San Gold Corporation

San Gold Corporation

April 04, 2007 08:42 ET

San Gold Development and Operations Update

BISSETT, MB--(CCNMatthews - April 04, 2007) - Dale Ginn, CEO of San Gold Corporation (TSX-V: SGR), is pleased to report that the first longhole production blasts have been successfully completed at the San Gold #1 mine, representing the first production ore from this new mine. San Gold is also pleased to summarize key operational developments to date as the company increases the ratio of production ore as well as overall tonnage and grade as it progresses towards planned full production of 800 tons per day by the end of the second quarter.

San Gold #1 Mine:

The first longhole blasts have been successfully completed and represent the first production or stope ore from this mine. This mining block has been fully developed on five levels; each separated by 50 feet vertically and represents an ore block of approximately 60,000 tons which will be extracted over the next five months. Production longhole drilling has been completed for 75% of this block and decline development continues to access similar mining blocks below and along strike. Production at this mine was initially planned at 400 tons per day; however production has already exceeded 1,000 tons on a number of individual days since the first longhole blast. As well, this mine only requires approximately eight people per shift to operate and mining costs are anticipated to be substantially lower than as stated in San Gold's most recent mining plan (ACA Howe, December, 2006).

Rice Lake Mine:

San Gold has concentrated its efforts at the Rice Lake Mine on two separate mining areas which are the existing levels above 31 level (4600 ft), and the downward extension of the main Rice Lake veins below 5300 feet which are accessed via decline. Development above the 31st level has resulted in the availability of over 15 ore faces, including six shrinkage stopes, and three ore faces in the high grade 93 and 98 veins. Development below the 5300 foot level is within one week of reaching the broad breccia veins as outlined by recent drilling (See press release dated March 12, 2007). Two additional veins with similar structure to the high grade 93 and 98 veins (See press releases dated March 22, 2007, Jan. 18, 2007 and Nov. 1, 2007) have been identified and will be accessed from the 26th level (3900 ft). Production at this mine is currently at approximately 250 tons per day and is steadily increasing towards the planned 400 ton per day rate by the end of the second quarter.

Rice Lake Mill:

The Rice Lake mill has processed over 80,000 tons of low grade development material to date. As the ratio of tonnage from producing stopes increases, head grades will rise to over 0.20 oz/ton (7.0 g/tonne) this quarter and recoveries will rise from approximately 90% to over 93%. A number of mill components required additional maintenance or replacement over the past six months as the mill was tested to capacity. This included additional work on the carbon stripping vessels, vibrating feeders, and crushing circuits and has now been completed. Successful installation and operation of the second Knelson gravity recovery unit has prompted San Gold to plan on purchasing and installing a third this summer in order to increase recovery of fine free gold and to increase overall recoveries to 96%. Modifications to the mill's crushing circuit are also being considered at this time in order to increase overall mill capacity in anticipation of increased tonnage from San Gold #1 and the addition of the Cartwright zone.

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

The above programs were carried out under the supervision of W. S. Ferreira, M.Sc., P.Geo., and D. Ginn, P.Geo., the Qualified Persons for San Gold under National Instrument 43-101. This news release may contain forward-looking statements, being statements which are not historical facts, including, without limitation, statements regarding potential mineralization, exploration results, resource or reserve estimates, anticipated production or results, sales, revenues, costs, "best-efforts" financings or discussions of future plans and objectives. Such statements are necessarily based upon a number of estimates and assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

San Gold Corporation
Bissett, Manitoba, Canada R0E 0J0
Tel.: +1.204.794.5818

Contact Information

  • Dale Ginn
    San Gold Corporation
    (204) 794-5818