As far as shorting is concerned, I hope they short the hell out of this and here's why...
Take another look at the following from the last PR:
"The property has been the subject of past gold exploration by several companies, including Newmont Mining Corporation and BHP Billiton. The previous work included mapping, surface sampling, and drilling, the results of which are available to the Company. The work by these companies has produced significant gold values in drill intercepts which are open to expansion, and has also defined several targets which have but not yet been drilled. Initial work by the Company will focus on these areas of known gold mineralization with the ultimate goal of developing gold resources.
All data will be compiled, reviewed and evaluated by Sungro Mineral's consultant for the purpose of completing a comprehensive report. This report will include recommendations for moving the property forward and be completed to the NI 43-101 standards. SUGO will be utilizing the review and the recommendations from the report to design and implement exploration and drill programs for 2010 with the intent of continuing to define and expand areas of gold mineralization."
The company already has a very good idea of what they have on the property. They already have a good idea of what they can expect to go through as far as permits for roads and drilling, based upon the info from not only the two mentioned majors, but from the most recent attempts by Timberline Resources in 2008. They don't seem to be deterred by these past obstacles.
What strikes me as most interesting is that they are going through the time and expense to complete a "43-101 style" report on the property. This is a necessity and, if I understand correctly, the industry standard for Canadian companies. So, one has to ask themselves, why would SUGO go through the time and expense to conduct this report when it isn't required to, since it is now a US company with US claims?
My thinking is that they are completing a 43-101 style report to add legitimacy to the property value and to garner the attention of more investors, but also, I would even think that they might have a specific audience that may have required it of them before perhaps making a significant investment. Perhaps another major or deep pocket investor of some sort? Of course I have no idea, but I've been thinking about and reviewing this last PR and asking myself what the logic is behind completing a report that, as far as I understand, is not necessary for them to do? Logic would cause me to think that if there is a deep pocket potential investor/partner that they might be in Canada.
Just speculating/hypothesizing of course, but you have to ask yourself, why do this report? There has to be a very good, and I'll bet specific, reason for doing so.
I'd be very interested in seeing a response from our resident expert, Plata!
Anything I post is my opinion which is subject to change. I accept no responsibility for anyone who chooses to take any action based upon anything I post.
AI
