There could be very possibly verticle holes in our initial drill program. This would depend on if the company wished to test all anomalies or individual vein structure. Most likely there will be a mixture. The last thing you want to do, is drill right down the mineralized vein, although you may get really amazing numbers from a hole like this, it really gives you little info on the resource and its extents. If its a mineralized dyke, then this may be of benefit if its surface width is considerable and its gold grades from surface sampling are very high.

Usually a company will try to drill a singular vein at a 90 degree angle or perpendicular to the vein. In our case, we have steeply dipping veins, meaning their angle from the horizontal plain is steep and are between 75-85 degrees approx. To get the true width of these veins at various depths, you have to try to drill perpendicular to them. At the Tesoro, our best bet is drilling where there are multiple veins in a small area, or vein clusters. This way you are getting more bang for your buck. The anomalies appear to me that they may be gold bearing vein clusters, so in drilling these, the angle of drill penetration becomes less important. Just drill right through what appears to be the widest part and see what you come back with.

If there is suspected disseminated gold in the area of a vein, then 1 hole should be put here to see the extent of dissemination. This disseminated gold could add substantially to your resource.

As you can see, the Tesoro is not a typical exploration target. We have so many different structures, that different approaches should be taken in drilling the targets. Also the numerous faults and composition of this fault material will have to be taken into great consideration prior to drill planning.