If nationalization of resources ramps up, no country will be immune, and will most likely be forced to follow.If this happens, it may not matter what country your investment is doing business in, royalties may stay within a competitive range of each other. If they don,t, they risk foreign investment going to the countries with the lesser royalties.

You can say in Canada, there is little of that, but thats for the time being. The natives have been working on getting their fair share of Canadian minerals for a number of years now. Its only a matter of time, and companies in Canada will be paying higher royalties.

As for now, although not the best, Peru is one of the best places to invest. When/if change comes, investors can sell if they are not comfortable. But my point is, where will they park their money if all countries become the same? Cash and GIC,s may not be the best places in this time of economic turmoil, you see the inflation. Inflation will continue, it has to because it is linked directly to oil. The oil reserves we know are getting depleted and political unrest in the oil countries is adding to the price of oil. The more inflation, the more unrest, the higher the price of oil goes, the higher inflation goes. At some point in this circle, gold has to enter to create stability, if it doesn,t, its armageddon on your lap.

I will agree, that the time for Lori to prove up the Tesoro is now! The slower we are, the closer we get to the risks being higher. It was my opinion a long time ago, that Lori should have 6 drills on that property the day she got the permit, and waste no time in proving this up. The quicker she proves it up, the more risk that is eliminated. I believe she realizes that now, hence the increase in drills and more trenching.

I should also mention that there have been a few meetings between the U.S. and Peru, the last while. I believe trade agreements and resources were mainly discussed in the ones I looked at. I tried to see where Lori was at when each of these meetings were going on to see if there were any coincidences, as far as I could tell, her state side visits were a day or to before or a day or two after a few of these meetings. Obama also went to Peru for one trip, but Lori wasn,t there that I know of. Take this as speculation and me just seeing if I could get any correlation on her trips.

The only reason I wrote the above paragraph was because I had heard a couple rumours that Lori wanted to sell the Tesoro to the states. I don,t put much credence in rumors, but I do follow up on them to see if there may be any truth or meaning behind them.

We all know, that if this is as big as the possibilities will allow, that there is a good chance for a country backed buyer of the Tesoro. You could be looking at a 40-100 billion dollar resource if that anomaly contains multiple grams of gold per ton. The way that countries are trying to hoard gold and grab up reserves, one doesn,t have to do much thinking to see that a huge gold resource thats for sale, would get sold quick.

IF, the Tesoro is huge, as we have said before, 2 of the most important buyers may be China or the U.S. to increase their gold reserves. We know that there is a power struggle going on right now between the 2, and that China wants to increase their amount of gold held to match that of the U.S. The last time I looked, many months ago, the Chinese had approx 1000 tons while the U.S. had 8000 tons. The Cinese are never gonna catch up to the U.S. by buying puny 1 million ounce deposits, they need larger ones, and they would most likely want to get them sooner, than later. Now enter the thought, the U.S. might not want the Chinese to catch up, because of the power struggle. Then think about the recent Peru /U.S. meetings. Also keep in mind, that the Chinese have been in S.A., especially Peru, buying up, with cash, small mining plots directly from small individual miners, under the radar. I found this out during a search on night, although I don,t know if it holds any water, I believe it to be true.

http://www.wealthdaily.com/articles/who-owns-worlds-gold/2491

Due to accountability and responsabilty issues with her shareholders, Lori would almost be compelled to leave as many of these large entities to bid on the property as possible. If she denies a suitable bidder from coming to the auction process, she denies the shareholders from getting the chance at maximum value for the Tesoro. So, it should be logical to expect multiple up the scale bidders, if this is huge.

Lets look at if the royalty for Peru was at 30% as a result of progression towards nationalism. If we were worth $20 a share at that time , we would be worth $14 per share. If we were worth $100 per share, we would be worth $70 per share. Still a long ways from $2 if we have a huge resource.

IMO, and I could be 100% wrong