Sculpin, I have some questions that have been giving me uncertainly regarding the open pit possibility. Referring to Hog’s diagrams showing how disseminated gold spreads out from a vein, I expected the drills would demonstrate this at a depth of let’s say 15 meters for example. When this was not shown I have to assume that the high grade surface veins are too narrow for this to happen. Granted, because of the past results shipped to Dynacor we know that the number of surface veins and the grade is known, and if many veins have not yet been tested it would be easy to do so in those untested portions. In time the trenching will give good answers to that.

Where my knowledge ends is what would be the case if we have 50 veins that are well worth mining, but the distance between is rubble? Can this rubble be economically removed and shoved to one side, or is this an impossible question to ask at this time? Structurally there are deep canyons on either side of Tesoro so I would guess that disposal of the rubble is not a huge problem.

With all the changes in resistivity and chargeability from the surface down and as far as the relatively shallow void between the “surface” area and the anomaly I remain surprised (like a lot of other posters) that better gold values did not work out. (I avoided the term "pan out")

I realize this might contradict your friend’s statement and I am in no position to argue with persons of knowledge.

I am fairly certain that the anomaly will prove to be the saving feature, but when I talked with an engineer at Quantec many months ago, they could not give any indication that certain values for resistivity and chargeability meant any kind of grade of (in our case) gold. He referred to variabilities that I guess he was implying were mainly sulphide values. i.e. a high sulphide - low gold value could give the same figures as low sulphide – high gold. Do you think it is possible those Quantec colours turned out to be high sulphide values near the surface? Again to be repetitive, our gold values have continually improved with depth, so I remain very optimistic re the anomaly.

The final question concerns the possibility of a no open pit mine. I truly expect that with the financial implosion world-wide, gold and silver will be one of the best safe havens for all of us. A timely example is the failures of the large Spanish bank yesterday and next, an Italian bank on the brink; thus the continued fall of the Euro, which eventually will probably be about par with the US dollar. The latter will gain in the shorter term but the same forces will eventually cause the US dollar to implode whereupon there will be a huge flight to gold and silver. In this scenario I don’t see why the deep anomaly wouldn’t still be very valuable today even if it has to be mined through a shaft system. (And again for this reason I would prefer a cash + share form if we are fortunate enough to see a buy-out)

I would appreciate clarification on some of these points if at all possible.