I'm surprised that more hasn't been said about hole 7. Maybe what I'm going to say here is so obvious it doesn't warrant discussion, but for me hole 7 was the evidence I needed to push forward and double my position over the past week.

While as some have mentioned, we're likely to have anywhere from 1.5 to 3million ounces gold equivalent in the oxide zone alone, and yes this provides us with little downside risk given todays spot price and our current market cap. But personally I really dont have much interest in low grade sub 4million ounce deposits. Economic or not, I like to look for elephants so it's the hope for a bigger and richer sulphide zone that has my attention.

http://www.canplats.com/i/maps/repre...

Hole 7 on the above drill plan caught my attention.

Back in December when we were getting the assays for Line 4250, it looked like we were going to run about 1gram gold, 10 grams silver and .30% Lead and Zinc throughout the Oxide zone. When we moved east and drilled line 4400 with holes 8, 9 and 11, I think some were disappointed to see the Gold grade drop off to about .44 grams AU. But I think these people completely missed the significance of hole 7, which sliced through line 4400 deeper then the three drilled along the line, giving us a glimpse into what the sulphidesbelow hold for us going forward.

As I said it's the sulphide I'm betting on. Hole 7 was drilled from west to east and cuts under line 4400 just as it enters what has been desribed as a combination of oxides and sulphides. The grade at depth for line 4400 therefore is found here in the NR "The bottom 59 meters of this hole intersected mixed oxide-sulphide mineralization grading 1.02 grams gold per tonne, 25.14 grams silver per tonne, 0.34% lead and 0.88% zinc."

I know hole 7 only briefly cuts line 4400, but for comparison purposes heres how I see the grade there:

Line 4400

Hole 8 0.44, 13.15, 0.39, 0.32 (sulphides)

Hole 9 0.45, 14.36, 0.22, 0.36 (sulphides)

Hole 11 0.32, 11.38, 0.19, 0.29 (sulphides)

Hole 7 1.02, 25.14, 0.34, 0.88 (oxide/sulphides)

This isn't even into the pure sulphides (sorry probably not a real term, but you know what I'm geting at- the value of the rock is still suffering delution from the lower grade oxide mineralization).

Any way you slice it, its evidence to me that like the Penasquito, our sulphide zone will grade at least two times that of the upper oxidized portion of the deposit. The only question I have now is how big is our Sulphide zone, and with the diamond drills turning, we're probably going to know very shortly.

GLTA,

Buck