San Gold - N/R Operations and Expl. Update -San Gold - N/R Operations and Expl. Update -
San Gold Corporation Reports Operations and Exploration Update
Wednesday July 12, 9:37 am ET
BISSETT, MB--(MARKET WIRE)--Jul 12, 2006 --
Mr. Dale Ginn, President, is pleased to offer the following operations update:
Rice Lake Mill
The Rice Lake mill (1,250 tons per day capacity) has
processed approximately 25,000 tons of development ore
and cleanup material to date from a combination of
the Rice Lake Gold Mine and the San Gold #1 Mine.
The full circuit has now been tested to capacity including crushing, grinding, gravity, leaching, flotation, carbon stripping, electrowinning, furnace operations and pouring
of the final gold product.
Stoping ore from the Rice Lake Mine is gradually entering
the feed stream as the start-up process evolves from 100% development ore the planned ultimate combination of
approximately 75% stoping and 25% development ore.
The mill is currently operating on a 2 week on - 2 week off rotation until mine production overtakes this capacity.
Development and Mining
At the San Gold #1 Mine, mining continues at the 200 ft
(60 m), 250 ft (76 m) and 300 ft (91 m) levels where over
2,000 feet (610 m) of lateral ore development has been completed to date.
Ore widths developed in the core mining area are averaging
over 16 feet (5 m) as compared to 8 feet (2.4 m) as
previously indicated by drilling, as well the geometry
of the developed orebody is tabular and vertical with
sharp ore/waste contacts.
As a result, the core of this orebody will be mined using longhole stoping methods which will result in lower than planned mining costs and accelerated stoping tonnage.
The narrower extremities will be mined using cut-and-fill and shrinkage stoping methods as previously planned.
The "tracked" levels in the Rice Lake Gold Mine between
the elevations of 4,500 to 5,000 feet have graduated
from development only to a stoping/development combination.
Higher grade shrinkage stope contributions are steadily increasing in this mix. Mechanized developments in the
lowest levels (below 5,000 feet) are underway towards
known reserves and waste dump open stopes.
Daily production rates are currently at 400 tons per day
from the combined mines and are increasing towards
the planned rate of 800 tons per day by year-end.
Exploration
Surface drilling is concentrated on the new Cartwright Zone, located one kilometer west of the Rice Lake Gold Mine, where over 50,000 feet (15,000 m) has been completed since its discovery in April, 2006.
One drill is extending this zone deeper (below 1,000 feet),
one is drilling beneath the historic Gabrielle Mine workings (located between the Cartwright Zone and the Rice Lake Gold Mine), and one drill is extending the Cartwright zone to
the west.
Deep drilling at the Rice Lake Gold Mine below the lowest mine level (5,300 feet) which had been delayed due to mechanical problems, has now commenced and will target the down dip
and plunge areas of the main mining complex, especially
focusing on individual higher grade veins.
Other
ACA Howe International of Toronto has been contracted by San Gold to audit and conduct mineral resource calculations on
the San Gold #3 Zone and on the Cartwright Zone.
The San Gold #1 deposit mineral resource will also be
updated and upgraded with respect to the recent mining
and development.
For further information contact
Dale Ginn,
President of San Gold Corporation
(TSX VENTURE:SGR.V - News),
at (204) 794-5818
or visit the company's website at
www.sangoldcorp.com.
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.
Contact:
Dale Ginn
President of San Gold Corporation
Bissett, Manitoba, Canada R0E 0J0
Tel.: +1.204.794.5818
Fax: +1.807.543.2435
Email Contact
https://www.sangoldcorp.com
Source: San Gold Corporation
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