BG neighbour LME sells Timmins property today to San Gold for $1 million cash plus 1 million shares of SGR... plus LME retains NSR... total value of cash and shares alone about $3 million... market cap of LME at yesterday close of 4.5 cents with 66 million shares out... just $2.97 million...LME gapping up big today...

IMO SGX in a similar situation... sum of the parts worth much more than current market cap/share price.

red911

San Gold signs LOI with Laurion Mineral

2009-10-08 08:38 ET - News Release

See News Release (C-SGR) San Gold Corp

Mr. Dale Ginn of San Gold reports

SAN GOLD ACQUIRES ADVANCED STAGE GOLD PROPERTIES IN TIMMINS

San Gold Corp. has signed a letter of intent with Laurion Mineral Exploration Inc. to purchase all of Laurion's property interests in Tisdale township, in the Timmins, Ont., mining camp in consideration of a payment to Laurion of $1-million and one million common shares of San Gold. The Tisdale township properties consist of a 31.5-per-cent ownership in the Davidson-Tisdale gold deposit and a 100-per-cent interest in the North Tisdale property. The purchase of the Davidson-Tisdale will be outright and free of any royalty while Laurion will retain a 2-per-cent net smelter royalty on the North Tisdale property. A formal agreement will be entered into between Laurion and San Gold upon completion of standard due diligence, expected to take approximately 60 days. The remaining 68.5 per cent of the Davidson-Tisdale deposit is currently owned by VG Gold Corp. Following a re-evaluation of prior work, San Gold intends to actively explore with the view to developing the Davidson-Tisdale deposit following the negotiation of a joint venture agreement with VG Gold Corp.

Davidson-Tisdale property

Laurion currently holds a 31.5-per-cent interest in the 12 Davidson-Tisdale claims consisting of 28 units (25 claims) covering approximately 1,150 acres (465 hectares) in Tisdale township near the city of Timmins in the Procupine gold mining camp. The property is accessible via an all-weather road off of Crawford Street in South Porcupine and has been the subject of various exploration programs since 1911. Several shafts have been sunk on the property with a decline driven for 1,081 metres and to a vertical depth of approximately 200 m.

The property has an interesting history that has resulted in a valuable accumulation of technical information. Sporadic attempts at development took place in the early 1900s. Mining and processing of a 44,000-tonne bulk sample in 1988 produced 7,300 ounces of gold. The most intensive exploration program was carried out by Getty Canadian Metals and successor companies between 1984 and 1988 during which several mineral estimates were completed. A 1984 mineral estimate to a vertical depth of 200 m indicated 747,600 tonnes at 12.39 grams per tonne gold and a 1987 estimate by Getty indicated 512,500 tonnes at 16.53 g Au/t. The above grades and tonnages are considered historical, were recorded before the implementation of National Instrument 43-101, do not conform to current regulatory standards and should not be relied upon. A summary of NI 43-101-compliant mineral resource estimates for the Davidson-Tisdale deposit completed in 2003 by Geostats System International and in 2007 by P+E Mining Consultants was filed by VG Gold and is available on SEDAR. More recently, exploration conducted by VG Gold (formerly Vedron Gold Inc.) during the period 2003 to 2005 consisted of 56 drill holes with a total of 12,138 metres.

San Gold will also acquire a 100-per-cent interest in the 15 claims comprising the North Tisdale property. The Tisdale Kinch Shaft zone is reported to host historic exploration shafts and a number of gold-bearing zones consisting of numerous quartz carbonate veins. The North Tisdale property has seen very little exploration and is considered to be a very prospective grassroots exploration play in a prolific gold camp adjoining the advanced Davidson-Tisdale deposit. Dale Ginn, chief executive officer, stated: "This proposed acquisition is a valuable addition to our expanding exploration and development campaign in the Timmins gold camp. Our experience in the Rice Lake belt of Manitoba has demonstrated clearly the potential for further discovery and expansion that is possible within stable and prolific gold producing greenstone belts." San Gold is an aggressive and successful gold mining and exploration company with mine and mill operations in the Rice Lake belt of Manitoba, as well as a number of new high-grade gold discoveries. San Gold has also accumulated a strategic portfolio of properties in the Timmins gold camp. San Gold's Timmins area exploration is being carried out under the supervision of John Boissoneault, PEng, the qualified person for these projects under National Instrument 43-101.