Re: ......San"s next 43-101
in response to
by
posted on
May 18, 2011 05:49PM
San Gold Corporation - one of Canada's most exciting new exploration companies and gold producers.
.... just accept figures without question would not be very professional...........
2.0 RELIANCE ON OTHER EXPERTS
The Author has relied on information available in the public domain (SEDAR and other government agencies) and from the Company relating to land tenure, corporate information and underlying agreements and has not independently verified the legal status or ownership of the Property or the underlying agreements and therefore disclaims any liability for such information presented in this Report. The Author has relied on data provided by qualified persons (as defined in NI 43-101) who are employees of the Company. In the Author’s opinion these qualified persons are competent and, other than errors or omissions that may inadvertently occur, have provided the Author with all of the data necessary to complete this Report. The Author has relied upon the Manitoba Industry, Trade and Mines (“MITM”) for information on mining claim location and mining claim status. The MITM disclaims any guarantee or warranty that their information is accurate, complete or reliable. The Author has no reason to believe that there are any deficiencies in information that has been received from other experts that would have a material impact on the opinions, conclusions and recommendations expressed by the Author in this Report The Author has crosschecked the Amine methodology versus his polygonal longitudinal section methodology and has found no material differences between the results of the two methodologies.
For reserve estimation, the Author used the minimum mining width, recovery, and metal price criteria that are currently used by the Production department. Cut-off grades were based upon current mining costs as presented in the economic assessment of the Project. The Author concludes that the work completed to date on the Property has demonstrated the presence of significant gold reserves and resources that warrant additional surface and underground exploration and development programs with the objective to confirm the geometry and continuity of the vein structures and to confirm sufficient measured and indicated mineral resources to warrant completion of internal feasibility studies
Over a 5.5-year mine-life the project will generate $407 million cash surplus before taxes and cashflow from operations (EBITDA) of $463 million (average EBITDA approximately $84 million per year). The breakeven life-of-mine gold price is US$575 to allow for recovery of ongoing development capital expenses. The project has positive cash flow from operations at gold prices in excess of US$575. In Geoex’s opinion, given the current inventory of approximately 3.7 million tons of inferred resources and the long operating history of the Rice Lake Project, it is probable that sufficient inferred resources will be converted to resources to achieve a minimum of 10 years of mine life............................
NI 43-101 Cautionary Note - Mineral resources that are not mineral reserves do not have demonstrated economic viability and there is no certainty that the results of the economic assessment will be realized....Traps7