Our next gold project, a future cornerstone producer in Argentina.

The 2010 acquisition of the Cerro Negro Project in Argentina established an important operating base in one of the world’s great gold producing regions. Cerro Negro is an advanced-stage, high-grade vein system located in the Santa Cruz province of Argentina. Cerro Negro contains several high-grade vein structures, including the Mariana Central, Mariana Norte, San Marcos and Eureka.

Since acquiring the property gold reserves and resources have nearly doubled, and new discoveries support our expectations that Cerro Negro will be a long-lived, high quality asset with low production costs. Cerro Negro's ideal physical setting and easily accessible veins will result in near-term, cash flow-accretive gold production at a relatively small capital investment of $800 million. An updated feasibility study in 2011 dramatically expanded the production profile at Cerro Negro. Based on expected throughput of 4,000 tonnes per day, annual gold production in the first five years of full production is now expected to average 550,000 ounces at cash costs of less than $200 per ounce. First gold production is expected in the second half of 2013.

The property contains a large, very prospective land package, with a rich network of near-surface gold veins that are easily mineable at very low costs. The focus of current efforts is on growing gold reserves through exploration of these veins and testing new vein targets.