Hi BOW,

I just spent a little bit of time looking at the Gluckstein report of last summer again. I have to say I am not impressed with their math. The scaling factor of 68% is what I have the problem with not to mention the dimensions used to arrive at 2.5 million ounces of gold or so. IMO, that report should be thrown out the window for lack of really looking at the facts, as we have done.

The scaling factor was derived from reverse math from the C-1 vein area and should not be applyed over the rest of the property because it is not taking into consideration any disseminated gold.Also, I beleive that ALL the ground removed when making the shafts were part of the tonnage, this is ok to use the scaling factor at the C-1, because there appears to be little disseminated gold in that area and would give you a true number for open pit in that C-1area .Its a different thing though when we get over the Giant Anomaly, there is a halo effect in that area of dissemin ated gold, and hopefully the trenching will give us some real numbers to work with.This becomes a huge problem when doing the math on the giant anomaly and I dont beleive the 68% scaling factor should be incerted in that equation. You already scaled the numbers by only using 1 g/t, IMO. And if that gold is evenly dispersed through the anomaly as the Quantec suggests, you are only giving us the math on 32% of the anomaly, or maybe only .32 g/t for a grade for the whole anomaly.

The Gluckstein report derives their 2.5 million ounces from 9.5 km long, 0.5 meters wide and 600 meters deep. For gods sake, if we had the Tesoro disected to a 1500m, that math they applied to the whole property could probably be applied to one vein. It said we had over 50 veins before this report was written, that number has risen since then and I expect the trenching to add considerably to that number. The A-4 vein has a width of 25-40 cm the average width being 32.5 cm.

It doesnt really matter the width of the veins, as long as there are lots of them and the grade is bonanza. The further you can stretch a grade out over barren soil, the more chances of hitting more veins, hence pushing up the economics.Now, when you have disseminated gold inbetween veins, the better it is. Hog portrayed this in one of his posts and showed people how easy it is to have the economical open pit here.

BOW, I like your math, but I do think it to be too conservative.

IMO