San Gold Achieves Record Production in Q4 2011
San Gold Corporation
(TSX: SGR) (OTCQX: SGRCF) today announced preliminary
results of operations at its Rice Lake Mining Complex
in Manitoba, Canada for
the quarter ended December 31, 2011.
Q4 Production Highlights
- Record gold production of 20,359 ounces with additional 4,000 to 5,000 in
surface ore stockpile.
- December production of 8,388 ounces annualized supports 100,000
ounce guidance for 2012.
- Milling and crushing initiatives completed to upgrade mill capacity to
2,000 tons per day.
- Exploration results issued in December continue to demonstrate the
tremendous potential of our new mine trends.
Fourth Quarter 2011 Preliminary Operating Results
San Gold produced a record 20,359 ounces of gold in the fourth quarter with
approximately 25,400 tons of ore in the surface stockpiles representing an
additional 4,000 to 5,000 ounces of gold in front of the mill.
During December the operation established a new daily mill record of 2,056 tons
per day, with an average throughput of 1,775 tons per day. The operation
began the year at an average production rate of 829 tons per day.
“This has been a tremendous year for our production team at Rice Lake. We’ve
executed a very aggressive development plan, increasing our milling capacity
by two-thirds while building out an extensive mine complex along a new mining
horizon. We are well positioned going into 2012 and will continue to aggressively
pursue new opportunities as they emerge,” said San Gold President and Chief
Executive Officer George Pirie.
There were two planned events during the fourth quarter that resulted in lost
milling opportunities. In the first two weeks of October, throughput rates in the
flotation circuit were reduced while the second bank of new flotation cells was
commissioned. In November, three milling days were lost due to the
commissioning of the new screening plant and the relocation of the three stage
crushing circuit. No upgrades that will affect mill throughput are planned
through the first half of 2012.
2 | SAN GOLD CORPORATION
Total gold production for 2011 was 74,280 ounces with 4,000 to 5,000 in surface
stockpiles accumulated during the year, effectively meeting our full year
guidance of 80,000 ounces. On an annualized basis, December production
supports our 100,000 ounce production forecast for 2012.
About San Gold
San Gold is an established Canadian gold producer, explorer, and developer
that owns and operates the Hinge, 007, and Rice Lake mines near Bissett,
Manitoba. The Company employs more than 400 people and is committed to
the highest standards of safety and environmental stewardship. San Gold is on
the Toronto Stock Exchange under the symbol “SGR” and on the OTCQX under
the symbol “SGRCF”.
For further information on San Gold, please visit www.sangold.ca or contact:
Tim Friesen George Pirie
Communications Director President and CEO
1 (204) 772-9149 ext. 202 1 (416) 214-0024 http://sangold.mwnewsroom.com/getattachment/58de9727-666e-442a-9aaa-d0c8ab89b7a4/San-Gold-Achieves-Record-Produ-201201100757358001