Narrow veins equal dilution, We suspect the operation is currently experiencing dilution ranging from less than 10% to upwards of 100%, with an overall average of 35% to 50% likely. While our grade to the mill forecast for the deep Rice Lake Mine (which is expected to comprise about 20% to 25% of future mill feed) remains largely unchanged at 6.8 g/t, we have adjusted our grade to the mill for the near surface zones downwards to slightly less than 8.0 g/t from our earlier forecast of between 10.0 g/t and 13.0 g/t..........

...............PS" We continue to view San Gold as one of the more { prospective exploration stories } , THE problem being San anounce production back in 2006 and has been trying ( produce ) since, had San stayed on the Venture as a exploration and not a producer on the Toronto ex then we would likly have a higher share price, but then i think our backers know this and buy time buy staying in the closet ( posin pill protection ) and find gold at $ 15. an oz...the next short upgrade in the morning well be interesting as i think we well see a higher short from here as the $ 3.50 area had high volume. Shorts up, share price down & shorts down share price up...

Short History

		Symbol	Report Date	Volume	Change	% of Float
		SGR - T	2011-06-30	1,635,067	1,023,169	0.53
		SGR - T	2011-06-15	611,898	-1,082,366	0.20