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SouthGobi Resources Ltd V.SGQ

Alternate Symbol(s):  SGQRF

SouthGobi Resources Ltd. is an integrated coal mining, development and exploration company. It owns a 100% interest in the Ovoot Tolgoi open pit coal mine (the Ovoot Tolgoi Mine), and in the development projects, the Soumber Deposit and the Zag Suuj Deposit. These projects are located in the Umnugobi Aimag (South Gobi Province) of Mongolia, all of which are located within 150 kilometers (km) of each other and in close proximity to the Chinese-Mongolian border. The Ovoot Tolgoi Mine, strategically located over 40km from the Shivee Khuren-Ceke crossing at the China-Mongolia border (Shivee Khuren Border Crossing), is its flagship asset. The Ovoot Tolgoi Mine has two distinct pits: the Sunrise and Sunset pits. The Soumber Deposit includes Central Soumber, East Soumber, Biluut, South Biluut and Jargalant Fields, is located approximately 20km east of the Ovoot Tolgoi Mine. The Zag Suuj Deposit, located over 150km east of the Ovoot Tolgoi Mine and over 80km north of the Mongolia-China border.


TSXV:SGQ - Post by User

Bullboard Posts
Comment by jims101on Aug 22, 2008 8:27pm
132 Views
Post# 15405294

adding more SGQ ...is a great way to build wealth!

adding more SGQ ...is a great way to build wealth!

SGQ came back to fill the gap today left in mid May when it lept to the upside...on a resource expansion report, if I am not mistaken...Since then, precious wealth has been created in terms of the share price. Today volume was over 34,ooo in Canada and another 15ooo through the pinksheets. China's anticipated demand for coal is doing nothing for the share price, curiously. The more articles there seem to be about China needing more coal the more SGQ seems to slip away.. We can attribute it to the low volume late days of Summer. At least buyers overcame sellers and SGQ bounced back to only finish off five cents.

As goldmember suggested I asked SGQ investor relations for a copy of the previously discussed Tony Lesiaks report.. Quite promptly, I will say, it was forwarded to me - all 26 pages of it. He builds a strong case for his target price of $25. I would post the report here but I'm not quite sure if that would be appropriate. Interested parties can quite easily obtain one the same way I did.

While the overall situation for the company is "bullish" there are a couple of items that bear out some of my concerns. I'll take the time to comment on them more this weekend. First and foremost is the Mongolian political situation. One of the key elements there, and it goes to the fact that SGQ has such drilling potential, is that if SGQ proves up too many reserves to quickly, and thus hits a certain thresshold size / valuation they will be subject to a 35% takeover of ownership by the Mongolians. This might be avoided if IVN/RIO gets their mine in operation.

Overall based on Tony's reasoning $25 does seem do able if the chips fall our way and none get knocked off the table...More later...

SGQ.v chart - notice the positively divergent accumulation / distribution line...espeically since the July peak.

https://stockcharts.com/h-sc/ui?s=SGQ.V&p=D&yr=1&mn=1&dy=0&id=p37771921155&a=110613479&listNum=1

Bullboard Posts