San Gold Corporation
TSX VENTURE : SGR

San Gold Corporation

April 04, 2006 16:03 ET

Rice Lake Mill Commences Commercial Operation

BISSETT, MB--(CCNMatthews - April 04, 2006) - Mr. Dale Ginn, President of San Gold Corporation (TSX-V: SGR), is pleased to announce that commercial processing of ore has commenced at the Rice Lake Mill.

The Rice Lake mill, with a 1,250 ton per day capacity, has undergone a program of repair and upgrading, including pre-production repairs to the primary ball mill trunion bearings, installation of an additional gravity recovery circuit and the implementation of new surveillance and security systems. No major problems were encountered during preliminary mill tune-up operations. As well, pre-production mill tests met or exceeded all technical benchmarks.

Initially, the mill will be run at up to 1000 tons per day, 24 hours per day and will process development ore which has been stockpiled on surface and underground. Lower grade development ore is being processed first since it is normal for gold and gold-bearing particles to lodge and to initially remain entrapped in the milling equipment, known as the "bed-down" period. The mill head grades will be increased over the next few weeks by blending remaining development ore with higher grade production ore. Once this process is completed and the head grades are stabilized, the mill is expected to run at its planned 95% gold recovery benchmark.

For further information contact Dale Ginn, President of San Gold Corporation, at (204) 794-5818 or visit the company's website at www.sangoldcorp.com.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.


Contact Information

  • San Gold Corporation
    Bissett, Manitoba
    Canada R0E 0J0
    Tel.: +1.204.794.5818
    +1.807.543.2435 (FAX)
    dginn@sangoldcorp.com