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Message: whimpering and moaning

Every time I look here, you guys are just whimpering and moaning. It's pathetic, though somewhat entertaining.

There seems to be a lot of discussion about drill indicated grades not holding up in production. Let me throw you guys a bone for discussion.

Nugget effects are a problem in every gold property. The staff need to figure out how to deal with some of the high grade numbers. I could see there was a problem at SGR a couple years ago when I saw that photo from the 007 zone with gold concentrated along a fracture which ran along the core axis. That intersection should probably have never seen the light of day. A drill core a few cm away might have returned zero.

I don't know many details about SGR, but it looks like they are having trouble dealing with their high grade numbers. Maybe their sample sizes/core sizes are too small or maybe they need to cut their >1oz samples down to 1 oz like is done all the time or maybe they need to reduce their cut-off grade for inclusion? It seems obvious that they are ending up with drill indicated reserves which are way too high in grade (and probably too low in tonnage) because they aren't dealing with their high grade assays properly. They seem to be ending up with only the erratic and unrepresentative high grade intersections forming their drill indicated reserves.

There's always some other stock out there somewhere that's doing better, but I'm in cheap on SGR, so every direction is up. Production is increasing steadily. Financials are improving. It's not a problem for me. I'll just hold. And who actually takes management guidance seriously. Get a grip. 5% down is like over-achieving.

And cut the whimpering and moaning. I'll check in again in a couple years.

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Jan 12, 2012 09:33PM

Jan 12, 2012 09:43PM

Jan 12, 2012 10:51PM
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Jan 12, 2012 10:58PM
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