I'll take a crack at explaining the disconnect between POG and gold equities, both producers and explorers.

I think the fear yesterday and by looks today in Asia, is that money will be harder to come by. I think that the people and thereby the market at large feels a day of reckoning is coming closer. What does that mean? Well, in much of the western world in means that public debt will have to be paid down. Think fewer social benefits and larger taxes. Combine this with inflation. Money printing presses are running at full speed. Where the average Joe will feel the most pain is in buying the necessities of life. Food, shelter, fuel. I think the net result is that people will have less discretionary cash left at the end of the month.

And this is where it hits the equities market hard. That left over cash above combines in the markets and is called capital. Capital is the lubrication that businesses need to run. So even if you are producing a commodity that is in high demand and commands a good price, Producing more in a tight capital environment becomes more difficult and makes a company less profitable. Hence the drop in SP.

Some producers may also still by winding down some hedge gold, in other words selling at less than current price.

These same factors depress explorers but to a greater extent. To bring a mine into production is enormously capital intensive. And time lines become extended.

Having brought this doom and gloom to the board, here's a little ray of sunshine. SLI has not suffered more than the markets at large and has faired better than most of its peers. The most tell tale sign comes when the bargain hunters swoop in. The first stocks to rise are the ones that offer the best opportunity as judged by the collective wisdom of the market.

I believe that SLI is well enough capitalized to carry on with the stated program of proving up the Tesoro. It can do so without turning to the turbulent markets at this time. Should Tesoro prove to be the find that it is alluding to, it will be a big nugget in a big pan of sand and fines and will therefore be 'in play.'