I am not actively trading; holding some stocks that have no value.
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High Grade Ore Accessed at Rice Lake Lower Levels
11:59 EDT Friday, May 25, 2007
BISSETT, MB--(CCNMatthews - May 25, 2007) - Dale Ginn, CEO of San Gold Corporation (TSX-V: SGR), is pleased to report that mining development has reached the first ore bearing vein below the deepest existing mine workings. The "96" vein at 5400 feet in depth has been cross-cut with assay results yielding an average of 1.81 oz/ton gold (62.0 g/tonne) over an average width of 5.5 feet (1.7 m). This milestone signifies the first production from the mechanized lower levels of the mine and is independent from the development and production currently underway in the high grade "93," "98," and "101" veins above 4500 feet.
Development of this vein and others in series of veins is now underway at this elevation and below in a fully mechanized area of the mine. The "96" vein is anticipated to be approximately 500 feet long and is open at depth. The "A," "C" and "Deep West" veins will also be accessed shortly as part of this development program. All of the above veins are currently being explored and defined at depth with diamond drilling from the 5300 foot elevation.
The average grade used in this calculation was generated by 10 assays over 2 development faces, with individual assays ranging from a low of 0.60 oz/ton (20.55 g/tonne) to a high of 2.70 oz/ton (92.5 g/tonne).
The above programs were carried out under the supervision of D. Ginn, P.Geo., the Qualified Person for San Gold under National Instrument 43-101. Chip, muck and mill samples are assayed on site in the company's assay lab using the fire assay method with an AA and gravimetric finish. San Gold's quality control and assurance program includes the insertion of blanks and standards, the retention of pulps and rejects, and spot checks utilizing independent labs including TSL Laboratories in Saskatoon, SK and Accurassay Laboratories of Thunder Bay, ON.
For further information, visit the company's website at www.sangoldcorp.com.
San Gold Develops New High Grade Vein at Rice Lake
12:42 EDT Tuesday, May 22, 2007
BISSETT, MB--(CCNMatthews - May 22, 2007) - Dale Ginn, CEO of San Gold Corporation (TSX-V: SGR), is pleased to report that the first development on a newly discovered high grade vein (101 vein) at the 30th level (4500 feet depth) of the Rice Lake gold mine has resulted in extremely high grade gold values. The initial cross-cut and drift sampling on the 101 vein has an average gold grade of 1.85 oz/ton (63.4 g/tonne) over an average vein width of 6.5 feet (2.0 m) for the first 40 feet (12.2 m) developed. The 101 vein remains open along strike as well as above and below the 30th level.
The 101 vein is the third in a series of high grade veins (greater than 1.0 oz/ton average) recently discovered and developed by San Gold within the Rice Lake gold mine. The "93" and "98" vein development has also been progressing giving results similar to previous reports (see press release dated March 22, 2007). All of these veins have been located at the eastern extremities of known productive areas and project upwards and to the east into unmined and unexplored areas of the mine. The average grade used in this calculation was generated by 12 assays over 4 development faces, with individual assays ranging from a low of 0.39 oz/ton (13.36 g/tonne) to a high of 6.98 oz/ton (239.0 g/tonne). Coarse, visible gold was observed in all development faces so far.
Two new additional structures with similar geology and potential have been located on the 26th level (3900 feet depth) and are scheduled to begin development in June, 2007. The "93," "98" and "101" vein high grade developments over the past months are not included in the company's most recent reserve and resource report (ACA Howe, 2007), available on the company's updated website: www.sangoldcorp.com.
The above programs were carried out under the supervision of D. Ginn, P.Geo., the Qualified Person for San Gold under National Instrument 43-101. Chip, muck and mill samples are assayed on site in the company's assay lab using the fire assay method with an AA and gravimetric finish. San Gold's quality control and assurance program includes the insertion of blanks and standards, the retention of pulps and rejects, and spot checks utilizing independent labs including TSL Laboratories in Saskatoon, SK and Accurassay Laboratories of Thunder Bay, ON.
Thanks for the feedback, Cat. I tried to reply but cannot due to being on the IHub free plan....if you pm me again with a regular email address, I can communicate that way. Thanks.
Lion
I was happy to be able to pick up 900,000 at .014 over the past two days...that's another chunk accounted for by a legitmate buyer who is planning to hold. I think that is where most of the shares are going that are selling here. I already had over 600,000 in other protfolios before this. I think that is where most of the shares are going that are selling here.
NorthLion
A good Powerpoint Presentation is now available on the San Gold website: http://sangoldcorp.com/index.php?id=67
Lion
thanks jrdig7....
like I said, I am new to this stock, so that clarification helps. You're right, pinkyland is like the "wild west" and there are very few solid buys to be found. From the sound of it, this might be one to watch and consider.
I have found one other one that seems to be for real - NSHV. Similar sounding where the operators are trying to do the job right. It is a recent one through reverse merger and holders of the previous enterprise are dumping shares quite cheaply. There could be some opportunity there too. Sorry, I realize this is not their board, but since it sounds like you have investors here who are really more investors than speculators, I thought it might be of interest to someone else.
Lion
just ran across this stock on the weekend...
would it be possible that there is some trading happening between related parties to drive the price down so that Peter can by back a chunk more of the stock at lower prices than would otherwise be the case?? I have no idea how realistic that thought is, but it occurred to me as I was reading through the various posts on here.
Lion
53chevy,
Thanks again for providing very good info on this board. I also believe this will turn out to be a good investment...more along the lines if a buy and hold rather than a quick flip. I have picked up just over 600,000 now, and the last few days have made from a decent average cost.
NorthLion
are those asks showing 100 for 100,000 shares??
NorthLion
Hi Gene,
This IHub website has a lot of info and links to presentations, video clips. You can also try the San Gold website http://sangoldcorp.com/, but it is not well developed as yet (one of the deficiences many complain about). You can view company information on Sedar.com: http://www.sedar.com/issuers/issuers_en.htm - look under San Gold Corporation (in the S list under Company profiles).
You can learn a lot by reading the bullboard on www. stockhouse.ca (v.sgr is the identifier). That's about it for now.
Target price....one of the recent major purchasers, Robert Cohen, who is a big player in these types of markets in Canada, has said that $2.87 CDN is his valuation (not sure if he means right now or in 12 months), and most I have read seem to feel this comapny should be trading at $3.00 CDN or higher based on what they have in the ground. It is discounted still due to a couple of factors:
- deficiencies in promotion (the website is just one example)
- this is a developing play, with revenue just beginning, so we do not have a series of financial statements with production revenue to look at - it will be another 4 months at least till we do - so there is no documented "proof" in a financial statement form to look at - only news releases with excellent news and expectations of what will be. Therefore, this is not likely to be a quick flip kind of stock. You can buy in at very low prices now, but it may not move up too much for the first 4-6 months (I hope I'm wrong, but this is reality, I expect); eventually, the pay-off will come and it is expected to be huge - may 3X, maybe 5X, maybe 10X as it develops into a larger scale producer. But that is, again, speculation. Nevertheless, I believe this will be a great play and hold a serious position.
NorthLion
A view of workers underground at level 5 in SGR#1 mine.
This is the approach to SGR#1 - this mine is about 2 miles east of the main Rice Lake mine. It is accessed through a declining passage cut through solid rock, approximately 6000 feet long, descending until it reaches good gold-bearing ore about 700 feet below the surface.
After cooling, the dore brick looks like a loaf of bread, but is of much higher value! This 43 pound brick has some copper and silver content, but is probably about 80% gold. It will be refined further in Ontario until a 99.9% pure gold bar results.
Gold dore brick cools in the mould
Gold being poured into mould
Gold heated up in crucible, almost ready for the pour, April 19th
Since Kro has repeatedly shown that he is not posting full information, or has been posting misinformation, which in both cases is misleading to the people who read this board, why is he not simply banned from posting here so that this board maintains integrity? My opinion is that blatant disregard for the truth is not acceptable, and the people who read these boards deserve to be protected from that. The moderator of the board owes it to the people who read the board.
Of course, this will immediately be be countered by Kro and cronies who would claim that they represent the truth. The job of the moderator is to determine where the truth lies and then act accordingly.
NorthLion
SGR MINE TOUR - APRIL 19th
After making arrangements to visit San Gold this week, 4 of us investors from Winnipeg drove up to Bissett on April 19th. The road is good, paved to Manigotagan and graveled the last half hour to Bissett. It was a great day for traveling – sunny and warm, and also a great day to visit the mine as there was a gold pour happening soon after we arrived.
Both Hugh Wynne and Dale Ginn were away, so we were taken around on our tour by their Training and Safety Officer, John Lockhart and his assistant Vern. After some coffee and a visit where we talked about the challenges John faces in acquiring, training and keeping qualified staff, we put on hard hats and went over to the mill where they had the crucible fired up white hot, almost ready to pour some gold bars.
We had a chance to look over some of their processing equipment in the mill such as different separators used to divide rock and sludge from metals, and leeching tanks, and a few minutes later gold was ready to pour. The top part of the liquid in the crucible has a lot of impurities so it is poured off first for further refining later. After that a couple of bricks were poured (they look like loaves of bread) – one was 43 pounds and one was 22 pounds. These bricks (called “dore bars”) are all metal, but contain some copper and other elements; the gold content varies some from pour to pour, but it is believed that there is between 70% and 85% gold in each brick (we were not told that, but have heard that from others). These bricks are then sent to Ontario for further processing until 99.9% pure gold bars result.
From there we walked around the main mine site where we saw maintenance shops, core sampling rooms, the headframe on the mine shaft and the control room for the shaft, mine offices, parts room, geologists’ rooms, etc. We then took a little drive to view the tailings pond where the slurry from the mill is pumped after processing is done. The slurry in the tailings pond settles and chemically breaks down over time until it eventually is environmentally neutral.
After a nice lunch back at the main mine building, we donned mining boots, belt, battery pack and light and drove over to San Gold #1 about 2 miles to the east, where we prepared to go down into the mine. We rode in a cart behind a tractor and headed down the inclined shaft to get down to where the mining of good ore takes place. The shaft we drove through is about 16 feet high, 14 feet wide and to-date has been extended about 6000 feet through solid rock, now reaching down to about 700 or 800 feet below surface! That is an amazing amount of rock to remove in order to get at some gold! The shaft angles down, curls back 180 degrees and then becomes a downward spiral where each loop around takes you down approximately 100 feet further into the ground. We stopped at the second level and the fifth level; we could see where they have been blasting out large areas of rock underground. If you can imagine a horizontal corridor running off the main access shaft at each 100 foot level, what they are doing now is blasting both up and down at the end of these horizontal corridors, opening up a large vertical cavity between the horizontal corridors. The rock blasted like that falls to the lower corridor and then it is taken out from there to the surface (back up the winding, inclined shaft). This is a very rough description of the “long-holing” that they are doing. It was incredibly interesting to have the opportunity to see in person what takes place underground. We did not go down the shaft in the main Rice Lake mine.
Following this, we returned to the main building at the original mine site, where we spent a bit of time talking with Bill Ferreira, their head geologist. He explained more about the areas they have been exploring using maps and charts, and we had a closer look at some of the core samples they had on hand, where we could see good sized flecks of gold at points on the sides of the core samples.
By then it was time to leave and we headed back to Winnipeg.
The tour was excellent and gave us a much better picture of what goes on at San Gold’s mine and properties. The folks there were very hospitable and discussed their operation very openly. Unfortunately, we were not able to ask some of the business questions some have been concerned about, since both Hugh and Dale were away (for example, “What is happening with the website?” or “Who is accumulating vast numbers of shares?” or “What is happening with the share price?”). Not that we would necessarily have had all such questions answered anyways, as they are quite concerned about improper disclosure of information. Nevertheless, we did find out some things that might be helpful to answer questions floating around.
We did meet the new V.P. of Finance, Gestur Kristjansson in our travels and had a bit of a visit with him. He is working hard on finalizing the year-end financial statements, hoping to have them complete by April 30th. He then will work on the 2007 1st Quarter Statements in May. His "gut-feeling sense" is that they may soon be approaching a cash-flow breakeven point as they have begun selling gold. He was careful to not make any definite statements to us as such information should be properly disclosed in official news releases. From other comments we heard while on-site, Gestur’s value as the new VP of Finance is much appreciated.
Production – They have been pouring about twice per month now; they have done as many as five bricks at one time. At the present time about 650 tons of ore per day is being extracted and that will soon be moving up to 850 tons per day. It has taken time to get things ready for long-holing, and now they are ready to blast more frequently and to increase ore production. The mill is still not operating every day – it has been 2 weeks on, 2 weeks off, but the aim is to get it to the point where it will be running steadily. There are plans to expand the mill, but there is nothing happening with that as yet; it is not likely to happen till they are more in need of the extra capacity, we think.
Drilling – if we heard things correctly, there are 4 drills going now above ground and 1 below ground, with another drill on its way. Two of the drills are working in the Cartwright area, and two are working east of the main Rice Lake mine.
Cartwright – Ore is presently being taken from the main Rice Lake mine and from SGR#1. The next target is Cartwright. They are waiting on proper permits to begin work on the Cartwright portal, and our sense was that it may be a few months yet before permits are given and work can begin.
Workers – San Gold presently has about 240 miners. There are 38 full-trained Mine Rescue workers and they are #1 in Southern Manitoba in mine rescue. They have had their challenges in training and keeping miners, as they have been working with the local area people with no previous mining experience. There has been a high turnover; last year over 100 miners were fired for various reasons. However, many of these have since returned with better attitudes and there was been a much improved stability and morale in the work force over the past three months. They do have some veteran miners on staff (about 20%). They have also been able to find mechanics, electricians and other trades-people who have come onto their staff, so that they are using private contractors for fewer and fewer things.
Other Personnel – San Gold has 5 trained EMR’s (Emergency Responders) and is working in co-operation with the Town of Bissett to keep the ambulance station in place there. There was also talk of a couple of nurses possibly moving to Bissett, which would add further to the health and safety providers in the town.
Corporate Offices – the second floor of the main building at the mine has not been in use, but is now being developed into Corporate Offices with modern, spacious work areas for the geologists, engineers, and corporate administration personnel. The construction now is at the stage where walls and wiring are in and drywall is completed. It will be a very functional facility when completed – a big step forward from the crowded rooms currently in use on the main floor.
Other General Impressions – the atmosphere at San Gold was very warm and positive; it appeared to us that the employees are happy and upbeat. They are working together on a huge undertaking – one that will take time to develop properly. They have chosen the longer, better route of developing their own work force and doing a proper mine development. The amount of upgrading, repair and refurbishing that was needed when taking over this place from the previous owners was huge. This has all resulted in longer than expected time frames: longer than they expected themselves, and also much longer than anticipated by investors and the general public. Nevertheless, things are progressing, production is increasing and cashflow is improving. This progress will show up in future financial reports and resource updates as released from time to time by the company.
Chevy57,Thanks for the thorough posts and keeping this board focused. You're doing an excellent job...keep it up!
NorthLion
P.S. John Winston is now added to my ignore list.
I picked up 32000 at .05 today. This is a very interesting stock - the future looks promising. They seem to have a well-thought-out business plan and have significant people involved in the execution.
SGR continues to be an absolute bargain! Over the past week or so I managed to pick up a bunch more shares at bargain prices. I am done now and will wait till the markets settle and more news comes out. The facts are there -- the gold is there (more than we have been told so far - the resource count keeps growing), the mill is functioning, the company has cash and no real debt, they have spent time and energy to train a stable, local workforce. The facts are there. We are sitting on a huge gold deposit!!
BUT, so far the PR has been less than stellar, news has been slow getting out and this week the price of gold is down in the midst of market unsettledness. Net result - the shares of SGR are available at BARGAIN PRICES! The facts haven't changed - the goods are there. It is investor uncertainty and market jitters that are providing this incredible opportunity. I have taken advantage of it to the fullest extent I can; but I have no more cash to invest at this time. Grab it while you can.
The price of gold will recover - the facts of our world economies and political uncertainties alone say that it will. So do all the experts. There will be more disclosure of details on the mine itself soon. I expect we will be hearing of further expansion plans as well.
Eeverything I know points to an upcoming recovery of markets and of SGR share price. Today is an opportunity to buy.
JMHO.
North Lion
Thanks for the posts Bookmark...I hold some IPMN and have been wondering why I bought it (I bought before the reverse split)! But, as you have pointed out, it wouldn't take much to get this stock back up over .25 and some positive quarterly reports and growth could actually turn this into a positive investment.
Leo
SGR has just put out some more excellent news of further rich veins deep in the mine; this mine has already produced tons of gold over many years. The picture keeps getting better, but the story is not well-known and as a result the share price is hanging low at $1.15 Canadian. Anyone that is familiar with the company knows that the share price should be much higher, so it presents a fantastic opportunity to buy in now. It is only a matter of time till the story gets known and the share price will be much higher.
Do your due diligence and then take advantage of this opportunity while it is there....
North Lion
I have read and reread the most recent Financial Statements and am very hopeful that IYSA is on the verge of breaking out of its deficit position. The great improvement in Gross Profit to the point where IYSA showed only a slight Operating Loss in the last quarter is very encouraging. Management is making the right moves to make the company viable through expense reduction and now through addressing the lingering past debt. With a restructuring of the debt, the picture should improve significantly. An additional customer or two would then make this company truly profitable.
With the company having come this far, and having the ongoing support of the New Brunswick government, I see IYSA as being an investment with huge upside potential. That's why I bought a bunch of it recently.
Leo
WINNIPEG FREE PRESS NEWS FEATURE TODAY ON SAN GOLD.
The Free Press ran a 3 full page spread today featuring the San Gold mine and its development to Grand Opening this week. Here is the main part of the featured story:
ALL THAT GLITTERS
Bissett's future golden as San Gold mine prepares to pour first ingot
Sun Aug 20 2006
bill.redekop@freepress.mb.ca
BISSETT -- A decade ago, local contractor Hugh Wynne stood in a swamp and told the Free Press he was going to find gold there. Yeah, right. There wasn't a rock in sight. Just water, mud and damsel flies.
You felt like twirling an index finger around your temple as soon as Wynne's back was turned.
Wynne isn't standing in a swamp anymore. He's standing on top of the world. Not only did he find gold as promised but he now owns a whole damn gold mine.
When Wynne's company San Gold Corp. pours its first 12-ounce gold brick here on Aug. 23, there may well be a collective standing ovation from Manitoba's mining industry for the well-liked miner.
There should be one, says Gary Ostry, provincial manager of minerals policy. After all, how often does a guy go from staking a piece of property and drilling the exploration holes, to actually owning a mine and pouring the gold? Virtually never.
"It's a great story," Ostry said.
Wynne didn't stop at just discovering a gold deposit. He then engineered the purchase of the Bissett gold mine from Harmony Gold, the world's fifth-largest gold producer, which had closed the mine in 2001.
It was a stroke of guts and genius. Gold prices were at $250-$300 an ounce, well below the mine's break-even mark. Harmony put the mine up for sale in 2002. Wynne, a local exploration drilling contractor, frantically began trying to raise capital to buy the mine through his small publicly traded company San Gold.
But no one wanted to lend money to a penny stock. By now, Wynne had partnered with geologist Dale Ginn, a Dominion City native who'd been Harmony Canada's general manager. A Swiss gold fund finally gave them a bridge loan but at onerous terms. Wynne and Ginn (their names rhyme but Ginn is pronounced with a hard 'g') bought the mine at a fire-sale price of $4 million in stock and $3.6 million in cash.
San Gold immediately set to out to reopen the gold mine. That seemed as stupid as buying the mine. But, as Wynne explained, it takes two or more years to open a mine like the one in Bissett. "If you wait and make your decision when gold prices are high, by the time you get into production..." he trailed off, slicing his hand downward like a guillotine blade.
They were right. Gold prices have surged ever since, breaking $700 US an ounce earlier this year, the highest level in a quarter century. Now San Gold's mine purchase looks like the biggest heist since Ken Leishman pilfered $4 million in gold bars in 1966 from the Winnipeg International Airport.
And gold's future looks pretty rosy. The reason is the industrialization of China and India, which is a major gold buyer as jewelry, is driving up all metal prices. As well, European central banks have stopped selling off gold reserves.
"This company is like a rocket in the booster stage," maintained Rick Boulay, San Gold chief financial officer.
At age 74, Wynne stopped doing this for the money a long time ago. "If I was in it for the money, I would have quit when I was 60. I'm having fun," he said.
While his name sounds like You Win, it's really a win-win for the entire region. San Gold has hired 200 staff so far, mostly local people because that's the way Wynne wanted it. That bucks a long-standing trend among mining companies to import mostly experienced miners. It means virtually all San Gold's $1-million-per-month payroll stays in Manitoba.
Among new staff are about 120 aboriginal people, many who were unemployed, from nearby Hollow Water, Little Black River and Sagkeeng First Nations, and Métis communities Seymourville and Manigotagan.
"(Wynne) has given us an opportunity," said underground miner Clarence Bird from Little Black River First Nation.
Mine employees seem stoked. The Free Press was given free rein to interview staff without a management chaperone present.
"I love it. I really love it. I've wanted to be a miner since I was 13," said Jacob Tucker, 24, from Roblin. "The money's nice, too."
Tucker was encountered at 400 feet below ground level, directly below where Wynne stood and predicted he would find gold one day. It's a sort of drive-in mine where you are transported by a slow, grinding mining truck down a rocky, spiral road like in a parkade. Except when you see the light from the tunnel entrance vanish behind you, you know it's not a parkade.
Tired but happy miners wait for a hoist ride to the surface from 4,000 feet below ground after a 10-hour shift.
Tucker is employed as a drift miner, which means helping prepare areas that are to be blasted. His dad has been a miner since he was 17, and is currently mining gold in Mexico.
Laura Lindback works above ground as a hoist operator. She is one of about 20 women hired by San Gold, including a female welder who works over a mile underground.
Lindback's job is described as a "hoist man" in the mining manuals but San Gold changed that. From a special room, she operates the elevator that carries the men, machinery, and explosives down the mile-deep shaft mine, the original Bissett mine.
Elevators in mines aren't like elevators in department stores. Lindback controls it with a kind of joystick, slowing easing the elevator to a stop at various levels. It takes about four minutes to travel a mile.
Lindback, 27, is a city girl who spent eight years in retail, most recently as a store manager in Winnipeg. "I wanted a job change," she explained. "Retail is just go, go, go, and here everybody gets along and it's so much fun at work. I love coming to work."
And she loves Bissett. "I'm an outdoors person," she said. She's lived in a small shack of a house without indoor plumbing for a year. Friends are helping install plumbing, however.
With such an influx of people, although the majority still commute from surrounding communities, romances have sprouted. Two boyfriends are reported to be building additions to their girlfriends' homes. The local joke is that beaus don't bring roses in Bissett, they bring lumber. (Comedian Steve Smith's Red Green character would be so proud!)
Local pride is up, too. That's why Monday's Free Press is the most popular edition of the week, said mine superintendent Richard McPherson. "That's when Colleen's (Simard) column is in the newspaper. She's from here, you know," said McPherson. (Yes, of course, we know, just as we know she's returned to her home town for the summer to work in the hotel and write her columns.)
Gold exploration drilling is even taking place in some peoples' front yards. The next mine is expected to be right under the town. The ramp to enter the mine is expected to start just behind the local baseball diamond.
San Gold president Dale Ginn (left) and supervisor Richard McPherson check out a 'refuge station,' an area where miners can find safety in case of an accident.
Boosting the economy in Bissett, 260 kilometres northeast of Winnipeg, also helped Hugh and wife Madelaine persuade all five of their sons and two daughters to move back to Bissett. That's in a town with a population somewhere around 200 people. Only one son works with the mine while the rest run dad's diamond drilling company. (It's called that because drill bits are made from industrial diamonds to cut through granite and volcanic rock.)
"You can't swing a dead cat around here without hitting at least two of us," said eldest son Ross Wynne.
It's a great time for his father, said Ross. "It's his dream (to own the mine). It was his father's dream before that," he said.
Wynne's roots run deep in Bissett. His father Charlie, originally from Rapids, Michigan, was on a stopover in Winnipeg on his way to blast rock for a railroad on the West Coast, when he saw a notice about gold exploration jobs in the Bissett region. That was 1912. He decided to give it a try.
He never left Bissett, even though his employer left town without paying Charlie a dime. Charlie spent his lifetime in mining and prospecting the region. Hugh followed in his path but left when the mine closed. He went to work as an underground miner in mines from Labrador to British Columbia.
In 1972, father and son staked the mud patch northeast of Bissett that now has a 400-foot deep mine below it.
Hugh left mining and settled in Winnipeg in 1980 to take a job in retail sales. But in order to keep his staked land in Bissett leased from the province, he had to do exploration work. So he continued to explore the property on weekends. He eventually quit retail and started the diamond drill business.
Wynne has also taken over several local business just to keep the town going when the mine was closed. He owns Wynne's Place, the local store and restaurant ("We've never made any money on it in 20 years but it provides jobs for my family and service for the area," Wynne said), and last year he bought the local hotel when it came up for sale.
From an investor standpoint, San Gold's stock price is cheap at about $1.50 on the TSX Venture Exchange, but fairly diluted at 115 million shares.
Among its very strong positives is that it owns a $200-million gold mine and mill, yet has no debt. It has benefited hugely from previous owners like Rea Gold (1989-97), which sunk $85 million into mine upgrades, and Harmony, which put in another $33 million.
Its gold deposit grades just 0.25 ounces of gold per tonne, about average, the company says. But the deposit is on the same greenstone belt as Canada's best gold producing site at Red Lake, Ont., less than 100 kilometres away. Red Lake gets a sublime grade of 2.5 ounces per tonne.
To put a 0.25-ounce grade of gold into perspective, that's an amount of gold barely visible to the eye extracted from a boulder of rock the size of a 42-inch screen television. Meantime, a brick of gold so small you can put your hand around it now sells for $500,000 US.
San Gold doesn't think it's found all the gold yet. That's why it spent $6 million in exploration last year, placing it among the top three in the province led by Inco in Thompson. It already has proven up 12 more years of gold production, and the company estimates it will double that based on early exploration results.
About 30 per cent of the non-unionized workforce owns stock in the company, and managers are putting together a stock purchase plan for employees.
San Gold has its environmental controls and government permits. It's tailings pond north of town has ducks and minnows because the concentration of cyanide used in the gold million process is so low by the time it enters the pond. Cyanide breaks down in sunlight.
Copy of someone's post on another site re: Pink Sheet Stocks
The obvious basher activity on here lately makes this seem relevant:
That pink sheet stocks are the riskiest of all investments is obviously true. Those that constantly bring up this fact as one of their hectoring points are usually doing it to frustrate longs into selling low. Despite their claims of 'no position,' they are often buying up millions of shares near the bottom. The 'they' I'm referring to can be pro bashers who are fronting for MMs, naked shorting hedge funds or both. Or it could be individual bashers wanting to get in very low. They all know pink sheet stocks and patience are like oil and water. It's easy money for them. The bashing can also be done by some rogue sad sack--probably a lonely individual with multiple IDs who has a lot of time on his hands. Maybe he got burned on a pinkie and wants revenge. Maybe he gains some sort of sadistic ego satisfaction by repeatedly posting patronizing warnings and antagonizing longs. He picks on a pinkie because he knows they all have plenty of problems on which he can fixate. If they were perfect, they wouldn't be on the pink sheets!
Regardless of bashers, we all know that the pinks bring big risks that can morph into huge rewards. It IS a gamble, but all stocks are a gamble. Even the best DD can go painfully awry (Enron, World Com, etc). The safest gambles usually yield the smallest rewards. Living is a series of decisions or 'gambles.' By all means avoid pinks if you want, but you can't avoid gambling if you want to make money. Some folks may find intrinsic reward from stuffing paper fiat money into a sock. I don't.
People may play the pinks for action and excitement, but don't paint all pinkies with a scarlet "S" (for scam). Many of these companies are like seeds and need time to grow. I see nothing wrong with folks having a positive attitude about a pink sheet company and not all of them are pump and dumps. Some even graduate to the OTC and higher. (SRLM recently moved to the OTC, for example). Sometimes the best way to make money on pinks is to buy them absurdly low when nobody else wants them. Buy fear and impatience. Sell greed, irrational exuberance and mania. 'Patience grasshopper' can apply even to pink sheet stocks.
Company will be filing their Q2 results late.
This is not necessarily a negative as it appears there are circumstances causing delay in having accurate details to report at this time.
We haven't had any operational news updates for awhile.... it would be nice to hear of some progress in the sales and marketing side of the business.
LDJ
SAN GOLD RECEIVES NEW CARTWRIGHT ZONE RESULTS
San Gold Corp (TSX Venture:SGR)
Shares Issued 98,977,054
Last Close 5/12/2006 $1.98
Monday May 15 2006 - News Release
Mr. Dale Ginn reports
San Gold Corp. has provided the results of 12 new drill holes from its continuing drill program located one kilometre west of San Gold's Rice Lake gold mine. To date, the results of 20 drill holes have been released; remaining holes will be released as soon as they become available. Hole CW-06-26 which encountered 3.1 metres (10 feet) of 13.7 grams per tonne (0.40 ounce per ton) represents the easternmost intersection and the beginning of efforts to join to and prove the continuity of this new discovery (Cartwright zone) with the Rice Lake gold mine. Over 30 holes have been drilled in this area to date and will continue with two drill rigs, one continuing to the west and one moving eastward or toward the Rice Lake gold mine. Visible gold was a common occurrence within the intersections as listed below.
Hole No. From To Length Gold g/t (ounce/ton)
CW-06-12 126.7 m 128.7 m 2.0 m (6.5 feet) 5.5 (0.16)
CW-06-13 139.7 m 140.7 m 1.0 m (3.3 feet) 9.3 (0.27)
CW-06-14 198.9 m 199.9 m 1.0 m (3.3 feet) 14.5 (0.42)
CW-06-15 108.8 m 109.9 m 1.1 m (3.5 feet) 2.5 (0.07)
CW-06-16 137.8 m 138.3 m 0.5 m (1.6 feet) 29.7 (0.87)
CW-06-17 243.2 m 245.8 m 2.6 m (8.5 feet) 5.5 (0.16)
CW-06-19 58.9 m 59.1 m 0.5 m (1.6 feet) 120.2 (3.51)
and 134.7 m 135.0 m 0.3 m (1.0 feet) 62.5 (1.83)
and 199.7 m 201.7 m 2.0 m (6.5 feet) 10.8 (0.34)
CW-06-20 208.6 m 210.1 m 1.5 m (5.0 feet) 3.4 (0.10)
and 214.0 m 215.8 m 1.8 m (6.0 feet) 5.5 (0.16)
CW-06-21 194.1 m 196.9 m 2.8 m (9.3 feet) 8.9 (0.26)
CW-06-22 366.4 m 369.1 m 2.7 m (9.0 feet) 7.9 (0.23)
CW-06-23 203.3 m 209.0 m 5.7 m (18.7 feet) 4.8 (0.14)
CW-06-26 197.5 m 200.6 m 3.1 m (10.0 feet) 13.7 (0.40)
All of the drilling on the Cartwright zone to date has taken place between 0.9 kilometre and 1.2 kilometres west of the currently operating Rice Lake gold mine shaft and has encountered identical geology and mineralized veins as compared with the Rice Lake gold mine. All of the intersections so far encountered in the Cartwright zone are consistent with minable grades and thicknesses encountered in San Gold's Rice Lake gold mine. The developing grade and geometry of the Cartwright deposit have encouraged San Gold to begin preliminary plans to design a new decline to be collared from the Rice Lake gold mine site in order to access the Cartwright mineralization, as well as for a number of other purposes. This decline would also provide mechanized access to the Rice Lake gold mine's upper levels (for ore extraction and waste rock disposal), as well as providing access to the historical Gabrielle shaft and level development located between the Rice Lake gold mine and the newest discovery holes. The Gabrielle shaft and two levels at the 150-foot and 250-foot elevations were developed in the 1920s on six mineralized veins; however, no significant mining ever took place. Ground geophysics also indicates that the Cartwright zone may extend at least one kilometre to the west and join the Rice Lake gold mine one kilometre to the east.
San Gold's wholly owned Rice Lake gold mine has produced 1.5 million ounces of gold to date and is currently being mined between 4,500-foot and 5,500-foot depths; as well, the company continues to develop its new San Gold No. 1 mine located three kilometres east. San Gold continues to fulfill its strategy of discovering and developing nearby gold deposits in order to add flexibility to its current operating mines and mill.
This program was carried out under the supervision of W.S. Ferreira, MSc, PGeo, and D. Ginn, PGeo, the qualified persons for this project under National Instrument 43-101. The drill core was split, with half sent to TSL Laboratories in Saskatoon, Sask., and fire assayed with an AA and gravimetric finish. Whole metallics were performed on selected samples. Check assays were also performed on pulps and rejects by both TSL and by Accurassay Laboratories of Thunder Bay, Ont.
© 2006 Canjex Publishing Ltd.
HUGE RISE TODAY...more on the horizon as the first gold pour is at hand and the company will be at the New York gold show this weekend.
San Gold has been undervalued for a long time; it is now finally getting recognized and the share price is coming up. There is a lot of opinion that it will exceed $2.00 in the short term, and the momentum seems to support that. It has already gained so much in just a few months I wonder how long it can continue to climb, but I am sure we will see $1.75 Cdn soon.
San Gold's Rice Lake mine is gearing up for regular production. The share price has been climbing in anticipation of the first gold bar being poured, something expected within the next 2-3 weeks. A number of people posting on the Stockhouse bullboard said that they spoke with President Dale Ginn at the Calgary Resource show last weekend to confirm that the mill is working and the gold will be poured very shortly.
I had a tour of the mine last fall, had a chance to stand in the inclined shaft that was being carved out of the rock at SG#1 site. This mine is for real. It has produced gold in the past and will certainly do even better now with better management and with the price of gold soaring up to where it is today. See the website for pictures and the latest news releases:
www.sangoldcorp.com