Sulliden Gold Corporation Ltd T.SUE.WT

Why SUE will be taken over

[RoyalBlue]

It's becoming clear to me that  the plan at SUE headquarters is to either be taken over or merge with a bigger partner. Their recent news release outlining their 2011 exploration program confirms this if you read carefully. For example, if you're intent was to get a mine up and operational and start producing cash flow, you would take the results of the current 30,000 metre drilling program to the bank and start producing. You know, begin with a 2 million oz resource, which would give at least a decade of mining life from which you use the cash flow to grow from.

But that doesn't appear to be the plan. Instead they:
- announce a 70,000 metre drill program
- announce their intent to explore the sulphide resource underneath

Sulphide gold is more expensive to extract. If you were going to build the mine yourself, you would first focus on the oxide and only explore the sulphide down the road as a way to extend the mine life. But it looks to me that they want to see exactly how much gold they have in the whole enchilada so that they can sell it for full value.

They may be thinking a 5-10 million oz resource instead of a 2-3 million oz.