San Gold Corporation

Now if we can only ramp up our production,

I am of the opinion that production from the miners is right on track and as soon as all of the high grade stopes are developed and ready for the miners we will see many more ounces. The developement ore we ran through last month only averaged 7.7 grams and we recovered over 13,000 ounces. Many of the new discoveries in the RL east are over 12 grams average. Just by moving the miners to these new veins we would see a 50 % increase in gold production without any increased effort. I am of the opinion that the reason we were dissappointed with lower a ounce number than hoped for was due to the fact that they made the decision to head for the high grade which would in turn produce the lower grade developement ore along the way.