Thank you, Karen.
As we predicted, we essentially broke even as a company based on our Rodeo goldmine income in the second quarter of 2021.
Our projections show strong positive earnings through the remainder of this year. Rodeo has been operating very well since start-up, we commissioned the new ball mill at our oxide plant in the last days of April, about a month later than we had planned.
However, our process plant throughput has exceeded expectations by nearly 100 tonnes per day since that time, and we expect the higher throughput to continue.
We are now planning for an average throughput of at least 500 tonnes per day. This means we should be able to easily meet our forecasts for gold production of between 12,000 and 14,000 ounces this year and profitability for the year.
Our work at Velardeña is progressing well, for the possible restart near the end of 2021.
We have completed our bulk sampling and precision mining tests successfully and are now preparing the material to be sent to South Africa for the final metallurgical studies to complete the design criteria for the bio oxidation plant and optimize the flotation separation, maximizing gold reporting to the pyrite concentrate that will be treated in the bio oxidation circuit. We should have results of this test for to report early in Q4 this year. I anticipate a positive decision on the restart of the mine in Q4. Exploration at Rodeo has continued to return positive results on two additional structures not currently in the mine plan. The structures are both east and west of the current debt, and potentially within easy expansion access.
We have just added a second drill rig to speed up the drill program to delineate gold mineralization on these two structures, and to test additional targets. Reverse circulation rigs that just started the last day of July is expected to drill about five or more times faster than the core drill. This means we should have the information we need to evaluate the potential extension of the mine life within the next few months.
We are also doing a project in Argentina that I'm quite enthusiastic about. The property is the Sarita Este property, which is immediately adjacent to the giant [Taca Taca] (Ph) copper deposit in western Salta province.
We are drilling both a very interesting copper targets and a compelling high sulphidation Gold Silver target. Initial results from the copper targets should be available in the next few weeks.
Our plans to drill at the Yoquivo district in Chihuahua have been pushed back a few more months to accommodate our drilling at these other projects. Not necessarily because the other projects are better exploration targets all are quite good, but because of operational needs at Rodeo and based on a commitment to drill at Sarita Este. Yoquivo remains a very attractive gold silver district with excellent potential.
We expect to start drilling at Yoquivo in Q4 this year, as soon as the core rig at Rodeo is freed up.
Our plans for production growth and sustainable profitability are in place and advancing well. With Velardeña producing hopefully late this year, we will have accelerated our production growth over our initial plan and potentially be producing about one million ounces of silver with legumes and byproducts in 2022 while we are constructing the bio oxidation facility. Once the bio oxidation plant is complete our projections so an additional one million silver equivalent ounces produced per year from the gold in pyrite.
Our production for Velardeña, once in full swing should be about twice the equivalent gold production from Rodeo and with a projected mine life of a decade and possibly more with exploration success. I will now hand the call over to Bob Vogels our Chief Financial Officer to present the financial results for the second quarter 2021.