Out of one of the links in my previous post, I will pick out a couple or so excerpts from the old news releases and comment on them.

1)September 29, 2004
NEWS RELEASE
Tesoro Gold Property, Peru – New Gold Zone Discovered
Lori McClenahan, President of St. Elias Mines Ltd. (the “Company”), is pleased to announce
that a new zone containing disseminated gold mineralization has been discovered on the Tesoro
Gold Property (the “Property”) located in southwestern Peru.
A composite chip sample of highly silicified granodiorite has returned 27m (88.5 feet) of 1.74g/t
Au.

1) As you can see above, 8 years ago I might add, disseminated gold was found on the Tesoro in the silicified rock, not the veins for this type of gold. Keep in mind in one of the drilling releases Lori stated that the silicious zones of the drill core was not tested. In addition, these silicious zones are very important, and you can see why, from this excerpt and link below;

Disseminated deposits are those in which the metal is evenly distributed in generally low concentrations throughout large masses of rock. An important type of disseminated deposit is the porphyry copper deposit, in which copper and molybdenum are found in porphyritic intrusive rocks. Huge, low-grade, multimillionounce disseminated gold deposits have been found in sedimentary rocks in Nevada.

http://www.cliffsnotes.com/study_guide/Metallic-Deposits.topicArticleId-9605,articleId-9594.html

2)The silicification within the granodirite occurs as knots, stockworks and inundations which
is completely different from the quartz veins and sulphide bearing shear zones that were thought
to be the only targets for gold mineralization within the Property

2) Above you can see recognition by management of the "sulphide bearing shear zones". This statement is important because the sulfides are chargeable and the Quantec has picked up many chargeable anomalies on the Tesoro. It is a known fact that gold accompanies the sulphides and an increase in sulfides, entertains an increase in gold grade.And also how they support that this mineralization is different and seperate from the high grade veins.

3)The granodiorite is exposed in an isolated window, approximately 100 meters x 100 meters,
completely surrounded by a thin layer of overlying barren volcanics. The granodorite is located
at the precise intersection of the two major structures: the north-northwest trending Main Veins
structural corridor and a transverse structure trending north-northeast. The north-northeasterly
structure is expressed by a coincident valley. There are two other intersections of these northnortheasterly
structures (valleys) that intersect the Main Veins structural corridor within the
Property. In both of these other two intersections, the shallow layer of volcanics remains intact
and thus the underlying rock units are not exposed.

3) As you can see, there was only a 100m x 100m portion exposed at the time when they tested this, 8 years ago. You will also see mention of another corridor back then that extends NNE ward, so this new corridor that was announced in 2010, appears to have been known about 6 years previous that. The biggest question here is why did it take so many years to finally drill this?

4)

Management is excited about this recent discovery as it demonstrates that the Property not only

hosts multiple epithermal gold-bearing veins as previously announced but also possible

deposit(s) of disseminated gold.

4) Notice the "possible deposit(s) of disseminated gold"?

5) Gold occurs
as free gold and electrum in pyrite-arsenopyrite microfractures and as free gold and electrum
encapsulated by quartz.

5) The pyrite-arsenopyrite are sulfides, remember how the sulphides are chargeable and how we have seen the evidence of this in the geophysics of the C-1 correlation. The electrum referred to above is silver and gold usually and silver is highly chargeable and even some batteries are made of silver-oxide, silver will show up on chargeability geophysics as well, if enough quanity there.

6)Typically, these are east-west trending splays associated with the Main Vein. From north
to south the zones are: Zona Canchete, Zona Central, Zona Sur and Zona Incognito. In addition,
four other zones (Zona Este and three unnamed zones) have also been identified

6) This is from a 2004 release, to this date, I don,t believe the other zones have been named, why?

7)At Zona Canchete there are five principle veins measuring up to 200 meters long within a 400m
by 400m area. Two of these veins strike north-northwest and three strike east-west. All veins
are steep dipping. The veins are narrow at surface, generally less than 20cm, but widen at depth.
Samples from these veins generally assay more than 16.0g/t (0.5 oz/T) gold. The veins at the
bottom of the deep piques in this area are reported to be 60-80cm (2 ft - 2.5 ft) in width.

7) Here is the narrow vein BS myth thrown right out the window! FYI, piques maximum depth is about 30 meters deep, so extreme widening portrayed in this area of veins.

8)One two-meter-wide sample of the footwall and hanging wall also gave
8g/t (0.25 oz/T) gold, suggesting that more sampling of wall rocks is warranted.

8) This is from the Zona Sur region, that 2m wide sample is wider than a mining width, meaning a mine shaft can be narrower than this and the grade of 8 g/t across that width, would be economical to shaft mine if that grade stayed consistant. Note, there are other samples from this region also, that are higher grade and a wider width .

9)An additional 60 samples are being submitted to the laboratories for analysis. Some of these
samples are from a 140m long trench, located at Zona Canchete, that intersected numerous
quartz veins and areas of argillic alteration zones with cherty quartz

9) As you can see, from 2004, a trench at Zona Canchete, where the C-1-8 veins are , uncovered "numerous quartz veins" in this area, AND "areas of argillic alteration zones ". The Quantec is suggesting to me that the alteration zones in this area are mineralized to a good degree and widen at depth.

10) At a number of locations within the
Property, the vein density is such that a large-tonnage disseminated gold target is being
investigated by trenching.

10) The above says that there are a number of places on the property in 2004 where the veins were close enough together that a large - tonnage disseminated gold deposit was being looked at then when the price of gold only about a third of what the price is now. Point being, back then you needed 3-5 times more gold grade than you need today to even consider spending money then, today would be a no brainer with what the above suggests.

http://agoracom.com/ir/steliasmines/forums/discussion/topics/497253-i-ve-been-digging-again/messages/1586963#message

Comments

There are enough clues in this post to show how the Quantec doesn,t lie and what its picking up on the property, IMO. Quantec is a mine finder and is constantly growing its business with success after success, I don,t believe our Tesoro property is anything less. After what I and historic news releases above have shown, how can the Tesoro be anything less than very valuable? Take the time to understand what I am saying, then ask yourself, does all drilling and trenching in the last year correlate with any of this? And, keep in mind that supporting data from other mines in the area add validity to the geology and correspond, so why isn,t everything adding up when you look at the last year of results? With this many veins, as talked about above, and widening veins, how can there be wee little samples of veins, no long intercepts of alteration showing up in drill cores, etc,etc etc, and deep hole after deep hole drilled? This certainly doesn,t add up in my books, and others.

IMO