The amount of paper that has been issued by juniors that have absolutely nothing only to sprout up as something new and improved once they go bust is the problem. Get rid of the 95% the usual suspects and bad actors and the money starts flowing to companies like San Gold. Until then the best story teller will be rewarded until the drill proves them wrong while the early movers takeoff with the money.
Problem now is everyone has been burned and the well is dry and until fresh money enters the sector, even the decent companies get dragged down. Another problem is the parabolic rise in area plays sucking the life out of the host. Even though history suggests area plays make no money, they tend motivate speculators to throw good money after bad which usually ends in both the company and the capital vapourizing.
How many people here rolled SGR into Cougar, Wildcat or Strikepoint? Will that money ever come back without San Gold's success or has it vanished into thin air along with the bagholders?
