Sage Gold Inc SGGDF

RE:Failure to Deliver

[lobojack]

One can form one's own opinion on whether the 123 oz is a substantial issue. It represents about cnd$200K - not a lot in the scheme of things. They have to pay the workers and mill first if they want to continue, and at this juncture there is likely a cash squeeze, which due to delays we have seen, Such circumstances can't be forseen when one signs a contract. Will the squeeze last? 

What I see is not much else material has changed despite the recent SP decline. 

• We  have already been aware they were ~3 months delayed due to power difficulties and dewatering
• We knew the first shipments to the mill would be lower grade due to clearing of stockpile and establishing regular mill shipments. (Current grades are ~3 gr/ton)
• The best grades are below 200 m. The PEA says they have at least 5 gr/ton when they get to better depths.
• They will (soon) have more frequent mill shipments with more ore with higher grades 
• It is (will be) a low cost producer due to the ability to leverage existing infrastructure. 
• Is management ineffectual? 'Subjective at best, but we also went into this realizing the logistics of bringing a mine into existence are not easy compared to exploring for new finds. 
• Finally, any substantial increase in the price of gold will catapult the stock prices of companies like SGX. 

The current volume says people are buying at these prices. Somebody likes the deal.