SGNL is swinging for the fencesWith this huge goldboro expansion, SGNL is really going for a home run. The potential is incredible. The delay in breaking ground was mentioned by Rob in the latest video so not much of a surprise.
SGNL is now a very different company than the one I invested in a year or two ago. It's gone from the concept of a singles hitter - a cash machine at point rousse slowly funding goldboro development to a home run hitter - swinging for the fences with a massive goldboro project. With the cash machine breaking down there was not much choice.
So now SGNL is entirely dependent on external funding for ultimate success. This recent move sets it up wonderfully for a takeover by a major. There is enough likely gold in the ground to interest any major in SGNL. Getting rid of Point Rousse also removes that complication ehich a major would not be interested in and the low price they got for it looks to me like they jettisoned it.
So I'm hoping this bold move indicates there's some good confidence with the drill results or cores so far that they will show lots of gold to the west of the current pits. This move to expand goldboro would only make sense with that confidence. As well it points to a larger project than a 4000 tpd mill.
So what I'm seeing now is SGNL is setting itself up for a takeover by a major or a joint venture. It's almost as if a major laid out the conditions of jettisoning point rousse and expanding goldboro to facilitate a takeover.
So SGNL has gone from a singles hitter to a home run hitter. We are not at the bottom of the ninth yet but this change greatly increases the chance to go big but also drives up the risk unfortunately. If SGNL does not have awesome drill results (and maybe new Geotechnical on the acquired areas) and we don't see an improvement in the miners space soon, SGNL is looking at more less favorable fundraising avenues that will ultimately dilute shareholders. But if we see great results and an improvement in gold and miner pricing, the sky is the limit and a takeover or joint venture inevitable.