Here’s another way to look at the current intrinsic value of a San Gold share.

Let’s say, for the sake of argument, San Gold has 20 million ounces of discovered and yet-to-be discovered gold on their Rice lake claims.

There are / were 325 million shares issued for corporate financing, Director and Executive employee options and bonuses, etc.

20 million ounces converted to grams = 20 x 31.10348 = 622 million grams

A gram of refined gold at 999.9% purity is worth (to-day) $1540 per ounce / 31.10348 = $49.50 per gram

The all-in cost (not cash cost) for San Gold to produce an ounce of pure gold over the 100 year life of the mine will be approximately $850.00 in to-days dollars.

That leaves $1540 minus $850 = $690 per ounce for the owners (shareholders).

So for the owner-shareholders, a gram of 999.9% gold is worth $690 per ounce / 31.10348 = $22.18 per gram

Each of the 325 million issued shares is therefore supported by 622 / 325 = 1.91385 grams of gold.

And since a gram of gold is worth $22.18, each of our 325 million issued shares is supported by $22.18 x 1.91385 grams of gold = $42.45 worth of gold.

For those skeptics who believe we have only 10 million ounces, each share would then be supported by $21.22 worth of gold.

And for the absolute non-believers who think we have only 5 million ounces, each share would be supported by $10.61 worth of gold.

So whether it’s 20 million ounces, 10 million ounces or only 5 million ounces, it is clear that SGR is a strong buy.

And I believe, when you include the claims of Strike point, Wildcat, Cougar, Golden Pocket, Bison and the others, there is at least 75 million ounces of commercial grade ore from Manigotagan to the Ontario border, all of which can be processed at the San Gold mill in Bissett.

Fred25