A couple things jumped right out-

- The bulk sample at the Hinge consisted of 10,871 tons of ore and yielded 5,502 ounces of gold. That's .506 ounces per ton - awesome

- The company expects to have an initial NI 43-101 resource estimate for the new discovery soon. Delays in preparing the document have been experienced mostly due to the rapidly changing discovery profile surrounding the Hinge, new data has now been cut off and work is being completed on the document

- Recovered grade - .233 up from .11 in Q1 and .079 yoy

- During the quarter mine production came solely from the Rice Lake mine

-Significant projects completed during the quarter and year to date and recorded in capital include:
• Upgrade to computer network, mine planning software and connectivity.
• Developing permanent mine openings and development drifts at the Hinge Zone and Rice Lake mines.
• Acquisition of various equipment including scoop tram and a jumbo.
• Upgrade of main hoist infrastructure at Rice Lake mine.

- San Gold did capitalize expenditures associated with mining properties and related equipment during the quarter in the amount of $6,009,050 net of $5,885,434 of recovered gold as, consistent with policy, in the opinion of management there is now the probability of future benefit with a known time horizon and the existence of an economic plan. The Company also capitalized $1,556,422 of property, plant and equipment during the just completed fiscal year. Last year during the comparable quarter, the Company capitalized $1,591,647 of expenditure related to mineral properties and related equipment.