Ann: Resource and Exploration Update, page-7

How widespread are the RC issues encountered previously at Monsoon? The high grade intercept in RC drill hole SPBC0313 obviously got a lot of focus once follow up holes didn't continue to prove up the prospect. However the initial resource at Baloo was already declared (4th March 2016) by the time this RC issue came to light. In the months leading up to the declaration of this resource at Baloo, RC drilling was ramping up to infill this prospect to declare the resource. I noticed with the recent resource addition, all holes were diamond. Shareholders are no doubt sceptical about the initial resource.

Current Australian gold price may offer reasonable value for S2R to sell off Polar Bear. Leave the past behind them. Is this why they are focussed on continuing to drill out resources across the project? The resources aren't well enough endowed at this stage to suggest any capital investment in the project. Instead a possible acquisition by a nearby competitor with processing facilities could be the future here.

Free cash flow limits the downside risk of this stock. Upside of the Swedish project remains strong. Additional cash from Polar Bear may sure up the companies portfolio, but investors will have lost exposure to the Australian gold price so that will be a brave decision if this sell off strategy took place.

Cash is king for me here. No doubt this stock is a buy under 50m market cap (~20c per share).