Most of the scaled 4000 ounces was gone BEFORE Paul Gray did the 2010 technical report. In that report, he says he cannot verify the amount, because it has been mined . So now you may ask the question "what were the benefits of mining it, or leaving it there as a reserve to build on?"
First off, it was known that the ~100m x 100m area of the C-1 vein contained 4000 ounces. So, it must have been profitable for them to waste time on mining it. The point is, that there WAS NO need to mine it, it was delineated as a resource to build on with OTHER exploration. It is very reasonable to conclude, that it was mined for the money, of which if Lori,s quote said that they can retreive 90% of the cost by mining, it does not make sense. It does make sense to mine this, if that 90% recovery cost is not correct, and that perhaps the profit margin was a couple hundred percent.
So, its plain to see that the grades were severly under reported as well, meaning that much more gold came off the Tesoro than reported. This is perhaps further reflected in one of the mills that bought the Tesoro mill grade material, Dynacor, that has been under investigation in the past and owes a huge tax bill to the Peruvian government, as a result of under reporting their production.
To simplify, Lori would NOT have mined the 4000 ounces of the C-1, if it was NOT economical. It is so ridiculously clear to anyone, that this is a huge cover up.