Solidus Communications Inc (SLDC)

[EquityTrader]

In general stock evaluation for mining companies with proven ounces in the ground is $50.00/ounce up to 500,000 ounces and +$100/ounce going up from there. So 2 million ounces would give a company evaluation of +$200 Million. As for mining - the cost to produce an ounce will depend on may things but figure that it will be below $500/ounce and above $300/ounce. If you had 1 million ounces right now and put it into production you would make (worst case) ~$600/ounce or $600,000,000. With a junior company many times the business plan is to find something of size and hope that a Newmont or Barrick Gold takes you over paying a premium and resulting in a great payday for the share holders. If they find a "Carlin" type deposit it could be +5 Million ounces. There is a shot at a large copper deposit on the claims and that would dwarf a gold deposit. Time will tell and many drill holes. I do like the 2 year plan they outlined. If they are aggressive than they will have a good idea just how big this could be.

Seems like SUGO has another move forward. They were very accurate in the "43-101 style" wording. 43-101 is a Canadian exchange requirement for a standard of reporting and disclosure. It insures that information is verified by an independent 3ed party who is designated as a "Qualified Person" under the definitions of the NI (National Instrument) 43-101. A 43-101 report is only required on an annual basis and only when there is new information on a project that could significantly impact the company or on properties on which a company spends a certain percentage (don't recall what %) of their budget. So with that all said, SUGO is not a Canadian listed company, they have no new information on the project that would impact the company, and they have not spent any money exploring the property yet. BUT 43-101 reports are the standard of the industry and many financial institutions want to see reports with this kind of detail and investigation. Since there is a great deal of information on Conglomerate Mesa it is possible to compile a 43-101 style report. I have attached a link as to what these reports require. I have done several and believe me they are a pain in the butt to get through. The Geologist will need to visit the property and conduct his own sampling and confirm results in the old reports. These reports take time to get through, generally 4 to 8 weeks. So there you go more than you ever wanted to know about 43-101's.

They come from the Feds not local government. If it was through the local than you would be right they want to see something happen in the county. But the Feds are a different beast. My guess is that Sugo has done its homework and their PR states the second quarter 2010 which I think is right on. Make no mistake they will have a battle to get the permits because of enviros. The only reason the permits were not issued was an organized campaign against the permits. The BLM decided that they had to respond to very stupid comments and that is where it stopped. In my talk with the BLM they said there was no reason not to issue the permits. They felt they had to rewrite the opinion to respond to the environmentalist comments that the permit approval/evaluation must look at the impacts of mining and processing at the site even though the application is for a road and 7 drill holes.