"The planned $10M on drilling in 2010 is not enough imo. In the last 12 mths, sgr found out 4 new HG zones, L13, cohiba, 007 and rice lake deep west. sgr spent $8M to bring Hinge zone from discovery to production in about 2.5 yrs. I'd guess all those 4 new zones will need about the same amount of money to go to production, including detailed drilling and shaft construction/extention, which bring the total somewhere close to $32M. With $10M in budget per year, sgr can only bring one or at most two new zones to production in 2-3 yrs . This sounds like a snail pace to me, assuming no fund to find new zones. So I am hoping sgr can do either JV, like sharing 30% of interest from the 007 project, or share offering, but again, not in TSX giving too much discount in share offering. JMT."

I'm no accountant but doesnt slow and steady win the race? im just a little concerned if they would keep that pace of injecting money they would spike up and spike down. I think there goal should be to become cash flow positive and there for self sufficent. Yes its only my opinion but i would rather they look out for the life of the mine and everything else and i believe it is in the Long term share holder position for them to become profitable and develop of the profits so one day when this stock is tradding at 10-15 $ per share we can get a dividen on it as well.

However I suppose the argument exists that gold price might keep going up for a year or two before it comes back down so why not spike up, everyone can liquidate there shares and then it could crash and who cares?

I'm just not sure they have enough resources to merrit them to try and produce over 200 000 oz per year, id rather see them keep there cost down and produce at a profit 200 000 oz per year. at current gold prices that would be a gross of 200 MM per year with a net somewhere b/w 100 -150 MM per year. If they could do that for 10-20 years where would our share price be?

Jeff