San Gold finishes upgrading Rice Lake crushing plant

San Gold Corp (C:SGR)
Shares Issued 309,239,175
Last Close 4/26/2011 $2.93
Wednesday April 27 2011 - News Release

Mr. George Pirie reports

SAN GOLD COMPLETES CRUSHER INSTALLATION, INCREASES MILL THROUGHPUT

Crushing plant upgrades have been completed and test milling has shown a large increase in production capacity for San Gold Corp.'s Rice Lake project mill operations. The first full week of operations using the improved crushing circuit (April 15 to April 21) realized an average of 1,513 tons per day processed, including an all-time daily record of 1,679 tons. Recovery rates were maintained at 94% during this period.

"These capital improvements were completed ahead of schedule and have increased our mill's capacity beyond design specifications," said Mr. Pirie. "This, combined with strong production tonnages keeping ore out in front of the mill, marks another important step toward establishing a steady-state production profile."

The crushing plant upgrades were completed during the first four days of April and consisted of the installation of a new Metso mobile gyratory crusher as well as a new Barmac mobile tertiary crusher. A new Elrus primary jaw crusher was previously installed in January. The combined result of these installations is an increase from 210 hp to 750 hp, allowing for increased throughput while reducing the size of the feed reporting to the grinding circuit. Further capacity increases are anticipated towards 1,800 tons per day or higher this year as this new equipment is optimized and a larger capacity screening plant is installed in June.

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