San Gold updates high grade veins at Rice Lake

Progress on two of its high grade veins at its Rice Lake gold mine had San Gold (SGR-V) up on the market on Thursday.

The Bissett, Manitoba-based company climbed 7% or 8 to $1.23 on 660,000 shares traded in Toronto on March 22.

The developments are at the 93 and 98 veins which occur down at the 1,281 metre and 1,327 metre marks respectively.

San Gold is especially bullish on the strike length of the “93” vein as it has been extended to over 122 metres with an average face grade of 43.2 grams per tonne over an average true width 1 metre.

The company anticipates that an additional 61 metres will be developed to the north as the vein remains open in an upward direction.

At vein “98” over 91 metres of horizontal development was completed, and the vein has an average face grade of 37.7 grams per tonne over an average true width of 1.37 metres.

The company says development of the two veins are its top priority, followed by waste rock development which needs to be done to extract the veins.

San Gold has been following a policy of reducing feed to its Rice Lake Mill to 360 tonnes a day, from when the former operators Harmony Gold Mining (HMY-N, HRM-L) ran the mine and was putting through 1,000 tonnes a day so that it can focus on mine development and exploration at the same time.

Rice Lake has a reserve of 895,000 tonnes grading 9.6 grams gold, a measured and indicated resource of 875,000 tonnes grading 9 grams gold for 275,000 oz. of gold, and an inferred resource of 1.7 million tonnes grading 9.3 grams for 554,000 oz. of gold.