Affinity Gold Corp. provided an update on its Cambalache project, a silver (Ag) and lead (Pb) producing, low sulphidation polymetalic lode deposit, located in District of Lircay, Province of Angaraes, Department of Huancavelica to the southeast of Lima, Peru. The project is located at an elevation of 3,466 - 4,790 m.a.s.l. approximately 519 Km from Lima, capital of Peru, via the South-PanAmerican Highway.

Since mid February, mine production increased to 13.8 tpd ore and 17 tpd waste while simultaneously focusing on mine development. A goal of reaching a production rate of 30 tpd was estimated to take 6-8 weeks of development while continuing to ore ship. Mine development during this period advanced on Level 555: 25 meter of galleries, 15 meter of raises and winzes, and 45 meter of sublevels for production.

On Level 525, 40 meter of gallery was advanced. Total was 125 meter of mine development. In mid March, the first Ag-Pb concentrate sale took place from the February production.

A total ore tonnage of 333 tonnes was processed at a third party mill generating 22.6 tonnes of concentrate resulting in a 14.7:1 concentration ratio with grades of 40.2% Pb, 113.7 oz Ag, 12.1% Zn and 6.8% Cu per tonne. The low Pb and Ag values along with the high Zn and Cu grades were attributed to poor plant supervision, principally in reactives added to the ore during processing, later acknowledge by the third-party toll plant manager. During proper supervision on second lot of ore treated at Minpar plant concentrates were generally assaying at 48-55% Pb and 120-165 oz Ag per tonne.