San Gold Corporation (SGRCF)

[NYBob]

San Gold Completes Crusher Installation, Increases Mill Throughput


Apr. 27, 2011 (PR Newswire) --

TSX: SGR | OTCQX: SGRCF
http://www.sangold.ca

BISSETT, MB, April 27 /PRNewswire/ -

George Pirie, President and CEO of San Gold Corporation
(TSX: SGR) (OTCQX: SGRCF) is pleased to report that crushing
plant upgrades have been completed and that test milling has
shown a large increase in production capacity for Rice Lake
Project mill operations.

The first full week of operations using the improved crushing
circuit (April 15 to April 21) realized an average of 1,513 tons
per day processed, including an all-time daily record of 1,679 tons.
Recovery rates were maintained at 94% during this period.

"These capital improvements were completed ahead of schedule and
have increased our mill's capacity beyond design
specifications," said Mr. Pirie.
"This, combined with strong production tonnages keeping ore out
in front of the mill, marks another important step toward
establishing a steady-state production profile."

The crushing plant upgrades were completed during the first four
days of April and consisted of the installation of a new Metso
mobile gyratory crusher as well as a new Barmac mobile tertiary
crusher.

A new Elrus primary jaw crusher was previously installed in
January.

The combined result of these installations is an increase from
210 hp to 750 hp, allowing for increased throughput while
reducing the size of the feed reporting to the grinding
circuit.

Further capacity increases are anticipated towards 1,800 tons
per day or higher this year as this new equipment is optimized
and a larger capacity screening plant is installed in June.

San Gold Corporation is an emerging gold producer located in
south-east Manitoba, immediately west of Red Lake, Ontario.
The company is on track to produce over 80,000 ounces in 2011.

San Gold is also an aggressive explorer and developer,
discovering seven gold deposits and developing four over
the past five years.

The company is on track to complete over 300,000 meters of
diamond drilling this year.

Drilling and development efforts are currently concentrated
along a new mining horizon known as the Shoreline Basalt.

The Shoreline Basalt deposits, which include L10, L13, 007, 007
East and Emperor, are fully accessible from surface and to
depths of over 2,000 meters using the modern mine infrastructure
already in place at the Rice Lake Mine.
This year's drilling and development program will mark a key
step in San Gold's long-term plan to develop a new mine
complex along the Shoreline Basalt.

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.

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

SOURCE San Gold Corporation


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