After thousands of core samples, many hours of map work, and one exceptional LiDAR study, the exploration team says this new model, developed as a result of Ferreira’s find, will continue to bear new exploration targets for years to come.
       The model builds on the idea that extremely high grades can be found at regular intervals outside the thinner portions of the SAM unit and that these deposits are most likely to occur near the intersections of two key sets of structures that intersect with each other.
       Structural pathway trends make up the first key set of structures. These pathways cross the region at regular five-hundred metre (1,500 foot) intervals and connect current San Gold strikes and old mine bulkheads. They even cross some old prospecting trenches.
       Ferreira says these pathways result from the natural characteristics of the rock in relation to the forces that were acting on it when the mineralization occurred.
       Looking down dip, these trends also cross through known mined out resources in the Rice Lake Mine.
Shears and tension fractures make up the other key set of structures.
       These shears and tension fractures were identified by a 2009 LiDAR study that analyzed the region’s surface rock formations.
       “When we saw the results, they just jumped right out at us,” said Ferreira.
       Shears and fractures are breaks in the volcanic rock that act as natural hosts for gold-bearing quartz deposits.
       Understanding where the structures were located alongside the SAM unit helped the exploration team determine where to look along the pathway trend lines.
       Since then, the results have been spectacular.
       “It’s been like shooting fish in a barrel,” says Ferreira.
       Not only has the exploration team had remarkable success in striking gold.
       The grades have been impressive.
       In the 76 years the Rice Lake Mine has been in operation, grades have traditionally hovered around a respectable 0.21 to 0.31 ounces per ton.
       Then the Hinge Zone was found, posting Measured resources at 0.53 oz/ton, with 007 following close behind with an unbelievable 2.58 oz/ton for its Indicated Resource.
       By venturing beyond the main SAM unit exploration area, not only has San Gold’s exploration team vastly improved the region’s ore potential, they’ve also found grades 50 times more concentrated than previously thought possible.
But the story doesn’t end there.

       For 76 years, miners have been working the Rice Lake Mine, building out more than 33 levels to a depth of more than 5,500 feet.
       As these new deposits trace down dip, San Gold’s exploration team is also realizing there is a potential that these new near-surface deposits may be extensions of veins already being mined down deep.
       For instance, the 98 Vein on 26 Level appears to share the same structures that control the 007 deposit.
       The two deposits also share similar geologies, which strengthens the chance there is a relationship between them.
       The next step is to cut a drift from 16 Level, the level reaching closest to the space between them, to begin exploration on the 2,600 foot unexplored gap between 007 and the 98 Vein.
       While this is the most well-developed example of the relationship between the near-surface and underground discoveries, it is by no means the only one.
       The surface grid formed by the pathway lines and shears/fractures opens up dozens of potential places to look, all of which could reach as deep as the bottom of the Rice Lake Mine workings, and beyond.

       As one of Canada’s most exciting new gold exploration companies, it is easy to forget San Gold is also a gold producer.
       Production has been steadily improving at the company’s 1,200 ton per day mill.
       San Gold expects to reach capacity in 2010 and to increase its mill capacity in 2011.
       This production capacity provides many benefits to San Gold and its shareholders.
       Mill production provides the most reliable form of bulk sampling while generating revenue to fund operations and minimize the need for new funds.
       San Gold operates in Manitoba, one of the planet’s most politically safe and stable mining regions. Manitoba consistently ranks among the Top 10 global mining jurisdictions by The Fraser Institute. This stability continues to attract a growing list of some of the world’s largest institutional investment groups.
       San Gold’s assets are impressive. San Gold owns 12,000 hectares of mining claims along the Rice Lake Greenstone Belt of southeast Manitoba; has established multiple high-grade deposits in close proximity to the company’s mill; has an extremely successful exploration program; is fully permitted; has highly developed infrastructure; and employs skilled personnel led by an experienced team of mine builders.
       San Gold also has ample cash, no debt, real and growing gold production, an expanding gold reserve, and tremendous blue sky potential.