Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
WINNIPEG, MANITOBA–(Marketwire – July 2, 2012) – San Gold Corporation (TSX:SGR)(OTCQX:SGRCF) announces today that milling operations resumed July 1 at its Rice Lake Mining Complex, with more than 1,900 tons milled on the first day of operations.
Milling operations were suspended in early June after its ball mill pinion suffered an unexpected failure. Mining operations continued at an average rate of more than 1,600 tons per day while repairs were completed to the ball mill. As a result, approximately 54,000 tons of ore were stockpiled as of June 30.
The Company has substantially increased its milling capacity over the past year, achieving peak daily production of 2,500 tons per day during the second quarter. As a result of this increased capacity, the Company expects to mill the majority of this stockpile during the third quarter and remains confident in its annual guidance of between 95,000 and 105,000 ounces of gold produced in 2012.
“It is a testament to the strength of the operations team that we are able to experience this kind of event with little overall impact on our operations,” said George Pirie, San Gold’s President and Chief Executive Officer.
During this period, the Company also completed various other maintenance activities related to milling operations, including the scheduled annual liner change in the ball mill.
About San Gold
San Gold is an established Canadian gold producer, explorer, and developer that owns and operates the Hinge, 007, and Rice Lake mines near Bissett, Manitoba. The Company employs more than 400 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.
Cautionary Note
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.
