Re: Dundee Report of May 14
in response to
by
posted on
May 19, 2010 12:27AM
San Gold Corporation - one of Canada's most exciting new exploration companies and gold producers.
I just have a suspicion that management has concentrated efforts towards developing some of the new high grade zones recently discovered in the RLM. Last quarter they were getting around 8 grams from the RLM and 0ver 12 from the Hinge. Even with the ore from some of the skinnier lenses of the Hinge zone I would find it difficult to believe that the average could be less than 8gpt. The only realistic explanation is that the miners were focusing on development of the new RLEast and the upward extensions of the 98 vein. It may have been a decision made easier by the breakdown of the d winze, however the Q1 mentioned the loss of production from the mine below 26 level. Perhaps they are preparing multiple high grade stopes within the hinge and the RLM, so they can showcase the property to a interested third party. What better way to create a stir than to tour someone and have multiple stopes developed ready for mining with visible gold everywhere. Wishful thinking perhaps, however one never knows as each new discovery can change the focus and priorities. Currently it appears to me that focusing on development that will advance the discovery process has taken a priority over mining for the purpose of producing maximum ounces.
http://sangoldcorp.com/assets/files/20100422_RL_East_HighGrade.pdf
If you look at page 2 of the news release and notice hole 26-09-035. 12 grams over 21.4 meters. Perhaps they are headed in that direction. Would have been a good project while the d shaft was down.