San Gold

Overview

The San Gold mine is located 250 km northeast of Winnipeg, Manitoba, Canada adjacent to the town of Bissett. The mine is 100% owned by the San Gold Corporation.

Gold was originally discovered on the property in 1911. The main mineralized trend (SAM or Mine Diabase) has produced more than 1.5 million ounces gold. A second important mineralized trend (Shoreline Basalt) was identified only in 2010. The Rice Lake mine is located along the SAM trend, while the Hinge mine and the 007 deposit are within the Shoreline Basalt mining trend.

The San Gold mine’s mill has been recently upgraded to a 2,500 tonnes per day capacity. Dore bars are being produced on site.

San Gold's current strategy is to continue building on its exploration successes while increasing production output. To date, San Gold has accomplished this by quickly putting new discoveries into production, improving cash flows while proving the resource through production.

Location

San Gold mine is located near the town of Bissett in the Canadian province of Manitoba. The town is 235 kilometers northeast of Winnipeg, the provincial capital, and is serviced by 185 kilometers paved provincial highway with the remainder being all-weather gravel road.

The mine is located on the north shore of Rice Lake. The town of Bissett is a mining community hosting approximately 340 people.

The area is a glacial landform so relief is characterized by low elongate ridges 30 to 50 meters high separated by swamps, rivers and lakes.  Vegetation consists of poplar, balsam, spruce and pine.

Average annual precipitation includes 430 mm as rain and 134 cm of snow. Average summer temperature is 16 degree Celsius while winter average is -16 degree Celsius.

Geology & Mineralization

The Rice Lake Greenstone Belt is located at the west end of the Uchi Volcanic-Plutonic Subprovince of the Superior Province of the Canadian Shield. The Uchi Subprovince is a typical Archean volcanic-sedimentary greenstone belt that has been intruded by synvolcanic, syntectonic, and post-tectonic rocks. 

The Rice Lake mineralization is an Archean type gold mineralization. It is epigenetic, quartz-vein type and display stratigraphic, lithologic and structural controls. 

Gold mineralization occurs in the quartz (+ minor carbonate, albite, tourmaline) veins and disseminated in the wallrocks. It is always accompanied by sulphides (mostly pyrite).

To date two major mineralized trends have been identified: The Rice Lake trend which comprises the namesake mine; and, the Shoreline Basalt trend that contains the Hinge district and 007 deposit mines. 

At the Rice Lake mine exploration beyond the high grade 98 vein is indicating the high potential for substantial new discoveries in the area. The Rice Lake mine contains reserves of 33,435 ounces (196,531 tons at 5.83 grams per ton), measured plus indicated resources [inclusive of reserves] of 198,100 ounces (793,095 tons at 8.56 grams per ton), and inferred resources of 471,091 ounces (1,690,997 tons at 9.55 grams per ton). The zone is open at depth below the lower mine level. 

The Hinge district was discovered in 2008 - it was the first major discovery San Gold made outside the Sam Antonio Mine (SAM) unit. The Hinge district contains reserves of 32,594 (135,466 tons at 5.14 grams per ton), measured plus indicated resources [inclusive of reserves] of 32,594 ounces (165,007 at 6.77 grams per ton), and inferred resources of 604,604 ounces (3,362,500 tons at 6.16 grams per ton). Definition drilling into the Hinge district is currently underway from 26 Level of the Rice Lake mine. 

The 007 deposit contains reserves of 126,510 ounces (642,188 tons at 6.75 grams per ton), measured plus indicated resources [inclusive of reserves] of 134,654 ounces (521,990 tons at 8.84 grams per ton), and inferred resources of 1,483,893 ounces (5,707,280 tons at 8.91 grams per ton). 

The Company currently owns or has joint venture agreements on 319 claims covering 423 square kilometres of mineral lease and mining claims within the Rice Lake gold camp in eastern Manitoba:

• Ownership of Mineral Lease number ML-063: 997 hectares surrounding the Rice Lake Mining Complex.
• Ownership of 102 mining claims and option agreements on 136 mining claims covering a total of 345 square km contiguous to ML-063.
• Ownership of 78 mining claims and option agreements on 3 mining claims covering a total of 68 square km non-contiguous to ML-063.

Management considers all of these mineral claims and mineral leases to be very prospective for the delineation of extensions to areas of known mineralization, discovery of new mineralized zones in close proximity to existing mining operations, and discovery of new mineralized zones throughout the region.

Mining & Operations

The Rice Lake mining complex comprises the Rice Lake mine located on the SAM mining trend, and the Hinge district and the 007 deposit located on the Shoreline Basalt mining trend. 

The Rice Lake mine commenced production back in 1931. The A-shaft starts from surface and goes down to a depth of 4,050-foot where it connects to a 5,000 foot railway crosscut.  The crosscut connects to another 900 foot D-shaft and ramp that descends another 700 foot. 

Various mining methods are being employed at the Rice Lake Mining Complex including  panel, cut-and-fill, shrinkage stoping (uses stoppers and jack-legs) and mechanized long-hole mining method. 

Mining operations at the Rice Lake mine are currently focused on the 98 vein in the Rice Lake East portion of the mine, between 26 Level and 28 Level, located about 4,100 feet below the surface. The 98 vein produces high grade ore. 

The Hinge district mineralized zones are accessed through the means of a ramp that allows ore to be hauled to the surface by trucks.  The mining method of choice is mechanized cut-and-fill.

The 007 deposit is accessed by a 730 metre drift leading from the Hinge portal approximately 240 meters below surface.

Process

The Rice Lake Project recently upgraded its milling capacity to 2,500 tpd. Processing consists of crushing, grinding (ball mills) and flotation. Dore bars are produced on site.

The tailing containment facility is fully permitted.

In 2011, the mine produced an aggregate of 74,280 ounces gold.

Environment & Community

San Gold employs more than 400 people and more than 65% are Manitoba residents with more than 40% residing within about 100 km of site.