Here is a post that Hog has been working on since yesterday and finished it around 8 hours ago. I have Hogs permission to post this here.

More Research on Current drill Program Release

Been doing some research over the last few days and thought I would share.
One thing I have to say is that although there are many who don’t like the way things have been done recently, we have to look at the facts here, and the facts indicate that Lori has been following a plan of action for some time as laid out in the 43101 Paul Grey report. Although the timing may be off at times which is expected, and usually conflicts with the timelines we would like to see (usually unrealistic), she has pretty much been bang on with the plan. She has in fact wavered from the plan very little if any. We all have to read and understand the recommendations below. Copy them and put them aside for future reference.
Everything she has done in essence has been laid out in black and white for us previously.
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Paul D. Gray Geological Consultants
Report 10-103

19.0 RECOMMENDATIONS
With the completion of the 2009-2010 Quantec Titan 24 geophysical surveys and subsequent interpretation of these data, several high priority anomalies have been identified which require follow-up by detailed systematic mineral exploration methods including trenching and diamond drilling. A complete compilation program of all exploration data to date has been completed which will greatly aid these exploration programs.

The author recommends a staggered series of exploration work programs designed to achieve the following exploration objectives:

Detailed geological control (outcrop mapping) of entire Property by prospecting and GPS surveys;
Systematic sampling of all quartz vein exposures defined from the above;
“On the ground” follow-up and surface sampling of all high-priority geophysical anomalies;
Systematic trenching and open cut exploration and sampling of anomalies generated from above, with particular attention on the North Corridor;
Testing by Diamond drilling the Quantec Titan 24 High Priority Drill targets, both near surface and to depth.

Additionally, the author recommends environmental and “socio-economic” programs be
undertaken contemporaneously to any exploration programs. These studies should focus on:

Environmental baseline studies including ARD/ABA testing of mineralization and host rock;
Identification and preliminary contact with the local stakeholders and Amerindian groups;
Study and design of updated access roads;
Continuation of transparent relations with local communities.

The author was satisfied with the professional operations St. Elias maintains in Peru. However there were several small issues which should be addressed to ensure proper QA/QC protocols are followed from this point forward.
A standard naming system for all sampling (surface and underground) should be adopted,
All pulps and rejects from all sampling on the Property should be maintained in a central
area;
Ensure adequate naming and handling of diamond drilling core is utilized
A digital database was compiled during the course of this study with all surface,
underground and pulp samples contained in one single file. This format should continue to be utilized.

An Environmental Impact Study “E.I.S.” as required by the Peruvian government to conduct work on the Tesoro Project has been filed by St. Elias in support of the ongoing exploration efforts on the Property. This document has been reviewed by the author. Before any substantive exploration work (as described below) can begin, this document is required to be accepted by the government. It is critically important to the Project that the E.I.S. is accepted, and all immediate efforts should be focused on this task.


Paul D. Gray Geological Consultants
Report 10-103

The author’s exploration recommendations are summarized below.

1. Phase IA: Audio Magnetotelluric Three Dimensional Inversion of the Quantec
Geophysical Data: The Quantec data has been collected and processed, however this data has not been inverted and re-processed with MT 3D. This should be conducted as soon as appropriate as it will help guide all surface and sub-surface exploration on the Property. A program budget of $17,000 and duration of three (3) weeks would required for this phase, which could be done at any time.

2. Phase IB: Systematic and Detailed Tesoro Camp Wide Mapping and Sampling Program:
A Property wide mapping campaign designed to locate new mineralized veins should be
mounted with particular attention paid to the North vein corridor, the near surface anomalies identified from the Quantec Survey and the areas covered by the newly added mineral claims. This data should be assembled into a single coherent GIS package which could be utilized to guide all future work on the Project. In particular a detailed geological basemap highlighting all known (ground-truthed) mineralized showings and areas of anomalous geochemical/geophysical signatures should be produced from this exercise. The geologist employed in this program should have a clear understanding of the identified mineralization within the Tesoro Camp and
apply that knowledge to exploration planning on the Tesoro Property as a hole. A program budget of $95,000 and duration of forty (40) days would be required for this phase, which could done any time.

3. Phase IC: Systematic Mechanical Trenching Program: A detailed trenching program focused on those areas identified as anomalous from Phase 1A and involving a D-6 or larger excavator should be implemented on the Tesoro Property as soon as practicable. This program should be concentrated on those areas on strike and in between known mineralized vein and in particular be located in the North Corridor and on the high priority near surface targets identified by Quantec. A program budget of $180,000 and duration of five (5) weeks would required for this phase, which could be done any time, weather permitting.

4. Phase ID: Geological and Geophysical Compilation Program: After completion of Phases 1A-1C, a geologist should be employed to compile the geological and geophysical data into a single coherent GIS package with clear diamond drilling targets selected. This step is required to determine the most geologically and geophysically suited targets to test by diamond drilling. Targets should be generated and prioritized into a logical progression of drilling order, whereby early drillholes focus on both near surface and deeper seated geophysical targets with interpreted geological controls. This important aspect of the program will require two (2) weeks and a budget of $10,800.00 and can be completed anytime after Phase 1C is completed and assays received.

5. Phase ID: Diamond Drill Program: A suite of at least 24 drillholes (totalling at least 10,000 metres) designed to test the near surface and deeper seated geophysical anomalies identified and substantiated from Phases 1A-1D are warranted for the Tesoro Project. Eleven weeks would be required to mobilize and drill the targets identified within Phase ID. A program budget of $2,200,000 would be necessary for this phase and would best be conducted between May and December.

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Now this is very important and needs to be understood.
These are Quantec recommendations. Note: That No#1 is very important.

The following recommendations are derived from the interpretation of the DCIP and MT survey at
Tesoro Project:

1. Test the center portions of the interpreted high priority anomalies utilizing angled drilling
With a maximum dip of ~65 degrees. If favourable results are obtained, then test the deep
Portion and unexplored areas in the vicinity of the interpreted anomalies where significant
chargeability, DC and MT resistivity responses are observed.
(****This is exactly what Lori has just done in the first 11 High Priority holes of the drill program.****)

2. Review the available geophysical, geological and geochemical data in the vicinity of the
Priority target areas prior to drilling and commencing further exploration of these zones.

3. Evaluate and re interpret the existing conventional surface a borehole geophysical data if
Available to further enhance the interpretation and drill targeting
4. In cases where the deep MT responses are an extension of the shallower DCIP
chargeability, a higher priority may be assigned to these responses if significant results are
intersected by the recommended drill holes.
5. When the deep targets are drilled, follow up with Borehole Time Domain Electromagnetic
BHTEM) and consider physical property logging on all the drillholes in order to delineate the
Extent of the source and/or identify secondary sources of the anomalies.
6. Similarly, if mineralization and/or alteration is encountered when drilling the target zones, a
priority step back drilling should be considered for testing the areas in the vicinity of the
Titan anomalies.
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Lori has indicated in her release as has also been recommended above that she has drilled the High Priority drill targets laid out in the 2009/2010 Titan24 geophysical surveys. She has indicated that the holes were primarily surrounding and within the amomaly.
You will find in my illustrations in the attached pdf files that I have shown that a perimeter hole does not only mean that they have drilled along the outside edge of the anomaly, put if you drive a hole down onto the top of the ovoid, but stop at the top outer edge, that that can also be considered a perimeter hole (as long as it doesn’t pierce into the body of the anomaly.
We know according to the drill table that the first 11 holes have two located in Zona Canchet the other 9 in Zona Central
When you look at the 43101, the 11 holes in those two areas are clearly separate from those to the South.
You then just have to try to match up which drill hole belongs to which target hole.
The two Zona Canchete holes are easy. Hole#6 we are given info on location so that one is not hard, but the rest you have to look at the intercepts and depth and try to match them with known faults and veins and try to line them up within reason. Some may be off, but when you look at the overall picture, it doesn’t matter.
The effect and results are the same regardless.

The PDF files below have been separated into 5 parts so as you will be able to zoom in and get clearer picture details. I would recommend viewing them in order. If anything is unclear pull up the 43101 for a better view. (Also it might be worthwhile comparing the drill table in the attached First drill summary sheet to the 2D cross sections.
If this doesn't help make what is going on with the drill program clearer I don't know what will. She is following the recommended plan, with possibly a few surprises thrown in, but she is following it nontheless.
Keep in mind this is my interpretation and opinion nothing more.

Hogtown