We looked at a high grade vein company for some comparison, now here is a low grade oxidized gold deposit another company has.

Maybe first we will look at their first drill result news release. This release is dated june/2010 but the company didn,t IPO, ed(when first started trading) until Nov 2010. Notice the long low grade intercepts that at first glance, might look terrible. But this is an oxidized system that the gold is consistent and disseminated throughout a large area. Look at Table one to see what the drill holes looked like. Then look at table 2 to get an idea about what some trenching numbers for us might look like.

http://www.atacamapacific.com/investors/pdf/news-100614.pdf

Here is their most recent results, notice the low grades.

http://www.atacamapacific.com/investors/pdf/news-110607.pdf

Now keep in mind how low the grades look like in both tables, and read this;

http://www.mineweb.net/mineweb/view/mineweb/en/page66?oid=141761&sn=Detail&pid=66

Below is a portion of the above link where they talk about cut off grade.

A key figure Hansen is watching for in the Atacama Pacific Gold scoping study will be cut-off grade. Currently Atacama Pacific Gold highlights its ounces in the ground at a 0.3 g/t cutoff rate, which gives it 1.6 million ounces @ 0.54 g/t gold in the indicated category and 1.9 million ounces @ 0.52 g/t Au in the inferred.

That gives Atacama bragging rights to about 3.5 million ounces gold by combining the inferred and indicated resources. But those bragging rights leap to nearly 5 million ounces gold at the 0.2 g/t cutoff.

That 0.2 g/t cut-off grade, while low, has precedent. "If you look at the cut-off grades at other big oxide mines operating these days they can be in the 0.18 g/t to 0.2 g/t range," Hansen said, suggesting that current mining parameters could bode well for the Cerro Maricunga study.

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On the Tesoro we have an oxidized layer down to approx 50 m. Their oxidized layer goes down to over 400m with pretty consistent gold over a surface area approx 2.5km x 500m, an area smaller than our anomaly that could contain 5 million ounces of economical gold. Their gold is fine grained and the early metallurgy shows something like 85% recoverable, whereas out Tesoro is closer to 90%.

Now a quick look at the size of the veins that most of this gold is found in;

The gold mineralization identified at Cerro Maricunga is associated with both black-banded quartz and chlorite-magnetite-quartz veins and veinlets, 0.5 to 5 centimetres wide, hosted mainly within heterolithic, dominantly matrix-supported diatreme breccias and less frequently, within intermediate intrusions.

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So, you have an idea what would look like shabby results, might not be shabby. Now lets look at their stock chart, we only have a year to look at because thats all the history of the stock.They have a little less than half the shares outstanding as we and are trading around $4. So, their market cap is pretty close to ours.

http://investing.businessweek.com/research/stocks/charts/charts.asp?ticker=ATM:CN