I guess that what intrigues me with Barrick's numbers is the fact of how they calculate those numbers. I would suggest from what I understand of their numbers presented, their proven and probable reserves have not increased. For both years, 2009 and 2010, that number has been 138.9 million ounces. What has changed is that in 2009, they used a cut-off of $825 gold and in 2010, they used $1000 as a cut-off. Gold ain't worth anything to a company if it costs more to mine it, than what it is worth...

In essence, their deposits are getting more expensive to mine. They are also reflecting the increased gold price in their reserve numbers. Therefore, I don't think they are actually acquiring any great amount of new ounces, just re-classifing old ones...

How is that important to SLI, very simple. If Barrick or another major can acquire a low cost deposit, it now becomes more economical for them. I mean low cost from the point of getting the ore out of the ground and processed. I believe that the Tesoro is just such a property.

Here is another way to look at this. Barrick's Pascua Lama project will be one of their lowest cost producers when it comes on stream. The capital cost just to get the thing going is about 3.5 billion dollars.

This is why I am so bullish on the Tesoro project...

Kherson