We have used, as well as SLI, Dynacors Acari Property, many times in comparing certain aspects to the Tesoro. The most common point that you see SLI referring to is the estimated inferred resource of 606,611 ounces in portions of 3 veins. We also took this as a given and I thought it was only an estimate of how much gold was in these 3 partial veins, but understand now that this resource was calculated as an inferred resource, meaning very conservative measures were taken.

In calculating this resource, they used the mininum width of the vein, for example; their Carnero Vein is anywhere from 40 cm to 2 meters wide, but they use around 40 cm in their equation, in which the average should be 1.2m.

Another thing they do is scale the tonnage by ~70% to arrive at 483,840 tonnes at 17 g/t, which equals 266,034 ounces of gold in a vein measuring 1600m long, 800m deep and ~40 cm wide.

If I use the tonnage formula lxdxwx density= tonnage, use 2.75 density and use 1.2 as the average width of the vein, and don,t scale, I arrive at 4,224,000 tonnes which would equal around 2 million ounces, in only one partial vein of the three used in the estimate.

Another thing not added in this resource estimate is the high grade off shoots which go up to ~ 50m off this main vein. Off shoots generally tend to be higher grade gold and are a very valuable part of a resource that is not considered in this as well, for example; 8 high grade shoots which graded up to 4 ounces per ton are not considered in this.Another thing not considered in the resource, but mentioned, was the mineralized lower grade shear zone 2-3 m wide that was traced for over 3 km, and is a common vein carrier in the region. Do the math on that if you want at ~1 g/t to see what you may get.

So you see what happens when the estimate is derived by conservative methods for use in an estimated inferred resource to get it 43-101 compliant. If the grade stayed consistent, in which their sampling had to back that up, to be compliant, in this case, they would have ~10 times more gold actually than what is put in their resource estimate. Math doesn,t lie, its how it can be manipulated every time you add a new part in an equation, in this case fractions, rather than whole numbers, will cut it down. I am not saying Dynacor manipulated any numbers here, just that they had to do it this way more or less by law to get it 43-101 compliant. A similar thing just happened with BGM where they made a comment they may have around 70 million ounces when their indicated showed around 10 million ounces. Another example, when Barrick mined Pierena that they got from Arequipa, there was 4 times the gold there than thought by estimating from property data.

So you see, there is plenty of gold on the Tesoro when BOW does his calcs and when I did a few, because like BOW says, "math doesn,t lie". And because of 43-101 reporting requirements, many times less the actual amount of gold whats there gets put into these 43-101,s, sometimes, many multiples less and the only time it can be actually stated how much gold came from a certain deposit, is after its mined. This leads me to speculative ounces and how this will play a huge part in future buyouts. The majors knows how many actual ounces are there by using math and accurate technology that has been refined ie, Quantec, and will have to start paying more per ounce on buyouts if they want them. Maybe Dynacor was keeping low key in their estimate 8 years ago to not draw attention and continue mining these veins without getting a hostile offer? I cannot find their tech report on SEDAR for the Acari property, but know that one was done. Some of the info above comes from a report done by EResearch in 2004.

The geology of Dynacors veins, which appear to be part of our Tesoro system, has large off shoots, which also should be on our veins. We see Lori mention high grade off shoots and blow outs, but she is not giving us any numbers on these either. It is most likely that these blow outs and off shoots are becoming more prominent at depth, as the Quantec may suggest and are causing some of these anomalies. Sometimes granodiorite, depending on the composition, can be easily fractured in cube or dice formation from pressure from gold bearing fluids and this causes many of these off shoots and blow outs of quartz which can carry gold. To have drill results that are showing none of this, is to contradict regional geology,historic data, Quantec, science etc., so there has to be more to the drill results and clarification on the trencing.

IMO