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San Gold Corporation - one of Canada's most exciting new exploration companies and gold producers.

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Message: 10 Year Grind

The key to the lower cost is the higher grade that they are anticipating. If they are now mining close to 1800tpd and milling 1800tpd with production of 100,000 ounces it is easy to assume that with the higher grade using the same throughput the per ounce cost will drop. Of course there will also come a time when all of the components of the mine and mill will work like one well greased machine . That is when the efficiencies and recoveries will max out at a sustainable level. We have heard of record daily throughputs that are not sustainable, but with an experienced crew these levels may well be acheivable on a daily basis. If you go to page 7 of the corporate presentation there are only 3 items that are still considered incomplete. It should not be too long before we see this mine perform at a much higher level.

Initiatives

% Complete

Upgrade SurfaceInfrastructure

Electricalupgrade

100%

Improve and expand camp

100%

New warehouses,offices, and mechanics’ shop

100%

Expandtailings impoundment area

30%

Increase Mining Rates

Mechanize mining fleet

85%

Modernize Rice Lake Mine

60%

Expandand Upgrade Crushing Circuit

Replace jawcrusher

100%

Replace conecrusher

100%

Add tertiary crusher

100%

Addscreening plant

100%

IncreaseMilling Capacity

Flotationupgrade

100%

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