Trading Symbols: TSX:SGR || OTCQX:SGRCF
San Gold is a Canadian gold company located in the heart of one of Canada's most unexplored Archaen greenstone belts.
Since starting operations at the Rice Lake Mine and Mill in 2005, San Gold has had considerable exploration success, including the 2009 discovery of the 007 Zone, Manitoba's largest single gold deposit. In the past few years, San Gold has executed a three-part strategy to capitalize on this success.
The first part of the strategy involves ramping up production to generate positive cash flows from operations. San Gold increased production capacity in 2012 to 2,500 tons per day, producing 86,500 ounces of gold and generating substantial cash flows for the company. Going forward, production volumes are expected to continue to steadily grow. Global economic conditions appear to support strong ongoing gold prices, leaving San Gold well-positioned to produce healthy margins well into the foreseeable future.
The second part of the strategy involves securing a strong land position in the heart of the greenstone belt. San Gold has consolidated a large portion of the regional land package through a series of transactions and joint venture agreements, increasing the Company's total land position to more than 400 km across some of the most prospective claims in the region.
The third part of the strategy involves an aggressive drilling program to prove the full potential of the property and of the surrounding gold belt. In addition to greatly improving the company's understanding of the region's geologic structure, this drilling will also be invaluable for developing and refining current and future year mine plans.
Going forward, operations will occur in both the Hinge/007 ramp portal and the RLM shaft. While the RLM remains an important source of incremental, high-grade ore, the RLM's extensive workings also provide San Gold with the unique ability to set up drilling stations in close proximity to potential down-dip extensions of the Hinge district, 007 deposit and other near-surface discoveries. These drilling stations are currently located at 720 and 1,200 metres below surface.
The RLM started production in 1931. Its deepest workings are located about 1,600 metres below surface. While the bulk of San Gold's recent production increases have occurred from zones accessed through the Hinge/007 portal, the RLM still shows tremendous exploration potential, with new zones such as the 84 Vein still being discovered in close proximity to existing workings. Additional mining trends are currently also being pursued outside the mining lease area, including significant alterations
The Rice Lake Mining Complex is a three-hour drive from Winnipeg, is serviced by two Manitoba Hydro transmission lines, and has telephone and high-speed internet. It is located about 35 km from the Ontario border, within the same geologic sub-province as the prolific Red Lake gold camp, which is located another 65 km to the east.