Southridge Enterprises Inc (SRGE)

[I-Glow]

The underground mine problem is not ratio related it is because of the mining conditions. Gold could go to $5000/oz and you still can't operate the deep mine.

In 2006 the price of gold was around $650/oz. So the mining ratio or the amount of overburden could be 3 times greater to achieve mining costs similar to 2006. If the overburden was 30 to 1 meaning you had to remove 30 feet of material to get 1 foot of ore - this would change to the 2006 equivalent of 10 to 1.

From the analysis of and sampling of Tumi,

Cinco Minas Mine workings where surface
sampling averaged 96 g/t Ag and 1.57 g/t Au over 11.75 metres

The surface mine is only yielding 1.57g/t of Gold.

So, Cinco Minas doesn't look like it is economically feasible to mine today. That is why it is abandoned.

IG