Reno – Sagebrush Gold formerly, Empire Sports & Entertainment Holdings Company, showed signs of life Friday morning, rising 10% in early trading following an after the closing bell announcement the prior day encapsulating its progress, but it could be short-lived as production prospects weigh thin on its Relief Canyon mine.

The Toronto crew behind Sagebrush pushed the phones early this morning, working the prospects of the marketplace lauding over the highlights of acquisition and financings. Yet investors who do the numbers and read through the 43-101 report would find that the old workings might be too thin to warrant a gold play, even though SAGE managed to wrangle the cash needed to up the ante on its bonding requirement.

Drilling is underway at the old Relief Canyon mine though Sagebrush will run up against its neighbors who control the veining structure boundery where any potential paydirt might be found, according to local mining engineers familiar with the property. That could limit SAGE’s ability to expand its inferred and indicated reserves beyond current levels. While Sagebrush is focusing on drilling a half mile to the North, if it hits, the company should consider changing its name to Lucky Bush.

Exotic securities placements helped Sagebrush Gold reach its current cash status to bring the property into position for future production in 2012 but the overhanging dilution cut its share price from $3.00 to a half buck. The push in Toronto to lift its shares could spur interest in Warrants priced at $0.50 cents, but Friday mornings action was hardly enough to place much hope on that happening.

Better to sit on the bench boys and wait for the core drill results – and good luck with that.

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