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Message: Dundee - Hinge Zones Boost Q2 Production
1
Aug 20, 2009 01:49AM

I'm back - Just read the past few weeks or so of posts and glad I still own my shs.

As for Dundee research, SGR has been #1 top weekly metal pick - for the past 3-4 wks.

Yesterday, Dundee released a reserach bit on Q2 financials. A few of the key points (nothing earth shatering here)

* Gold production is the highest yet, boosted by the Hinge bul sample progam.

* Updated guidance suggests ramp-up. Company guidance is now 12,000 - 15,000 oz gold in Q3/09, climbing up toward 20,000 oz in Q4.

* Hinge should play a central role in production. Over 60% of the oz's produced in Q2 were from the Hinge, and this trend should continue in Q3. SGR is currently developing 3 levels in the mine, and the ramp is heading toward a 4th level.

* Exploration continues on several fronts. Drilling further delineates the Hinge zones and areas near the Rice Lake Mine. The company has drills underground within the Rice Lake Mine, testing potential extensions of veins, particularly to the east and at depth.

- Surface drilling is testing the Cohiba Zone and other target areas. The Company has several drill rigs targeting the recently discovered Cohiba zones and the corridor between Cohiba and the Hinge zone. In addition, drills are testing the next target area to the east (the Emperor target), the Gold Cup target to the north, and an area of interest located nearby to the west of the Hinge zone.

Maintain BUY rating and $3.20 - 12 mnth target price (not sure when they raised it - from $3.10)

- previous research - Bulking Up - stated they would revist target price, once 43-101 was out.

Longs on the Greens - and lithium (my other spec trade)

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