Slate Grocery REIT T.SGR

Resource estimate

[marketminer]

I will be very disapointed to see only an increase of 400K oz.... Drilling has been constant for the last 2 years... and if you take into account that the previous resource estimates were only increased via SG1 then we have a problem. I figure at least 300 holes as per the shareholder letter on what is to be included... Cartwright, SG3 and revised SG1 If this is the case what you are suggesting is that Cartwright and SG3 are not worthy of mining underground... as this would reflect open pit grades! Cartwright is 2000M long and last mention drilled to 300 M deep. SG3 is likely 200M long and drilled 100M deep?? and the revised SG1 lets tag 100 k oz to it. Thus 1.2 million less 100K for SG1 and old resource of 780k leaves only 320K oz Now if we give SG3 100K oz this only leaves 220k in your estimation for Cartwright top 300 meters over a 2000 meter strike length. Thus 2000M X 300M x 1 meter width X 3.5 ton/MC + 2,100,000 Tones into 220k oz and I end up with an avg grade of only 1.1 gram / tone If I use 2 meters width as seams to be the avg in this last NR about the Gabriel we would only have an avg grade of .5 grams to meet your expectations... that is open pit grade... and I think the town is in the way for extraction in that manor. I guess you could be right if there is only one vein and it is only a meter wide... and the avg grade is about 1 gram / tone but that is not the case as has been shown in all the news releases. I think you may as well admit that the only way they will come in at 1.2 million oz is if they leave out a considerable area where they have drilled! GABRIELLE DRILL RESULTS Hole No. From To Length Gold Gold (metres) (metres) (feet) (g/t) (oz/t) CW-06-77 46.2 48.8 2.6 8.5 13.5 0.39 and 54.5 58.1 3.6 11.8 9.7 0.28 CW-06-76 54.9 55.9 1.0 3.3 13.5 0.39 CW-06-73 192.3 194.3 2.0 6.6 3.9 0.11 CW-06-69 73.6 77.1 3.5 11.5 10.0 0.29 CW-06-68 116.8 118.1 1.3 4.3 6.3 0.18 Three surface drill rigs are currently employed in the following manner: deep drilling (below 1,000 feet) of the Cartwright zone; drilling in and around the Gabrielle mine area; and commenced drilling immediately to the east of the Rice Lake gold mine, between the mine and the San Gold No. 1 deposit. and: Hole No. From To Length Gold g/t (oz/ton) CW-06-70 233.2 m 237.0 m 3.8 m (12.5 ft) 14.4 (0.42) CW-06-67 76.5 m 78.8 m 2.3 m (7.5 ft) 16.4 (0.48) CW-06-66 76.6 m 78.6 m 2.0 m (6.6 ft) 4.8 (0.14) CW-06-64 282.6 m 283.6 m 1.0 m (3.3 ft) 12.4 (0.36) CW-06-63 275.5 m 276.5 m 1.0 m (3.3 ft) 7.2 (0.21) and: The holes drilled by San Gold to date on the Cartwright zone are reviewed in the following table: Hole No. From (m) To (m) Length (m) Gold (g/t) CW-06-01 158.3 161.7 3.4 21.0 CW-06-02 165.8 166.3 0.5 42.5 CW-06-03 112.5 166.3 1.1 12.7 and 146.2 146.8 0.6 11.6 CW-06-04 159.6 161.1 1.5 3.8 CW-06-05 171.5 173.0 1.5 6.2 CW-06-06 178.8 180.3 1.5 4.8 CW-06-07 180.6 182.2 1.6 4.5 and 204.8 205.3 0.5 19.2 CW-06-08 182.2 184.0 1.8 9.3 CW-06-12 126.7 128.7 2.0 5.5 CW-06-13 139.7 140.7 1.0 9.3 CW-06-14 198.9 199.9 1.0 14.5 CW-06-15 108.8 109.9 1.1 2.5 CW-06-16 137.8 138.3 0.5 29.7 CW-06-17 243.2 245.8 2.6 5.5 CW-06-19 58.9 59.1 0.5 120.2 and 134.7 135.0 0.3 62.5 and 199.7 201.7 2.0 10.8 CW-06-20 208.6 210.1 1.5 3.4 and 214.0 215.8 1.8 5.5 CW-06-21 194.1 196.9 2.8 8.9 CW-06-22 366.4 369.1 2.7 7.9 CW-06-23 203.3 209.0 5.7 4.8 CW-06-26 197.5 200.6 3.1 13.7 CW-06-27 182.6 184.3 1.7 13.7 CW-06-28 197.8 198.9 1.1 12.0 CW-06-29 192.3 195.1 2.8 8.9 and 197.7 198.8 1.1 7.6 CW-06-31 208.7 210.3 1.6 12.3 CW-06-32 216.4 217.7 1.3 4.5 CW-06-33 201.1 202.1 1.0 3.8 CW-06-35 211.9 215.3 3.4 5.2 CW-06-36 216.6 221.1 4.6 7.2 including 1.2 17.5