Ann: Achilles Delivers Outstanding Gold and Silver Results, page-99

I had a look at SNG this morning. Currently up 92% today, on the back of an announcement regarding drill assays in Nevada, which included .5 metre at 1270 grams A/G. Not a bad looking announcement, at first glance. It could be a company saver. But they are severely strapped for cash.

Looking back at their last quarterly announcement, I found this alarming statement by the company. It is a stark reminder of the risks associated with trying to run projects overseas, and the rising impact of inflation on mining costs. And these outlined risks are all associated with running projects in the U.S., where the sovereign risk is relatively low as far as silver miners and explorers are concerned.

"The Company (SNG) considers that it is generally “on track” regarding its exploration projects and has achieved
encouraging results. However, exploration expenditure to date has been significantly higher than
budgeted for the relevant comparative period, reflecting the level of expenditure for mobilization,
establishment, and execution of the Company’s drilling campaign, as well as high general increases in
cost levels compared to original budgets and the adverse effects of unforeseen delays in securing drilling
equipment, unforeseen weather events and unfavourable foreign exchange rates, with the latter
contributing to higher than expected A$ amounts for expenditure incurred in US$ following conversion
to A$ values. General administration and working capital costs are higher than budgeted due to
unforeseen delays, general global cost increases, inflation, supply chain issues, unforeseen unbudgeted
costs, and unfavourable foreign exchange movements, as noted above."

So, no SNG for me.

Most significant silver mines in the world are in countries which currently have significantly heightened sovereign risk, including the #1 producer, Mexico. One of the many reasons why I would love to see some more high silver assays from AGC!