SAN Gold NRhttps://www.stockhouse.com/News/CanadianReleasesDetail.aspx?n=8464711
Operating Highlights :
"2011 is a watershed year for San Gold. We have improved on all metrics over the prior year," said George Pirie, President and Chief Executive Officer of San Gold. "In these volatile times our shareholders should be heartened that some of the risk is leaving the San Gold equation as we start to deliver on our potential. The operations team did an exceptional job building out the Rice Lake Mining Complex this year. Our mill capacity has increased by two-thirds while our mining team continues to build out the mining complex along the new Shoreline Basalt mining trend. Financially, we generated almost $10 million in cash from operations in 2011 and have now posted two consecutive profitable quarters. We will continue to aggressively explore and develop our unique land position at Rice Lakeand will continue to improve our production profile and deliver positive results from all facets."
2012 Guidance:
- Production of between 95,000 and 105,000 ounces.
- Cash Costs: $700 - $800 per ounce.
- Exploration: In excess of 250,000 metres.
Outlook
In 2012, mining operations are projected to produce between 95,000 and 105,000 ounces. The Company is providing a range of 115,000 to 125,000 ounces for 2013.
Planned development is primarily in four regions - 007, L10, L13 and the Rice Lake Mine. In the 007 Zone, planned ramp access will reach more than 450 metres below surface by year end. In the L10 Zone, development will extend to more than 375 metres below surface. Development work is expected to reach the L13 Zone during the year, although no mining is anticipated at this time. In the Rice Lake Mine, development work will be focused on the 98 and 84 Veins on 26 Level and on extending 16 Level. Development continues from the 16 level of the Rice Lake Mine to access the Shoreline Basalt deposits. This access will allow the Company to develop the exploration platforms and infrastructure required to explore and exploit these deposits from this horizon.
Capital expenditures will focus on development in the 007, L10, L13 zones and on the 16 and 26 Levels of the Rice Lake Mine as well as maintaining and improving the mining fleet, constructing additional mill improvements and continued expansion of the tailings facility.
Bissett area exploration efforts remain focused primarily along the Shoreline Basalt, with particular attention being paid to the L10, 007, and L8 zones. Drilling continues to test the down-dip extensions of the L10 Zone from the 16 and 26 levels of the Rice Lake Mine (730 m and 1220 m below surface, respectively). Deep drilling continues from surface to trace the down dip extensions of the 007 Zone. Additional exploration activity in 2012 is planned for the properties joint ventured in 2011. The Company also plans to release an updated resource estimate in the first half of the year.