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Message: Re: 15 Months of DD
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lb7
Jun 19, 2012 05:24PM
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Jun 19, 2012 05:54PM

C. H.,

I do apologize for the approach, however I would appreciate a response to the point of my post. I will reiterate it as I actually think due to my inappropriate tone the point may have been missed.

I am in full agreement that if good drill cores had been drilled that further appropriate drill practices would have been followed and I am not suggesting that any good results have been held back as that would be at best deceptive and at worst a criminal offense. I simply am suggesting that the location of the drills are equally critical in determining if a viable resource exists as the results published in a NR themselves...please indulge my use of hyperbole to illustrate my point and I am not trying to be flippant ...if SLI decided to drill 43 holes in my back yard and all 43 cores were barren...the results of the assays would be ineffective in determining whether the Tesoro contains a minable resource.

So to clarify my implied questions were;

1. Do you think it would be more likely for a drill program to find a resource and produce good core samples if they were to follow the direction and consultation of Quantec arguably the industry leading technology for accurately identifying anomalous signatures and interpreting them to determine drill targets or to determine drill locations on your own?

2. Do you think it would be more likely to determine if the Tesoro property contained a viable resource by drilling 43 holes within the anomalous zones identified by the Quantec technology or predominantly outside of those zones?

C. H., while I would greatly appreciate your response to these two questions first and foremost...I also think it is important to provide my answers and the rationale as a matter of transparency. Of course as it is only my opinion you are free to agree or disagree with it...after all it is just that, my opinion.

1. I think it would likely be more successful following the direction of Quantec technology in determining if the property holds a viable resource. My rationale is that I would presume that the only reason to spend the significant resources on hiring such a company to do the survey with their technology and to contract them to produced recommended drill targets would be because you can't do it yourself as accurately or have the same historical success of determining a drill plan, otherwise you would save the financial resources.

2. I think it would be more likely to determine if the property in fact had a viable resource by drilling 43 holes within the anomalous zones on the property. My rationale is that considering the historical accuracy of the Quantec technology in relating anomalous high changeability zones to resources, I would give a much higher likelihood of striking a viable resource within the zones as opposed to outside of the zones. Furthermore considering that the company has finite resources for its drill program and the property is very large and the zones are also very large...it would make sense to me to drill all 43 holes with high changeability zones as not to waste precious resources when there are plenty of high changeability targets which could handle far more than only 43 holes if fully explored.

I look forward to your thoughts and certainly welcome any others who would like to voice thier rationale on the two questions posed.

S.

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