MINERAL PROCESSING: Gold milling resumes at Rice Lake complex

MANITOBA – Milling operations resumed on July 1, 2012, at Winnipeg-based San Gold Corp.’s Rice Lake mining complex. Mineral processing was suspended in early June after the ball mill pinion unexpectedly failed. Mining operations continued at an average rate of more than 1,450 t/d while repairs were completed to the ball mill. As a result, approximately 48,975 tonnes of ore were stockpiled as of June 30 More than 1,725 tonnes were milled on the first day of resumed operations.

San Gold has substantially increased its milling capacity over the past year, achieving peak daily production of 2,270 t/d during the second quarter. As a result of this increased capacity, the company expects to mill the majority of the stockpile during the third quarter and remains confident in its annual guidance of between 95,000 and 105,000 oz of gold produced in 2012.

While the mill was shut down, San Gold also completed various other maintenance activities related to milling operations, including the scheduled annual liner change in the ball mill.

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