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Author Topic: SDRG ...Vol Up >200%
before_the_crowd
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SDRG..Volume 200% UP

several $10,000-$20,000 trades went through yesterday
Market waiting for the news ......
Rich high quality silver and other minerals found by company on exploration

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This is not a recommendation to buy or sell securities.

Posts: 1206 | Registered: Feb 2006  |  IP: Logged | Report this post to a Moderator
before_the_crowd
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I found this article by tinmann on stockhouse.com

A Dragon in Sheep's Clothing
Snapshot: SDRG

With the August long weekend behind us now, I can't help but wonder if the bottom is in for the junior metal stocks. Conditions for a continued rise in the precious metals sector seem to be in place and as favourable as ever. There's a little company by the name of Silver Dragon Resources (SDRG on the OTCBB) that might be able to catch the wave of the run in preciuos metals, and there's enough intrigue surrounding the story to keep me watching closely (that, and the fact that I re-established a position in SDRG recently!).

A little about silver -- John Embry has gone on record many times as a big proponent of not just gold, but silver as well... and when Embry talks people who once thought he was a "quack" are starting to listen just a little closer (eventually, I think they'll be listening with both ears). Embry's confidence that silver is heading to the $20+ range in short order should be enough to grab anyone's attention when you think about the leverage that silver producers would capture given the fact that their commodity has risen about 100% over the past year.

That was apparently the thinking of Marc Hazout, the CEO of Silver Dragon, when he formed the company last year. He wanted to get into undervalued out-of-the-money silver properties which would offer huge leverage to the rising price of silver. A mine that wasn't economic at $5.50 silver can be a cash cow at $10 silver... it's all about leverage. Get into properties with marginal economics at a discount price, let the silver market do its thing, and, if you've bet correctly (i.e., on a rise in the price of silver) your property purchase starts looking pretty clever in a year or two.

Hazout is not a miner by any stretch, but I've grown more comfortable with that detail as he's brought a talented team on board that has the required depth and experience to handle the task at hand -- namely bringing the company's Cerro las Minitas mine into 43-101 complicance and expanding its production. Drill results are starting to trickle out of Cerro las Minitas already and I like what I see so far... you can have a look for yourself at recent news releases and see what you think. Some grades are up to 804 g/t silver with 20% of each lead and zinc (over 1m)... those are something to take notice of indeed. Work is ongoing at Cerro las Minitas and I'm willing to give SDRG some breathing room as they get their ducks in a row down there. I'm especially interested by the mention of "manto" mineralization in today's news release from SDRG... mantos can be very profitable to mine and they can be very high grade (see EXN on the Venture for an example of how good mantos can be), so stay tuned...

The other side of the SDRG coin is China. Hazout has spent a good deal of time in China in his years in business and has good contacts over there as a result. Hazout has his sights set on the assets of Sino Silver and appears to have those assets secured, though I must admit that I'm a little fuzzy on the exact details surrounding the closing of that deal. Sino Silver was a great China story until insider trading brought the stock to its knees last year... but the potential of the properties was touted by many who visited the projects and saw them first hand. The SDRG story in China is one of connections, partnerships, and modernization of historical silver mines in prolific silver regions. Pieces have been falling into place for SDRG in China with respect to partnerships and registrations in the country and I'm willing to give SDRG the benefit of the doubt in China for now, mostly because I think that the Cerro las Minitas property in Mexcio has enough potential to keep the company busy for a long time. China could be a huge 'plus' for SDRG and I'll be watching developments on that side of the business more closely going forward as I'm generally comfortable with Mexico and the team in place down there.

At the very least, drill results coming out of Mexico as they define a 43-101 compliant resource should keep the market interested as long as grades and continuity of mineralization hold up. As most of the things that I follow are, SDRG is a speculative play at this stage... here's hoping that my speculation is well-founded.

Remember -- I uncover the nuggets, show a little glitter, and you do the rest as we all try to stay on the yellow brick road...

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This is not a recommendation to buy or sell securities.

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before_the_crowd
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Going up again...$3 is my target by next week??? MAy be next month!!

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This is not a recommendation to buy or sell securities.

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DDA
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Why do you post this here ?

+ 0.1 = doesn't belong here

Posts: 749 | Registered: Aug 2005  |  IP: Logged | Report this post to a Moderator
   

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