WINNIPEG, MANITOBA--(Marketwired - Jul 11, 2013) - This document corrects and replaces the press release that was sent today at 8:00 AM ET. The original release did not have the quote in the 4th paragraph attributed to anyone. The corrected copy follows:
Second Quarter 2013 Production Highlights
- Gold production of 22,476 ounces.
- Mine production of 173,350 tons.
- Mill production of 162,344 tons.
Second Quarter 2013 Preliminary Operating Results
San Gold produced 22,476 ounces of gold in the second quarter, bringing total production for the first six months of the year to 39,830 ounces. The operation mined 173,350 tons of ore at an average daily rate of 1,905 tons per day and milled 162,344 tons in the quarter at an average daily throughput of 1,765 tons per day. Mill recovery was 94.0% and milled grade was 5.05 grams per tonne. The company ended the quarter with approximately 11,000 tons in a low grade stockpile in addition to a blended stockpile of approximately 4,200 tons.
During the second quarter, the Company implemented a number of operational changes and cost cutting initiatives in response to adverse market conditions. Specifically the company has changed the mining mix with a continued strong reliance on the 007 mine and an increase of mining in the Rice Lake mine with less dependence on the Hinge mine. Beginning in June 2013 the company began to stockpile lower grade ore on a surface stockpile and has deferred mining some lower grade material throughout the operation pending an improvement in the price of gold.
"I am extremely pleased with the progress we have made in the last quarter. We exceeded our expectations for gold production, improved grade and curtailed unnecessary spending. The company has now accessed the 007 ore zones from 26 Level in the Rice Lake mine which is providing a supplemental ore feed for the mill. We have cancelled or deferred non-critical capital expenditures and San Gold has taken over responsibility from the contractor for capital development in the 007 mine. 16 Level in Rice Lake remains a top development priority, with the mining contractor pushing the lateral development out to intersect the down-dip extensions of both the Hinge and 007 mines," said Ian Berzins, San Gold's President, CEO and Chief Operating Officer.
The Company remains on track to produce between 75,000 and 90,000 ounces of gold in 2013 with cash costs between $800 and $900 per ounce.
About San Gold
San Gold is an established Canadian gold producer, explorer, and developer that owns and operates the Rice Lake Mining Complex near Bissett, Manitoba. The Company employs more than 420 people and is committed to the highest standards of safety and environmental stewardship. San Gold is on the Toronto Stock Exchange under the symbol "SGR" and on the OTCQX under the symbol "SGRCF".
For further information on San Gold, please visit www.sangold.ca.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This news release includes certain "forward-looking statements". All statements, other than statements of historical fact included in this release, including, without limitation, statements regarding forecast gold production, gold grades, recoveries, cash operating costs, potential mineralization, mineral resources, mineral reserves, exploration results, and future plans and objectives of the Company, are forward-looking statements that involve various risks and uncertainties. These forward-looking statements include, but are not limited to, statements with respect to mining and processing of mined ore, achieving projected recovery rates, anticipated production rates and mine life, operating efficiencies, costs and expenditures, changes in mineral resources and conversion of mineral resources to proven and probable mineral reserves, and other information that is based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management.
Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be "forward-looking statements." Forward-looking statements are subject to a variety of risks and uncertainties that could cause actual events or results to differ from those reflected in the forward-looking statements.
There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include, among others, the actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of precious metals, as well as those factors discussed in the section entitled "Other MD&A Requirements and Additional Disclosure and Risk Factors" in the Company's most recent quarterly Management's Analysis and Discussion ("MD&A"). Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.