Mostly: Classical

[oeo2oo]

Dan,

You are spot on; many were afraid to touch this stock because of its checkered past, i.e., mines in, of all places, Columbia, plus the Philippines location. As many are aware, there is some political risk associated with that country, but to the credit of management, it has done all things possible to sooth any frictions. They have employed local geologists, local laborers, and even tried to prep the populace to the fact that there may be a mine there soon. In addition, the CEO has pledged to conduct all operations to the highest standards with regard to any ecological impact.

What is most important to keep in mind about the SUR exploration effort is that while the initial reports have focused on those nice grades from the veins, it really will be the grade between the high-grade veins, i.e., what they call the stockwork, along with the overall size of the deposit that will determine how much gold is in the ground. The CEO has stated that he's hoping to outline a Ft. Knox type of deposit, i.e., high tonnage, lower grade resource with lots of ounces of tons, and, hopefully, one that can be an open pit type of operation.

If that does come to fruition, then the recoverable ounces might be high and the cost low. We can only wait and see what the trenching results come back with first, to be followed early next year by the drilling results.

The good news is that this is a tightly run ship, Rennie Blair, the CEO, keeps expenses under control; his monthly burn is only in the vicinity of $25,000! Having just raised another $1 million, the company is pretty well financed for now.