I think that most of the recent discussion of how the management has handled the Rice Lake mine area in the last three years, lacks clarity because of the misconception of what the mine was and how it was developed.

Essentially, the mine was a steal from Harmony Gold, who acquired it but could not get their heads around it. The fact that their base was in South Africa and they were running into problems with their high cost deep mines at the time did not help.

So, Hugh, Dale, with a wink and blink and nod ;-) from Dundee got the mine and started trying to put it back together, along with searching for the gold they always knew was there.

Some years on, they started finding it. Herein lies the problem. What they are sitting on is a REAL mine and probably a mining camp. What should be done is that a lot of money should be thrown into enormous amounts of drilling and the development of a proper mine plan to optimise the way the ore will be extracted in future years. See what Great Basin is doing with Hollister and how they word their press release

http://www.stockwatch.com/newsit/newsit_newsit.aspx?bid=Z-C:GBG-1654368&symbol=GBG&news_region=C

Problem1

The original funding for the mine did not come from someone like the Hunter Dickinson group, which is a private group that is focused on the development of real orebodies and turning them into long lived mines http://www.hdgold.com/hdi/Home.asp .It came from Dundee, which is primarily a finance group that wants to turn a quick buck on using its contacts and funding to turn plays around and then sell them.

Problem2

None of the senior management at San Gold are anywhere near experienced at the planning and development of huge mines. They are essentially enterpreneurs, geologists and financiers. Notice the quality of the discussion on mine development in the press release above and compare with San Gold press releases.

Problem3

The sharks are circling because mineable orebodies do not grow on trees and San Gold has to be careful in order not to be bought out cheap. They suspect they are sitting or 10-20 million ounces minimum. That is a lot of gold.

Therefore, what is happening is we have a bunch of great guys (thank you Hugh,Dale and co for allowing me to make some money along with you!) who are essentially unsuited now to run the elephant we all suspect they are sitting on. On the other hand, they do not want to give it away to some shark for nothing.

They are essentially prisoners of historical circumstances and we, as shareholders, are in the same boat. The only way to resolve this is for a mining giant to come along and pay good dollar for what we have and retain Hugh, Dale and Bill as consultants. Then they turn the place into swiss cheese, sink another shaft, expand or replace the mill and start producing half a million ounces out of it in three years.

To enter the fray on the name calling front, I think it is grossly unfair and insulting to call management liars, when, all they are doing is trying to maneuvre through shark infested waters in a difficult environmet in order to get the best price for what is, after all, their asset as well.

I think they are just as much victims of circumstances as we are.

Good luck to all.