I spoke with Hugh for about an hour today. He stated that their hopeful the 43-101 should be out in mid-June just before the AGM. San Gold has two drills running on some parallel veins about 2000 m east (or west, I can't remember) of the Hinge zone. Results pending within the next two weeks.

He's very optimistic about San Gold's future but does admit that management was overly optimistic about when they would be able to generate 50k ounces per year. He states that San Gold should be cash flow positive at about 25k ounces per year, which will be in Q3 (September). He stated that they hope to produce between 25k to 30k ounces this year. 50k will be next year. Cash cost per oz from Hinge should be $200.00 or less (grade at surface solves everything).

He believes that the reason the the majors are gun shy on the juniors in general is due to the fact that they overpaid for many assets prior to the downturn in the markets. He intimated that San Gold is not looking to be bought and, if anything, is looking to acquire.

He thinks the Timmins region is being overlooked and likes the potential their. People are enamored with Red Lake and taking their eyes off the ball at Timmins.

He's believes a MUCH high stock price is quite possible. He does NOT believe the stock price is being managed.

FWIW

MB