Trading Symbols: TSX:SGR || OTCQX:SGRCF
2010 was a remarkable year for San Gold on both the exploration and production fronts. The Company achieved unparalleled exploration success and produced a record number of ounces and tons in the year.
By year end, a new mineralized corridor was identified in a mafic volcanic unit which has been called the Shoreline Basalt. This unit is a system of stacked lenses, including the L10, 007 complex and Emperor. The unit now has a strike length of two kilometres and the plunge has been traced to over 1,400 metres (4,900 feet) from surface. It continues to be open along strike and to depth. The zones are currently being exploited by ramp from surface and can be developed from the 10, 16, and 26 Levels in the Rice Lake Mine. This development presents the opportunity of a totally new mine complex for San Gold which can be exploited through existing infrastructure. The 2011 exploration plan is designed to continue to test the strike and plunge extension of this new mineralized corridor.
Production continued to ramp up and the operation achieved both record production tons and ounces during the year. The Company continued to transition into a steady state producer as the capital deployed into the operation has resulted in the elimination of bottlenecks in material flow and additions to processing capacity.
The success of these projects results in continued downward pressure on the cost curve through an increasing production profile. This allows San Gold to forecast production of 80,000 ounces at cash costs approaching $650 per ounce by year end.
With a strong operational team in place, San Gold enters 2011 in an excellent position to take advantage of a strong global market for gold. I'd like to thank all shareholders for the ongoing support as we continue to grow San Gold into Canada's next mid-tier producer. I would also like to wish you all a golden 2011.
