Sunergy, Inc. (fka SNEY)

[mikeymgd]

I do not believe you will see any revenue on the next quarterly filing. In order to take advantage of free gold in the sands you will still need processing equipment to separate. They removed the sluice in order to pile sands quicker. No separation was occurring on the dredging so processing would than need to happen on land.

May 24 2011

We would clean the sluice (upper and lower at this point) and if the visible free gold was a respectable number, typically 1 to 2 grams of gold per ton of feed gravel, we would stay there.A decision to not stop the dredge for the cleaning of the sluice dramatically increased our production of the black sand and gold concentrate. We discovered that the sluice was only capturing about 20% of the free gold and 80% (or more) was going directly into the sump. We have modified the dredges so that closer to 100% now goes into the sump and we pump directly from the sump to an area adjacent to the river bank. The concentrates are then moved to our secure compound awaiting future processing. We have left the free gold, which may be substantial, in the black sand concentrate to be extracted under more secure conditions.

June 2nd PR

Sunergy, Inc (the "Company") (OTC:SNEY) is pleased to announce that it has purchased an iCON SB 150 Enhanced Gravity Concentrator and a No.6 Deister Vibrating Concentrating Table through RMS Ross Corporation in Chilliwack, BC, Canada. Both pieces are new and cost a total of just over $50,000 US. Scott Plummer of RMS Ross, serves on our Advisory Board.

June 13 PR

Our new processing equipment described in our June 2, 2011 Press Release is being prepared for shipping so the free gold and rare earths can be separated and upgraded through a single simple gravity separation operation. A small crushing circuit to enhance separation will be added to the shipment.

Since then no word on delivery, setup or operation. Did they finalize it and ship the equipment? The PR 6 months later makes me think they did not. Add to that say it shipped 2 weeks later, add 30 days for shipping, add say 2 weeks for customs and setup, you are not left with much time remain in Q3. Not that it matters since I really feel it never shipped.

Now it changes on January 4 2012

This discovery warrants a more sophisticated initial process/separation treatment in what was previously thought to be an initial solution targeted at free gold. In addition to the free gold, there is substantial contained gold in the sands that require more advanced separation techniques than those proposed in our June 2, 2011 Press Release.

Thought to be an initial solution, Not saying the current process or solution.

Analytical testing is ongoing and results will be published once enough material has been tested to give representative results.

Beckmann remarks, "Because we have access to excellent analytical methods and existing processing equipment, I recommend that we conduct this process initially where we have adequate existing facilities. Once we have determined the highest and best methods for recovery and separation we will evaluate the feasibility of setting up a process facility near our Pampana operation."

In the end there has never been a declaration of anything being separated. We can assume they received the processing equipment and its running but I find that unlikely. I firmly believe they would have given a PR when it arrived and was operational. I believe they chose to go in a different direction and began shipping samples out for testing. 4-6 months later a solid analyses from Beckman was completed and everything changed.

The statements appear to point towards large delays to attempt to bring efficiency and larger returns. The last update clearly stated further testing was required. We do not know if they are still testing material or if gold has finally begun to be processed.

Another way to look at it is, every month the OS climbs. This is typically indicative of either low revenue's or no revenue's. I think we can form a solid opinion that either no gold has yet been separated or its in very small amounts (a few ounces a month). I cannot fathom the need to keep issuing shares to pay bills if they are making 100k+ per month in gold. I do suppose 25k a month or so in gold desperation is still plausible though.