Sage Gold pic. (SGX.V)
Perused the website, some impressions:
70,000,000 shares fully diluted and still in grass roots exploration stage. Should easily go over 100,000,000 shares before any significant resource is established (if any).
Several interesting exploration stage Au propsects in Nevada elephant country.
Several canadian properties, 3 of which look like they are being actively explored: Kerrs. Onamon and Jacobus.
--Onaman- Historic base metal/Au/Ag production and a small historical resource on volcanogenic exhalitive horizons (sea floor hot springs deposits). Quote from the 7/06
press release:
"...........................................
As part of a metallurgical test program, the Research and Productivity Council (Fredericton, New Brunswick) reported the following average grade: Au 3.9 g/T, Pb 5.8% and Zn 4.5 % from a 60 kg composite sample of the Cane Gold showing. The
metallurgical testing program will be completed in three weeks.
The Cane Gold open pit and mineralized zone (previously described as Americ #5 - in the Company’s press release of May 4, 2006) are in a stripped area measuring 50x15 m. A
steeply dipping, north-south trending, west-facing gold-rich base metal horizon occurs in a hydrothermal-sedimentary unit at the contact between pillow-basalt sequences. The gold is associated with galena, sphalerite and minor chalcopyrite, which occur as lenses in a tuffaceous carbonate-chlorite host rock.
Nigel Lees, President, commented “We are very pleased with these results. In addition to the Cane Gold showing, we plan to trench and sample eight other showings on the
Macdonald block. The purpose of the immediate exploration and metallurgical testing program is to assess the feasibility of open pit mining one or more of these surface showings. Exploration work is being carried out by Exploration Geoscience Associates of Orillia,
..................."
This seems like a carriage before the horses approach, and as such appears to be little more than posturing. They should worry about the presence of sufficient tons before metallurgy and mining. Looks like little interest in doing the needed exploration even though there is apparently alot of smoke on the project that warrants more drilling.
--Kerrs- I like the looks of this project from an exploration point of view. If you have the time and background you might want to plot up the drill hole locations and intercepts to see if the higher grade intercepts hang together and indicate any trends that might be open for extension. No resource defined as of this time.
--Jacobus- historical resource of about 900,000 tons combined 0.8 % Cu/Ni in a pipe shaped body plunging at about 45 degrees to the NW. Much of this would only be accessible underground and is of too low of a grade to be economic. They need to find higher grade extensions or other zones. I am not clear on what kind of potential there is for this type of exploration on the property.
Maybe this is the indication of higher grade material that they need, from the website:
"The Jacobus Property has a demonstrated Ni-Cu mineralized zone with an inferred reserve of 950,803 tons grading 0.43% Cu and 0.40% Ni over various widths and thickness (average thickness 40 feet thick). The latest diamond drilling in 1993 was intended to extend the zone to the northwest and down dip/plunge. Two of the seven holes intersected the mineralized zone; 93-2 returned 105’ ( of 0.75% Cu, 0.71% Ni and 0.023% Co while 93-3 returned 43.7’ of 0.93% Cu and 0.23% Ni. These 2 holes extend the zone another 500 feet to the northwest. They have not been included in the ore resource calculations as there is not enough drilling around them. Further drilling to the northwest in 1993 intersected the gabbro but with no mineralization. It can be seen from the layout of the diamond drilling that the zone could easily have been missed."
--Nevada Properties- My impression is that they are simply sitting on this inventory of properties because they are "sexy" but have little interest in exploring them.
Overall feeling of this co. is of management that has little interest in or motivation for doing exploration, even though they have some decent looking properties. This coupled with the large and probably expanding share situation makes it a no go as far as I am concerned. I hope I am wrong, and could very well be, that management has their feet held to the fire, and that you make money on it (maybe you already have?). |
