A few highlights.

* Bulk sample validates high grade and potential for low costs and high margins, all of which should make the target that we beleive is on the company's back even larger.

* The Hinge zone continues to impress, and we believe the bulk sample results bode well for the upcoming resource esitmate.

* Avg grade of bulk sample is higher than our production forecast for the zone, suggesting additional upside to our valuation. Upcoming resource estimate, however, is likely to be better indicator of life-of-mine grades as it incorporates a broader view of the deposit and we will review our valuation at that time.

* Recent discussions with SGR management indicate that further drill results (Hinge & new Cohiba) are pending. We expect those results to extend the boundaries of both deposits and, in the case of the Hinge zone, to infill areas beneath the development drift. All of the results will likely be incorporated into the companys initial resouce esitmate for the zones - expected in early to mid August.

maintian Buy @ $3.10/sh