I saw this NR come out today.

http://af.reuters.com/article/metalsNews/idAFN1E7771QM20110808

It caught my eye whereas it was a Peruvian approved project as of late. I started to look a little deeper to see just how many gold ounces they had, how close to our projects and what type of deposit. I couldn,t get on Southern Coppers website to get all the info, but here,s what I got.

It looks like they have around 750k ounces of gold there, plus a good quanity of silver. It will be an open pit, and is an epithermal vein deposit. IMO, this may be a good comparison to the Zona Canchete ONLY, in regards to deposit type and mining style.

It is located approx 66 miles North of our Vilcoro, and approx 100 miles South East of our Cueva Blanca, pretty well on trend with these two properties of ours. They are located around Cajamarca, on this map.

http://www.steliasmines.com/properties/PeruFig1.pdf

Check out the description in the link below, it wouldn,t let me copy the paragraph. But it shows roughly a $70 million cost, mostly in line with todays start up costs, maybe a little lower. The main point here I am trying to make is that they are going ahead with this project to mine 750k ounces of gold and 7 million ounces of silver, Gluckenstein,s report said they estimated we had 2 million plus ounces, so that should show right there that we will be a mine/s.

http://www.bnamericas.com/company-profile/en/Tantahuatay-Tantahuatay

The excerpt below came from the link following the excerpt. It says the average grade is .89 g/t. It says in that excerpt that the gold ounces are around 500k, thats most likely due to cut off grade? I am bringing this up to show, that if our trenching brings back samples averaging .5 g/t, we are well above the grades in that open pit when you factor in the high grade veins.

The Tantahuatay project is located in Cajamarca in the northern Peru. In 2010, we began development of this project to exploit its gold cap.

The Tantahuatay project contains estimated resources of 27.1 million tons of mineralized material with an average silver content of 13 grams per ton, and 0.89 grams of gold per ton of mineral. We expect to start dore gold production by the third quarter of 2011. The project is expected to have an annual production of 90,000 tons -- ounces of gold, I'm sorry, 90,000 ounces of gold and 425,000 ounces of silver for 5 years. The company has a 44.2% participation in this project and the remaining balance is owned by Compañía de Minas Buenaventura and others.

http://seekingalpha.com/article/283949-southern-copper-s-ceo-discusses-q2-2011-results-earnings-call-transcript

So, the moral of this story is; a project approved in Peru as of late. The speculative proposed mining taxes will not cause this project to not go ahead. Its only 750k ounces and it will be mined at an average grade of .89 g/t. Compare these figures with our present ones, or the speculative ones we come up with on this board, either way, it looks like we have an economical deposit.

I beleive the Tesoro as an open pit, can do better than the above project.

IMO