..looking at this bulk sample ,
San Gold Corporation
www.sangoldcorp.com 1-800-321-8564 info@sangoldcorp.com
July 14, 2009
Dale Ginn, CEO of San Gold Corporation (SGR: TSX-V) is pleased to present the results of the 11,762 ton Hinge
Zone bulk sampling program that was carried out during the second quarter of 2009. The high grade nature of
the hinge zones were validated as the stope mining grade reconciled to the mill at 21.7 g/tonne (0.63 oz/ton) with
the main #1 lens stope contributing 26.3 g/tonne (0.77 oz/ton). Low total operating costs (mine and mill) of Cdn
$184 ($US 158) per ounce were realized as well as high mill recoveries of 96%. Total expenditures (operating and
capital) to date in order to build and develop the Hinge Mine are approximately Cdn $6.5 million with nearly 6,000
ounces recovered to June 30
th
. A table containing the detailed breakdown of stoping, development, mill and cost
data follows the written portion of this press release.
Highlights and Observations of the Hinge Zone Bulk Sampling Program include:
5,938 ounces recovered from 11,762 tons mined and processed.
Stoping grades of 21.7 g/tonne (0.63 oz/ton) and development grades of 16.9 g/tonne (0.49 oz/ton).
Main Hinge lens #1 grades 26.3 g/tonne (0.77 oz/ton) in stoping and 21.2 g/tonne (0.62 oz/ton) in development.
Bulk sample operating costs averaged Cdn $59 per ton for mining and Cdn $19 per ton for milling, for a total direct
operating cost of Cdn $78 per ton, excluding capital expenditures and exploration drilling.
Total direct bulk sample operating cost per ounce of gold produced is Cdn $184 per ounce or approximately US
$158 as at June 30, 2009.
Total expenditures of Cdn $6.5 million to develop the Hinge Mine.
Total decline, lateral and raise development of over 8,000 feet completed to June 30
th
.
The bulk sampling
program was segmented
into stope (i.e.
production mining)
and development segments.
The two stope
segments averaged
20.6 g/t (0.63 oz/t)
over 2,738 tons. Four
development ore segments
averaged 16.0
g/t (0.49 oz/t) over
9,024 tons. The entire
11,762 ton bulk
sample averaged 18.0
g/t (0.53 oz/t) recovered.
It is anticipated
that the majority of
future ore will be derived
from the stoping
category versus the development category as the Hinge Mine progresses to steady-state production. Waste dilution
in the development headings averaged approximately 40% and approximately 15% in the stope or bench
headings.
……. Next page
San Gold Hinge Bulk Sample Combines
High Grades with Low Costs
TSXV: “SGR” “SGRCF”
#1 lens, Hinge Mine, looking along mined vein that spans the entire width of the photo.
Note excellent ground conditions and vein material spanning the entire back (i.e. roof)
San.......Traps7
