San Gold Corporation

San Gold Corporation

April 13, 2007 12:56 ET

San Gold-First Gold Sale

BISSETT, MB--(CCNMatthews - April 13, 2007) - Dale Ginn, CEO of San Gold Corporation (TSX-V: SGR), is pleased to report that its first gold sale has taken place and that its gold sale policy has been finalized. The sale of 1318 ounces occurred on April 12th, 2007 at $672.50 US for a net settlement of $1,003,175 CDN. This sale is significant as it marks the transition of San Gold from a developer into a producer, a process that has taken place over the last two years. Further similar sales will be forthcoming by the end of April.

San Gold has not hedged or forward sold any of its reserves or production and does not intend to do so. The company requires some flexibility to manage its gold production on a short-term basis but will not withhold production with the intention of commodity price speculation. After shipping, final refining and settlement of the final ounces, the gold is deposited in a major Canadian bank, then sold at the company's direction. There is an option with this bank whereby San Gold may borrow up to 90% of the value of the deposited gold, however San Gold has not yet used this credit facility.

San Gold is rapidly transitioning from developer into steady-state gold producer and is on track to producing 50,000 ounces of gold this year (please see press release dated April 4, 2007). San Gold's two operating mines are rapidly increasing their ratio of higher grade production ore from initial lower grade development material and are now contributing 800 tons per day. San Gold's mill has reached steady state and optimum operating levels with no further lock up of gold anticipated, a process that has taken approximately six months longer than initially anticipated. The company employs over 200 people in its mining and milling operations and operates a very aggressive exploration program with four surface diamond drills and two underground drills currently operating.

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.

For further information contact Dale Ginn, President of San Gold Corporation, at (204) 794-5818, investor information at 1-800-321-8564 or visit the company's website at

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. Mineral resources are not mineral reserves and have not yet demonstrated economic viability. This news release may contain forward looking statements which are necessarily based upon estimates or 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.

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

Contact Information

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