Just looking at some historical data from this area, Zona Sur. I see hematite and limonite visuals shot up with higher gold grades, I would say a good correlation. The hematite and limonite can be lightly chargeable depending on its oxidized state, both are just variations of iron, and when it gets below the oxidization level, around 50m down on the Tesoro,it should change to the iron which will give off a high charge, like we see in the first phase of geophysics in 2009 that showed the ovoid.The second geophysics was more impressive, because it was fine tuned from the data collected from the first geophysics. This also explains the accuracy of when Hog plotted the C-1 vein adit on the appropriate slide. When he did this, a 120m width corresponded exact with the Quantec orange color signature, showing it was fine tuned and very very accurate.When you follow the Quantec signature down the C-1 vein shaft, you see the signature becoming more chargeable because the increase of sulfide content, ie 4% and the corresponding gold grade increasing the deeper you go. Extend beyond the 100m deep that the C-1 adit went by following the Quantec signature, you will see the orange go to red, then to hot pink when it meets up with the giant anomaly around 300m below the surface. I remember Quantec coming out on their website saying how they could calculate deposit tonnage from their images, and this explains why, Quantec knows the accuracy of their technology. I should also say here that an adit dug from the C-1 Vein over to the next vein 30m away to the north, had around a 1 oz/t grade out of the development material, not following any vein. So this had to be consistent high grade alteration through there, which is amazing and must have consisted of numerous high grade veinlets setting in an intense alteration. Also out of the C-1 vein, the highest sample ever taken was a whopping 11 ounces per ton!!!



Development material




returns average grade of

1.00 oz/t gold.

We are not talking single veins here responsible for this deposit, every alteration type on this property is mineralized to some degree. We would not get the Quantec signature that we are, if it was just veins, especially narrow veins around 1m wide, you wouldn,t even pick those veins up on the geophysics. Many veins,veinlets,alterations and sulphides have to be the source of the chargeability anomalies, the veins deposited the mineralization in these blobs/anomalies on the way to the surface. There is also copper present among some assays where it was tested for, and evidence of copper staining in some samples. We are most likely looking at gold/copper porphryies, with gold being a prominant metal. If this is the case, which I believe it may be, we should have some pretty rich ore underground there, but I can,t understand why it is not showing up in at least some of the drill results that were drilled in these areas.

So, if we take this analogy and apply it to the geophysical anomalies, it fits the signatures well. This can be seen well by comparing the adits at the C-1 and A-4 veins. The breccias and andesite from the surface down to 100m or so on the A-4 seems to be cutting down the chargeability signature there, probably masking a higher sulphide content, because the sulphides are showing up in A-4 samples. But the oxidization level down to 80m or so, affects the chargeability there, for the simple reason of the rust unable to hold a good charge. The low resitivity IP is of limited use on the Tesoro because of the abundance of pathfinder sulphides, the chargeability targets have to be the main targets, yet it seems very little of them have been drilled. The high resitivity is what you have to pay attention to when looking at this property, and high resitivity, off the charts, accompanies the high chargeability anomalies.

I wish a geo that may read this takes the time to look at what I just said and would send an anonymous post for this board, with his honest opinion. The C-1 vein lies on the 5750 Quantec slide of the 2010 tech report, it can be found on the SLI website here,

http://steliasmines.com/projects/peru-projects/tesoro-peru/

thanks

IMO