During 2013, extensive definition drilling and detailed mine planning to integrate the Hinge, 007 and Rice Lakes mines resulted in an increase in proven and probable mineral reserves to 2.7 million tons grading 5.24 grams per tonne containing 405,400 ounces of gold as of December 31, 2013. This is a 60% increase from the proven and probable mineral reserves as of December 31, 2012.
“I am very pleased with the progress made by our technical team over the past year. The increase in reserves has allowed us to complete five years of detailed mine planning, thereby providing improved operational flexibility. Our drilling in 2014 will be primarily from underground locations in closer proximity to known ore bodies. We expect to achieve a further increase in the mineral reserve as the year progresses through the conversion of our large inferred mineral resource,” said Ian Berzins, San Gold’s President, CEO and Chief Operating Officer.
Notes to Mineral Reserve and Resource Estimate Table
- Mineral reserve and resource estimates are calculated in accordance with the CIM Definition Standards on Mineral Resources and Mineral Reserves adopted by CIM Council, 2010.
- Tonnage and ounce estimates have been rounded to the nearest hundred.
- Proven and probable mineral reserves are included in the measured and indicated mineral resources.
- The mineral reserve estimate is based on a gold price of US$1,250 per ounce.
- A cut-off grade of 3.65 g/tonne gold was used for estimating mineral reserves. A cut-off grade of between 2.74 and 3.43 g/tonne gold was used for estimating mineral resources.
- Inferred mineral resources are not in the current mine plan and therefore do not have demonstrated economic viability.
The estimate of mineral resources was carried out under the supervision of Michael Michaud, Vice-President of Exploration. The estimate of mineral reserves was carried out under the supervision of Rolando Jeria, Chief Engineer. Mr. Michaud and Mr. Jeria are Qualified Persons as defined by NI 43-101, and have reviewed and approved this news release.
- 2 million ounces produced historically.
- 2.5 million ounces discovered since 2006.
- Structural analysis revealing multiple new horizons within Company mining lease.
- 400 sq km land package with multiple high-grade (10-26 gpt) past producers.