I have been digging today looking for something else, but came across this. I thought it is important and interesting. The first part of the post is just a little comparison, but the last part will most likely be the most important.

I put on here in a post earlier today about a mine 18 km,s to our north, the Pallarniyocc. Upon further research, it appears to me that Dynacor bought that mine back in the nineties when they initially bought the Acari property. So, in the course of research I stumbled upon a 2004 report done up for Dynacor by a paid analyst. Now remember that Dynacors property butts ours in the North and that Hog did a post on how it looked like Dynacors veins connect with some of ours.

They talked about how Dynacor has 3 veins that have an estimated 1 million tonnes of ore at 16.4 g/t which equates to just over 600k ounces, by doing simple math on the known portions of the 3 veins. They did bulk sampling with grades similar to us, between .3 ounces per ton up to around 5 ounces per ton.Their metallurgy gave them approx 92% gold recovery, which is a high percentage.Their cash cost per ounce then, in 2004 was $276 US per ounce. They had followed a vein on top of the hill at the same elevation as us, 2000m, that extended from the valley floor somewhere. I assume they picked up this vein on the south side of the valley, closest to us, but not entirely sure. Their veins again were anywhere between a few cm up to 4 meters.

To compare that last paragraph with us; we have over 50 known veins to date that would stretch about 9 km and I believe their estimate was around 4km of veins with most likely the same vein widths that ours would be at the comparable elevations. So, all things being equal, I would say there is a good chance for us to have at least 1.3 million ounces at their standards. Don,t get me wrong, I believe there is a lot more than that there, but I am just trying to establish a reality mininum amount of ounces that we can build on. Their cost to shaft mine this was really cheap in my opinion. At $276 cash cost then, might put it at $500-600 now per ounce, (just a guess), but still quite a profit margin if someone were to buy them out at $100 an ounce in the ground.

Now, what I consider to be the most important part of my findings, here are 2 ver batum sentences in quotations below. I cannot copy from the report I got, but will post the link if I can find it again, and if it will work.

" The majority of the gold mineralization is believed to be spatially related to diorite"

"This resource estimate does not include the lower grade mineralization that occurs in the wall rock."

www.infomine.com/index/companies/eResearch/FileDownload.asp?...17 -

So, the importance of those 2 sentences to us, is as follows. Dynacors veins are from 2000m high down to the bottom of the valley around 700m or so, these are rough elevations and may not be right, they are not really important to the point. The point is, Dynacor is recognizing disseminated gold at their elevation that may equate to a depth on the Tesoro at 1000m-1200m below the surface. They have drawn the conclusion for me that the country rock, the diorite, is mineralized at depth. They don,t say what grade or to what extent, but they do recognize it. For them to even mention it back then, kinda makes me wonder how or why they tested for it, or was it high enough grade to see flakes of it in the diorite?

So, for me, I am glad that we have further evidence of diorite being mineralized at an elevation of 1000m below our Tesoros surface, even though its about 5 km.s away, its still the same kind of rock and we had no less than 5 areas identified on the Tesoro of the diorite being mineralized at surface. I believe our highest grade of this mineralization came in above 2 g/t.

Then another memory jumps in my head, when Hog and I were doing research on the Chorunga Complex 8-10 km south of the Tesoro, a sample taken from their tailings pile yeilded around 23 g/t gold and they were throwing that away because they didn,t think anything was in it, because there was no visible gold or path finder minerals visible.

Just my opinion, it may mean nothing to some, but I will take it as another clue that may fit in the puzzle down the road.

IMO