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San Gold Completes Crusher Installation, Increases Mill Throughput

April 27, 2011

TSX: SGR  |  OTCQX: SGRCF
www.sangold.ca

BISSETT, MB, April 27 /PRNewswire/ – George Pirie, President and CEO of San
Gold Corporation (TSX: SGR) (OTCQX: SGRCF) is pleased to report that
crushing plant upgrades have been completed and that test milling has
shown a large increase in production capacity for Rice Lake Project
mill operations. The first full week of operations using the improved
crushing circuit (April 15 to April 21) realized an average of 1,513
tons per day processed, including an all-time daily record of 1,679
tons.  Recovery rates were maintained at 94% during this period.

“These capital improvements were completed ahead of schedule and have
increased our mill’s capacity beyond design specifications,” said Mr.
Pirie. “This, combined with strong production tonnages keeping ore out
in front of the mill, marks another important step toward establishing
a steady-state production profile.”

The crushing plant upgrades were completed during the first four days of
April and consisted of the installation of a new Metso mobile gyratory
crusher as well as a new Barmac mobile tertiary crusher.  A new Elrus
primary jaw crusher was previously installed in January. The combined
result of these installations is an increase from 210 hp to 750 hp,
allowing for increased throughput while reducing the size of the feed
reporting to the grinding circuit.  Further capacity increases are
anticipated towards 1,800 tons per day or higher this year as this new
equipment is optimized and a larger capacity screening plant is
installed in June.

San Gold Corporation is an emerging gold producer located in south-east
Manitoba, immediately west of Red Lake, Ontario.  The company is on
track to produce over 80,000 ounces in 2011.

San Gold is also an aggressive explorer and developer, discovering seven
gold deposits and developing four over the past five years. The company
is on track to complete over 300,000 meters of diamond drilling this
year.  Drilling and development efforts are currently concentrated
along a new mining horizon known as the Shoreline Basalt.  The
Shoreline Basalt deposits, which include L10, L13, 007, 007 East and
Emperor, are fully accessible from surface and to depths of over 2,000
meters using the modern mine infrastructure already in place at the
Rice Lake Mine.  This year’s drilling and development program will mark
a key step in San Gold’s long-term plan to develop a new mine complex
along the Shoreline Basalt.

The information in this release may contain forward-looking information
under applicable securities laws. This forward-looking information is
subject to known and unknown risks, uncertainties and other factors
that may cause actual results to differ materially from those implied
in the forward-looking information.

The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.

SOURCE San Gold Corporation


Source: newswire



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