News: TSO Tesoro Resources To Undertake A Capital Raising, page-2

Ok... Have taken the above release and the combined presentation dot points to then extrapolate out over and across the tenements and applied for context.. So we may interpret the above as being;

Proceeds from the Offer will be used to:

▪ Accelerate infill and extensional drilling at the El Zorro Project for resource delineation; or put another way and in contextual order,

1.Ternera old CDE holes (Accelerate)

2.Ternera CDE holes open at depth but previously shut off at shallow depths (Extend)

3.Additional Targets of either Drone Hill or Buzzard where probability & likelihood are greatest to return value quickest. (Grade & Depth considerations precedent) (Extend)

Guessing here, but might suggest two rigs hit target 1 & 2 where work fronts allow until satisfied then 1 rig peels off to secondary target 3. CSA global advice being define robust resource first directive.. How big is robust? Not sure.. Corgi? Anyone?

Key piece of news, though largely unwrapped at the time is that we intend to

▪ Complete a detailed metallurgical testwork program at the El Zorro Project; Across the project means all mineralisations

1.Two mineralisation styles will demand the metrics are calculated for both types, not just Ternera and then combined across total resource for mine planning & capacity LOM, NPV IRR calcs.

This would seem to indicate we will drill either or both Drone Hill or Buzzard for the simple stating fact it says complete and you can’t do that without the proper sample assays to support the findings..

Although will be looking on with interest as this will determine the extent of the lithology across all site.. If they only drill one area or even better still just target the new Toro Gordo, well then. Stop writing & put down your glasses type thing cause we got an announcement to make..

▪ Commence a Scoping Study at the El Zorro Project; and

For the purpose of the exercise here let’s replace the initial targeted resource estimate & go the scoping study instead.. Cost a bit more but the added expense required to put the resource estimate in context & thereby demonstrate future value is value adding in itself & benefit of the extra cost.
Are we there yet?
Whereby: The study is directed at the potential of the property rather than a conservative view based on limited information.
Nearly

Or put another way, just chill 8H you’ll get your estimate but without anything else you’ll just be pestering us anyway for the adaptive framework in order to use it effectively, so you may as well wait for the lot, ok?. Yes dad.. Ok.

▪ General working capital.

Fair enough no comment..

Scoping studies

A scoping study may be carried outvery early in the exploration phase, as a basis for acquiring exploration areasor making a commitment for exploration funding. At this stage the investmentrisk may be relatively small but it is obviously undesirable to expend furtherfunds on something that has no chance of being economic.

The major risk is that a viable miningproject is relinquished due to an inadequate assessment. As there is a very lowprobability of an exploration project proceeding to become a mine it is evidentthat this risk is quite a serious one at the scoping study stage. For thisreason it is essential that experienced people are involved in the scopingstudy. Estimation accuracy may be 30 to 35%. It is acceptable for scopingstudies to be based on very limited information or speculative assumptions inthe absence of hard data. The study is directed at the potential of theproperty rather than a conservative view based on limited information.

We are a tonnage play and this is how best to play it.. I agree, now

Big day for old H8H yesterday, started of rational, turned chimpanzee around lunch & joined the poo fight, before transitioning again some time before dawn..

Should of spent the time listening to my own advice and extrapolate out from the announcement to apply what that means..

In saying that, this is my interpretation.. But as an old Donkey Whisperer (The concept of Donkey Town being largely representative these days across the widening field of interpretation brought on by the rise of text speak... lol ) means a bit of effort needs to be spent on game day to mark out the pitch else the players be all over the place..

Think I'll go back to bowls.. Calmer and with just a slight adjustment for weighted bias you can ping the jack on most occasions, within a bin lid..

Leave the skirmishes to all the young bucks.. haha 8H