The Tequila property consists of four strategically located concessions covering approximately 2,000 hectares in northern Jalisco state, Mexico.

The Project is already operational with significant capital investment. Infrastructure is in place with power, roads, and mining equipment worth in excess of US$2,000,000. The Mexican federal government will subsidize a portion of labor costs and transport costs in the expanded effort. Prior to commencing a first phase drill program, surface and underground sampling and mapping verified the tenure of certain high grade zones and examined the economic potential of the barranca zone. Drilling was focused to intersect at depth the projection of high gold concentrations detected on both the surface and within shallow, pre-existing, underground works. Preliminary estimates suggest that the barranca zone extends at least 1 km along strike and 300 meters down dip. The combined total reserve valuations are estimated in July, 2010 to be in excess of US$205,000,000.

Purity sampling has yielded average estimated mineral resource on the order of 1.924 million tons grading 2.563 g/t Au and 15.8 g/t Ag with contents of 158,611 ounces of gold and 978,094 ounces of silver.