initial production of Houston ore targeted for 2014. Infrastructure costs for the first phase of the Houston project are estimated to be approximately $37 million, with an additional approximately $20 million of mine development costs now planned for 2014. Planning is well advanced for the second, wet process phase of the project. LIM plans to evaluate various potential credit facilities and/or strategic partnerships or off-take arrangements to fund these Houston development expenditures. 2012 Exploration Program As of the end of September 2012, approximately 9,400 m of RC and core diamond drilling had been completed in the 2012 exploration program. The 2012 exploration budget was reduced to $5.3 million from the $8.6 million originally budgeted. Although exploration spending has been reduced, the overall 2012 exploration program is expected to achieve approximately 13,500 m of drilling (from the planned 10,000 m) as a result of cost efficiencies and improved productivity. The drill programs have focused on Houston, Malcolm, James North, the James South extension and historic stockpiles near Silver Yards. As at the end of September, 5,600 m of RC drilling had been completed at Houston, Malcolm and the historic stockpiles and 3,300 m of diamond drilling had been completed at Houston and the James South extension. The main purpose of this drilling is to generate further technical information for more detailed mine planning of these deposits. LIM had also completed 500 m of diamond drilling at the James North deposit for geotechnical purposes. In addition to this drilling, a bulk sampling