Re: and another
in response to
by
posted on
Feb 05, 2011 12:24PM
San Gold Corporation - one of Canada's most exciting new exploration companies and gold producers.
..show me the money...What are the real problems...Looking back to 2000 prior the mine closing Dale was acting Mine Manager / geologist and was well awhere of the mines potential new finds. The mine was mothballd in 2001 due to low gold prices ( $ 250. )and went into receivership. Dale and hugh ( own surrounding land ) bought out the mine and started San gold now with a complete infrastructure and large land package got the cobwebs out and trained their employees to be miners as miners were hard to find . San annouce production back in 06 but due to lack of manpower and production faces bills were pilling up so Dale arrange financing with Bay St. Drilling continued finding rich veins and SGI was started but because of the low grade was shut down and more concentration was put on the main mine shaft area but required alot of development . A new hoist was installed because lightening strikes were knocking out power and management also realize alot of manpower was wasted trying to get down to the ramp below the bottom shaft at 5400 ft were some production was taking place but haullage back up to surface was costly. Drilling continued to hit big near surface ( hinge, 007, coabina, l13 )but alot of development would be required to go after this low hanging fruit so Dale again went to Bay.ST. and got 80 million to continue mining and pay wages. This delay on development caused prouduction targets to be miss and the share price to fall as Bay,ST work the flowthrough capital through the tax system. The flowthrough funds cannot be used for production so Bay ST had plenty of time to work their magic and bring their cost down and increase their percentage of ownership. ..To - day we see that all flowthrough is out of the way and development has Pac - Man San into these hinges and production faces and drilling stations are up and runing, new scope trams are in place, Mill upgrades , security gate, staff, housing, and on and on. This is Sans turn around yr ( yr of the rabbit ) as the mining plan seems to have allowed for increasing production Qtr after Qtr so hopefully cash flow can keep development going as new traming eqipment down at 26000 level between the hinges and hoisting speeds up the process. San is a mine in the making and such gold mining is a slow expensive process, as some times longhole methods have to revert back to shrinkage methods to cut back on the strip ratio which slow down production. The mine infrastructure is dry and solid and crushing facility has been updated. Long On The GoldenFairWay, Traps7