Tuesday, April 16, 2013

San Gold Reports 2013 Q1 Production Results



WINNIPEG, MANITOBA--(Marketwired - April 16, 2013) - San Gold Corporation (TSX:SGR)(OTCQX:SGRCF) today announced 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.

About San Gold

San Gold is an established Canadian gold producer, explorer, and developer that owns and operates the Hinge, 007, and Rice Lake mines near Bissett, Manitoba, approximately 235 kilometres northeast of Winnipeg, Manitoba, Canada. The Rice Lake Project has a permitted, modern gold mill currently processing ore at a capacity of 2,500 tons per day, modern surface infrastructure including a licensed tailings management facility, and is connected to the Manitoba power grid system. The Company employs approximately 450 people and is committed to the highest standards of safety and environmental stewardship. San Gold is on the Toronto Stock Exchange under the symbol "SGR" and on the OTCQX under the symbol "SGRCF".

For further information on San Gold, please visit www.sangold.ca.

Cautionary Note

This news release includes certain "forward-looking statements". All statements, other than statements of historical fact included in this release, including, without limitation, statements regarding forecast gold production, gold grades, recoveries, cash operating costs, potential mineralization, mineral resources, mineral reserves, exploration results, and future plans and objectives of the Company, are forward-looking statements that involve various risks and uncertainties. These forward-looking statements include, but are not limited to, statements with respect to mining and processing of mined ore, achieving projected recovery rates, anticipated production rates and mine life, operating efficiencies, costs and expenditures, changes in mineral resources and conversion of mineral resources to proven and probable mineral reserves, and other information that is based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management.

Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be "forward-looking statements." Forward-looking statements are subject to a variety of risks and uncertainties that could cause actual events or results to differ from those reflected in the forward-looking statements.

There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include, among others, the actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of precious metals, as well as those factors discussed in the section entitled "Other MD&A Requirements and Additional Disclosure and Risk Factors" in the Company's most recent quarterly Management's Analysis and Discussion ("MD&A"). Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
CONTACT INFORMATION:
San Gold Corporation
Ian Berzins
President and CEO, Chief Operating Officer
Toll Free: 1 (855) 585-4653

or

San Gold Corporation
Tim Friesen
Communications Director
Toll Free: 1 (855) 585-4653
info1@sangold.ca
www.sangold.ca

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