Los Verdes

NEW: Los Verdes Pre-Feasibility Study, September 3, 2008

(Click here to view the Feb 29, 2008 Technical Report for Los Verdes)

The Los Verdes property is a historic molybdenum producer and was extensively drilled in the 1970s. Repetition and expansion of that drilling by Virgin in 2006 and 2007 has resulted in the completion of a Pre-Feasibility Study. The pre-feasibility study has demonstrated in considerable detail a robust project based on molybdenum and copper recovery only; upside exists in tungsten recovery and improved molybdenum recovery. Reserve of 7.05 million tonnes at 0.137% Mo and 0.657% Cu gives a project life of 8 years and NPV of $96.9 million and IRR of 23%. Direct cash costs of $22.7/tonne of ore, cost per lb Mo less than $1/lb after copper credits.

The Los Verdes project comprises a modest sized, compact zone of molybdenum, copper and tungsten mineralization located at the crest of a steep ridge. The geometry of the deposit is ideal for low cost open pit mining. During 2007, the Company consolidated the mineral rights of the deposit by acquiring a single isolated claim known as the Bacanora claim. Until this point, our drilling and subsequent resource estimation had been limited to the area east of the Bacanora.

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High grade Mo-Cu Ore	Geologist examining drill core	Massive molybdenite

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During 2007 the Company extended its drilling onto the Bacanora claim, increased the density of reverse circulation drilling throughout the deposit and expanded its knowledge of the geology of the deposit by drilling a number of diamond drill holes. The total drilling now stands at 8,500 meters in 75 reverse circulation holes and 2,500 in 25 diamond drill holes. In addition to geologic data, the diamond drill core was also used for geotechnical and density data before being submitted for assay.

In addition to the Bacanora claim, we acquired from the vendor the data relating to exploration activity in the mid 1970, including the vast majority of drill logs and sections. On the advice of our consultants, we also incorporated this data into the data base on which our resource calculation and mine planning are based. Most importantly, the combined data bases of historic, reverse circulation and diamond drill data enabled us to accurately define the shape of the mineralization. The mineralization is compact and homogeneous within its boundaries, which are quite sharp; detailed definition of the shape enabled us to define mining parameters with a high degree of confidence.

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Longitudinal Section B-B'	Claim Map	Los Verdes Site Plan

The addition of the Bacanora claim led to an increase in overall quantity of mineralization, while the definition of the shape enabled us to distinguish more clearly between the leached cap and the underlying sulfide, transitional and copper enrichment mineralization.

Our plans for 2008 call for the completion of the Feasibility study, project financing and permitting and the start of project construction before the end of the year.

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Adit	Drilling Hole #37	Drilling

Meanwhile, the potential for additional mineralization within the Company.s extensive land position at Los Verdes is being explored by company geologists, who have discovered outcropping mineralization at several locations in the district and are developing new drill targets.