It is a safe assumption, I believe, that the whole of the Rice Lake greenstone belt from Lake Winnipeg all the way East, 80 kms, to the Manitoba / Ontario border, is GOLD country, riddled with high grade veins running in all directions.

The geology is essentially the same as the Red Lake area and mining history plus current drilling results are proof positive the claims owned by SGR, COU, WEL, SKP, Golden Pocket and Bison are saturated with commercial ore of at least 8 gpt……..and 8gpt = 0.257205 troy ounces @ $1500.00 gold = $385.80 per ton, just has to be a money maker at to-days all-in per ton cost ($85) of operations.

I for one, therefore, am looking at San Gold as the goose that laid the golden egg and that her offspring, COU, WEL, SKP, Golden Pocket and Bison are going to be swept along in a tidal wave of development that will see the whole Rice Lake region become the focus, the drawing card, of the new Manitoba Gold Rush.

Notwithstanding the recently reported very high SGR production costs (and my earlier flawed estimate of all-in costs of $900 per ounce) which contained a lot of development , infrastructure and exploration work, we should assume, as astute investors, that once a sufficient tonnage of higher grade ore has been identified - and we’re almost there - and then mixed at a 2/3 high grade to 1/3 low grade (8gpt) ratio ore, SGR will be on track to a 100 year production run that will see all further development and exploration work funded by retained earnings, after dividends have been paid.

Down the road a bit, I see San Gold, if they stick to their knitting, as a carbon copy of the Homestake and Dome Mining outfits of the early 1930’s, paying dividends beyond our wildest dreams. Historical records tell us that from 1929 to 1933, Homestake Mining in the US and Dome Mines in Canada paid very healthy dividends. Homestake’s dividend went from $7 to $15 per share and Dome’s from $1 to $1.80.

So for those who are disappointed in the just-getting-started history of San Gold, I encourage you to hang on, take a deep breath, put your feet up, take a sip or two of sherry, watch the Canucks win the 2011 Stanley Cup, and wait awhile. Good things are comin’.

And for those who think the grass is greener and the gold glitters more brightly on other side of the hill, here’s good ol’ Jerry Lee to sing for you:

“Another Place – Another Time”.

http://www.youtube.com/watch?v=nEXEhUO7npo

Fred25