MANITOBA - San Gold of Bissett is raising $25 million through a private placement for exploration at its Rice Lake gold project. San Gold is issuing 6.18 million flow-through common shares at a price of $4.05 per share. The deal is expected to close by the end of March 2010.
The Rice Lake gold project includes two mines: the deep underground, high-grade Rice Lake mine and the nearby near-surface, ramp accessed high-zone Hinge deposit. Both mines feed the 1,135-t/d Rice Lake mill which will be expanded to 1,725 t/d by the end of 2011. Both mines are in development and approximately 800 tonnes of ore daily during 2009.
San Gold recently released a 43-101-compliant resource estimate for two of the deposits on the property. The Hinge mine, 1.5 km northeast of the Rice Lake mine, has total measured and indicated resources of 555,085 tonnes grading 13.4 g/t Au and inferred resources of 1.25 million tonnes at 13.4 g/t. The 007 zone, 650 metres southeast of the Hinge mine, contains 623,615 tonnes at 21.6 g/t Au in the measured and indicated categories, and 1.51 million tonnes at 21.9 g/t in the inferred category.
The latest technical report on the Rice Lake project is posted at www.SanGoldCorp.com.