This is the 3rd full year since the company was formed as SanGold Corp in spite of all the people who would like to believe that they have been in this stock for 6-7 years. Some were invested in the predecessor companies for a few years but not in SGR.

In these 3 short years the San Antonio which had been totally shut down and put into care and maintenance was rehabbed and a ramp was started from 29 level. A shop was blasted at 29 level and the equipment was cut apart, taken down to the shop and put back together. There were no stopes developed as all the ore available was processed before the shutdown. The portal and decline for the SG1 mine was started in late 2006 and was mined to 6 levels until last spring when all the available manpower and equipment was moved to the hinge mine. The Portal was built to allow access for both the Hinge and the Cartwright. Hinge is now developed to 300 feet with 6 faces and 3000 horizontal feet of ramp development. Two new camps with 49 and 60 rooms have been moved in. Numerous problems developed in mill start up including Ball Mill main bearings having to be replaced, main hoist motor burnt out twice and replacing the main hoist controls with SCR drive. Other problems were with the gravity circuit with additional Knelson concentrator capacity added and repairs to jaw and cone crushers which are old and weren't replaced when the new mill was built. Much of the initial equipment was purchased used in poor condition and had to be overhauled before use. Small scoops were impossible to find.

This was all accompliced with a drastic shortage of skilled miners, lack of geologists, engineers, surveyors, mechanics, electricians, millwrights and infrastructure. These people are professionals and what has been accomplished considering all the pitfalls is a remarkable achievement. Let's not forget that all the above was achieved while underfinanced due to low share price.

Most open pit mines are 5-7 years from resource to mining first ore!

But after all Rome was built in a day, so why not this mining complex!

HM