San Gold updates mineral resource and mineral reserve estimate

San Gold Corporation announced an updated mineral resource and mineral reserve estimate for the Company's 100% owned Rice Lake Project located in Bissett, approximately 235 kilometres northeast of Winnipeg, Manitoba, Canada.

Trock sand crusher price in keralahe Rice Lake Project has a permitted, modern gold mill currently processing ore at a capacity of 2,500 tons per day, as well as modern surface infrastructure, including a licensed tailings management facility and is connected to the Manitoba power grid system.

"The sheer scale of the increase in inferred mineral resources announced today for our Rice Lake Project confirms the immense value being realized by our aggressive approach to exploration. In addition to greatly improving the understanding of the region's geologic structure, this drilling continues to prove invaluable for developing and refining our current mine plans.

The knowledge accumulated during the past few years of mining has also helped us construct a mineral reserve profile that is congruent with our operational plans and marks a significant step forward for the Company. We've achieved our stated goal of significantly increasing our inferred mineral resources, which are high-quality resources as they are readily accessible from existing infrastructure. This will allow us to produce mid-term to long-term mine plans over the next year," said San Gold President and CEO, George Pirie.

Historically, resources at the Rice Lake Project were estimated using the polygonal method. More recently, with the use of Amine(R) software, the measured and indicated mineral resource estimate is derived by creating a block model.

The construction of the block model begins by creating 3D wireframes or meshes around mineralization as determined from both underground and surface drilling, underground mapping and sampling, and/or surface mapping and sampling. Once constructed, the drill hole and chip assays enveloped in the meshes are composited by the software and used to interpolate grade blocks. The resource block model was estimated utilizing inverse distance squared methodology on a block size of 3 feet x 3 feet x 3 feet.

The Company continues its aggressive drill program at the Rice Lake Project and remains on track to complete 250,000 metres of surface and underground diamond drilling in 2012. A large portion of the 2012 program will be targeted toward converting mineral resources to mineral reserves. The Company will also continue to extend its overall mineral inventory. The Company remains extremely excited about the potential of the currently known ore bodies as none have yet been tested below 1,500 metres depth, which is approximately half the vertical extent of similar known Archean greenstone deposits.