GOLD OUTPUT: San Gold reports 37% jump from Rice Lake

MANITOBA - San Gold reports a 37% increase in gold production for Q3 from its Rice lake properties at Bissett. For the quarter ended Sept 30, 1010, the company processed a record 68,264 tonnes at 6.25 g/t Au to yield 12,568 oz of gold. Also compared to the previous quarter, processed tonnage increased by 30% and grade increased by 7.5%.

Ore for the mill comes from the Rice Lake, Hinge and 007 mines. The Rice Lake mine is producing from the 98, 98 FW and RL East veins at the eastern ends of the 26 and 28 levels. Development on the 26 level is continuing in order to provide fully mechanized access for mining and haulage as well as deeper exploration drilling. Work on the main decline of the Hinge mine is continuing so that two newly discovered zones can be assessed. The 007 zone is accessed through the Hinge mine, but a new surface decline has been collared to access the 007 project.

San Gold's capital program also includes an upgrade and extension of the power lines to the Hinge and 007 portals, construction of a new central maintenance facility, expansion of the camp and kitchen facilities, and the purchase of additional mobile mining equipment