Categories: Precious Metals
Topics: General Precious Metals

San Gold Update

(Excerpt from September 24th Exploration Insights with permission)

Stock Talk Company News agreed to a bought-deal private placement of 13.35 million flow-through shares priced at $1.50 per share.  The placement brings in gross proceeds of $20 million.  Although I would have preferred a hard dollar placement (as opposed to flow-through) at a higher price, my preference has nothing to do with reality. Flow-through shares work to the tax advantage of participating Canadians but I believe are disadvantageous to all other investors.  Nonetheless, I think it was a wise decision to take the money, particularly given the uncertainties of this market.  San Gold's financial situation could have been getting rather tight by the end of the year and they were smart to remove the uncertainty for about 5% dilution. 

Last week SGR released more exploration drill results from the Hinge Zone area.  Drill-hole 07 intersected 2.7 meters grading 51.4 grams per tonne gold.  This hole is approximately 1,500 meters below the previous drilling on the Hinge Zone.  Connecting the near surface Hinge Zone #4 drill holes with this deep intersection is a very far stretch of the data.  However it is a very encouraging result that substantiates our optimism that high-grade gold mineralization continues to occur at depth in the volcanic sequence. (Refer to April 25th EI issue)

Brent owns shares in all of the companies discussed today.

Exploration Insights offers the sophisticated speculator independent and unbiased information analysis on the junior mining and exploration market.  It is written and produced on a weekly basis by Brent Cook, a veteran geologist and mining stock analyst. To learn more about subscribing to Exploration Insights visit our web site here https://www.explorationinsights.com/pebble.asp?relid=26

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