In a report published earlier today, BMO Capital Markets reiterated its Outperform (Speculative) rating and $2.75 price target for San Gold Corp. (TSX: SGR).

BMO Capital Markets went on to say “While the estimation of M&I resources and reserves use conservative parameters, and are largely confined to developed areas, the short reserve life (<2 years) underscores an immediate focus on infill drilling over the next several years. SGR has outlined a 250km drill program in 2012, a large portion of which will be directed toward infill drilling to upgrade resources and increase the reserve base. The absence of an independent review of the updated reserve and resource may also be a concern to investors.”

San Gold Corp. closed yesterday at $1.20.