LocationThe San Gold mine site is located 250 km northeast of Winnipeg, Manitoba adjacent to the town of Bissett. 160 km of the road network serving Bissett is paved provincial highway with the remainder being all-weather gravel road. Since 1932, the Rice Lake Mine has produced a total of 1.5 million ounces of gold. |
 |
Ore is currently being mined along two active mining trends. The Rice Lake Mine is located along a trend that has been mined for more than 77 years. Historically, this trend has held many names, including the San Antonio Mine (SAM) Unit and the Mine Diabase.
A second mining trend, known as the Shoreline Basalt, was identified in late 2010 as part of San Gold's intensive exploration program. Five new deposits have been identified along the near-surface portion of this unit. Three of these deposits (007, 007 East, and L-10) are already in production.
The Rice Lake Project recently upgraded its milling capacity to 2,000 tpd. Dore bars are produced on site. The tailing containment facility is fully permitted.
The Rice Lake Mine's A-Shaft headframe is located immediately adjacent to the mill. This 77-year-old, fully modernized mine extends to 1,675 metres (5,500 feet) below surface. The Hinge Mine Portal is located 600 metres from the mill. The Hinge Mine portal provides the main access to the company's operations along the Shoreline Basalt. The 007 Portal is located about 1,300 metres away from the mill. Operations at the 007 Portal are currently focused on the Cohiba Zone.
San Gold has full title to 40 mineral leases and 3,629 hectares contiguous to Mine Lease 63, the lease which contains the Rice Lake Mine. These mineral leases stretch for 12 km along the mine horizon. An additional 25 mineral claims covering an area of 3,132 hectares are located in the remainder of the Rice Lake Greenstone Belt. The Company has access to an additional 7,800 hectares through option agreements and joint venture agreements with other explorers in the area.
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.
The two near-surface portals increases San Gold's operational flexibility and provides access to a large volume of high-grade ore typical of the claims area. Long-term planning suggests that existing infrastructure from all three mining areas will be integrated to further increase operational flexibility while exploring and mining the new deposits located along the Shoreline Basalt and elsewhere to depth.
Increasing production levels continue to drive down the cash costs per ounce of gold produced. These costs are currently comparable with other Canadian underground gold mines. As production levels continue to increase, the average cost per ounce of gold produced is expected to further decline.
San Gold has substantially increased the operation's audited Measured plus Indicated (M plus I) resource ounces and Inferred resource ounces since its predecessor companies acquired the Rice Lake Mine in 2004.
Manitoba, Canada continues to rank among the best mining jurisdictions around the globe to operate in. The 2009 Fraser Institute's annual Survey of Mining Companies ranked Manitoba ninth globally out of 72 jurisdictions reviewed. In 2007, Manitoba ranked first out of 65 jurisdictions reviewed. The rankings are based on its Policy Potential Index, which provides a report card to governments on the attractiveness of their mining policies
San Gold employs approximately 400 people. Our ongoing training and development programs are designed to encourage local residents to seek positions as operations staff. Since 2005, this has helped generate a large pool of qualified labour within the region, reducing San Gold's dependance on labour from other regions and the need for contract mining companies. This in turn provides labour stability and helps foster goodwill between San Gold and surrounding communities.
As of fall 2011, more than 65% of San Gold employees are Manitoba residents with more than 40% residing within about 100 km of site.
