Hello 

The results were not surprising considering that the area being drilled does not have a corresponding geophysical signature return attached to it. What this means is that if there is no anomaly there to chase down further which had been validated as being reasonably mineralized as a result of shallower drilling, then results will not change much either when going to greater depths. At this point, there have been very minimal mineralization values coming out of this area aside from the narrow gold hit which was located at the contact of the oxide and underlying volcanic sequences, and such gold being there is likely something that was remobilized from a different area and thus is not part of the local mineralizing event.

Drilling through the Rhyolite Dome to test the SG3 corridor is not recommended, as the anomaly must be drilled from the inside of it at the intersection of the regional faults rather than from outside to inside. This is important as the structural intersection fault arrays which created the anomaly, are just very deep-seated ductile level fractures which themselves are not mineralized, and it is the deep-seated cavity that is created where the deep-seated faults intersect which creates the pathway for the mineralizing fluids to come up and coalesce into a constrained encapsulation environment which results in the ore body being able to be created.

Due to there not being a major structural intersection system array being in place where the current drilling is being conducted, is probably the reason why the vein systems that are being drilled there, are minimally mineralized which typically suggests that going deeper may not appreciably result in a significant change of outcome.

The above being said, there are strong evidences in place that a major mineralizing source event took place within the Tabasquena Project expanse, and consideration should be made by the company to look at the major regional scale structural features that are in place and focus future drilling in those area. 

Best not to post this on CEO, but you can say that you had communicated with SG on Agoracom