‘Massive’ gold intercept at El Zorro, shows project’s large-scale potential, page-102

Its interesting that Zeff suggests we look at another developing gold explorer/miner in Chile when looking for something relevant to compare TSO to.

Not surprising he chooses a Chilean company to compare to I mean it has to be a lot more relevant (than something in WA for example) even if by no means identical.

They (RIO 2) will have the same permitting path, the same workforce basically, some of the same costs (albeit in RIO2s case slightly higher being up the mountain from us. Being up the mountain in general is a big disadvantage both in start costs and in ongoing operating costs.

But they have a few things in their favor, they are more advanced with a plus 5mil ounce deposit (interesting again, is this a hint from Zeff, we keep getting told El Zorro is big and getting bigger) and he has not compared us to a company with only 1mil ounces.

Rio2 has far fewer shares on issue but IMO this is more than balanced out by Tesoro's superior location near the coast and many of the necessary resources there needed for mining.

But its not a competition, this is not the reason Zeff is saying we should look at companies like Rio2 if we need a comparison. Its not like there is only so much gold to be found or so big a market for this commodity.

I would focus on the fact they are heap leaching and they have five million ounces to start with.

I think it very likely we will find ourselves in a similar situation and choose a similar path to development.

Rio 2 are finding a cheap low hurdle path to development, I think our path is likely to be similar but slightly easier and being coastal even more profitable.

Time will tell.