Yesterday, even the new promotional e-mail on Star Gold Corp. (OTC:SRGZ) was not able to prevent the stock price from falling to a new 52-week bottom. Even worse: the announced in the middle of last month drilling permit for the Longstreet property also passed by unnoticed, which makes SRGZ future more and more questionable. 
The last session closed with no change at $0.07 for a share and a trading volume of 17,800 shares. SRGZ opened at $0.06 and in the afternoon the share price fell to $0.05, which is now the new lowest price for the past year. Intraday chart shows that most of the trading happened exactly at this moment, a few hours after our database received a new promotional e-mail on SRGZ.
The e-mail recommends the stock as ‘potentially explosive’ and promises to come out with news in the coming days. The disclaimer says the promoter has a three-month consulting agreement with Start Gold and will be get 150,000 restricted shares of the company each month as compensation for the advertising service. Therefore, the only ‘new information’ that traders would get for sure are most probably more promotions rather than any relevant news from the company.
Star Gold financial report for the fiscal year ended April 2011 shows absolutely no progress related to the company’s mining activities. SRGZ still has the option to acquire up to a 100% interest in the Excalibur Property in Nevada. The drilling program on that property started in June last year. In addition, SRGZ leases certain other mining claims in Nevada known as the Longstreet Property, and last July the company acquired a 100% interest in another Nevada property named the Jet Property.
A few weeks ago, SRGZ said the U.S. Forest Service has approved the company’s Plan of Operation on the Longstreet property so that the drilling can commence. Yet, the company’s financial position as of end-April would hardly allow that with $12,200 in cash as the the only liquid asset and current liabilities exceeding $73,000.
