It is planned that this deposit will be incorporated into the Yatela deposit mine plan which would extend the current projected mine life by a further year or so. The Company concluded that at this stage, self-financing of its portion of the Yatela funding was the most cost effective and flexible approach, however the Company will continue to evaluate alternative financing options. May. Drilling on other oxide prospects close to Sadiola is continuing. Regional exploration in the area is being carried out on a property to the west of Sadiola where a geochemical anomaly is being tested by pitting. Follow-up work on some of these anomalies has resulted in very encouraging assay values from some of the pits which have been excavated.
Further pitting is in progress to examine the extent of the mineralization.
This mineralized area, as well as several others, is being readied for a drill program prior to the onset of the rainy season in July. Two major mining companies have reviewed the project data and have made site visits with a view to a possible joint-venture on this project. A decision as to whether a second drill hole will be put down will be taken in the near future. The fact that the discovery of the Yanacocha deposit resulted from the follow-up of a subtle geochemical anomaly generated by a similar BGS survey in northern Peru emphasizes the importance of the systematic and thorough evaluation of the BGS anomalies in Ecuador. Furthermore, the regional mapping and age dating conducted by the BGS also confirms that the Western Cordillera area of Ecuador is comparable in age, structure and lithology to the mineralized districts of northern Peru.