The news is getting out for anyone that spends the time to do their DD. In normal economic times how they release news would be acceptible, however IMHO it is the uncertainty in the big picture that is causing all the angst amongst shareholders. I know SGR is a winner but I am quite stressed about the future of our economic fiat system. It took me my whole life to finally figure out the game we were playing and now we are playing a game that we do not even know the rules. Jay Taylor has recently interviewed George Pirie(the horses mouth) and most of what Jay has talked about in the interview confirms most of what has been coming from IR and past NR's so if George says it you know it must be true. I have posted the interview that I took from FC on the other board. George is to be on Jay's show this Tuesday. This appearence might silence the critics. JMHO

Thanks Eric

Business: Exploration, development, and mining of gold at Rice
Lake, Manitoba, Canada
Traded Toronto: SGR
US OTC: SGRCF

Shares Outstanding: 309,298,842
Initial Recommendation 9/30/06: $1.27
Price 6/3/11: $3.02
Market Capitalization: $798 Million
Gold Reserves: 934,082,503 Oz.(I am curious what this line was supposed to be)
Gold Resources (All categories): 2,627,140 Oz.
Of Which Measured & Indicated: 812,270 Oz.
Of Which Inferred: 1,814,870 Oz.
Progress Rating: A1


On Thursday of this past week I interviewed George Pirie, the new president and CEO of San Gold. I am more convinced than ever that this company is set for a dramatic and possibly an exponential rise in its value. My interview with Mr. Pirie is scheduled to be broadcast on my June 14 show during the first half hour of the show. Here in summary form is why I think this stock may be ready to blast off to much higher levels:

• Operating Performance – With Mr. Pirie taking over the day-to-day operating functions of the company, San Gold has under promised and over delivered. For example, on mill throughput, management had targeted 1,200 tonnes per day based and with plans to bump that up to 1,600 tonnes per day once it had spent $5million on some flotation circuits. By the end of the first quarter, the mill was already processing 1,600 tonnes per day, even before the equipment was added. With the flotation cells, Mr. Pirie is cautiously suggesting an 1,800-tonne-per-day throughput is possible. Not only is the mill operating very efficiently, but even more importantly, the miners are choking the mill. In the past, the problem at the company’s Rice Lake facility was that it was not able to keep enough ore heading to the mill to keep it running anywhere near its capacity. Now the company has an opposite problem—the mill is too small to handle all the ore. But that is a very good problem and leads me to what has me most excited about this company and
its prospects now that its operations are humming along on all pistons.
Gold


• Exponential Rise in Gold Resources – What has me really excited about San Gold is the company’s extremely aggressive drill program. It is spending $25 million to drill 300,000 meters this year. Pirie told me that in all his years in mining—and he is a seasoned mining pro who headed up Canada’s operations for Placer Dome—he has never seen a more aggressive single project drill program. In a couple of weeks, perhaps even next week, we should see data from upward to 100 holes put out into the press. I’m guessing that may wake the market up to the fact that this is a company that is going to grow its resources dramatically. In fact, Pirie used the word “exponential” to describe the growth of the company’s resource numbers. We don’t know when a 43-101 resource will be coming out, because it will depend on how the program is progressing. But with a 300,000-meter program being drilled from the company’s massive underground tunnels, this is a most exciting prospect, because the company can drill from underground locations that are upward to 5,000 ft. at depth already. The massive underground infrastructure, which is valued at around $200 million, will allow the company to drill from the 10, 16, and 26
levels.
No doubt the new management is what is making the difference now at Rice Lake. Dale Ginn, who is now the chairman, is a brilliant geologist. But mining projects are exceptionally complex and require a multitude of skills to make them work. The addition of Pirie seems to be the sparkplug that is getting the company’s operations to work smoothly. With that is coming a strong positive cash flow, from which that $25 million exploration program will be financed.
This company’s grades are phenomenal and the exploration potential is massive, which is why management is moving forward with a $25 million, 300,000-meter drill program. In my conversation with Mr. Pirie, I suggested that, with such an aggressive exploration program, San Gold must be looking toward something bigger than an 1,800-ton-per-day operation. He agreed fully with me, but noted that they are not making any comments yet about the potential size of the operation until the conclusion of this aggressive drill program. Once they know how much gold-bearing material they have, and the grades and
accessibility, as well as other considerations like optimum cut-off grades, etc., they can figure out then what an optimal mill size would be.



George Pirie’s Bio
George Pirie is San Gold’s president, CEO, and a director of the company. He has more than 29 years’ experience in senior management roles within the mining industry, specifically related to underground gold and base metal companies. Mr. Pirie’s career began in Timmins, Ontario, with Noranda’s Pamour Porcupine Mines, joining with Dome Mines in 1985 to begin an impressive 20-year career with Placer Dome Canada. Various senior positions were held during this period, including chief financial officer with Placer Dome North America and Placer Dome Canada, culminating as president and chief executive
officer of Placer Dome Canada, as well as executive vice-president of Placer Dome Inc., responsible for Canadian operations, which included Red Lake, Timmins, and Musselwhite. Mr. Pirie has also held the president and chief executive positions at Breakwater Resources and Northern Star Mining and has served on a number of boards, including the Mining Association of Canada, Ontario Mining Association, the Ontario Mineral Industry Cluster Council, and Mirarco. Mr. Pirie has also served on the board of Paladin Uranium and continues to serve on the board of Auryx Gold and Lithium Americas Corporation.

SUMMARY AND CONCLUSION – This has been a laggard among my progress A1 companies over the past year or so, but if you are looking for a company that I think can equal the kind of trajectory of Allied Nevada, which has been one of our most successful A1 picks, I believe San Gold may be able to fill that bill. I say that in part because of the very cautious George Pirie using the word “exponential” to describe the kind of growth in resource San Gold is likely to come up with as a result of its exceptionally aggressive drill program. This is now my No. 1 pick among the A1 stocks on my list.

TAYLOR HARD MONEY ADVISORS, INC. PO Box 780555, Maspeth, NY 11378 (718) 457-1426 June 3, 2011
Copyright @ 2011 TAYLOR HARD MONEY ADVISORS, INC. ALL RIGHTS RESERVED
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