It should be easy to see by now that the Tesoro will be a profitable mine/mines. A close up of the Chorunga mine from google earth, shows it as being a big operation. There was/is a mining town of about 70 buildings there and a smaller gathering of buildings close by. If they were mining gold to our south along trend, to our north along trend, and we are on the trend, it only stands to reason that the grade of gold there is economical. And for it to be economical in shaft mining, it has to be a grade much higher than 1 g/t. 1 g/t today seems to be an economical grade for open pit, and when you have 1 g/t disseminated gold over a wide area, that becomes an economical deposit itself, without the veins.

A line from the Nick Fuller website on us, below;

In addition, there are large areas of disseminated gold averaging 1 gram per ton, which is economic in Peru at the current POG.

So, if the low grade disseminated gold is economical, what happens when you throw at least 50 gold bearing veins into the mix, with at least a 16 g/t grade. You then have an open pit mine with at least a 4-5 g/t average grade, which is very profitable. I beleive my numbers here are most likely very conservative and BOW can add to this if he likes. But, the amazing thing is, we dont have to show our amazing numbers, to show we have a very profitable mine/mines at these low grades.

I have used the term mine/mines in my post a couple of times because the Tesoro is a big enough mineralized area, that it could contain several mines. I would beleive the size of an average mine to be somewhere in the range of 1.5 km square.

Hog has been showing you lately the correlation of mines and vein structures to our Tesoro. In plain sight, in his work, he has shown you the same trend running through 4 of our NEW land claims AROUND the Tesoro. When we have been doing our resource numbers on the Tesoro, they are for the Tesoro only. Dont forget that last year we aquired 6 new land parcels. So, with all the excitement of the Tesoro, these new parcels are not getting recognized because of very limited info on them. But I beleive all we need to know, is that HOG just showed us that the trend runs right through 4 of those new ones. Chance A,B,E and F.

Here is the news release that shows we have increased our land position there by approx 250%:

http://www.steliasmines.com/storage/news_releases/Sli-News-2010-39-Tesoro-Claims-FINAL.pdf

A diagram of this can be seen on page 243 of the Technical report.

The other 2 claims, Chance C and D look very promising to me. I had google earthed those awhile ago, and had earmarked what appeared to me to be 3 distinct geological structures worth investigating on these new claims.

So, if the Tesoro has the chance of bringing us $50 per share on a buyout, how much will 250% more property mostly bordering the Tesoro along trend ,bring per share?

And here we are sitting at $2.20 per share, what a steal!