Dynacor is the company down over the hill from us that processes gold/silver ore from legal miners in the general area, and further, and have veins with high grade gold themselves right beside their mill. It was stated that the average historical gold grade of veins in the area is around 16 g/t. But, when you look at the average grade that Dynacor has been putting out of their mill for the last while,over 22 g/t, I would say that the historical average should not be relied on and that a new conservative average should be raised for our Tesoro calcs of maybe 20 g/t. It would fit better with our known 2 mines that had grades of 32 g/t and 25 g/t.

During the first quarter of 2012, the Company processed 17,558 DMT of ore at an average grade of 0.79 oz Au/DMT (22.39 g Au/DMT) compared to 13,520 DMT processed and average grade of 0.78 oz Au/DMT (22.10 g Au/DMT) in Q1-2011. The higher production rate is directly attributable to the increase in the plant’s capacity from 180 tpd to 220 tpd in the third and fourth quarter of 2011. Based on a 336 days operating schedule, this 2012 production tonnage represents a daily average throughput of 209 tpd compared to 161 tpd in Q1-2011.

IMO