www.SanGold.ca
TSX: SGR || OTCQX: SGRCF
Right: SanGold Rice Lake Mine.
Over the past year, the Share price of mid tier gold producer, SanGold, has gone from $5 to $2.52
That selloff was, in my humble opinion, way over done, and San Gold is primed to out perform in 2011 and beyond. In the past week alone, the company announced its production of gold is up significantly in Q1 and it has a new, rich discovery at the 007 property. Production has increased at their Rice Lake mine beyond the capacity of their mill, with an abundance of ore waiting to be processed.
This is not a small prospector, but a mid tier, producing gold miner, with two producing mines and processing capacity which has to be increased this year just to keep up with its own production of gold. To this point, management has been tilted toward an overwhelming technical and production expertise, while not taking advantage of marketing to best advantage. I believe this will change as new management takes the reins which has already begun.
Sangold highlights:
- Two mines in production - Rice Lake and The Hinge. The Hinge went into production within two years of discovery.
- The 007 zone has started bulk sampling.
- Mill production approaching capacity as new ore development comes online.
Consistent growth and market appreciation since 2005.
- Revenues tripled from 2008 to 2009 -- from $8.7M to $27.8M.
- On track to double revenues again this year.(2011)
