I beleive this is some very good info from the Chorunga vein to our immediate south. It says here that this vein has been mined down to 1000m. Estimates of gold taken from this vein is around 1 million ounces of gold but could be considerably more. There are no good records kept for the production history of this vein because of the way the regulation system worked in Peru.

Hog had posted here awhile ago the info where we found samples that were taken from the tailings pile that averaged, ( I beleive) somewheres around 16 g/t. This was their waste pile! The informale mining group that owned and operated this Chorunga mine had to do some sort of evaluation of the mining grades here a few years back which resulted in recorded mill grades being close to 1 oz/t or 31 g/t gold. It says this vein is a 2 km structure, but doesn,t specify if the whole 2 km,s was mined to get the approx 1 mil ozs of gold. So, I feel pretty safe in saying that this vein pretty well averaged a 31 g/t gold.

These Chorunga veins have the identical andesite features as some of the Tesoro veins, for example; A-4 vein. And if I am not mistaken, the A-6 swarm also falls into that category.

CONCLUSION

The Chorunga vein probably has an average grade of 31 g/t gold down to as far as they went yet, which is 1000m. Our A-4 AND A-6 swarm sit on top of the Monster Anomaly with very similar grades and identical geological structure. The anomaly goes to at least 1300m below the A-4 and A-6 swarm and may keep going, telling me we have high grade gold in that anomaly and lots of it.

Here are the clues I picked out of the technical report to make this assumption;

The auriferous and non-auriferous veins and vein systems within this Tesoro district tend to be

narrow, (dominantly less than 1.5 meters wide) but continuous, extending along strike and to

depth. The San Juan de Chorunga vein near Ocoña is a two-km-long structure that has been

worked for a vertical distance of 1 kilometre (Ballon, 1983; Escobar and Mendoza, 1994).

Injoque et al. (2002) discuss the Orion vein system and note that the veins are up to two (2)

kilometres long, but are distributed in “rosaries” (pinch-swell/boudinaged structures), with

individual bodies measuring from 50 to 100 meters in length.

2)

Some veins, such as Veta San Juan de Chorunga, Veta

Mercedes, and several veins on the Chance property have narrow andesite dikes in the hanging

wall or footwall. Alteration, restricted to the veins and narrow contact selvages, consists mainly of

sericitization, chloritization and silicification. Gold occurs as free gold and electrum in pyritearsenopyrite

microfractures and as free gold and electrum encapsulated by quartz (Nuñez et al,

1994). In the oxide zone, which typically extends down to about 50 meters below surface, gold is

associated with limonite.

3)

Escobar and Mendoza (1994) comment that the San Juan de Chorunga vein in the Ocoña area has

been worked intermittently since colonial times and continuously since 1970, processing* 400 to

600 tonnes of mineralized vein material per day grading 4 to 5 grams per tonne gold. From this

information, it can be calculated* that the Ocoña Mine has produced* a minimum of 650,000

ounces of gold between 1970 and 1994. Considering that the mine was active for some years after

1994, and that no credit is assigned for gold production in colonial times, the actual production is

probably closer to a million ounces.