisture | Wet | Dry | Moisture | Volume | Clarity | Assay
| in Hg | in Hg | sec | sec | sec | mm | g | g | % | g | g | % | mL |  | mg/L Au | mg/L Ag
1 | 27 | 30 | 30 | 60 | - |  |  |  |  |  |  |  | 61 | 2-3 | 0.24 | 51.0
Wash 1 | NaCN | 1g/L |  |  |  |  |  |  |  |  |  |  |  |  |  |
| 28 | 30 | 30 | 60 |  |  |  |  |  |  |  |  | 15 | 1 | 0.21 | 37.0
Wash 2 | 26 | 29 | 60 | 60 |  | 2 | 26.81 | 20.38 | 24.0 | 0.88 | 0.68 | 22.7 | 24 | 0-1 | 0.06 | 10.1

| Cake Capacity Determination |  |  |  |  | Filtrate Clarity Scale
|  |  |  |  |  | 0 Crystal Clear, zero suspended solids
| Dry lbs/sq.ft./h= | 17.7 | kg/m2/h | 86.6 |  | 1 Transparent - some suspended solids
|  |  |  |  |  | 2 Somewhat transparent solution
| Filtrate Capacity Determination |  |  |  |  | 3 Less cloudy, non-transparent solution
|  |  |  |  |  | 4 Very cloudy discernible solid/liquid interface
| Gal/sq.ft./h= | 2.5 | L/m2/h | 102 |  | 5 Opaque, no solid/liquid interface visible

VACUUM FILTRATION TEST REPORT

Client: |  | MineStart Management Inc. | Pulp density: |  | 45% | Date: |  | 10-Dec-04
Sample id: |  | C 18 Leach Slurry (Composite B) | Pulp temperature: |  | 16°C | Project: |  | 0406407
Filter area: |  | 94.12cm2 (0.1013sq.ft.) | Pulp pH |  | 10.45 | Technician: |  | BG
Filter cloth: |  | Envirotech POPR-901F | Test series: |  | VF-6 |  |  |

Test | Vacuum |  | Time |  | Cake |  | Crust |  | Filtrate | Filtrate
No. | Form | Dry | Form | Dry | Cracks | Thickness | Wet | Dry | Moisture | Wet | Dry | Moisture | Volume | Clarity | Assay
| in Hg | in Hg | sec | sec | sec | mm | g | g | % | g | g | % | mL |  | mg/L Au | mg/L Ag
1 | 28 | 30 | 30 | 60 | - |  |  |  |  |  |  |  | 87 | 2 | 0.29 | 38.0
Wash 1 | NaCN | 1g/L |  |  |  |  |  |  |  |  |  |  |  |  |  |
| 28 | 28 | 30 | 60 |  |  |  |  |  |  |  |  | 27 | 1 | 0.25 | 29.0
Wash 2 | 28 | 27 | 30 | 60 |  | 3 | 61.83 | 50.58 | 18.2 | 1.23 | 0.92 | 25.2 | 28 | 0 | 0.08 | 7.0

| Cake Capacity Determination |  |  |  |  | Filtrate Clarity Scale
|  |  |  |  |  | 0 Crystal Clear, zero suspended solids
| Dry lbs/sq.ft./h= | 44.0 | kg/m2/h | 215.0 |  | 1 Transparent - some suspended solids
|  |  |  |  |  | 2 Somewhat transparent solution
| Filtrate Capacity Determination |  |  |  |  | 3 Less cloudy, non-transparent solution
|  |  |  |  |  | 4 Very cloudy discernible solid/liquid interface
| Gal/sq.ft./h= | 2.9 | L/m2/h | 119 |  | 5 Opaque, no solid/liquid interface visible

FILTRATION TEST SOLUTIONS ASSAY REPORT

Client: |  | MineStart Management Inc. | Date: |  | 20-Dec-04
Test: |  | VF5, VF6 | Project: |  | 0406407
Sample: |  | Filtration test solutions |  |  |

|  | Sample ID | Detection Limits | Analytical
Elements | Units | FT5 Preg Filtrate | FT5 Barren Filtrate | FT5 Water Wash | FT6 Preg Filtrate | FT6 Barren Filtrate | FT6 Water Wash | Minimum | Maximum | Method
Au | mg/L | 0.24 | 0.21 | 0.06 | 0.285 | 0.25 | 0.08 | 0.01 | 5000.00 | FA/AAS
Ag | mg/L | 51.00 | 37.00 | 10.10 | 38.00 | 29.00 | 7.00 | 0.01 | 20000.00 | AA/ICP
Al | mg/L | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | 0.2 | 9999 | ICPH20
Sb | mg/L | <0.1 | <0.1 | <0.1 | <0.1 | <0.1 | <0.1 | 0.1 | 9999 | ICPH20
As | mg/L | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | 0.2 | 9999 | ICPH20
Ba | mg/L | <0.01 | 0.01 | <0.01 | <0.01 | <0.01 | <0.01 | 0.01 | 999 | ICPH20
Bi | mg/L | <0.1 | <0.1 | <0.1 | <0.1 | <0.1 | <0.1 | 0.1 | 9999 | ICPH20
Cd | mg/L | <0.01 | <0.01 | <0.01 | <0.01 | <0.01 | <0.01 | 0.01 | 999 | ICPH20
Ca | mg/L | 0.5 | 0.3 | <0.1 | <0.1 | <0.1 | <0.1 | 0.1 | 9999 | ICPH20
Cr | mg/L | <0.01 | <0.01 | <0.01 | <0.01 | <0.01 | <0.01 | 0.01 | 9999 | ICPH20
Co | mg/L | 0.07 | <0.01 | <0.01 | 0.05 | <0.01 | <0.01 | 0.01 | 9999 | ICPH20
Cu | mg/L | 0.58 | 0.26 | 0.17 | <0.01 | 0.13 | <0.01 | 0.01 | 9999 | ICPH20
Fe | mg/L | <0.03 | <0.03 | <0.03 | <0.03 | <0.03 | <0.03 | 0.03 | 9999 | ICPH20
La | mg/L | 0.09 | <0.05 | <0.05 | 0.06 | <0.05 | <0.05 | 0.05 | 999 | ICPH20
Pb | mg/L | <0.05 | <0.05 | 0.33 | <0.05 | 0.33 | <0.05 | 0.05 | 9999 | ICPH20
Mg | mg/L | <0.1 | <0.1 | <0.1 | <0.1 | <0.1 | <0.1 | 0.1 | 9999 | ICPH20
Mn | mg/L | 0.06 | <0.01 | <0.01 | <0.01 | <0.01 | <0.01 | 0.01 | 999 | ICPH20
Hg | mg/L | <0.05 | <0.05 | <0.05 | <0.05 | <0.05 | <0.05 | 0.05 | 9999 | ICPH20
Mo | mg/L | <0.02 | <0.02 | <0.02 | <0.02 | <0.02 | <0.02 | 0.02 | 9999 | ICPH20
Ni | mg/L | <0.02 | <0.02 | <0.02 | <0.02 | <0.02 | <0.02 | 0.02 | 9999 | ICPH20
P | mg/L | <0.1 | <0.1 | 0.8 | 0.4 | <0.1 | <0.1 | 0.1 | 9999 | ICPH20
K | mg/L | <2 | <2 | <2 | <2 | <2 | <2 | 2 | 9999 | ICPH20
Sc | mg/L | <0.01 | <0.01 | <0.01 | <0.01 | <0.01 | <0.01 | 0.01 | 100 | ICPH20
Ag | mg/L | 0.05 | <0.02 | 0.06 | 0.05 | 0.07 | 0.06 | 0.02 | 999 | ICPH20
Na | mg/L | 4 | 3 | 3 | 3 | 3 | 3 | 1 | 9999 | ICPH20
Sr | mg/L | <0.01 | <0.01 | <0.01 | <0.01 | <0.01 | <0.01 | 0.01 | 999 | ICPH20
Tl | mg/L | <0.2 | <0.2 | <0.2 | 0.6 | <0.2 | 0.6 | 0.2 | 999 | ICPH20
Ti | mg/L | <0.1 | <0.1 | <0.1 | <0.1 | <0.1 | <0.1 | 0.1 | 999 | ICPH20
W | mg/L | <0.1 | 0.3 | 0.3 | 0.3 | <0.1 | 0.3 | 0.1 | 9999 | ICPH20
V | mg/L | <0.01 | <0.01 | <0.01 | <0.01 | <0.01 | <0.01 | 0.01 | 999 | ICPH20
Zn | mg/L | 0.1 | <0.01 | <0.01 | <0.01 | <0.01 | <0.01 | 0.01 | 9999 | ICPH20
Zr | mg/L | <0.01 | <0.01 | <0.01 | <0.01 | 0.03 | <0.01 | 0.01 | 999 | ICPH2Q

ICP ASSAY REPORT

Client: |  | MineStart Management Inc. | Date: |  | 20-Dec-04
Test: |  | VF5, VF6 | Project: |  | 0406407
Sample: |  | Filtration test residue |  |  |

Elements | Units | Sample ID | Detection Limits | Analytical
VF5 Residue | VF6 Residue | Minimum | Maximum | Method
| Au | ppm | 0.03 | 0.09 | 0.01 | 5000.00 | FA/AAS
| Al | ppm | 44198 | 32332 | 100 | 50000 | ICPM
| Sb | ppm | 218 | 160 | 5 | 2000 | ICPM
| As | ppm | 44 | 117 | 5 | 10000 | ICPM
| Ba | ppm | 713 | 573 | 2 | 10000 | ICPM
| Bi | ppm | 237 | 321 | 2 | 2000 | ICPM
| Cd | ppm | <0.2 | <0.2 | 0.2 | 2000 | ICPM
| Ca | ppm | 16375 | 3222 | 100 | 100000 | ICPM
| Cr | ppm | 445 | 246 | 1 | 10000 | ICPM
| Co | ppm | 12 | 8 | 1 | 10000 | ICPM
| Cu | ppm | 1397 | 860 | 1 | 20000 | ICPM
| Fe | ppm | 77464 | 78326 | 100 | 50000 | ICPM
| La | ppm | 13 | 10 | 2 | 10000 | ICPM
| Pb | ppm | 11607 | 6586 | 2 | 10000 | ICPM
| Mg | ppm | 4399 | 2223 | 100 | 100000 | ICPM
| Mn | ppm | 2327 | 1526 | 1 | 10000 | ICPM
| Hg | ppm | <3 | <3 | 3 | 10000 | ICPM
| Mo | ppm | 63 | 45 | 1 | 1000 | ICPM
| Ni | ppm | 283 | 152 | 1 | 10000 | ICPM
| P | ppm | 312 | 227 | 100 | 50000 | ICPM
| K | ppm | 25428 | 15622 | 100 | 100000 | ICPM
| Sc | ppm | 3 | 2 | 1 | 10000 | ICPM
| Ag | ppm | 20.4 | 25.4 | 0.1 | 1000 | ICPM
| Na | ppm | 3626 | 3141 | 100 | 100000 | ICPM
| Sr | ppm | 56 | 32 | 1 | 10000 | ICPM
| Tl | ppm | <2 | <2 | 2 | 1000 | ICPM
| Ti | ppm | 1122 | 703 | 100 | 100000 | ICPM
| W | ppm | 12 | 21 | 5 | 1000 | ICPM
| V | ppm | 47 | 34 | 1 | 10000 | ICPM
| Zn | ppm | 2475 | 831 | 1 | 10000 | ICPM
| Zr | ppm | 39 | 32 | 1 | 10000 | ICPM

ACID BASE ACCOUNTING TEST REPORT
Sobek Method

Client: |  | MineStart Management Inc. | Date: |  | 22-Nov-04
|  |  | Project: |  | 0406407

Item | Sample ID | S(T) | S(S04) | Paste | Acid | Neutralization Potential (NP)
% | % | PH | Potential | Actual | Ratio | Net
1 | Composite Sulphide Tailings | 1.25 | 0.38 | 4.0 | 27.2 | - 0.1 | 0.00 | -27.3
DUP | Composite Sulphide Tailings | 1.26 | 0.39 | 4.0 | 27.2 | 0.2 | 0.01 | -27.0
Standard | Std(52.1) |  |  |  |  | 51.4 |  |

_________________
Alice Shi, Ph.D.
Laboratory Manager
Notes:

1. | Analytical procedures from "Field and Laboratory Methods Applicable to Overburden and Minesoils". EPA 600/2-78-054, 1978. pp. 45-55.

2. | Actual NP = Neutralization potential as determined by Sobek acid consumption test.

3. | Acid potential = % total sulfur X 31.25

4. | NP Ratio = Actual NP / Acid potential

5. | Net NP = Actual NP - Acid potential

6. | The acid potential and the neutralizing potentials are expressed in Kg CaC03 equivalent per tonne of sample.

7. | Samples with negative Net NP are potential acid producers

ASSAY REPORT

Client: |  | MineStart Management Inc. | Date: |  | 22-Nov-04
Sample: |  | Composite Sulphide Tail Head | Project: |  | 0406407
Test: |  | Deionized Water Extraction |  |  |

Test performed according to : "Draft Guidelinnes and Recommended Methods for the Prediction of Metal Leaching and Acid Rock Drainage at Minesites in B.C." April, 1997

Elements | Unit | DWE | Detection Limits | Analytical
Filtrate | Min. | Max. | Method
| Al | mg/L | 200.86 | 0.05 | 9999 | EPA200.7
| Sb | mg/L | 0.22 | 0.05 | 9999 | EPA200.7
| As | mg/L | <0.03 | 0.03 | 9999 | EPA200.7
| Ba | mg/L | <0.005 | 0.005 | 9999 | EPA200.7
| Be | mg/L | 0.013 | 0.001 | 999 | EPA200.7
| Bi | mg/L | <0.1 | 0.1 | 9999 | EPA200.7
| B | mg/L | 3.26 | 0.01 | 9999 | EPA200.7
| Cd | mg/L | 0.525 | 0.005 | 999 | EPA200.7
| Ca | mg/L | 574.35 | 0.05 | 9999 | EPA200.7
| Cr | mg/L | 0.01 | 0.01 | 9999 | EPA200.7
| Co | mg/L | 0.32 | 0.01 | 9999 | EPA200.7
| Cu | mg/L | 51.12 | 0.01 | 9999 | EPA200.7
| Fe | mg/L | 7.87 | 0.01 | 9999 | EPA200.7
| Pb | mg/L | 1.07 | 0.05 | 9999 | EPA200.7
| Li | mg/L | 0.62 | 0.02 | 9999 | EPA200.7
| Mg | mg/L | 109.8 | 0.1 | 9999 | EPA200.7
| Mn | mg/L | 49.184 | 0.005 | 9999 | EPA200.7
| Hg | mg/L | <0.02 | 0.02 | 999 | EPA200.7
| Mo | mg/L | <0.01 | 0.01 | 9999 | EPA200.7
| Ni | mg/L | 0.22 | 0.01 | 9999 | EPA200.7
| P | mg/L | <0.1 | 0.1 | 9999 | EPA200.7
| K | mg/L | <2 | 2 | 9999 | EPA200.7
| Se | mg/L | 0.18 | 0.05 | 9999 | EPA200.7
| Si | mg/L | 13.93 | 0.05 | 9999 | EPA200.7
| Ag | mg/L | 0.03 | 0.02 | 999 | EPA200.7
| Na | mg/L | 6.3 | 0.2 | 50000 | EPA200.7
| Sr | mg/L | 0.139 | 0.005 | 999 | EPA200.7
| Tl | mg/L | <0.2 | 0.2 | 999 | EPA200.7
| Sn | mg/L | <0.1 | 0.1 | 9999 | EPA200.7
| Ti | mg/L | 0.06 | 0.01 | 999 | EPA200.7
| W | mg/L | <0.1 | 0.1 | 9999 | EPA200.7
| V | mg/L | 0.05 | 0.01 | 999 | EPA200.7
| Zn | mg/L | 53.574 | 0.005 | 9999 | EPA200.7

ASSAY REPORT

Client: |  | MineStart Management Inc. | Date: |  | 22-Nov-04
Sample: |  | Composite Sulphide Tail Head | Project: |  | 0406407
Test: |  | Deionized Water Extraction |  |  |

Test performed according to : "Draft Guidelinnes and Recommended Methods for the Prediction of Metal Leaching and Acid Rock Drainage at Minesites in B.C." April, 1997

Elements | Unit | DWE Solids | Detection Limits | Analytical Method
| Min. | Max. |
| Al | ppm | 11826 | 100 | 99999 | 601 OA
| Sb | ppm | <5 | 5 | 99999 | 601 OA
| As | ppm | 45 | 5 | 99999 | 601 OA
| Ba | ppm | 140 | 1 | 99999 | 601 OA
| Be | ppm | <0.5 | 0.5 | 99999 | 601 OA
| B | ppm | 91 | 10 | 99999 | 601 OA
| Cd | ppm | <0.5 | 0.5 | 99999 | 601 OA
| Ca | ppm | 1556 | 100 | 99999 | 601 OA
| Cr | ppm | 133 | 1 | 99999 | 601 OA
| Co | ppm | 5 | 1 | 99999 | 601 OA
| Cu | ppm | 844 | 1 | 99999 | 601 OA
| Fe | ppm | 65053 | 100 | 999999 | 601 OA
| Pb | ppm | 1693 | 5 | 99999 | 601 OA
| Li | ppm | 17 | 2 | 99999 | 601 OA
| Mg | ppm | 4853 | 100 | 99999 | 601 OA
| Mn | ppm | 980 | 1 | 99999 | 601 OA
| Mo | ppm | 13 | 1 | 99999 | 601 OA
| Ni | ppm | <1 | 1 | 99999 | 601 OA
| P | ppm | 187 | 10 | 99999 | 601 OA
| K | ppm | 447 | 100 | 99999 | 601 OA
| Se | ppm | <10 | 10 | 99999 | 601 OA
| Si | ppm | 1142 | 100 | 99999 | 601 OA
| Ag | ppm | 32 | 2 | 99999 | 601 OA
| Na | ppm | 146 | 100 | 99999 | 601 OA
| Sr | ppm | 5 | 1 | 99999 | 601 OA
| Tl | ppm | <15 | 15 | 99999 | 601 OA
| Sn | ppm | <20 | 20 | 99999 | 601 OA
| V | ppm | 24 | 1 | 99999 | 601 OA
| Zn | ppm | 788 | 1 | 99999 | 601 OA

ELECTROWINNING TEST REPORT

Client: |  | MineStart Management Inc. | Date: |  | 29-Nov-04
Sample: |  | EMEW-1 | Project: |  | 0406407
Test: |  | 2L of C13+C14 PLS |  |  |

Objective: To deplete solution to ~3mg/L Ag at 55 A/m2

Feed: |  | C13 PLS | 1.0 | L filtered |  |  |  |
|  | C14 PLS | 1.0 | L filtered |  |  |  |
Electrolyte: |  | 1.93 L |  | Cathode: | 1 inch SS, short |  | Start | Finish
Solids: |  | 0.14 g |  | Anode: | SS | Conductivity, mS: | 2.64 |

Ag. mg/L | Cu. mg/L | Zn. mg/L |  | Pb. mg/L | Cd. mg/L | Time, min | Volts | Amps | Temp
57.63 | 88.66 | 18.66 |  | 0.41 | 0.32 | 0 | 5.00 | 0.57 | 18
35.14 | 84.72 | 19.75 |  | 0.11 | 0.30 | 15 | 5.17 | 0.56 | 21
18.03 | 83.00 | 20.12 |  | 0.08 | 0.23 | 30 | 4.91 | 0.55 | 24
8.13 | 84.42 | 20.97 |  | 0.11 | 0.16 | 45 | 4.83 | 0.55 | 26
5.12 | 83.67 | 21.35 |  | <0.05 | 0.12 | 60 | 4.84 | 0.55 | 29
3.62 | 82.80 | 21.59 |  | 0.30 | 0.11 | 75 | 4.84 | 0.54 | 30
3.01 | 83.73 | 21.88 |  | <0.05 | 0.08 | 90 | 4.83 | 0.54 | 31

Black powder deposit on cathode
Anode showed yellow discoloration

ASSAY REPORT

Client: |  | MineStart Management Inc. | Date: |  | 29-Nov-04
Sample: |  | EMEW-1 | Project: |  | 0406407

Elements | Units | Head | E1-1 | E1-2 | E1-3 | E1-4 | E1-5 | E1-6 | E1- Final
PLS 0 min | 15 min | 30 min | 45 min | 60 min | 75 min | 90 min | Deposit
| Ag | g/mt | 55.29 |  |  |  | 5.2 |  | 3.1 | 855520
| Au | g/mt | 0.22 |  |  |  | 0.2 |  | 0.1 | 3000
| Al | ppm | 1.00 | 0.9 | 0.9 | 0.9 | 0.4 | 0.8 | 0.6 | 3110
| Sb | ppm | 0.20 | 0.1 | 0.2 | <0.1 | <0.1 | <0.1 | <0.1 | 104
| As | ppm | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | 24
| Ba | ppm | 0.04 | 0.02 | 0.04 | 0.04 | 0.02 | 0.02 | <0.01 | 43
| Cd | ppm | 0.32 | 0.3 | 0.23 | 0.16 | 0.12 | 0.11 | 0.08 | 3500
| Ca | ppm | 5.50 | 5.6 | 4.8 | 4.1 | 3.6 | 3.6 | 3.3 | 4928
| Cr | ppm | <0.01 | <0.01 | <0.01 | 0.03 | 0.15 | 0.39 | 0.64 | 10000
| Co | ppm | 0.08 | 0.09 | 0.12 | 0.13 | 0.08 | 0.07 | 0.11 | 15
| Cu | ppm | 88.66 | 84.72 | 83 | 84.42 | 83.67 | 82.8 | 83.73 | 27000
| Fe | ppm | 9.92 | 9.26 | 9.71 | 10.38 | 9.27 | 10.61 | 11.05 | 7329
| Pb | ppm | <0.05 | 0.11 | 0.08 | 0.11 | <0.05 | 0.3 | <0.05 | 1789
| Mg | ppm | 0.80 | 0.8 | 0.9 | 1 | 0.7 | 0.7 | 0.5 | 4328
| Mn | ppm | 7.00 | 7.12 | 7.2 | 7.24 | 7.04 | 6.84 | 6.61 | 2985
| Hg | ppm | 0.07 | 0.18 | <0.05 | 0.16 | <0.05 | 0.25 | 0.06 | <3
| Mo | ppm | 0.64 | 0.61 | 0.68 | 0.65 | 0.6 | 0.63 | 0.67 | 9
| Ni | ppm | 1.20 | 1.16 | 1.2 | 1.3 | 1.39 | 1.72 | 2.3 | 878
| P | ppm | <0.1 | 0.6 | 0.5 | 0.5 | 0.6 | 0.7 | 0.5 | <100
| K | ppm | 11.00 | 13 | 13 | 11 | 9 | 10 | 10 | 705
| Ag | ppm | 57.63 | 35.14 | 18.03 | 8.13 | 5.03 | 3.62 | 2.91 | over range
| Na | ppm | 870.00 | 881 | 877 | 878 | 886 | 864 | 895 | 1019
| Sr | ppm | 0.04 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.01 | 15
| Tl | ppm | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | 0.3 | <0.2 | <2
| Zn | ppm | 18.66 | 19.75 | 20.12 | 20.97 | 21.35 | 21.59 | 21.88 | 1439
| Zr | ppm | <0.01 | <0.01 | <0.01 | <0.01 | <0.01 | <0.01 | <0.01 | 1

ELECTROWINNING TEST REPORT

Client: |  | MineStart Management Inc. | Date: |  | 29-Dec-04
Sample: |  | EMEW-2 | Project: |  | 0406407
Test: |  | 2L of C5+C6 PLS |  |  |

Objective: | To deplete solution at 100 A/m 0.5g/L of Al (as Aluminum sulphate + NaOH) added to increase solution conductivity

Feed: |  | C5 PLS | 1.0 | L filtered |  |  |  |
|  | C6 PLS | 1.0 | L filtered |  |  |  |
Electrolyte: |  | 2.00 L |  | Cathode: | 1 inch SS, short |  | Start | Finish
Solids: |  | 0.08 g |  | Anode: | SS | Conductivity, mS: | 7.85 |

Ag, mg/L | Cu, mg/L | Zn, mg/L |  | Au, mg/L | NaCN, g/L | Time, min | Volts | Amps | Temp
43.09 | 75 | 9.87 |  | 0.35 | 0.66 | 0 | 2.93 | 0.47 | 18
33.49 | 71.91 | 9.4 |  | 0.35 | 0.64 | 15 | 2.93 | 0.46 | 20
26.48 | 70.71 | 9.1 |  | 0.24 | 0.48 | 30 | 4.95 | 0.93 | 23
21.15 | 67.66 | 8.65 |  | 0.22 | 0.5 | 45 | 4.95 | 0.93 | 25
16.77 | 66.82 | 8.27 |  | 0.18 | 0.54 | 60 | 4.93 | 0.93 | 26

Black powder deposit on cathode

ASSAY REPORT

Client: |  | MineStart Management Inc. | Date: |  | 29-Nov-04
Sample: |  | EMEW-2 | Project: |  | 0406407

Elements | Units | Head | E2-1 | E2-2 | E2-3 | E2-4 | E2- Final
PLS 0 min | 15 min | 30 min | 45 min | 60 min | Deposit
| Ag | g/mt | 42.19 | 33 | 26 | 22 | 17 | 717658
| Au | g/mt | 0.35 | 0.35 | 0.24 | 0.22 | 0.2 | 4569
| Al | ppm | 431.2 | 400.5 | 404.9 | 400.9 | 412.7 | 12891
| Sb | ppm | <0.1 | <0.1 | <0.1 | <0.1 | <0.1 | <5
| As | ppm | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | 24
| Ba | ppm | <0.01 | <0.01 | <0.01 | <0.01 | <0.01 | 25
| Cd | ppm | 0.18 | 0.14 | 0.11 | 0.11 | 0.07 | 786.2
| Ca | ppm | 67 | 38 | 39.1 | 33.3 | 36.3 | 11708
| Cr | ppm | <0.01 | <0.01 | <0.01 | <0.01 | <0.01 | 2462
| Co | ppm | 0.19 | 0.25 | 0.19 | 0.22 | 0.19 | 67
| Cu | ppm | 75 | 71.91 | 70.71 | 67.66 | 66.82 | 180216
| Fe | ppm | <0.03 | <0.03 | 0.65 | 0.88 | 1.56 | 5280
| Pb | ppm | 0.35 | 0.52 | 0.26 | <0.05 | 0.28 | 830
| Mg | ppm | 4.1 | 3.2 | 3 | 3.1 | 3.1 | 6168
| Mn | ppm | 1.66 | 1.03 | 1.02 | 0.9 | 1.12 | 478
| Hg | ppm | <0.05 | <0.05 | <0.05 | <0.05 | <0.05 | 107
| Mo | ppm | 0.74 | 0.76 | 0.73 | 0.71 | 0.72 | 23
| Ni | ppm | 1.14 | 1.21 | 1.14 | 1.18 | 1.1 | 2819
| P | ppm | <0.1 | <0.1 | <0.1 | 0.5 | <0.1 | 119
| K | ppm | 14 | 22 | 16 | 21 | 14 | <100
| Ag | ppm | 43.09 | 33.49 | 26.48 | 21.15 | 16.77 | over range
| Na | ppm | 3187 | 3081 | 3166 | 3022 | 3043 | 25993
| Sr | ppm | 0.29 | 0.18 | 0.19 | 0.17 | 0.18 | 20
| Tl | ppm | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <2
| Zn | ppm | 9.87 | 9.4 | 9.1 | 8.65 | 8.27 | 27566
| Zr | ppm | <0.01 | <0.01 | <0.01 | <0.01 | <0.01 | <1

ELECTROWINNING TEST REPORT

Client: |  | MineStart Management Inc. | Date: |  | 17-Jan-04
Sample: |  | EMEW-3 | Project: |  | 0406407
Test: |  | 2L of C1+C16 PLS |  |  |

Objective: To deplete solution at 100 A/m2 at full flow

Feed: | C1 PLS | 0.9 | L filtered |  |  |  |
| C16 PLS | 1.0 | L filtered |  |  |  |
Electrolyte: | 1.85 L |  | Cathode: | 1 inch SS, short |  | Start | Finish
Solids: | 0.11 g |  | Anode: | SS | Conductivity, mS: | 4.05 |

Ag, mg/L | Cu, mg/L | Zn, mg/L |  | Au, mg/L | Cd, mg/L | Time, min | Volts | Amps | Temp
41.4 | 61.11 | 11.06 |  | 0.34 | 0.25 | 0 | 5.42 | 0.90 | 25
19.9 | 56.54 | 11.18 |  | 0.17 | 0.19 | 15 | 5.62 | 0.89 | 28
9.7 | 58.23 | 11.23 |  | 0.09 | 0.13 | 30 | 5.56 | 0.90 | 31
5.0 | 60.99 | 11.18 |  | 0.06 | 0.08 | 45 | 5.48 | 0.90 | 33
3.3 | 60.39 | 11.24 |  | 0.04 | <0.01 | 60 | 5.47 | 0.90 | 35

Black powder deposit on cathode

ASSAY REPORT

Client: |  | MineStart Management Inc. | Date: |  | 29-Dec-04
Sample: |  | EMEW-3 | Project: |  | 0406407

Elements | Units | Head | E3-1 | E3-2 | E3-3 | E3-4 | E3- Final
PLS 0 min | 15 min | 30 min | 45 min | 60 min | Deposit
| Ag | g/mt | 40.50 | 20 | 10 | 5 | 3.5 | 896593
| Au | g/mt | 0.34 | 0.17 | 0.09 | 0.06 | 0.04 | 5305
| Al | ppm | 0.8 | 0.4 | 0.7 | 0.4 | 0.6 | 1597
| Sb | ppm | <0.1 | <0.1 | 0.1 | <0.1 | <0.1 | 247
| As | ppm | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | 1160
| Ba | ppm | 0.02 | 0.02 | 0.02 | <0.01 | 0.02 | 366
| Cd | ppm | 0.245 | 0.19 | 0.13 | 0.08 | <0.01 | 2967.2
| Ca | ppm | 2.1 | 2.1 | 2.1 | 1.9 | 2.5 | 7978
| Cr | ppm | <0.01 | 0.13 | 0.44 | 0.62 | 0.92 | 24518
| Co | ppm | 0.2 | 0.14 | 0.16 | 0.19 | 0.19 | 83
| Cu | ppm | 61.11 | 56.54 | 58.23 | 60.99 | 60.39 | 26010
| Fe | ppm | 6.015 | 6.26 | 6.01 | 6.54 | 7.58 | 5997
| Pb | ppm | <0.05 | 0.16 | 0.23 | <0.05 | <0.05 | 230
| Mg | ppm | 1.3 | 0.9 | 1.4 | 0.9 | 1 | 5783
| Mn | ppm | 20.74 | 21.13 | 20.9 | 19.6 | 18.46 | 14752
| Hg | ppm | <0.05 | <0.05 | <0.05 | <0.05 | <0.05 | <3
| Mo | ppm | 0.66 | 0.57 | 0.65 | 0.72 | 0.81 | 34
| Ni | ppm | 0.4 | 0.33 | 0.67 | 1.04 | 1.44 | 1550
| P | ppm | <0.1 | <0.1 | <0.1 | <0.1 | <0.1 | <100
| K | ppm | 26 | 25 | 28 | 26 | 28 | 1395
| Ag | ppm | 42.295 | 19.89 | 9.47 | 4.94 | 3.15 | over range
| Na | ppm | 1173 | 1174 | 1160 | 1173 | 1174 | 1920
| Sr | ppm | <0.01 | <0.01 | <0.01 | <0.01 | <0.01 | 31
| Tl | ppm | <0.2 | <0.2 | <0.2 | <0.2 | <0.2 | <2
| Zn | ppm | 11.055 | 11.18 | 11.23 | 11.18 | 11.24 | 1407
| Zr | ppm | <0.01 | <0.01 | 0.03 | <0.01 | <0.01 | 21

APPENDIX J

CIA MINERA 1990 SAMPLING PROGRAM