The guidance outlined (production of 85,000 to 95,000 ounces) for 2013 and 2014 is the worst case scenario. No financing is required to achieve this production.

If there is a financing, which is highly unlikely given the current market conditions (i.e., share price) then production will increase above the current guidance numbers.

George has now set the bar basically at floor level.

In the short term share price will rise on one of 2 things:

a) price of gold breaks out (which will happen at some point).

b) there is a hostile take out offer (this is quickly moving from possible to probable).

Given that National Bank is running the stock price down, they are certainly working with one or more parties who want control of the Rice Lake belt.

Several years ago, I had first hand experience with a couple of investment bankers with National Bank. They were pitching a "Plan B" for a hostile take over on a company which had just made a take-over bid on one of it's competitors. Subject to that deal falling apart, the National Bank boys wanted to be ready to strip the bones of a perceived weakened company after a failed take-over bid.

As they laid out their ideas for a "Plan B" (which never happened by the way) they saw a major drop in share price as their strategy and then a commitment from 2 other firms (one being from the firm i was with) that a take out bid would be made. Of course they were going to under-right the whole deal for a mere 5%.

If this is happening with San, then I expect we are at the levels that a move will be made shortly, if it is going to happen.

San Gold has real assets and is generating positive cash flow. Yes there has been disappointment over the past 3 years, but that was probably due to false expectation (which Management needs to wear). However, this company does have value and it is very, very vulnerable right now.

So ask you self this: at these prices, should I sell my shares? (and give the NB boys what they want) or should I be buying shares?