Reality IMO
posted on
Feb 02, 2011 03:21PM
San Gold Corporation - one of Canada's most exciting new exploration companies and gold producers.
95% of the mineral anomolies out there won't see the light of day and believe it or not the market bids the price up based on nothing more than a good story and the greater fool theory. Not fundamentals, not peer group comparisons, not an extremely vague cost per ounce in the ground model and not because retail level players are buying. You could have thrown a dart on July 1 and made out like a bandit on companies with nothing more than hype.(As long as you didn't hit SGR).
SGR produced 34k ounces in the first 3 quarters and throughput was averaging 800tpd 4 months ago, not to mention 3q produced almost 13k ounces with an average head grade at 6.2 g/t. They obviously hit the kill switch and shifted focus to the something else if production is only coming in ~ 40k for the year.
Jury's still out on the 007. But it doesn't take this long to process x amount of tonnes from an area they had access to in the 3rd quarter of the year with a mill capable of spinning the bulk sample ore in less than 2 weeks. Why waste good rock on a bad year after a coaching change.
The shoreline basalt is the game changer. This will be the story and the 007 is going to be huge. The anecdotal evidence supports this/my convoluted opinion.