I am not sure but I believe Dynacor calls their property adjoining the Tesoro or slightly to the North, the Pallarnyocc property . This property is also known as the Acari property and may be the same property that houses their Acari mill. This property was owned by one of their subsidiaries and it looks as though this subsidiary was sold for $1. It also looks like the Peruvian government is suggesting that this subsidiary may owe something like $40 million in back taxes, as per Dynacors financials. NOTE, SEDAR is not working at the moment so please don,t rely fully on this all being correct, whereas there may be mistakes because I skimmed over their financials hastily a few nights ago, and I can,t access them now for further accuracy.

However,I am intrigued with the amount of tax that may be owed by the former subsidiary. And also where Dynacor may suggest that they have no production from their properties, but on page 40 of SLI,s 2010 Tech Report, a chart suggests that 25% of Dynacors gold production came from their Acari property. It seems that Dynacor was reporting its revenues in their financials, but perhaps their financials didn,t have to be consolidated, showing all revenues from Peruvian subsidiaries, I don,t know, this is confusing, and I am not implying anything. This post needs all this about Dynacor, to allow readers to have a better picture of the question that has arose as a result.

The question I have, "How would a Dynacor subsidiary owe that much tax as perceived by the Peruvian Government?"

I see a current taxation rate mentioned in a financials as being approx 30%. If you apply that current rate, it would look like $130,000,000 was what their subsidiary,s taxable revenue was from the Pallarnyocc property, be it from mining or milling, and I think it said between the years 2003 and 2009 the alleged tax questions occured. I should also add here that taxes are usually paid on net or profit, so the dollar amount of production, if it is production, may be much higher?

I am only speculating here or not even doing that, but if that $130,000,000 figure is correct, and if that amount of gold came off the Pallarnyocc property next door to the Tesoro, then doesn,t this further proclaim how rich the area may be in gold? Its unclear where the gold may have come from, off their property or other miners, but if this amount is true and if it can be added to Dynacors income,what exactly are the grades and where did this come from? I believe it was said that there are 3 custom gold mills in a 50-100 km radius of the Tesoro, so if it came from elsewhere, its still from the general area.

I suppose it may also be sale of an asset that caused such a tax bill, and perhaps not even gold production or revenue, but it says in the article below, that the taxes are related to operations?

Dynacor is still waiting to hear the verdict in tax liability case winding through the Peruvian courts. The government claims the company owes $42.2 million in taxes, interest, and penalties related to its operations between 2003 and April 2009. A Peru tax tribunal upheld the sum in December 2011, leading to Dynacor challenging the ruling in the Peruvian Judicial Tribunal in March, but with no clear timeframe for a resolution. - See more at: http://www.northernminer.com/news/dynacor-hits-record-production-at-peru-mill/1001643739/#sthash.5gCt1MBG.dpuf

IMO, and nothing is implied or incinuated by me, I am only looking at some facts and trying to see if any of this may directly or indirectly pertain to the regional geology that houses our Tesoro property.