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Message: Bulk Sample Ounces

Bulk Sample Ounces

posted on Aug 20, 2009 04:43PM

Since the 5500 ounces were not included in the Q2 and I expressed my disappointment in that material fact, I thought I should check with SGR before I assumed they would be included in the Q3 numbers. No expectations means no dissappointment. I e-mailed Coutney as he had left me a card at the Vancouver Trade show. He responded within minutes of my e-mail. the response is below.

The ounces were in the Q2 but shown as recovered against capital costs.

There was around $6 million recovered due to the Hinge Zone production but

on the financials it had to be booked against past capital costs to develop

the Hinge. We couldn't report the ounces as revenue on Canadian GAAP. The

capital costs to develop the Hinge to date were in the $6 million range so

the cost to get to the Hinge Zone was a net zero and now we can develop the

Hinge further above and start to ramp down, or go east to Cohiba.

Of note was the comment about ramping down to the Cohiba. Here I go again assuming that means that the Cohiba has enough gold for another mine. Sorry I can't help myself.

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Aug 20, 2009 04:58PM
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