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Message: Cashin and the board at large re: SAGE retesting cores.

Cashin and the board at large re: SAGE retesting cores.

posted on Jun 28, 2008 06:18AM

Good morning,

IMO sending back cores to be reassayed is a good thing because a company can't argue with the lab if the results are not as good as they think they should be. So then that would mean that the results were very good or something else is going on and the company wants an even more detailed testing done. There are tests that are better than fire assaying but the are very expensive and time consuming.

Again, why would Sage send back cores to be assayed again? I don't think they would if the grades were poor, nominal or even good. Why would Sage spend additional funds to have a more detailed testing of those cores done? I believe they would do that if

A] there was some very high grade and that more expensive test method would yield even a higher value. That might warrant the additional heavy expense they would incur in utilizing that test method.

B] something else was discovered in the cores that made the company want to find out exactly how much of that metal or ingredient was involved.

b-2 A good example of this is the following. I own shares in a company who sent some cores to be examined and the found or knew ahead of time, that they had some rhodium in those cores. They sent those cores back again specifically to get detailed info on the rhodium in those cores. In that case it proved to be low in grade but the point was that they did send it to a lab to be reassayed.

c- this took many months and the CEO held back posting the resu,t of a dozen or so cores until the final results of those rhodium bearing cores came back. I added that comment to this post just to show that it is possible for a CEO to legally hold off on posting the results of cores IF they are treated as a 'batch' and within that batch some more detailed assaying needed to be done.

For the geo types that post here. Is it also possible that the retesting of certain cores would help them establish a pattern of grade at debth at the angle they are drilling at; in order to help them 'steer the drill' in a different angle or direction. I know they can use a down hole probe to help them but additional core testing might be able to confirm the direction of the find at debth. I know I said that poorly but I am trying to think like a detective looking for clues rather taking everything at face value.



Best wishes,

Jerry

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