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Message: Re: Stock appreciation

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Mar 08, 2009 06:16AM

Danno, "Lucky Hugh" drills for SGR far cheaper than the industry average. It is one of the reasons exploration costs are so small. The 3 underground exploration drills are imperative to identify not only new resources, but to make sure that the mining is not taking place in low grade areas. That was one of Merit Mining's biggest mistakes. They mined on past surface drilling and did not have an underground drill to help with grade control, consequently mining became uneconomical with lower gold grades and lower copper prices. The battle to make money in any industry requires constant viligance and SGR now has high quality production mangement who are striving to mine higher grades and thus achieve cheaper costs per oz.


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