CIBC just raised the target price to $6.00 on May 25, 2010. If you read their press release at that time and compare it to the one on Oct 1st, there doesn't seem to be anything new they discovered. Especially about the problems in the Hinge and 007. I take it CIBC is only reacting to the lower share price rather than reevaluating the company. They are simply protecting their reputation with their clients who was advised to buy at > $4. Who knows, maybe CIBC was one of the underwritters in the 20 million new shares in which they blame for a dillution of share value.

CIBC INITIATES $6.00 TARGET ,

San Gold News & Insight
Initiated at CIBC
May 20, 2010

CIBC initiated coverage of San Gold with a "Sector Performer" rating and a 12-18 price target of C$6.00 - a 44.2% premium to yesterday's closing price of C$4.16 per share.

The firm noted that "We expect that production growth will be quickly helped by high grades and multiple zones to exploit.
The Hinge and 007 zones can displace lower grades with higher costs thereby offering investors a double impact to bottom line profits."
Gold Sales Rises Nearly 20%
May 14, 2010

Reported first quarter 2010 gold sales of 11,984 ounces of gold - a 19.9% rise over the fourth quarter of 2009.
Drill Results from Davidson-Tisdale
May 3, 2010

Announced initial diamond drill results from Davidson-Tisdale project in Timmins, Ontario, Canada. San Gold has a 31.5% stake in the project under a joint venture with VG Gold (VG.TSX).
Target Price Raised
April 28, 2010


Dale Ginn, San Gold's CEO, called the company's discovery of 121 grams per tonne (3.53 ounces per ton) of gold across 13.2 meters (44 feet) "one of the most impressive intersections ever within Rice Lake."

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