If holes 7 and 8 were drilled at an azimuth of 230 degrees as suggested in the drill program chart that is in the tech report, 90% of the intercepts in these 2 holes may be new veins. Hog has been doing some work on this, and I think its possible that he is on to something.

By going by the drill plan, holes, H-25 and H-26 are test holes into anomalies T-18 and T-14, respectively. These holes are in the Canchete area and are away from the big anomaly, although it looks like this area could be all connected at depth, we can,t tell for sure, because we never got the deep 1500m imagery. Nevertheless, for now, this area looks much better than I ever anticipated, if I am right in interpreting the release and hole positions.

If you look at the surface plan of the suggested drill holes,H-25 and H-26, plotted on the property map (the plan that also has all the known veins), You will see that there are NO known veins that these drill holes could have intercepted on a 230 degree direction of hole,(or azimuth). Yet amazingly, hole #7 has at least 8 intercepts and hole #8 has at least 9 intercepts. These appear to me to be all new mineralized structures/veins or extensions from the south of some other veins that lie above the big anomaly. Although these mineralized structures appear to be narrow and a considerable distance may be present between the veins, there is no way of knowing for sure at this time if that is actually the case. With out further info and concise analysis of the entire core, an assumption that these holes are poor, could be very far from the truth, and I will turn the tables here on that point by saying, if you are speculating that those cores are bad, you could be in for a surprise when we get all the data.

I did some research on the C-5 and C-7 veins, I believe those are the right veins, without going back to look. It doesn,t really matter which veins they were, but whats important is that in that area we also had disseminated gold in the host rock. There were samples taken of the host rock there that were in access of .2 g/t gold, this may be an economical grade providing it is consistant, wide spread and mixed with enough high grade veins of 1g/t or above over closer distances. Now having said this, you can look at the grades of the intercepts in holes 7-8, and see that quick math gives you an average grade of 5 g/t in hole 7, and an average grade of 2.8 g/t in hole 8. So, these sampled portions of the core are above grade what we may be able to fit into an economical equation, if, the disseminated consistant grade is there.

I should go further to mention that very limited sampling appears to have been done in any cores yet reported on in the last NR,s. To see such small sections of the core sampled, ie; 10-15 cm in some cases, are only random tests checking for grade, rather than select samples looking for the highest values which can distort your numbers when looking at a low grade bulk tonnage deposit. I am very pleased with my idea that gold seemed to be found in the core, where ever sampled. I say this because of the length of the intercepts tested, as low as 9 cm, all our veins get wider at depth at the Tesoro, and these sampled segments no way can represent true widths of veins. Because of this and more, I say the grades reported are merely very limited testing of the cores. I see 37 very small test samples taken to date from 11 holes. These 37 samples could have been assayed easily in 1 week, so I would expect a tremendous amount more sampling done and reported on in the future. I would also love to see the remaining deep 1/3 of each of these 2 holes that we have no info on yet. Where gold grade has historically increased at depth on the Tesoro, I would guess we may see some higher grades as the deeper portions of most holes are sampled and released.

IMO, I may be 100% wrong!