I believe the grab samples and superficial ore over 007 and the hinge had a high silver content which did not go to depth. The presence of the silver in the Angelina surface samples seems to up the odds that there could be an ore body below, analagous to the 007.

SKP's R. Boulay stated a while back that the present Dufferin strategy is to maximize exploration results before they start production ( less dilution for the next round of financing if the share price is higher ?). In Sangold's situation, spending money on production may not have raised the share price as much as spending all their money on exploration expenditures as several of their competitors did - though SGR's strategy may be proven to be correct as time goes on and their cash flow goes up. Regardless, I don't think we are going to get any exploration news until the news is good enough to raise the share price. This is one thing that is going for the next release.

I talked to an investor relations guy from Appalaches. In answer to questions I asked he said that Rick Boulay was connected with a principal in Appalaches through a related company (Puma Gold ?). Rick was contacted at the Toronto Gold show in March about the possibility of investing in Appalaches, and Rick already knew quite a bit about the structure and geology of Dufferin and the surrounding area from being there, previously. Several of the attractions of the Dufferin are that it has a reasonably modern mill, it has accessible, economic grade ore near the surface, and that the deposits are very predictable in their locations for proving up additional resources. It appears to me that Mr.Boulay sees the path of least resistance for a higher stock price, is to expand the reserves at Dufferin by drilling, rather than pumping the water out of the mine, bulk sampling, and starting up the mill. Finding a decent vein on the Strikepoint JV property is a bit of a shot in the dark, even with the structural controls known to give hints at gold deposition, the magnetics and the LIDAR. Sangold didn't find their best ore for 4 or 5 years, and they were already on some veins, underground. SKP has the same situation, without the benefit of being on any underground veins. There are scattered showings that are relatively small, but the drills have their work cut out in finding major veins with grade. The Dufferin is different, however. It is easy to follow the ore bodies in most directions. The problem is that these folded, anticlinal reefs (whatever that means) are notoriously erractic in their grades of ore from place to place. I believe the theory of the deposition was that nature panned for this stuff as it was eroding out of a hard rock vein, and washed the gold into a porous structure like a reef, where it concentrated and resides today. The "folding" I don't understand - anybody know more about this formation ? At any rate, one of Australia's biggest gold fields is an anticlinal reef. I think the news will be from Dufferin.

SGR is having an amazing run of drill results, starting with the HInge, and 007. The average cost of producing an oz. of gold, presently, must include the costs of the infrastructure, like the tunnel from the mine to the 007 deposit. A wise management would blend gold production and sales with exploration drilling to provide maximum future value. ( There has been no pumping and dumping by the management that I can see.)

Management and the investment bankers may have different short term interests concerning strategy and stock price, but I believe they both would like to see a good return on their personal investments, relative to what their alternatives are ( the hurdle rate). Management and Investmemt bankers - Dundee and others will want to move on to their next projects when the alternative projects look to be more profitable or, perhaps, enjoyable, in the case of management. Dundee and friends own enough of the stock that there won't be a buyout until there is an SGR package that brings a price that makes sense relative to their other opportunities. A low stock price, meanwhile, really, won't effect much except the price of raising money, but if management or inv bank owners are still making money by being the buyers of new equity financing, there is even less incentive to keep the stock price max'd out.

And, If you believe in the SGR geologic model, you shouldn't waste too much time trading this stock. - Just be patient, and enjoy the ride - it's going to be big.

Mosey

SKP doesn't have enough volume to trade or be stable in the absence of earnings. It went up when it was being promoted at conferences and gold was on the move.It goes down in the absence of anything else. IF the drillers were hitting much visible gold at Rice Lake the word might leak out, I would think, and the price would be stronger, but who knows ? As the price has dropped, there hasn't been any unusual volume, so there aren't that many shares being sold, either. The stock is in limbo. The down side to less- than- spectacular drill results at Rice Lake could be limited, somewhat, by the potential cash flow at Dufferin, but I don't see why the the stock would go up much unless the drills hit.

Mosey

Hello ALI - the sites that I read a few months ago had all kinds of theories.

Gold is in solution as chlorides, sulphides, organic molecules with N, C, or O, and, occasionally, carried as fine, free gold. THe solutions can be acidic H20, neutral or alkaline H20, and sometimes , a mostly C02 containing fluid. These can be very hot temperatures or less hot, under huge pressures or less huge and the solubilities are effected by all of these. It may take millions of years to deposit concentrated free gold, or insoluble gold containg molecules that need further refining. This deposition can be caused by leaching of chemicals from host rock, by a source of secondary fluid bringing some physical or chemical effector that causes deposition, or by cooling of the fluid near the surface, decrease in pressure, or, in some cases, evaporation to concentrate and deposit the solutes, and other things.

The present surface at Rice Lake is probably not the same surface that was there during the geothermal process that did the depositing. The gold on the surface, then, may have hitch hiked on glaciers to the Black Hills of the Dakotas as alluvial deposits.

So - the gold could be at it's least concentrated in the "pencil" if there was minimal deposition there. It is not uncommon to find high concentrations on a face of the host rock, where chemical deposition events occur, etc. So - I don't think there is any certainty that the highest concentrations of gold are, necessarily, found in the deeper, original, fluid conduits.

Mosey