San Gold Corporation

The key to the lower cost is the higher grade that they are anticipating. If they are now mining close to 1800tpd and milling 1800tpd with production of 100,000 ounces it is easy to assume that with the higher grade using the same throughput the per ounce cost will drop. Of course there will also come a time when all of the components of the mine and mill will work like one well greased machine . That is when the efficiencies and recoveries will max out at a sustainable level. We have heard of record daily throughputs that are not sustainable, but with an experienced crew these levels may well be acheivable on a daily basis. If you go to page 7 of the corporate presentation there are only 3 items that are still considered incomplete. It should not be too long before we see this mine perform at a much higher level.