The project was acquired in 2002. Drilling and supporting studies took place over a 3 year period followed by the completion of an Environmental Impact Study and a bankable feasibility study. Permitting was completed in early 2007 and construction of the mine, plant and all infrastructure commenced in June 2007 following the raising of funds on the London AIM market.

The one million tonne per annum conventional open pit, heap leach operation was based upon a feasibility study reserve of 4 million tonnes grading 1.1 g/t of gold containing 145,000 ounces in the Susan and Diana outcropping mineralized zones.

The project was completed on schedule in the first quarter of 2008 for a capital cost of US$20 million. The first gold pour from Corihuarmi was on 15 March 2008 and over 117,000 ounces have been produced through the end of 2010. The capital cost was recovered from ex-mine, pre-tax cash flow within the first 7 months.

Mining commenced with the higher grade Diana outcrop and, in 2009, moved to the larger, lower grade Susan outcrop. Gold production has consistently exceeded expectations based upon the original ore reserves.

Below is a summary of the key operating statistics for Corihuarmi for the financial year ended 31 December 2010 compared with the financial year ended 31 December 2009: 

Gold production for 2010 decreased slightly by 1.5% to 32,533 ounces, against the 33,013 ounces produced in the same prior year period. However, 2010 production was approximately 15.2 above budget.

Although the grade was significantly lower, this was mainly compensated for by the higher tonnes mined and crushed for 2010, compared to 2009, resulting in similar levels of production.  Mining was as per plan and predominantly on the Susan outcrop.  The benches mined contained a low proportion of waste whereas during 2009 more waste mining was required to establish mining in that ore zone.  The site operating costs per ounce increased by 15.8% due to higher ore mining and treatment tonnes and increased costs associated with operating the new elution train of tanks.  The price received from spot gold sales increased 24.7% giving Corihuarmi a substantially increased margin.

Work continued during 2010 on plans to treat the 3.8 million tonnes of broken scree material below the outcrops.  This material currently contains 55,000 ounces of gold in the Inferred Resource category (3.77 million tonnes at 0.45 g/t Au). An Environmental Impact Assessment required to permit mining and treatment rates to increase to 2 million tonnes per annum in 2011 has been submitted to the authorities. It is expected that this will allow additional low grade material to be profitably treated and a gold production level of approximately 30,000 ounces per annum to be maintained in 2011 at a site operating cash cost of $400 - 500 per ounce.

The Corihuarmi Gold Mine provides important local and regional benefits. These benefits include mine employment, sustainable development programs as well as health and education programs for the local communities.