Focused on bringing its 100% owned Tartan Lake gold mine back into production. The project is located in Manitoba, and previously produced 48,000 ounces gold between 1987 and 1989. The company also holds a minority 35% interest in the Amisk Lake gold project (65% jv partner Claude Resources). Located nearby the Tartan Lake project, Amisk is a growing, potentially 1+ million ounce open-pittable deposit.

Although the expected capital cost of brining the Tartan Lake gold mine back into production is only $6 million, the extent of mineralization surrounding the old mine workings appears to be limited. The company's goal is to grow gold Tartan into a 50,000oz/yr producer within 4 years, but we won't be holding our breath on that one. Overall, Tartan and Amisk appear to be higher quality assets than would normally be associated with a company worth $7 million, and hopefully the company can avoid the heavy dilution that may be required to bring Tartan back into production. Considering that most mines this size fail to produce any significant amount of positive cash flow, if any at all, we view St. Eugene's minority stake in the Amisk property as the more substantial asset given the recent exploration success. [David Zurbuchen] [June 5, 2010]