I will post part of an NR from Feb 3/2010 talking about a small area of disseminated gold at surface close to the A-4 workings. At that time gold was around $1125 per ounce and some companies started to use a cut-off grade of 0.3 g/t gold in their resource estimates.The other day I posted where a company was calculating 0.15 g/t gold in their resource estimate. I,ll tell you, 0.15 g/t gold is really nothing by itself, BUT, if it is part of a higher grade system, and this ground has to be moved anyway to get at the higher grade stuff, it may become feasible to heap leech.

Numbers from the Excerpt below give me an average grade of 0.249 g/t gold from all the samples taking from this area. It should be noted that this was just testing part of a halo or what is considered to be a fringe area. Since that time, the Quantec survey, IMO, has defined much better surface areas to be sampled, but this is still great because it may have a lower average than some other areas.

So, the importance of this sampling cannot be recognized UNTIL it is taken into consideration with the high grade veins. When you are averaging out for a resource estimate of a bulk tonnage potential, its good to know that you can have an average assigned gold value for what would otherwise be called waste. So, if we can show gold values high enough between veins, this ups the average grade considerably and also the economics of the project. I should add, where this small scale sampling has ALREADY been done, it tells a future buyer about the feasibilty and he will look at this info in comparison to the drill results. This info fills in a gap, sort of speak.

It is interesting to also note that there was a higher grade area of 0.553 g/t over a 9 meter trench. This area is ECONOMICAL at todays POG and at this time could be added to a resource estimate. Gold recovery test showed that we could get 78% of this or 0.43 g/t . I will now add a link to an Exerter Resource news release showing some grades and the implicated resource from those grades. Take special note of how many gold ounces they estimate having and their HIGHEST grades. Think of the HIGHEST grades at Tesoro.

http://www.exeterresource.com/pdf/2010_news/Exeter_news_100525.pdf

The point I am trying to prove, or at least support my thesis, is that by using Exeter Resources numbers, I have a good comparison. They have 20 million plus ounces of gold in an area one 12th the size of the Tesoro. The average grade of their resource appears to be lower than what all the sampling of Tesoro is averaging to date. I beleive their highest grade gold intercept to date was around 3g/t and a short intercept. Our highest grade sample ever taken was from the A-4 vein at 19 ozs per ton OR 190 TIMES the highest grade of Exeters.

If we jump to the N-1 VEIN, its 25 times more.

If we jump to the C-1 vein, its 54 times more.

If we jump to the C-2 vein, its 37 times more.

If we jump to the C-3 vein, its 10 times more.

If we look at Zona Incognito, its 4 times more.

If we look at Zona Sur, its 4 times more.

If we look at the Cactus Zone, its 16 times more.

The average of all these numbers is 21.4 times more than their highest grade. What does this tell you? We should have at least 20 million ounces gold like them, shouldn,t we?

Initial Trench-Sampling Results

Upon receipt of preliminary geophysical sections generated in the field, a small trench-sampling

program was completed across a geophysical anomaly corresponding to the “structural corridor”

in the vicinity of the A4 Vein in Zona Central. Twenty-two 3-m-long bulk samples weighing

about 30 kg each were collected from 3 trenches testing a 100-m strike length of the lowresistivity

geophysical response. The trenches were aligned perpendicular to the long axis of one

distinct low-resistivity anomaly and returned 50 to 1130 ppb gold across an alteration zone up to

45 meters wide, including economically significant assays of 553 ppb gold across 9 meters (3

samples). The zone tested by trenching is 100 meters long, and further work is required to

evaluate the much longer strike length indicated by geophysical responses.

Distinct alteration consisting of mm- to cm-wide stockwork calcite veinlets with associated clay,

chalcedony and quartz micro-veinlets was encountered in the trenches. Due to alteration, rock

from the trenches is friable and most of the trench material naturally crumbles to less than 2 cm

upon sampling. The samples were quartered through a Gilsen splitter to obtain a ±8 kg

representative sub sample for laboratory analysis. Samples were analyzed for gold by ALS Labs

in Lima using both atomic absorption and cyanide leach techniques.

Geochemically anomalous gold (50 to 1130 ppb, average 249 ppb) was detected in all samples of

the alteration zone corresponding to the geophysical anomaly. Assays of potential economic

significance (> 200 ppb gold) were obtained from all three trenches, including 9 meters of 553

ppb gold and 6 meters of 360 ppb gold in the longest trench, which spans 45 meters of alteration.

In addition, laboratory tests indicate that 78% of the gold can be extracted by cyanide leach.

The grades and initial recovery results suggest that with further work to expand the Tesoro

disseminated zone, it might be feasible to establish a heap-leach extraction operation to

complement production from the high grade veins.

Additional trenching and sampling to evaluate the bulk-tonnage potential of geophysical

anomalies corresponding to the “structural corridor” are planned in the near future.