SOURCE: San Gold Corporation

November 15, 2005 09:01 ET

Two Gold Mines Scheduled to Begin Operations in December

BISSETT, MB -- (MARKET WIRE) -- November 15, 2005 -- Mr. Dale Ginn, President, provides an update on operational activities at San Gold's (TSX-V: SGR) two gold mines in Manitoba.

San #1 Gold Mine

The access decline at the San #1 mine has advanced 1,200 feet and is now cross-cutting towards the orebody at the first mining level of 200 vertical feet. Ore development at this level begins within two weeks in preparation for cut-and-fill mining. San Gold's development crews are advancing at a rate of 20 feet per day and at a cost of below $400 per foot. The San #1 Gold Mine will contribute at least half of the mill feed to the base operating plan of 750 tons per day which is 60% of the mill's current capacity. Construction of the 3.5 km private haulage road from the mill to the San #1 gold mine is essentially completed.


Rice Lake Gold Mine

Systematic pre-production maintenance and upgrading to the 5,300 foot deep Rice Lake Gold Mine has been carried out since late-2004 with the shafts, hoists and rail haulage artery all operational. During the past month, mine development on the 30th level (4600 feet deep) has been conducted on two shifts per day resulting in access to mining areas that were partially developed in the late 1960's. This work has included the slashing of access drifts to allow for the operation of scooptrams and the preparation of stopes for the immediate commencement of mining. Development will also commence on the 28th level in order to access the high-grade "98" vein which contains 100,000 tons of 0.35 ounces per ton (ACA Howe, 2004) in the measured and indicated gold resource category. At the 5,300 foot level, diamond drilling is scheduled to commence in December targeting below the "96" Vein and the "AN Ext" Vein, both of which were developed in the bottom mine levels at greater than 0.40 ounces per ton.


Training and Personnel

In 2004, San Gold independently instituted a comprehensive mining and safety training program for new employees. The objective is to train residents from the region surrounding the town of Bissett, to contribute to the local economy, and to establish a local workforce with roots and pride in the community. This program has been very successful and the company is pleased to have the first group of new graduates working as miners and hoist operators. Approximately 100 employees and 30 contractors are now engaged in mine development, milling and exploration activities on site.


Rice Lake Mill

The Rice Lake mill (1,250 tons per day capacity) pre-production maintenance program is expected to be completed in November. The maintenance activities include minor structural modifications, the installation of new ball mill liners and reagents, and the installation of a new gravity concentrator and separation table. The gravity circuit improvements are expected to improve overall recoveries from 93% to 96% which is in line with recoveries achieved in the 1930's to the 1960's. Preliminary test runs are scheduled for mid-November with the acceptance of the first development ore in December.

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

Contact Information

  • For further information contact
    Dale Ginn
    President
    San Gold Corporation
    (204) 794-5818

    San Gold Corporation
    Bissett, Manitoba, Canada R0E 0J0
    Tel.: +1.204.794.5818 Fax: +1.807.543.2435
    Email Contact