I will try not to repeat Sculpin’s and other posts of the year, but based on what we have learned I am optimistic about our company.

Prime’s survey was worthwhile in my opinion as it gave some insight to the cross section of our members here. I like to think of the property demonstrating two primary areas of interest, the first being the open pit area and the second the massive anomaly.

The Titan 24 showed the shallower portion extending to about 400 meters and the deeper to up to approximently1000 meters. It also delineated twelve unexplored major lineaments as well as 36 secondary lineaments. Later on in their report they state that “When the deep targets are drilled, follow up with borehole time domain Electromagnetic “BHTEM” and consider physical property logging on all drillholes in order to delineate the extent of the source and identify secondary sources of the anomalies.

we are well on our way in ascertaining the practicality of the surface area with the sampling that has been going on for some months, as well as the underground workings illustrated by Hogtown in the Link Library. The initial drillholes that we expect to be reported early in the New Year will also give a good inclination of the value of the massive anomaly. In addition we would very much like to see the complete Titan 24 so a fairly accurate estimate of the volume of the latter can be made.

Once the open pit has been confirmed, and the ball park figure of the anomaly has been calculated and with the further investigation ( both deep drilling & BHTEM above) into the possible deep structure feeder that Sculpin alluded to, there will already have been intense international interest in Tesoro.

Somewhere in this time frame AMEX will emerge.

In addition bear in mind that the area closer to the Acari River is of interest. Note that there are several strata of gold bearing ore on the hillside belonging to Dynacor. Hogtown has delineated the directions of the faults and Lori has already bought that informales section between SLI and Dynacor (how she was able to get the various parties together must be a story in itself). This ground is covered with volcanic residue, I think up to thirty feet, and who knows what lies under there. However I am convinced these veins on the Dynacor hillside extend to the known veins on our surface that we are aware of, and in all likelihood, similar to the hillside exposure also traverse underneath.

If the majors want the property on the basis of the open pit and the anomaly I think they would also be aware of the potential of the other two unknowns. These form the basis for an offer when they are buying what is fairly well known and what is a good potential for adding to their reserves. I think Lori and her knot of specialists, including the Quantec engineer are firstly going to make sure that they know the grade of gold in that eastern deep area before committing to any offer, thus this appears to be a priority for the deep drill that is resting there, hopefully right now. They seem to think there may be impressive grades there and don’t want to not confirm this possibility.

The other important thing for the coming year both for SLI and world stability is the price of gold. In spite of the recent downfall gold is still up 12% for the year, and things are progressively worse in Europe. Part of the goldfall was the European sale of gold because of the dreadful state there. For instance Estonia , with only a 6% debt to GDP ratio was “allowed” to join the prestigious euro a year ago, and look at their position now! Next door the Latvian bank Krajbanka failed and the unrelated Swedbank had a 1930’s style run on the bank and withdrawls rose by a factor of 10! It is probably a given fact that several countries will drop out of the euro with flight to gold and stronger currencies, including (unfortunately for those changing to) the US dollar. The fundamentals haven’t changed except the short positions by the big robber manipulators are less; gold and silver will rise, and if Swedbank is any example, gold could readily double. Thus gold is near the bottom and by the time our grades are known the price could be higher.

I think the overall grades for the surface might be 3 gms/ton, and would settle for two. I think it will be greater than one. I would guess the big anomaly might come in much more than that, in view of the geophysical findings, that the grades tend to get better with depth, the underground workings, etc. etc. and also because I think Lori knows what the drill cores look like, otherwise there would have been no China trip!

Happy and Prosperous New Year to All!