Work done at San Francisco (new mill location)San Francisco Project
Road rehabilitation to the operational areas was concluded, dirt cover and water ditching were built over a length of
13.4 km, some curves were widened and steep slopes were smoothed in some sections. Also, 0.25 km of road and
access were rehabilitated as support to Comuneros de Compostela Ejido.
Construction of powder magazine buildings was completed. Finally on April 29, 2011 the governor’s signature in
regards to the favourable opinion towards the explosives permit was obtained. The opinion was presented to
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SEDENA (Defense Ministry) on May 10, 2011. In June 2011, personnel from SEDENA carried out an inspection of
the powder magazine those buildings with good results. The Company is waiting for the official authorization.
An environmental consulting firm was hired to apply for the permit process required by SEMARNAT (Mexican
EPA) to start exploration activities in the project. The report and a waiver for the full impact analysis report were
submitted on August 9, 2011 and on August 29, 2011 a favourable decision from this agency was received
authorizing the start up of the project.