What is significant is that the veins at surface are gold bearing... what is insignificant is the grade.

These veins are extensions of the structure of the previously mined Jeep workings coming to surface..These historic veins yielded the highest grade gold mined in the area and was consistant with the sampling of the hinge zones by SGR.

Although disapointing they are insignificant other than they have proved to contain gold. What would be significant is if drilling directly down dip was to produce a long core of insignificant results.... and we are clearly not there yet.

Drilling for true width provides the volume and grade if that core is consitantly the same grade. The problem with coarse crain mineralization is that it almost always understates resource.... Bulk sampleing providing the only definative grade for a resource.

What would be interesting is to see the total drilling and computed average grade for the hinge zone verses the bulk sample mined grade.

What we are seeing with the chanel sampling is the simply proving the veins have mineralization present at surface. Usfull in ploting the upcoming drilling and will provide confirmation of dip angle etc as drilling proceeds.