San Gold Corporation (SGRCF)

[NYBob]

San Gold Resources Corporation -
(TSXV:SGR - OTCQX:SGRCF)



2009 Production – 25,000 oz of gold -

2010 Production – 50,000+ oz of gold -
makes that SGR is a Gold producer

..an exploration company often start at a grass root project -

On March 6, 1911, gold was discovered on the north shore of Rice Lake.
The resulting claims became the San Antonio Mine.
Gold was not the only valuable product of this venture.
The eventual establishment of Bissett
is where the real value lies.
To develop the Rice Lake Mine would cost more than
$2 billion today -
with all infra-structures-., power lines, roads, shafts and
the underground workings etc. plus a more than
1000 ton/day state of art modern mill -
note.
..and what is the cost to find an ore deposit which
may be richer than Red Lake mine? -
Red Lake, has not find as rich Gold result as
SGR has done in the shallow levels? -

Btw.
The Red Lake gold mine is valued at more than $25 billion -

San Gold - $98 million in cash and no debt -
with 300 million shares outstanding -

valued at fiat$4/sh makes a market value of fiat$1.2 billion and
its very undervalued to oversold -
a more fair market value should be closer to fiat$40/sh. plus + -

The Rice Lake Mine was originally built in 1934 and
remains a core part of operations for San Gold.
You can see in the maps below that Rice Lake is
the deepest of the known areas of mineralization,
extending 5,500 feet below the surface along two shafts.
Mining operations at Rice Lake are currently focused on
the 98 Vein in the Rice Lake East portion of the mine,
between 26 Level and 28 Level, located about 4,100 feet
below the surface.
The 98 Vein region is producing some very high grades,
and further exploration is also showing high potential
for substantial new discoveries in the region.

The Rice Lake Mine is located immediately adjacent to
the 1,200 ton per day mill owned by SGR -
the Rice Lake mine is important to San Gold and
its a good future of the company -
its also about the future gold price per ounce -
the gold veins were so good that the old timers -
were able to follow them by eye-balled estimations -
often without the prev. drilling etc.
and the deeper we go down the richer and wider the veins
often become -
the superintendent told me, that
the veins are richer than in Red Lakes gold mine -
for he knows it and he has worked in Red Lake mine
the exploration chef told me, that he would love
to do drilling from the bottom of the mine but
it has been to much of rich showings in the shallow levels
he has to find out more about first
In my estimations the current share price is a steal
and I don't hesitate to buy more when fiat capital is
available,
imo.

http://www.sangold.ca/s/Operations.asp