Companies get taken out without having a 43-101 updated. Its almost unlikely to have an updated one at the time of an offer because of ongoing exploration. If companies are trying to add to a PROVEN resource, then drill spacing is required at specified intervals and a "step out hole" outside of the specified interval will need to be infilled to be counted. However, to my knowledge, there is no rule/law restricting a company from poking holes here and there on their property. Having said that, I see it very unlogical for the company to target 1 anomaly in their first drilling, an offer would not likely come in with that limited amount of info from the property. It would be very wise for the company to target at least 3-4 of these anomalies on the first drill plan if they want to get things moving quicker, if they dont want to move quick and start by proving up the ovoid, we are in for a very long time to a buyout.

We would not want an aquirer, and an aquirer would not want to purchase one anomaly on this property, its senseless. If the companies intention is to show whats there NOT PROVE IT, and they have a short TIMELINE, (we have reason to beleive the company has a short time horizon), then they will have to scatter the drills. If they decided to prove up the Tesoro one anomaly at a time, this will take years.

Arequipa, Andean, Fronteer, etc all got taken out with the ASSUMPTION that there was more gold there, as high as 4 times more beleived to be there in Frg,s case (i beleive it was FRG,S case). So, you dont need a lot PROVEN up, just show its THERE. Now a couple of important things that indicate its there ,is;

1) Neighbors,Dynacors to the north, San Juan to the south 2) Titan Geophysics

3) Bulk samples

4) The Technical Report

5) Informale Activity

And the purchaser will take these points into careful consideration and they will influence the offer price.