Re: Some thoughts-HM
in response to
by
posted on
Sep 25, 2009 12:51PM
San Gold Corporation - one of Canada's most exciting new exploration companies and gold producers.
The difficulty with waiting is that the mind starts to wander and doubt creeps in. Its human nature and we've all been there. So to put your mind at rest, consider what is underway currently: there are 10 drills turning as we speak, 5 at surface and 5 underground. With grades continuing at depth and expanding to the NE (Cohiba, Emporor, etc.), the deposit is growing substantially. Further recognize that given the new discoveries that have changed the geologic model, we're still in the early innings and it will take a lot more time to prove it up. And here's the rub, the proven reserve aspects of the Hinge 43-101 may not be as staggering as you may like, but the probable reserve may blow your mind (i.e., continuity beyond 5000'). Put it into context, the Red Lake camp has taken out 50 MM oz to date; if you believe Rice Lake is the next mining camp in the belt, then we have a long way to go considering that only 1.5 MM oz have been recovered so far. If we get 1 MM oz from the Hinge, it is enough to take us to the big board and that should be the primary objective at this stage. The SP will take care of itself as a new breed of investor (with pockets deeper than ours) begins to play. Keep the faith, next week should restore confidence.