Re: Any experts here?..not an expert..
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San Gold Corporation - one of Canada's most exciting new exploration companies and gold producers.
SUMMARY OF RICE LAKE PROJECT RESOURCES (at June 30, 2010) Tons Grade Contained oz./ton (g/tonne) Ounces Rice Lake Mine Measured Mineral Resources 388,200 0.24 (8.2) 91,175 Indicated Mineral Resources 642,240 0.25 (8.6) 163,090 Total Measured and Indicated Resources 1,030,440 0.25 (8.6) 254,265 Inferred Mineral Resources 1,519,750 0.29 (9.9) 439,090 Hinge Mine Measured Mineral Resources 91,790 0.29 (9.9) 26,510 Indicated Mineral Resources 425,670 0.40 (13.7) 171,190 Total Measured and Indicated Resources 517,460 0.38 (13.0) 197,700 Inferred Mineral Resources 1,375,200 0.39 (13.4) 538,700 SG1 Mine (currently on care and maintenance status) Indicated Mineral Resources 214,200 0.24 (8.2) 52,150 Inferred Mineral Resources 936,500 0.22 (7.5) 206,900 007 Zone Indicated Mineral Resources 305,240 0.75 (25.7) 230,330 Inferred Mineral Resources 398,200 0.47 (16.1) 186,980 GEOE
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San Gold Rice Lake Project, October 2010 Page 5
Cohiba Zone
Indicated Mineral Resources 55,970 0.23 (7.9) 12,675
Inferred Mineral Resources 25,210 0.16 (5.5) 4,050
Cartwright Zone
Indicated Mineral Resources 136,200 0.22 (7.5) 29,830
Inferred Mineral Resources 1,761,200 0.21 (7.2) 388,940
SG-2 and SG-3 Zones
Indicated Mineral Resources 173,100 0.20 (6.8) 35,320
Inferred Mineral Resources 195,600 0.26 (8.9) 50,210
Rice Lake Project
Total Measured plus Indicated 2,432,610 0.33 (11.3) 812,270
Total Inferred Resources 6,211,660 0.29 (9.9) 1,814,870
The mineral resources are in-situ, undiluted, and uncapped and have not had economic parameters applied to them.
The following table, with an effective date of June 30, 2010, summarizes the mineral reserves for the Rice Lake Project.
Note that the numbers have been rounded from the detailed resource estimates. The reader is referred to the Appendices
of this Report for details of the reserve estimates.
SUMMARY OF RICE LAKE PROJECT RESERVES (at June 30, 2010)
Tons Grade Contained
oz./ton (g/tonne) Ounces
Rice Lake Mine
Proven Mineral Reserves 414,000 0.22 (7.5) 91,175
Probable Mineral Reserves 753,320 0.22 (7.5) 163,090
Total Proven and Probable Reserves 1,166,320 0.22 (7.5) 254,265
Hinge Mine
Proven Mineral Reserves 114,740 0.23 (7.9) 26,510
Probable Mineral Reserves 532,085 0.32 (11.0) 171,190
Total Proven and Probable Reserves 646,825 0.31 (10.6) 197,700
SG1 Mine (currently on care and maintenance status)
Probable Mineral Reserves 180,150 0.26 (8.9) 47,110
007 Zone
Probable Mineral Reserves 381,550 0.60 (20.7) 225,545
Cohiba Zone
Probable Mineral Reserves 69,960 0.18 (6.2) 12,675
Cartwright Zone
Probable Mineral Reserves 170,250 0.18 (6.2) 29,830
Rice Lake Project
Total Proven and Probable Reserves 2,615,055 0.29 (9.9) 767,125
The 2009 bulk sample milling at Hinge recovered 16,052 ounces of gold. Assuming 93% mill recovery, 95% mine
recovery, and 20% dilution the bulk sample equates to an in-situ resource of 45,000 tonnes grading 0.38 ounces per ton.
This reconciles well with the average grade of the Hinge uncapped measured plus indicated resources. Further, monthly
average grade fed to the mill (based on hourly mill belt samples) ranged from 0.25 to 0.64 ounces per ton, which
indicates the variability of average grades over an area approximately 400 feet high by 700 feet along strike.
Reconciliation of Company’s diluted, recoverable reserve estimates based on assay data, underground face samples, and
mill belt samples indicate that the sampling and assaying protocols are providing good quality data.
GEOE
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San Gold Rice Lake Project, October 2010 Page 6
The Company monitors the QAQC information for the assaying process on a regular basis (standards and blanks sent to
assay laboratories and the duplicates and replicates done by the laboratories). The Author has reviewed this information
and found no serious discrepancies that had not been recognized and dealt with by the Company geologists.
The mineral resources are defined in terms of NI 43-101 regulations and their estimation was carried out using industry
standard polygonal longitudinal section methodology. The drill hole data was evaluated in plan and section in three
dimensional AutoCAD to determine continuity between holes. Vein structures in the RLM area have vertical extents
from 4 to 8 times their strike length. Because of this, areas of influence used around drill hole pierce points on the
longitudinal section for purposes of defining measured and indicated resources are ellipses, elongate down dip. For
measured resources an ellipse with short axis of 50 feet and long axis of 100 feet was used; and for indicated resources
an ellipse with short axis 75 feet and long axis 150 feet was used.
The Company’s production department uses Amine software for reserve estimation and mine planning. Amine is a 3D
AutoCAD based system that uses block modelling to determine reserve and resource estimates. The Author has crosschecked
the Amine methodology versus his polygonal longitudinal section methodology and has found no material
differences between the results of the two methodologies. Amine uses 3D modelling to determine volumetric
information for resources and beyond that step, the same tonnage factors are used to determine the tonnages. For
reserve estimation, the Author used the minimum mining width, recovery, and metal price criteria that are currently
used by the Production department. Cut-off grades were based upon current mining costs as presented in the economic
assessment of the Project.
The key assumptions used by the Author for conversion of measured and indicated resources to proven and probable
reserves are:
1) Resource tonnage factor 11.4 cubic feet per ton (equivalent to an average specific gravity of 2.8)
2) Minimum mining width 5 feet horizontal.
3) Mill Call Factor 95%
4) Mill Gold Recovery 93%
5) Gold price US$1200, Canadian$1260 at 1.05 exchange rate.
6) External cut-off grade 0.13 ounces per ton (based upon total operating costs of $165/ton and taking
into account mill gold recovery and the assumed price of gold).
7) Internal cut-off grade 0.10 ounces per ton (based upon total mining costs (ore delivered to mill) of
$123/ton and taking into account mill gold recovery and the assumed price of gold)..