TDW released a three page report this morning on SGR. Here is the introduction:

"Event
Yesterday, San Gold released results from the initial bulk sample program at
its high-grade Hinge Zone deposit in Rice Lake, Manitoba, recovering 5,938
gold ounces from 11,762 tons mined at an average recovered grade of 18 g/t
(0.53 opt).

Impact - NEUTRAL
While the completion of the bulk sample took longer than anticipated,
the results were in-line with our expectations. We note that the average
recovered grade, which largely comprised ore from development segments,
was materially higher than our modelled assumption (0.45 opt). In addition,
mill throughput was achieved at a much higher rate versus our estimate, but
the company believes that further mill tests will be required to determine if
the peak rates achieved in the sample are sustainable for the full mill circuit.
In our view, the results form a positive indication of the Hinge Zone's
production potential and suggest San Gold is quickly approaching the
transition to commercial production in H2/09. However, at this stage, we
make no changes to our estimates. We reiterate our 12-month target price of
$3.50/share and maintain our BUY recommendation..."

TD's estimates for production, and for USD cash cost per oz are...

2009 45,569 $693
2010 119,206 $424
2011 161,215 $303
2012 220,255 $264

They summarize their report this way...

"We are encouraged by the release of bulk sample results that are in-line with our expectations and which confirm the Hinge Zone's significant potential for low-cost gold production. With the expectation of further positive drill results and steady progress towards commercial production, we believe San Gold is in position to benefit from significant revaluation as its makes the transition to a mid-tier gold producer. We reiterate our 12-month target price of $3.50/share and maintain our BUY recommendation."