Hog did some digging a while back on June Goldfields. This company held property next to ours on the east side. They are a Chinese company and would appear that they may be directly backed by the Chinese Government. This is my assumption, I beleive it is right and maybe Hog can elaborate on this later or verify it since he did the searching.

So, if we have the Chinese next door to our property and they are on the prowl for gold resources, I think its possible we could be a target for them. If the article about the Chinese that I posted yesterday is right, that they have divested 97% out of U.S. treasuries, where has this money gone? IMO, it will most likely be reinvested in gold itself or gold deposits. I say they are investing in both and we have been seeing evidence of that the last 6 months. They wouldn,t buy all the gold at once, this would push the POG too high and set off alarm bells in the world economy much faster than they have. They wouldn,t buy all the deposits at once because that would also do the same. BUT, they are doing both and its becoming more clear that they have decided to hoard both gold and mineral deposits.

So, some have said, that our deposit may be so big, that only the top miners or countries could afford to buy it. A lot of the top miners have made recent aqusitions, for ex; Barrick, and a lot of cash these miners had sitting on has been utilized in making aqusitions. A lot of top miners would probably have difficulty in aquiring us if our deposit is as big as some of us suspect. This would only leave the likes of a Glencore (which there are very few), or country backed miners. I would consider June Goldfields a country backed miner.

The Chinese are shrewd business people, we see this in how they are going about hoarding gold without pushing the POG too high, too quickly. Could they be trying to accumulate some of our shares? Could we be on their radar? Is the Tesoro the type of deposit they would be looking for? Does their sampling on the property next door show promise like our sampling? Do they own other Peruvian properties around Cueava Blanca and Vilcoro? Have they approached Lori?

Getting back to China and U.S. Treasuries, if this is true; the highlighted yellow/orange;

http://agoracom.com/ir/steliasmines/forums/discussion/topics/486696-pressure-is-building-up-for-our-takeout-price/messages/1560076#message

And if this article from last mar 2010 contradicts what has been actually happening;

http://www.reuters.com/article/2010/03/09/us-china-economy-reserves-idUSTRE6280K720100309

Then the POG should keep rising considerably and $2000 gold is not far off IMO. I have only been talking about China hoarding gold. The other world powers, such as Russia and Britain, along with India and the Scandanavian countries are undoubtedly hoarding gold too. Almost every country that is able, is most likely watching China very closely and buying what they can. Add this into the mix and it shouldn,t be hard to see the POG rising. And don,t forget silver and the rest of the metals, supply restrictions on most of these are gonna fit into the equation of aquisitions down the road. We have silver and moly on other properties, with moly worthy to be mentioned now because of its locale and the Japanese earthquake.

If the POG reaches $2000 by years end (which I beleive is quite possible) and we have lots of proof ramped up for our Tesoro property, where will our sp be? We have seen countries fight over oil, will they be fighting over gold in the future?