SOURCE: San Gold Corporation

October 04, 2010 08:00 ET

San Gold Corporation Files Amended Technical Report in Order to Incorporate and Add Mineral Reserves

BISSETT, MB--(Marketwire - October 4, 2010) - San Gold Corporation (TSX-V: SGR) is pleased to announce that it has filed an amended National Instrument 43-101 compliant technical report dated October 1, 2010 regarding its Rice Lake project area that includes the Rice Lake, Hinge and SG 1 mines as well as the 007, Cartwright, SG 2, SG 3 and Cohiba zones. The technical report was amended in order to add and include disclosure regarding mineral reserves, while mineral resources remain unchanged except to correct a minor addition error in the Rice Lake Mine indicated resources category.

The following table, from a technical report dated October 1, 2010 with an effective date of June 30, 2010, summarizes the mineral resources and mineral reserves for the Rice Lake Project. The table of mineral resources presented below is nearly identical to the information presented in San Gold's technical report that was press released on September 3, 2010.

 
 
SUMMARY OF RICE LAKE PROJECT RESOURCES (at June 30, 2010)
 
    Tons   Grade       Contained
        oz./ton   (g/tonne)   Ounces
Rice Lake Mine                
  Measured Mineral Resources   388,200   0.24   (8.2)   91,175
  Indicated Mineral Resources   642,240   0.25   (8.6)   163,090
  Total Measured and Indicated Resources   1,030,440   0.25   (8.6)   254,265
  Inferred Mineral Resources   1,519,750   0.29   (9.9)   439,090
Hinge Mine                
  Measured Mineral Resources   91,790   0.29   (9.9)   26,510
  Indicated Mineral Resources   425,670   0.40   (13.7)   171,190
  Total Measured and Indicated Resources   517,460   0.38   (13.0)   197,700
  Inferred Mineral Resources   1,375,200   0.39   (13.4)   538,700
SG1 Mine                
  Indicated Mineral Resources   214,200   0.24   (8.2)   52,150
  Inferred Mineral Resources   936,500   0.22   (7.5)   206,900
007 Zone                
  Indicated Mineral Resources   305,240   0.75   (25.7)   230,330
  Inferred Mineral Resources   398,200   0.47   (16.1)   186,980
Cohiba Zone                
  Indicated Mineral Resources   55,970   0.23   (7.9)   12,675
  Inferred Mineral Resources   25,210   0.16   (5.5)   4,050
Cartwright Zone                
  Indicated Mineral Resources   136,200   0.22   (7.5)   29,830
  Inferred Mineral Resources   1,761,200   0.21   (7.2)   388,940
SG-2 and SG-3 Zones                
  Indicated Mineral Resources   173,100   0.20   (6.8)   35,320
  Inferred Mineral Resources   195,600   0.26   (8.9)   50,210
Rice Lake Project                
  Total Measured plus Indicated   2,432,610   0.33   (11.3)   812,270
  Total Inferred Resources   6,211,660   0.29   (9.9)   1,814,870
                   
                   
                   
 SUMMARY OF RICE LAKE PROJECT RESERVES (at June 30, 2010)
 
    Tons   Grade       Contained
        oz./ton   (g/tonne)   Ounces
Rice Lake Mine                
  Proven Mineral Reserves   414,000   0.22   (7.5)   91,175
  Probable Mineral Reserves   753,320   0.22   (7.5)   163,090
  Total Proven and Probable Reserves   1,166,320   0.22   (7.5)   254,265
Hinge Mine                
  Proven Mineral Reserves   114,740   0.23   (7.9)   26,510
  Probable Mineral Reserves   532,085   0.32   (11.0)   171,190
  Total Proven and Probable Reserves   646,825   0.31   (10.6)   197,700
SG1 Mine (currently on care and maintenance status)                
  Probable Mineral Reserves   180,150   0.26   (8.9)   47,110
007 Zone                
  Probable Mineral Reserves   381,550   0.60   (20.7)   225,545
Cohiba Zone                
  Probable Mineral Reserves   69,960   0.18   (6.2)   12,675
Cartwright Zone                
  Probable Mineral Reserves   170,250   0.18   (6.2)   29,830
Rice Lake Project                
Total Proven and Probable Reserves   2,615,055   0.29   (9.9)   767,125
                 
                 

The key assumptions used by the Author for conversion of measured and indicated resources to proven and probable reserves are:

  1. Resource tonnage factor 11.4 cubic feet per ton (equivalent to an average specific gravity of 2.8)
  2. Minimum mining width 5 feet horizontal.
  3. Mill Call Factor 95%
  4. Mill Gold Recovery 93%
  5. Gold price US$1200, Canadian$1260 at 1.05 exchange rate.
  6. External cut-off grade of 0.13 ounces per ton.
  7. Internal cut-off grade 0.10 ounces per ton.

A full copy of the technical report will be made available on the Corporation's website and has been filed on SEDAR.

Peter George, PGeo, of Geoex Ltd., is the independent qualified person in accordance with NI 43-101 responsible for the report referenced in this news release. Mr. George has made numerous site visits to this project over the past 10 years, is a geologist with over 40 years of experience and has prepared evaluation reports for a number of significant mining operations. During the past five years, Mr. George has completed mineral resource reports on a number of significant Archean gold projects, including the Gold Eagle Mines Ltd. (now Goldcorp Inc.) Bruce Channel deposit in Red Lake, Ont., ValGold Resources Ltd.'s (now Northern Gold Mining Inc.) Jonpol deposit in the Timmins area, Black Pearl's (now Canadian Lithium) Tully deposit in the Timmins area, and San Gold's Rice Lake mine, Cartwright, SG-1, SG-2 and SG-3 deposits in Bissett, Man.

Dale Ginn, P.Geo, Chief Executive Officer of San Gold, is the qualified person responsible for this news release.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

The information in this release may contain forward-looking information under applicable securities laws. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied in the forward-looking information. Factors that may cause actual results to vary include, but are not limited to, inaccurate assumptions concerning the exploration for and development of mineral deposits, political instability, currency fluctuations, unanticipated operational or technical difficulties, changes in laws or regulations, the risks of obtaining necessary licenses and permits, changes in general economic condition or conditions in the financial markets and the inability to raise additional financing. Readers are cautioned to not place undue reliance on this forward-looking information. The Corporation does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events except as may be required under applicable securities laws.

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:

    Dale Ginn
    Chief Executive Officer
    San Gold Corporation
    (204) 794-5818

    Investor Information
    1-800-321-8564
    www.sangold.ca