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Message: A Simple Mind

so grade around 7-8 will, which would throw off next year's guidance given the permit app for 2400 tpd............Yes, looking at ways for San to increase cash flow, # 1, increase mill grade, # 2, increase Mill tonnage but this is not a simple step..Ian ( coo ) mention in cc that request were made to have the mill operating permit capacity increase upto 2400/2500 tns/day which would add another 700 tns/day . Just my thoughts here and not trying to-be the fly in the oinment, once Manitoba Gov gives permission for added Milling then San must also apply for tailings pond increases permit of discharge effluent. Ian mention in CC that they already dyke the height of the pond for the increase from 1200 tns to the current 1800 tns /day which well carry San for 3 to 5 yrs. Adding this extra new capacity ( 700 tns/day ) well mean a well enginerred plan in place before adding to the Mill structure in-order to house the new flotation cells along with hydro,piping and tons of other work. San is still struggling to get the Mill running at 1800 tns at 97% as we see ending the last qtr with 1400 tns average so alot of work is still required to get the new flotation cells operating efficently to meet the 1800 tns/day. Sans guidance of 120,000 oz by 2013 seems like there target and i don"t see this 700 extra tons/day comming on line until after this time. Once development opens up the new areas and milling,tailings are complete San well mill 2500 tns/day at higher mill head giving San 2500 tns x 9 gr at 97 % = 750 oz / day x 330 days = 250,000 oz which Dale said is possible.. without prejudice. Traps7

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