Re: New NR

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sculpin

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Re: New NR

in response to

Re: New NR

cccowboy

posted on Dec 20, 2012 03:27PM

IMO Absurd! We already know the waste piles had over 1g/t from various historical samples. What I want to know is where the 4000 ounces of gold is at that seems to be taken out of the resource estimate that John Brophy did on the C-1 vein? Wasn,t Paul Gray unable to confirm this when doing the 2010 report because much of the area of resource calculation was gone?

Also keep in mind here, the 4400 ounces seems like a very conservative figure based on less than an ounce per ton, where the gold grade average is much higher in later work with a whopping 11 ounces per ton sample being taken from there. Read carefully below.

Brophy (2008) reported an N.I. 43-101 Inferred Mineral Resource of 4,290 tonnes grading 1.04

opt gold with a total gold content of 4,460 ounces. These calculations were based on assay results

obtained from 193 systematic face samples, the correspondence between the weighted average

grade of 332 tonnes of bulk sample (0.887 opt gold) and the average grade of the face samples

(0.857 opt gold), and systematic measurements of vein widths at each face-sample location. The

calculation was based on the simple formula “length x width x depth x specific gravity =

tonnage”. The estimate of a 2.75 grams per cubic centimetre was used as the specific gravity

measurement for this analysis.

While the author believes Brophy’s published 2008 resource estimates were based on realistic

calculations and best practices sampling, there is currently no way to confirm the assay grades or

vein width used in the calculation, and therefore no N.I. 43-101 compliant resource estimate is

currently possible to update or report on for the Tesoro Property.

This change in estimate is due entirely to the fact that in the intervening period since Brophy

(2008) and this report, a portion of the vein material which constituted the 2008 Resource

Estimate has been mined, sorted, shipped and processed by St. Elias. In specific, the vein material

exploited during this period was removed from the stopes and easily accessible areas of the A4

and C1 underground mines. As a function of this mining and vein material removal of sections of

the Inferred Mineral Resource calculated by Brophy (2008) has been removed and/or rendered

inaccessible and as a consequence precludes verification due to current access conditions.