I believe the best way to go about this, if we could find out, would be to look at the exact GPS system that Quantec used and the system that our geo,s are using. I believe a reasonable margin of error could be calculated between the systems, if any. This may give us a better idea if the GPS positioning may contribute to the "fine tuning" needed, or if there is some amplification of the Quantec targets, mainly the Anomaly.

We have seen that amplification could be a factor in the anomaly not being the size as shown by the Titan, but, with the little bit of recent research I have done, I would argue that this should not be the case to any extreme. Quantec has mentioned the possibility of amplification in the 43-101, but it wasn,t proven if that is a possibilty. If you look at line L5750N, thats where we have plotted the C-1 vein to coorelate with an orange color or medium/high signature on the chargeability scale. On that same chargeability signature we can coorelate ~3-5 % sulphides associated with ~1 ounce per ton gold. If we coorelate the dimensions of the C-1 mine with the width of the coorelating signature, I get 120m of tunnels at the 60m level, with gold present at both ends of the 120m level. Comparing the 60m level horizontal across the Titan image starting at 1050m to 1150m, I get the impression that the signature, if anything, for this particular spot, is actually the same or underamplified or already fine tuned. What I am getting at here, because of this coorelation, I fully trust the size of the anomalies that Quantec are illustrating for us, and if they are missed why drilling, I don,t believe it to be the fault of the Quantec. Its accuracy is proven to me in the C-1 and the A-4 as well. Therefore, if we miss, I would check out the compatability between the GPS systems used, and thats why I brought up the GPS accuracy topic.

I will also mention that I heard Lori say(and I have also heard this mentioned before on another deposit) that a structure/anomaly can be missed by as much as a foot. Common sense will tell you that this is a very real possibilty when you are drilling the edge of something. Also keep in mind, that the drills tend to bend more with depth and different encountered structures,ie, harder rock versus softer rock. The shallower the drill hole, the less chance for bend.If this is not given enough consideration and compensated for correctly in deeper holes, the bottom of your hole could be off considerably at depth, easily missing your target.

I will go further to say that I have recently concluded that BOW,S volume calcs of the anomalies are correct and that there is very little margin of error in his calcs, because of what I stated above. Also, if you check the new Quantec website, accessable from our SLI website, you will see they are more so vindicating that BOW is corrrect when they say that volume of a resource is able to be calculated from their top end images. Look at the image in the link below, at the yellow arrow and where it pierced that particular anomaly. I would say that there is very little amplification on that target, as a matter of fact, almost exact.

http://www.quantecgeoscience.com/technology/titan24

Its been Lori,s plan to tackle the proving up in this manner, here is a quote from Lori," step by step, proper". This should also be perceived in conjunction with the plan to delineate a resource by defining the extents of the anomaly first. To take this approach would mean that Lori has every bit of confidence in the Titan and is perimeter drilling. For her to be scattering the drill holes, with little step back drilling, would suggest to me that the "right alterations" are being seen in the cores, requiring no more proximity holes at this time. Even if she is not "perimeter drilling the big anomaly", and going after the smaller anomalies, you still don,t put one hole in an anomaly then jump 100,s of meters away if you don,t see the alterations you are expecting. You fine tune if you don,t satisfactory hit the first time, and to fine tune should mean only to move ~50m.I don,t see much fine tuning going on in the first 11 holes, BUT, thats not to say that she isn,t following up in the next 10 or so drilled. The proof is in the pudding in regards to the 2 surface anomalies associated with the C-1 and A-4, so I am guessing that each time you see a secluded hole show up on the drill plan, it means they see the alteration that they are looking for and it was no use to keep the rig in this position at this time. Keep in mind, that we know there are numerous narrow veins carrying high grade gold on the Tesoro, BUT, we need the disseminated gold to make this deposit worthy of an open pit. She can report the quartz sections of the drill core, but the most important part of the cores is, the alteration/shear zones that carry the low grade bulk tonnage type of gold that we need and you can,t usually see from a visible inspection of the core. We are not drilling to find gold bearing veins at this time, and IMO that is not the focus.Don,t get me wrong, its exciting to find new veins, but we need the disseminated stuff proven up in order to sell this property more quickly, hence the priority IMO.The large bulk tonnage gold deposits are what the big guys like, Lori has already said, we could and did mine the Tesoro profitably, but this is by the more expensive and restrictive mining method of chasing veins.The big guys like the deposits where they can come in, set up shop for 10 years plus, and mine, even though its low grade, because the volume in time makes a mine more profitable in most cases.Your high grade veins become gravy if you can define an economical disseminated portion of a deposit without having to factor the main veins in.

Another factor that has been considered by me in the Titan images, is the effect of water on the chargeability images. I know you will most likely say that we are on a high plateau, but there is ground water/moisture that is present. The Titan was done in the dry period for the season, so I would rule out too much interference from the ground water or the hydrothermal waters at considerable depth(although the hydrothermal aspect should not be disregarded here). I have seen considerable moisture in a vein photo of the C-1 complex on our SLI website, that accompanies the high sulphidation. The water is part of the oxidation process and we all know that there is oxidation down to the ~70m level on the property. The water present in this oxidation process could amplify a chargeabilty response in the Titan, BUT, that appears to be compensated for in the Titan when deciding what range of millirade scale to use. Its my understanding(and this may be wrong) that for different areas, different scales/currents are used to diminish the effects water/moisture could have on image results. I will go a step further to say that I don,t believe water is a consideration of any effects on the Titan images from the Tesoro because I feel the images have been already fine tuned. I will use my argument that the C-1 mine at the 60m level fits perfectly on the Titan image, so therefore it can,t be influencing/amplifying the signatures.

The signature of the mother anomaly is very impressive and I have thought about it for hours and hours. The shear size of it in relation to the chargeability/resitivity scales suggest to me that there is something else metallic down there at depth besides the puny ~1 ounce per ton gold and 3-5 % sulphide confirmations that we are getting down to ~100m depth on the property. And for Lori maybe to leave this deep target for the deep drills is ok with me. I personally would rather to put scattered holes across the property in each of the shallow targets first, proving up from the surface down in conjunction with trenching. This is what a major would need to know to even consider making an initial offer. If Lori is taken this route of proving up the near surface targets first, which I would consider proper, then it may be months before the deep drills arrive and we get a look at the deep anomaly. Lori could get forced into putting a hole or two into it prematuraly, IF near surface results prompted an early offer. I believe Lori will keep this card for the very last one to play, and I hope she does because that may be the hole to add the important minelife and could seriously enhance the price of an offer.

All IMO.