San Gold produces 17,354 oz Au in Q1 2013

San Gold Corp (C:SGR)
Shares Issued 335,230,029
Last Close 4/15/2013 $0.20
Tuesday April 16 2013 - News Release

Mr. Ian Berzins reports

SAN GOLD REPORTS 2013 Q1 PRODUCTION RESULTS

San Gold Corp. has released preliminary results of operations at its Rice Lake mining complex in Manitoba, Canada, for the quarter ended March 31, 2013.

Q1 Production Highlights

- Gold production of 17,354 ounces. - Mill production of 156,013 tons. - Mine production of 143,859 tons.

First Quarter 2013 Preliminary Operating Results

San Gold produced 17,354 ounces of gold in the first quarter. The operation mined 143,859 tons of ore at an average daily rate of 1,598 tons per day and milled 156,013 tons in the quarter at an average daily throughput of 1,733 tons per day, similar rates to the first quarter of 2012. Mill recovery was 91.9% and milled grade was 4.15 grams per tonne.

"Following the recent restructuring, the Company is in the process of implementing reductions to its operating, capital, corporate overhead, and exploration costs as well as evaluating investments that do not directly contribute to the Company's core operations. Our focus will be to optimize margins per ounce and ensure we are on the most direct path to achieving free cash flows," said Ian Berzins, San Gold's President, CEO and Chief Operating Officer. "We anticipate grade will return to more normalized levels as the year progresses."

The Company expects to produce between 75,000 and 90,000 ounces of gold in 2013 with cash costs between $800 and $900.

The Company is also pleased to announce that it has received formal notice from the Manitoba government confirming the renewal of its mineral operating lease, ML-063, for a second 21-year term from April 1, 2013 to April 1, 2034.

We seek Safe Harbor.

© 2013 Canjex Publishing Ltd.