Re: Fat Profit Margin
in response to
by
posted on
Dec 10, 2009 12:47PM
San Gold Corporation - one of Canada's most exciting new exploration companies and gold producers.
The public still has no clue as to what a 52 oz. vein really means to a company's bottom line
Ali, We must remember that was only one core. They hit mineralization on their first hole 001 and although only 2.5 grams per ton, it proved their model that there would be gold in the vicinity. The next four five holes all hit mineralization, and I am assuming that those holes enabled them to zero in on 007. Since 006 had not been logged at time of press release we are not even sure if it had mineralization (most likely does). Since 007 was full of VG it was processed and sent in ASAP with a rush order. I hope the cores currently at the lab as well as the cores currently being drilled, all come back high grade. I also hope with two drills grid drilling the site they can define enough tons of high grade ore to deliver 250tpd for 20 years. 007 would be the 4th near surface high grade mine each producing an average of 250tpd and with multiple faces in the SAM, San Gold will have their near term growth targets met with 2000 tons of high grade ore per day. The cost of developing this would be minimal as we saw with the Hinge. If the boys at SGR can pull off the scenario I just layed out we could be looking at 250,000 ounces per year without any major infrastucture expansion. All it will take is lots more men and mining equiptment.
PS
That is considering high grade at half an ounce per ton. the hinge ore from lense #1 was three quarters of an ounce. The number of ounces could go up dramatically with more of these lenses.