Mistakes San Gold has made the same mistakes even the large miners have made, buying more land to drill more holes in, driving up their cost of production. The worst ones funded this with share dilution (San Gold). They often missed estimates and projections, using the excuse that they were planning for the long term. They completely ignored what the shareholders wanted.
The shareholders wanted the miners to produce more gold now and exceed expectations, driving up the share price. Most of the majors have now slashed CapEx budgets, because investors have left in droves, tired of poor management, and the huge decline in SP.
San Gold has potential if it will use the recent financial influx to produce more gold, not dig more holes in some land that they paid too much money for. They now need to focus on lowering their cost of production, just as all the majors are now doing.
As for the question of why people hang on to their stock as the price falls, the hardest thing for any trader to do is accept that they have to take a loss, it is just human nature.
Why people keep buying it as it falls is because of the Greater Fool Theory. They buy something because you are sure that a greater fool will come along and pay you more for it. Eventually, the greatest fool of all comes along, (and it could be you).
San Gold shares are drastically under-valued. There is money to be made here. They just have too much gold in the ground for this evaluation. The question is whether the present management will admit the mistakes they made (as the majors have done), and get on with the job of production.
P.S. Mr. First Class. Take some of your money and get help. You have major anger management problems.