let me begin by saying I have no idea if SLI is going into Gold production at Tesoro but judging by the last NR and last interview by Lori,where she subtlety alluded to the fact, it is in my opinion a possibility. Now I'm not saying they will suspend the current trenching, diamond drilling program but underground development and in turn Gold production, would done in conjunction with the current plan to more accurately define a 43-101 compliant resource estimation.

For the sake of the new investors into SLI let me give you a brief history on the property. The property was acquired in April 2004 and underground development began on the C1 vein system in June 2005. The results of the first bulk sample came back Jan. 2006 and produced an amazing 1.56oz/t gold. Underground Work continued on the C1 Vein and in Aug 2006 the second bulk sample results came back .88oz/t Gold.

With outstanding results like these it soon became apparent to the company that if they ramp up the number of tons they could become a small scale Gold producer that would generate profit to expand further exploration activity. It was at this time that they hired Glen O'Gorman, a Professional Mining Engineer with over 30 years experience to head up the development team.

Lori writes at the time "The Company plans to develop the Project by incrementally expanding the operation from a artisnal level of production, through to profitable production level while concurrently defining resources or reserves" The Company determined "at the time" that superior exploration info would be derived from underground development rather than drilling.

What were their goals?? Well short term they planned to produce 200 - 300 tonnes per month, which at the 2006 Gold price of $570, and an average of 1 oz/t, would translate into gross revenues of $114,000 to $171,000 per month. Interestingly at the price of Gold today we're talking $340,000 to $510,000 per month.

The long term goal was to ramp up production to 50-100 tonnes per day which at a oz/t and a 2006 Gold price of $570 would generate Gross monthly revenue between $700,000 to $1.4 dollars. At $1700 Gold the monthly revenue would be between $2.1m and $4.2m per month.

More underground development and bulks sampling continued, with each sample yielding impressive results. With these spectacular results staring them in the face the company began to wonder if it would be possible to find the source of the Gold mineralization and as a result in April 2009 hired Quantec Geoscience to conduct a Geophysical survey on the property.

Bulk sampling continued up until Jan 2010 when the first Quantec images came back. Since that time the underground development has been put on hold (as far as we know) and the emphasis shifted to surface trenching and drilling the anomalies.

I now have a hunch we are heading back to underground development and the production of GOLD in conjunction with our trenching and drilling program to come up with a 43-101 compliant resource estimate.

To follow: