Real, IMO.

There is a battle going on with the POG. One country wants to keep the POG up so that it will be able to be used more as a currency. Another country doesn,t want this because of the extreme pressure its putting on their economy.

But, the more gold that is accumulated by China,the closer the reality for a gold currency or at least one backed by it for certain trade partners. The mess with the printing of money will only go away if there is no more printed and it is slowly clawed back from the economy , but for that to happen,it was cause the worst recession ever realized and escalating uprising from the desperates. The straw that broke the camels back is in plain sight, and if it goes on the camel, you know what happens.

Some are saying that China is now or very close to being the strongest economy on earth.This statement, depending on how far from the truth it is, causes the pressures we are seeing in the POG and the metals prices. We are seeing a diverted power struggle involving the POG, for me ,its what makes the most sense. You can,t have inflation to continue rising, the price of oil,food, etc and the lending rates staying virtually near zero. Somebody has to pay interest on their debts to complete the circle of a healthy economy,when this part of the equation is diminished, the economy has no choice but to downward spiral. The cart went before the horse years ago ,credit being the cart.

Many country banks are constantly increasing their reserves as well as a defensive measure should gold become the ultimate trade vehicle or a currency backed commodity. They have no choice really, if they want to survive and stay in the game. The BRIC countries are the most economically secure right now, and if they continue to grow, its not hard to see a power/control shift on the planet. Whoever holds the majority of the gold, will have to contend with who owns the majority of the oil, then it help maintains a balance. But, when the same countries own the oil as well, that balance of power is tipped in their favour immensly. This power thing is not a good thing going on in the world and the more these other countries accumulate resources, the more pressure its putting on the ones that can,t, or cannot compete, hence the power shift. To keep harmony, there has to be a balance, and right now the balance is severly jeopardized. Which way it will go, I don,t know, but I believe the best solution is for all countries to accumulate what they can in resources to help sustain a balance.

So, everything is connected, and as far as the POG goes, every power needs it at this time. The amount they have, is gonna dictate their power. This brings us to the miners. With the price of oil staying high, and the price of everything else needed for mining staying the same or going up, the miners profit margins are getting squeezed. The more they get squeezed, the more higher grade minerals they need, to make their companies viable. We see the gold miners now mining grades as low as .2 g/t. This can,t continue as long as the POG goes down. If you see the POG go down too much, you have a lot of miners out of business. Thats why today you see miners buying speculative ounces if they believe there is good chances that these high grade little resources are gonna give these companies a breathing space by averaging out their low grade stuff left and keeping them in business. Most of the high grade easy gold is gone, and the next thing to this is now being coveted. Its like food , you need it to survive. So, the majors have no choice but to start now accumulating reserves or be left high and dry when some other powers or companies own them all, or at least the most viable ones. The majors need reserves, and they need them now. Thats where hopefully we will come into the picture.

We have the Tesoro. A magnificient property, that without even having a geophysics done to look at, it had good chance to contain 6-8 million ounces of high grade gold in veins which could be shaft mined at a handsom profit. Enter in the low grade bulk tonnage stuff, which at todays POG enables roughly .2 g/t being mined profitably open pit if there is high grade stuff on the property, which there is. I am getting average grades of this bulk tonnage gold of ~1 g/t, well above the economic threshold, across wide areas, suggesting many more profitable ounces on top of the high grade vein stuff. Enter now the geophysics, that suggest much larger areas of disseminated gold at depth and when the cooresponding signatures at surface are compared with the deep geophysical targets, there is the suggestion of just that, larger areas of disseminated gold mixed amongst the veins. You are not long coming up with a very feasible mine/s when looking at the above points. And I wouldn,t doubt there are a dozen majors watching this property right now, intently, I might add. Now add in countries and think about how they are scooping up resources under mining subsidiaries of their nationale. If this is as huge as some of us think, you are not only gonna have miners interested, you will have countries as well. When you start to have countries interested in a resource that lies in another country, you start to run into trade agreements,relations etc, and a whole other can of worms if these countries cannot get their miners to secure a deal. Evidence or an example would be Potash Corp, where you see government intervention.

IMO, we are in a no better company at this time. It doesn,t matter what the sp is today, if we are bought out, the going rate puts us many,many multiples above the current sp. We don,t have to worry about any lowball deal because our shareholder base is too strong and can easily vote down any hostile bid. We don,t have to worry about politics and Peru demanding the resource as their own, (if huge) it would jeopardize Peru,s whole economy by denying us this find, by the repercussions that would be set off. We have 3 very interesting Peruvian properties, and now the whole three are potential world class, that are laughing at our sp. For quick consolation, give 2 million ounces each to our 100% owned Vilcoro and Tesoro at $100 per ounce in the ground buyout scenario, and you get, $400 million divided by 130 million shares fully diluted = $3.07 per share.

These views may not be correct, but thats how I see it.

IMO