Southridge Enterprises Inc (SRGE)

[I-Glow]

The price of gold has nothing to do with the mining conditions. Also, if you read the report you would see that:

Additionally, a review of an underground high-grade mining option gave resource numbers too low to be of interest to the Company, particularly when having to deal with a large number of historic open stopes.

In mining the equipment cost for underground mining is extremely costly. You can't put in a 1 or 2 million in a deep mine if the reserves are not sufficient to support it plus the poor conditions.

The price of gold is 2 1/2 times what it was 2006. You make it sound like the price is 10 times greater.

A high strip ratio means the overburden to get the seam of ore is too great to make it feasible.

You would take the ratio ex. (a 1 foot seam of ore to 100 feet of overburden is a 100:1 mining ratio).

You don't know the mining ratio so you can't make the argument it is now economically feasible to open Cinco Minas.

I will call Tumi and see if they think it would be a good investment and a worthwhile mine at this time.

But, the underground mining conditions have nothing to due with the price of gold.

There is no mining going on at Cinco Minas it is abandoned.

IG