A Major Oil Discovery at the Perfect Time and a First Ever FDA Approval

The markets have been very volatile over the last few days thanks to the war in the Middle East and rising oil prices. Two stocks listed in Canada have bucked the downward trend, both rising significantly price on major news. Even with these sharp increases in price, we think they have fallen under the radar and justify much higher valuations based on the news that was announced. First, Monumental Energy Corp. (MNRG.V) (MNMRF) rose 129% on Thursday to close at $0.08 after successful initial production from an oil well in New Zealand. This news could not possibly be better timed given market dynamics. Second, Perimeter Medical Imaging AI, Inc. (PINK.V) (PYNKF) announced that its Claire AI became the first ever AI-enabled imaging device for breast cancer surgery to be approved by the FDA. The stock nearly doubled on Wednesday but pulled back to $0.53, making this an ideal entry point. If you like our picks you can also follow this blog by clicking the follow button on the top of the left hand panel. We have 125 followers so far on here as well as 1,039 followers on our ValueTrades blog. You can also follow us on X @StockTradePicks which has over 5,000 followers.

According to MNRG's news release, the well immediately flowed oil and gas, producing 580 barrels of crude oil within the first six hours of operation. It was temporarily shut in to bring additional tanker capacity to the site. Since production restarted, the Ngaere-1 workover well has produced approximately 3,000 barrels of crude oil to date, currently stabilizing at approximately 120 barrels of oil per day, without the benefit of additional stimulation and optimization activities. 

MNRG has 79 million shares outstanding. At $0.08, that's still only a $6.3 million market cap. So this stock still has a lot of upside potential. One insider of the company agrees, as Maximilian Sali purchased additional shares on the open market immediately after the news was announced at $0.065:

Considering that he already owned over 4 million shares and still felt compelled to buy even more should be seen as a good sign. 

PINK's FDA approval is a game changer. Claire is the first AI-enabled imaging device approved in the United States for intraoperative breast cancer margin assessment. The technology received Breakthrough Device designation from the FDA and is designed to enhance surgeons' ability to detect difficult-to-see cancer during breast-conserving surgery and potentially reduce the need for re-operations. 

About 20% of all breast cancer surgeries need a repeat operation. That's because surgeons use a combination of physical examination, and in limited cases intraoperative pathology to assess margins before sending specimens to pathology for final evaluation. As a result, patients may wait up to a week or more to learn whether margins are clear or additional surgery is required. Claire is designed to identify areas of concern during surgery, helping surgeons determine whether to remove more tissue before completing the procedure.

This AI device is going to save hospitals and insurers money and give patients better piece of mind that their surgery went right the first time. This FDA approval positions the company at the forefront of AI-enabled intraoperative imaging and marks the first commercialization of its proprietary OCT-AI platform. The Company's patented wide-field OCT technology, proprietary dataset, and integrated AI capabilities target an estimated 300,000 annual U.S. breast cancer surgeries, while providing a scalable foundation for expansion into additional cancer indications over time. This is the first step toward addressing a significantly larger global opportunity across additional cancer surgeries, biopsy procedures, and pathology applications.

With 131 million shares outstanding, PINK's market cap is $70 million at $0.53. This is an absolute steal for a company like this. A nationwide U.S. launch is expected in the coming weeks while the company is already promoting Claire on its website. 

We expect both of these stocks to continue to run with MNRG to at least $0.15 and PINK to at least $1.00 being reasonable near-term expectations.  

Disclosure: We are long MNRG.V and PINK.V

The Uranium Play with the Best Leveraged Upside

Due to recent political events, uranium has been hot. One play that we think has the best leveraged upside is Anfield Energy Inc. (AEC.V). It rose 10% on Monday to close at $0.115, the highest it has been in 2025. The stock has had a methodical and consistent move up, nearly doubling since the start of May. While we like the stock, the real opportunity here is with the warrants (AEC.WT.V). They offer cheap leveraged upside on this hot Uranium play. We are up to 1,038 followers on our ValueTrades blog despite not giving out a lot of alerts, a fact that we think is indicative of a successful, diligent and prudent stock picking history. If you like our picks you can also follow this blog by clicking the follow button on the top of the left hand panel. We have 124 followers so far on here. You can also follow us on X @StockTradePicks which has over 5,000 followers.

AEC has been up on news of its Velvet-Wood uranium project in Utah getting accelerated approval from the Department of the Interior. It becomes the first uranium project to be approved by the U.S. government under President Trump’s emergency declaration to restore American energy independence. The project has an NPV $238 million U.S. and is just one of several uranium projects that AEC owns in the United States. Given that the U.S. consumes 50 million pounds of uranium annual but produces just 1% of it, AEC is in prime position to get accelerated approval on multiple projects. Follow up news from yesterday shows that the company is moving forward on its portfolio of projects that include the Shootaring Canyon Mill, one of the three uranium mills in the United States, the Slick Rock Project, the West Slope Project and four other minor projects along with Velvet-Wood. We expect that financing for capex needs to get the projects up and running will be no issue given this environment. The company is also pursuing a NASDAQ listing, which is smart given its position in the United States.

Given this unique and bullish situation, we expect the company's valuation to land somewhere between $250 million to $500 million CAD in the near-term, or $0.22 to $0.44 per share. This is where things get interesting. We like the stock, but the real opportunity is with the warrants, which have a strike price of $0.18 and expire in May 2027. They currently trade at $0.02. Canadianwarrants.com has AEC.WT.V listed as a bargain with a fair value of $0.03. This chart was created back when the stock was trading at $0.075. So the fair value of the warrants is likely $0.04 to $0.05 now.

The leveraged upside from buying cheap warrants at $0.02 should be apparent. If AEC triples to $0.33, the warrants are intrinsically worth $0.15, plus whatever time value they might have. This is a minimum 7.5x gainer compared to 3x for the stock. Investors should consider the $0.02 price on the warrants as a gift of cheap leverage on a stock that is going to continue to head up on favorable government policy. 

Disclosure: We are long AEC.WT.V

Warrants Offer Leveraged Upside on a Cheap Uranium Play

Anfield Energy Inc. (AEC.V) rose 10% on Wednesday to close at $0.115, the highest it has been in 2025. The stock has had a methodical and consistent move up, nearly doubling in the month of May. While we like the stock, the real opportunity here is with the warrants (AEC.WT.V). They offer cheap leveraged upside on this hot Uranium play. We are up to 1,038 followers on our ValueTrades blog despite not giving out a lot of alerts, a fact that we think is indicative of a successful, diligent and prudent stock picking history. If you like our picks you can also follow this blog by clicking the follow button on the top of the left hand panel. We have 124 followers so far on here. You can also follow us on X @StockTradePicks which has over 5,000 followers.

AEC has been up on news of its Velvet-Wood uranium project in Utah getting accelerated approval from the Department of the Interior. It becomes the first uranium project to be approved by the U.S. government under President Trump’s emergency declaration to restore American energy independence. The project has an NPV $238 million U.S. and is just one of several uranium projects that AEC owns in the United States. Given that the U.S. consumes 50 million pounds of uranium annual but produces just 1% of it, AEC is in prime position to get accelerated approval on multiple projects. We also expect that financing for capex needs to get the projects up and running will be no issue given this environment. The company is also pursuing a NASDAQ listing, which is smart given its position in the United States.

Given this unique and bullish situation, we expect the company's valuation to land somewhere between $250 million to $500 million CAD in the near-term, or $0.22 to $0.44 per share. This is where things get interesting. We like the stock, but the real opportunity is with the warrants, which have a strike price of $0.18 and expiry in May 2027. They currently trade at $0.02. Canadianwarrants.com has AEC.WT.V listed as a bargain with a fair value of $0.03. This chart was created back when the stock was trading at $0.075. So the fair value of the warrants is likely $0.04 to $0.05 now.

The leveraged upside from buying cheap warrants at $0.02 should be apparent. If AEC triples to $0.33, the warrants are intrinsically worth $0.15, plus whatever time value they might have. This is a minimum 7.5x gainer compared to 3x for the stock. Investors should consider the $0.02 price on the warrants as a gift of cheap leverage on a stock that is going to continue to head up on favorable government policy. 

Disclosure: We are long AEC.WT

Banxa: Another Buyout Offer

Banxa Holdings Inc. (BNXA.V) (BNXAF) increased 47% to be one of the few winners today on yet another buyout offer on the company. Despite the increase, the stock pulled back from its highs over $0.80 as the market turned deep red. This represents a great entry point as we think it's only a matter of time before the stock trades well over $1.00 as rumors heat up of a bidding war. We are up to 1,036 followers on our ValueTrades blog despite not giving out a lot of alerts, a fact that we think is indicative of a successful, diligent and prudent stock picking history. If you like our picks you can also follow this blog by clicking the follow button on the top of the left hand panel. We have 124 followers so far on here. You can also follow us on X @StockTradePicks which has over 5,000 followers.

From the news released today:

"Toronto, Ontario--(Newsfile Corp. - April 8, 2025) - Banxa Holdings Inc. (TSXV: BNXA) (OTC Pink: BNXAF) (FSE: AC00) ("Banxa" or the "Company"), the leading infrastructure provider for enabling embedded crypto within payment platforms, today acknowledged receipt by its board of directors (the "Board") of a non-binding, unsolicited acquisition proposal (the "Proposal") from an arm's length investor group led by Mr. Khurram Shroff (the "Potential Bidder") to acquire 100% of the issued and outstanding shares of the Company at a purchase price in the range of between C$1.00 to C$2.00 per share.

Consistent with its fiduciary duties, the Board is carefully reviewing the Proposal in consultation with its legal and financial advisors to determine the course of action that it believes to be in the best interests of the Company and its shareholders. There can be no assurances that a definitive agreement, or any agreement at all, in respect of the Proposal will be entered into and no representation is made to that effect.

The Board continues to evaluate a range of strategic and financial options to enhance shareholder value.

The Company understands that the Potential Bidder has made certain details of the Proposal public. The Company does not intend to comment further on the Proposal, unless it is required to do so in accordance with applicable law."

BNXA already had a buyout offer on the table at $1.69 from Exodus Movement, Inc. (EXOD) before letting it expire as well as a take private offer that was since terminated. We view both of these transactions as opportunistic as the take private offer was at a low price and the Exodus buyout offer had a short deadline to acceptance. This one looks to be more serious and well thought out and should be a winner for investors getting in at these prices. 

The press release from the bidder:

"The company backed by renowned crypto and blockchain investor, Khurram Shroff, announced today that it has submitted a letter to the board of directors of BANXA Holdings Inc. (TSXV: BANXA.V). It expressed intentions to acquire 100% of the issued and outstanding shares of the company. The company proposed a purchase price in the range of $1.00 to $2.00 per share.

This offer represented a 100% to nearly 400% premium over BANXA’s closing share price of CAD 0.51 as of last week.

Acquisition to Benefit Shareholders

The letter signals a serious and friendly offer with the goal of engaging in meaningful discussions with the board and management team of BANXA Holdings. The Khurram Shroff-backed entity believes that the proposed acquisition would unlock significant value for shareholders. It could enhance long-term strategic growth and leverage synergies between its digital asset ecosystem and BANXA’s on-ramp infrastructure.

The investor group, headlined by Khurram Shroff, consists of strategic financial investors based primarily in the Middle East. They are highly reputable investors with a proven track record of successful transactions and value creation in the crypto sector. 

Shroff is a serial entrepreneur and the Advisor to 3iQ, the first Bitcoin ETF in the world. He comes with over a decade of experience in the blockchain industry and always promotes innovative projects.

The group possesses substantial financial resources, strategic insight, and operational expertise. Their collective experience and strong financial backing underscore their ability to execute this transaction efficiently. It can certainly enhance the long-term value of Banxa.

Acquisition to Benefit BANXA?

BANXA Holdings (TSXV: BANXA.V) is a publicly traded company. It provides a leading global payment infrastructure for the crypto economy. The acquisition would position the company within a larger, forward-thinking digital finance ecosystem. It will strengthen BANXA’s long-term outlook through added investment and strategic alignment.

“BANXA has demonstrated strong potential in the digital payments and Web3 infrastructure space. We believe our offer is both generous and in the best interest of BANXA shareholders, and we are eager to enter into constructive discussions with the Board,” said a spokesperson for the acquiring company.

The company currently operates in Australia, Europe, and North America. It is helping crypto enthusiasts buy cryptos and NFTs swiftly. Banxa users can buy cryptos and NFTs directly with fiat currency. The process is straightforward, and therefore, Banxa has drawn admiration from many users and experts. 

The proposed transaction is expected to be financed through a combination of cash and equity. It is not subject to a financing condition.

About Khurram Shroff

Khurram Shroff is one of the earliest and most influential crypto investors in the Middle East, Asia, and Africa. Referred to as the “Arab Whale,” Khurram has been recognized globally for his visionary investments in blockchain, AI, and fintech. 

The UK Parliamentary Review Power100 featured him as one of the most influential Muslims in the world. He is an active supporter of initiatives advancing Web3, decentralized finance, and AI for good."

The bid came with a very wide range between $1.00 to $2.00. It was likely offered with that range to get the conversation started before a more definitive offer is made. This approach makes more sense than the coercive or lowball tactics of the previous bids. Shroff mentioned that this offer is serious and friendly, so we expect the stock price to move up as the market digests it and talks advance. As this is the third offer on the company in a few months, we think it's only a matter of time before there is a bidding war. $2.00 might be the start, not the ending price here. Given how shaky the markets are, putting investment dollars into an entity trading well below a proposed takeover offer seems like a good use of funds. 

Disclosure: We are long BNXA.V

San Lorenzo Gold: CEO Interview Foretells a Sustained Rise in Stock Price

Over the last couple of weeks we have been very bullish on San Lorenzo Gold Corp. (SLG.V), with our first blog post released when the stock price was $0.18. The stock hit $0.40 this past week before a pullback to $0.34 on Friday. We think latecomers to the story still have an opportunity to profit big, but need to act soon. An interview held by SLG's CEO Al Kroontje and released on Friday foretells a sustained increase in the stock price to come:

 

The key points that we would like to highlight from this interview are:

• Warrants have been exercised, raising $1.5 million. 
• In the past, the company raised money through issuance of debt that was convertible at $0.20, when the stock price was 6-7 cents.
• No need for financing at this time.
• $1 million budget for the next phase of drilling.
• Drilling will start in three months.
• There will be 9 drill holes, three each on three targets - Cerro Blanco, Arco de Oro and Tres Amigos.
• Drilling will occur east of the third hole on Cerro Blanco where the most significant IP anomaly exists.
• Last program the company had issues with surface access, but now it won't be an issue.
• The elevation, geography and topography allows for relatively easy year-round access.
• There is ample infrastructure (power, roads) and permitting is timely

The company has also released an updated corporate presentation. 

What does all this mean? There are multiple positive catalysts with no negative catalysts (the threat of dilution) and risks are relatively low compared to the typical exploration play. Management has no intent to dilute at this time, at least until after the next drill campaign is complete. Talk is cheap and anyone can say that, however, SLG already has a demonstrated history of treating shareholders well. The CEO participated in debt financing that was convertible at $0.20, well above the stock price at the time. Now that he has debt that is convertible at prices well below market price (along with 12 million shares and 4 million options), he has even more incentive to ensure the stock price is as high as possible before undertaking a financing. 

The company will be targeting east of the third drill hole on Cerro Blanco, where the most significant IP anomaly exists. The reason it didn't target there before was due to lack of surface access, which is no longer an issue. This is an important point because assuming that this anomaly increases eastward linearly, this implies that the third hole will have superior results to the first hole already released. 

Drill results can be a "sell on news" event. Why? Because a company is out of cash and must raise funds to continue with the next drill program. There is a negative catalyst before more positive catalysts can occur. The market knows this and a selloff occurs, even if there is pretty good results. This will not be the case with SLG. Not only is it not financing, but more drilling is occurring in another three months. This means more results could be out during the summer. If the third drill hole shows superior drill results to the first one, that will be confirmation to the theory that the discovery improves the further east it goes. That will increase speculation and excitement and lead to a sustained run in the stock price over several months in our opinion, until the next batch of results are due.

Investors, traders and speculators who are not yet in should consider throwing down a bet on SLG soon. The remaining drill results for this round should be released any day now and we think the odds are strongly in favor of the gambler instead of the house on this one. With 80 million shares outstanding inclusive of the warrants, announcement of results that are similar to or superior than the ones already released should justify a market cap over $100 million. This would lead to a stock price in the $1.25 range, with the possibility of a sustained run well beyond that depending on the hype around the next round of drilling. We are up to 1,033 followers on our ValueTrades blog despite not giving out a lot of alerts, a fact that we think is indicative of a successful, diligent and prudent stock picking history. If you like our picks you can also follow this blog by clicking the follow button on the top of the left hand panel. We have 122 followers so far on here. You can also follow us on X @StockTradePicks which has over 5,000 followers.

Disclosure: We are long SLG.V

San Lorenzo Gold: Get Shares While they are Cheap

On Tuesday we released a blog post about San Lorenzo Gold Corp. (SLG.V) when it was trading at $0.18. It closed at $0.30 on Friday, up 67%. So it can already be added to our winner's pile. But we think this explorer has a unique set of circumstances that still make it a strong speculative buy even after it has quintupled in price over the last several days. We are up to 1,033 followers on our ValueTrades blog despite not giving out a lot of alerts, a fact that we think is indicative of a successful, diligent and prudent stock picking history. If you like our picks you can also follow this blog by clicking the follow button on the top of the left hand panel. We have 122 followers so far on here. You can also follow us on X @StockTradePicks which has over 5,000 followers.

SLG skyrocketed last week upon the announcement of significant gold mineralization on the first drill hole of two separate targets on its 88 km sq Salvadora property in Chile. 

 The two targets were Cerro Blanco and Arco de Oro, which are located on completely opposite ends of the property and are separate discoveries. The copper results are still pending on Arco de Oro. Either one of these discoveries would have merited a significant valuation bump as the first of three drill holes on each program. SLG investors get a 2-for-1. This significantly reduces the usual amount of risk associated with buying during a drill program. Investors aren't putting their eggs in one basket, they are putting them into two. All for a company that will have about a $24 million market cap and about $1.5 million in cash after warrant expiry. 

The unique timing of this news release is what led to this buying opportunity post-news in the first place. There are 8.3 million warrants set to expire at the end of this week at $0.18. SLG initially spiked to $0.30 on the news, but faced steep selling down to $0.18 as warrant holders who likely wrote off those warrants long ago got a surprise Christmas gift in March. We don't think the timing of the news release was accidental. SLG management wanted to ensure this news came out before expiry and therefore released these partial results on the first drill holes instead of waiting for the larger batch. That tells us that management does right by shareholders. Rather than looking to raise cash in another financing, management made sure SLG got the cash through warrant exercises and that legacy private placement investors were able to exercise the warrants profitably. This doesn't mean SLG won't try to raise more cash, but this warrant expiry gives it the flexibility to wait for a higher price or weigh its options by securing a strategic partner instead. Salvadora is 100% owned by SLG with no NSR so the company is in a position to negotiate a good deal for shareholders if it goes that route. 

With the price being at $0.30, we have no doubts that essentially all warrants will be exercised. The share overhang from these exercises has likely been mostly absorbed, but we can't rule out that more remains. The stock has had some resistance at $0.35 and sold off to $0.30 by day's end on Friday. We predict that the stock price will be around the $0.50 range early next week. Why? Two reasons. First, we expect a bump in price from the expiry date of the warrants. We saw a similar event occur on one of our past picks, Sintana Energy Inc. (SEI.V) (SEUSF) once its warrants expired. I think most readers can understand why this is a bullish event, as any kind of selling pressure related to warrant exercise would officially be in the rear view mirror. The second catalyst would be that by next week, further assay results would be days away. There would be buying from increased speculation. 

We think that $0.50 at least brings SLG to a fair valuation. That would be a $40 million market cap, in line with another one of our successful past picks, Awalé Resources Limited (ARIC.V). From there, it would be up to investors to hold on speculation of further good results. If the second and third holes in both targets confirmed similar robust results as the first holes, we expect the company's valuation to increase to the $100 million market cap range, at least on initial hype. If one target achieves robust results while the other is poor or mediocre, SLG likely is still a material win even for $0.50 buyers. Only if all remaining drill hole results on both targets disappoint relative to the first results does the stock price drop, and we think even in this instance there would be plenty of time for $0.30 buyers to exit at a profit. In our opinion, $0.30 is a no-brainer buy zone with the hold/sell decision not becoming a thinker until at least the $0.50 level.  

Disclosure: We are long SLG.V

San Lorenzo Gold: The Stars of PDAC After Massive Hits of Gold

It has been nearly a year since we posted on this blog. Last March 18th, we wrote a bullish call on Awalé Resources Limited (ARIC.V) after high grade gold intercepts were announced. The next several trading days saw it move from $0.26 to as high as $1.00. We don't post often here because we are very selective with our picks to ensure that we are picking winners. Beyond ARIC, five of our last 11 picks going back to June 2022 have been massive winners (2-10x) that have kept or increased their gains with time. A near impossible track record on the junior exchanges. That includes Simply Better Brands Corp. (PKANF) (SBBC.V),  GobiMin Inc. (GMNFF) (GMN.V) (since bought out), Surge Battery Metals Inc. (NILI.V) (NILIF), Valeura Energy Inc. (VLE.TO) (PNWRF), and Sintana Energy Inc. (SEI.V) (SEUSF). The remainders were GSI, FUU, EQTY, DYG, HAR and GBML, with only the latter two being excessively poor performers. We find picks that we think can run in the short and the long term. And we believe that the next one will be San Lorenzo Gold Corp. (SLG.V), which has similar traits to ARIC. We are up to 1,031 followers on our ValueTrades blog despite not giving out a lot of alerts, a fact that we think is indicative of a successful, diligent and prudent stock picking history. If you like our picks you can also follow this blog by clicking the follow button on the top of the left hand panel. We have 121 followers so far on here. You can also follow us on Twitter @StockTradePicks which has over 5,000 followers.

From SLG's news released yesterday:

San Lorenzo Drills Discovery Hole at Cerro Blanco, Reporting 153.5 M of 1.04 g/t Gold and Reports 39.6 Metres of High-Grade Gold in Three Intervals in the First Hole at Arco De Oro

CALGARY – TheNewswire - March 3, 2025 - San Lorenzo Gold Corp. (" San Lorenzo " or the " Company ") (TSXV: SLG) is pleased to announce assay results from the first of 3 recently drilled holes on its Cerro Blanco gold/copper porphyry target as well as partial results from the first of 3 holes recently drilled on its Arco de Oro epithermal gold target. Cerro Blanco and Arco de Oro are targets located within San Lorenzo’s flagship Salvadora property in Chile.

San Lorenzo’s CEO Al Kroontje commented that “it’s extremely gratifying to be announcing a discovery hole with our first drill test of Cerro Blanco, a target management has had high conviction about.  Cerro Blanco is a very large target and we’re just scratching the surface with the three reconnaissance holes in the current program.  Arco do Oro has, again, generated results that confirm the robustness of this large, high-grade gold system.  Arco has the scale to contain a large resource.  San Lorenzo is fortunate to control a property that has not one or two, but five high quality target areas.  We plan to expand on our exploration efforts to advance this high-quality project.”

1) Cerro Blanco

The table below shows the mineralized intervals and assay results from Hole SAL 01-24 - the first of the 3 holes recently drilled on the Cerro Blanco copper/gold porphyry target.

Hole #		From(m)	To(m)	Width(m)	Au g/t	Ag g/t	Cu %
SAL 01-24		229.0	382.5	153.5	1.04	1.0	0.05
	including	290.5	382.5	92	1.38	1.1	0.06
	including	331.7	335..5	3.8	12.78	6.5	0.51

Cerro Blanco is a two-by-two kilometer area of coincident copper/gold soil and rock geochemistry, IP chargeability and exposed lithocap that San Lorenzo believes overlays a mineralized porphyry center.  Cerro Blanco has never been drilled before.  Mineralization in hole 01-24 continued to the bottom of the hole, indicating the mineralized system remains open to depth.

Commenting on the Cerro Blanco results, Terence Walker, San Lorenzo’s VP of Exploration explained : “ The initial drill program on Cerro Blanco was designed as a widely spaced first pass recon program.  It was intended to confirm the company's opinion that the coincident strong surface copper and gold sample values, the alteration types observed in the local intrusive and volcanic rocks and the underlying IP/Chargeability anomalies are part of a local gold/copper enriched porphyry deposit similar to those at the nearby El Salvador mine complex. These assays results indicate the hole’s position in the outer margin of a porphyry deposit, and we feel extremely fortunate to have received such significant results from the very first hole drilled on this exciting target.”

Terry Walker continued: “The assay results correspond exceedingly well with our IP interpretation which reinforces our belief that IP will continue to be a valuable tool during future drilling.”

San Lorenzo has been advised that assay results from the other two holes recently drilled on the Cerro Blanco porphyry target will be forthcoming during the next approximately 2 weeks.  Holes two and three contain alteration and mineralization similar in appearance to hole one.

2) Arco de Oro

The table below provides assay results from Hole SAL 01-25 - the first of the 3 holes recently drilled on the Arco de Oro epithermal multi-vein feature. This hole is a 300 metre step out to the northwest along trend from past drilling at Arco.

Hole #		From(m)	To(m)	Width(m)	Au g/t	Cu %
SAL 01-25	A	15.7	22.2	6.6	5.61	Pending
	including	15.7	18.0	2.3	11.14	Pending
	B	110.0	119.7	9.7	4.4	Pending
	including	117.0	118.4	1.4	12.2	Pending
	C	151.1	174.4	23.3	4.8	Pending
	including	152.8	156.8	4.0	17.95	Pending

Terry Walker provided the following observations regarding Hole SAL 01–25: “The gold assays received from the first of the 3 holes recently drilled on Arco de Oro confirm our thesis that several epithermal vein systems are converging in a northwesterly direction – as suggested by the strengthening and widening of the IP chargeability anomaly in that direction.  With extensions of high-grade mineralization over significant widths continuing as we head northwest, the need to actively explore the additional 2.5 km of strike to the northwest - evident from shallow artisanal workings - is very much warranted.”

Arco de Oro is a five-kilometer trend of epithermal veining indicated by surface exposures and numerous small shallow artisanal workings.  Every hole drilled by San Lorenzo at Arco de Oro has reported at least one significant gold intercept, indicating the strength and consistency of this large gold system.  High grade results have been obtained to a depth of 300 metres.

San Lorenzo is only in receipt of the gold assays from Hole SAL 01–25 with copper and other elements expected during the upcoming week.

Management is planning significant follow up programs at both Cerro Blanco and Arco de Oro with additional drilling also planned for the Tres Amigos copper-rich epithermal system.  Further drill results from Arco de Oro and Cerro Blanco will be reported as they are received and interpreted, and future exploration plans will be announced once all current drill results are received.

This is unprecedented to see not only one but two major discoveries on the first holes announced of two separate drill programs. ARIC currently has a $40 million market cap and last March closed in on a $100 million market cap days after announcing what we would consider comparable results to SLG - twice the grade at half the length - and that was on one property, not two. 

SLG initially shot up over 300% to $0.30 yesterday, a very deserving reaction to these results. The stock has since pulled back to $0.18, representing the perfect level to buy in as more results are expected in 2-3 weeks. A similar pattern of news as on ARIC last year. Why has it pulled back to this level? Other than the obvious market volatility, there are 8.3 million warrants with an exercise price of $0.18. Those warrants expire within the next two weeks. Clearly the goal here for shareholders/warrant holders and management alike is to get all 8.3 million exercised. That would bring in $1.5 million in cash and would essentially replace any capital raise at this level. To incentivize exercise, the shares would have to be a few cents in the money, at $0.20 or higher. Then immediately after expiry at the end of next week, we expect the stock to fly as the warrant overhang would be eliminated and peak speculation would take over. 

Inclusive of the warrants, shares outstanding would be 80 million. We expect a stock price of $0.50 to come in line with ARIC's valuation, but can't rule out a run to $1.00 or higher should the follow up results equal or better the initial results on one or both of these properties. 

Disclosure: We are long SLG.V