The following was posted in Stockhouse, Insider report.
stockhouse.com
Time for another update...
We have another change to Pierre Gauthier's interview. The interview was edited down to 10 minutes and can now be watched anytime on Bloomberg News Service. It appears on Bloomberg as news on SGV and KWG. One point that Mr. Gauthier did mention, which is great news, was that equipment is now being mobilized to start drilling on the Dominican property within two weeks (more on this property below). We should expect some drill results by the end of May. Although we have not seen an official news release from Falconbridge, the operator, that adjacent surface rights have been secured, this announcement by
Mr. Gauthier can be interpreted as conformation from KWG that it's a done deal.
Now, to give you a better understanding as to why SGV is the stock to own from the St. Genevieve group (St. Gen), I thought the following might be useful and also assist you with your due diligence:
As a holding company SGV has share interest in the following companies, among others:
KWG Resources (KWG) 26%
Emerging Africa Gold (EAGI) 37.5%
Genoil (GNOL) 36%
Spider Resources (SPQ) 15%
From the 1997 business plan SGV is expected to be transformed from an
exploration and development company into a DEVELOPMENT AND PRODUCTION company with significant exploration prospects. Investors should focus on the following seven areas of the over FIFTY ongoing projects which should significantly boost valuations and interest in the stock in the short term, in particular the Dominican property, and perhaps Genoil if they hit gas.
1. Maimon prospect, Dominican Republic: (51% Falconbridge Dominica. 49%KWG)
- Falconbridge Dominica (FB) and KWG are initiating a comprehensive drill program on this property which bears close resemblance to the adjacent 32 million oz Pueblo Viejo gold deposit. FB is overseeing all of the assaying of cores and drilling, which should immediately ease any concerns about the validity of results when they are released. This property may provide EXPLOSIVE drill results over the next 60 days.
2. St. Leonard Natural Gas Project. Quebec: (Operating Co,: Genoil)
- The drilling of the 4200m well in the St. Lawrence Lowlands is anticipated to be completed within days. It is anticipated that this well will tap a reserve of up to 200 billion cubic feet of natural gas. Now, as I mentioned in an earlier posting, If they hit, GNOL moves to $15.00 and SGV to $4.00. If they don't hit, GNOL moves down
to $1.20 and SGV should not be impacted much since at this level GNOL is not priced into its share price. So now you know and you can place your bets accordingly!
3. Ametistovoe gold deposit, Western Russia; (Operating Co.: KWG)
- KWG expects to commence open pit production of this mine in September of this year. In 1997, this mine should yield 36,073 oz. gold and 59,189 oz. of silver generating an operating cash flow of $6.95 million. Total proven reserves are currently 3.3 million oz.Au and 11.3 million oz. Ag, with an additional 6 million oz. Au of reserves under option. The company continues to investigate additional
probable and potential reserves on their existing property that could increase total reserves to between 8-10 million oz. of gold.
4. Contendas Kimberlite. Brazil (KWG 50%/Spider Resources 50%)
- During the upcoming quarter drilling will begin on the 131 hectare ( surface area). KWG operated a dredge downstream from the structure two years ago and recovered numerous stones with an average size of slightly less than 1.5 carats.
5. Gasper Property, Cuba (KWG)
- The most recent results from the El Pilar prospect on the Gasper property found gold deposits ranging as high as 40.29 g/t over a depth of 41 m. These dramatic results have led KWG to immediately initiate a further 10 hole drilling program.
6. Morne Bossa, Gran Bois, and Douvray properties. Haiti: (KWG)
- The Morne Bossa property has an estimated deposit of 3 million tonnes of ore at 2.3 g/tonne of gold.
7. Emerging Africa Gold (EAG) Inc.
- This operating company can best be described as a cash rich, wild card. With a $7.5 million cash position and 28 projects in 7 African nations, this early stage operating company contains the elements required to pleasantly surprise shareholders as results become available.
So as you can see SGV has a lot of projects on the go. In the short term, positive news from any of the above projects will cause SGV to spike. Of course news will not be released while Bre-x is still unresolved so we have a week to go yet. Since the posting in the Insider Report at $0.78, SGV touched $0.98 this week on anticipation of development in the Dominican, and perhaps the Blanchard Gold
Newsletter, coming out second week of May. Of course credit is also due to the Insider Report for the coverage on the company.
In addition to above, the St. Genevieve group (St. Gen) raised over $140 million in new capital. This financing program has left St. Gen in the position of having fully funded all of their current development projects, and with no long term debt, the corporate financial risk is effectively non-existent. In the post Bre-X market
environment cash is reemerged as king. St. Gen, being the king, is in a position to act on emerging opportunities, and there are plenty to be found these days.
Well, this is the update for today! Let's get Bre-X out of the way so we can focus on our show.
The Source... I'll be back!!!
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