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Message: AGM Report - Part 4 - More Q & A's
SGR – AGM December 3, 2007 – Part 4
What is the current cost of production/ounce? It is $350/ounce based on the latest ACA Howe report, but current costs have been running higher than that because we are in a development mode. When we start processing ore with over 1 oz./ton, the cost per ounce will go down. By comparison, Goldcorp’s cost was below $90/ton when processing ore with 2 oz/ton. The US/Cdn exchange rate also affect costs.
How is the Price of Gold affecting SGR? The rise in the price of Gold has been offset to a large degree by the change in the US/Canadian exchange rate.
When will they start mining the new high-grade veins? It will take up to 6-months for it to get into regular production. Two veins are already well-developed; 1 more is partially developed. A brief overview of the process: 1st the tunnels must be created to provide access to the zones, then a method for moving the rock out of the zone has to be put in place, then ore is broken out of the zone by moving in an upward direction, letting the ore fall down for removal. This will continue till a cavity of between 70 and 100 feet high is created.
How many drills are operating? There are 4 surface drills going right now and 4 underground: 2 larger, 1 mid-size and 1 smaller drill. There is one Jumbo drill that can drill in up to 3 places at one time (it has 3 booms).
When will we be cashflow positive? Once we get to production of 800 tons per day (expected to be about mid 2008).
Are you looking at acquiring any neighbouring properties or making other acquisitions as a Corporation? They are keeping an eye open on surrounding properties and remain open to other similar-type opportunities, but have nothing specific to mention at this time.
What is the potential of a takeover? There have been a number of groups looking at SGR. They have come to look at the company, and SGR and they have signed mutual confidentiality agreements. Whether a takeover happens is not really something management determines – that is a matter for the shareholders to decide; what is best for the shareholders?
What happened with the previous financing attempt that was cancelled midstream? SGR made an arrangement with CIBC brokering new financing. Dale went out with CIBC representatives to make presentations, but soon found the price level at which they were working was too low (down as low as 90 cents), so it was not worth continuing. The deal was cancelled; it still ended up costing $250,000 for the effort.
(more to follow)
What is the current cost of production/ounce? It is $350/ounce based on the latest ACA Howe report, but current costs have been running higher than that because we are in a development mode. When we start processing ore with over 1 oz./ton, the cost per ounce will go down. By comparison, Goldcorp’s cost was below $90/ton when processing ore with 2 oz/ton. The US/Cdn exchange rate also affect costs.
How is the Price of Gold affecting SGR? The rise in the price of Gold has been offset to a large degree by the change in the US/Canadian exchange rate.
When will they start mining the new high-grade veins? It will take up to 6-months for it to get into regular production. Two veins are already well-developed; 1 more is partially developed. A brief overview of the process: 1st the tunnels must be created to provide access to the zones, then a method for moving the rock out of the zone has to be put in place, then ore is broken out of the zone by moving in an upward direction, letting the ore fall down for removal. This will continue till a cavity of between 70 and 100 feet high is created.
How many drills are operating? There are 4 surface drills going right now and 4 underground: 2 larger, 1 mid-size and 1 smaller drill. There is one Jumbo drill that can drill in up to 3 places at one time (it has 3 booms).
When will we be cashflow positive? Once we get to production of 800 tons per day (expected to be about mid 2008).
Are you looking at acquiring any neighbouring properties or making other acquisitions as a Corporation? They are keeping an eye open on surrounding properties and remain open to other similar-type opportunities, but have nothing specific to mention at this time.
What is the potential of a takeover? There have been a number of groups looking at SGR. They have come to look at the company, and SGR and they have signed mutual confidentiality agreements. Whether a takeover happens is not really something management determines – that is a matter for the shareholders to decide; what is best for the shareholders?
What happened with the previous financing attempt that was cancelled midstream? SGR made an arrangement with CIBC brokering new financing. Dale went out with CIBC representatives to make presentations, but soon found the price level at which they were working was too low (down as low as 90 cents), so it was not worth continuing. The deal was cancelled; it still ended up costing $250,000 for the effort.
(more to follow)
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