Several years ago a similar operation was underway in Manitoba.. Gold city combined with san Gold turned into San Gold Resources and was trading at .18 ..... Took several years and many placements to bring SGR back into production and define resources.
I think SAM has a leg up on SGR in the production side, producing about the same amount as SGR right now. There is also considerable upside at SAM for the resource side... This is where the company needs to emphasise the potential buildout of SAM.... That financed when the share price increases,,, at this time the share structure of SAM is very good.... doing a PP at the right time to fund exploration has the potential to drasticly increase sharholder value.
So far this looks pretty good!
------------------------------------...
The company also had positive cash flow from operations of $100,000 for the six months ended Jan. 31, 2009.
SAN MARTIN MINE PRODUCTION
Actual
results Actual
for results
three months for
ended year ended
Jan. 31, Jan. 31,
Unit of measure 2009 2009
Production of gold in dore thousand ounces 5.0 19.0
Production of silver in dore thousand ounces 43.8 160.3
Equivalent ounces of gold(i) thousand ounces 5.5 21.6
Milled thousands of tonnes 68.9 266.2
Operating cost per
equivalent ounce U.S. dollars/tonne 400 433
(i) This assumes a 79:1 silver to gold equivalency ratio for three months
and 62:1 for the year ended Jan. 31, 2009.
Over all, equivalent gold production was 5,500 ounces, which is comparable to the prior year average of 5,400 ounces per quarter.
The company expects to maintain or increase the current ore grades over the next quarter and continues exploration efforts to increase reserves of resources and to find higher-grade deposits. Management also continues efforts to cut mine and administration costs, where possible, to improve earnings and cash flow.
