New High Grade Gold Producer

Manitoba’s Rice Lake Gold Belt

2009 Highlights
• Commercial Production Achieved
• Developed Hinge Mine
• Discovered L-13 and Cohiba Zones
• Discovered Deep West Zone
• Over 350,000 feet drilled so far

Update – November, 2009

1

Corporate Profile
Issued and Outstanding
Recent Price
Market Capitalization
Management position
Institutions
Largest

Cash
SGR – 1 yr

SGR – TSX.V
265,000,000
$3.00 Cdn
$800,000,000
15%
55%
Goodman + Co
Gold 2000
RBC
Van Eck
25 m
SGR – 5 yr

Coverage:
• Cormark
• Dundee
• Wellington West
• TD
• PI Financial
• National Bank
• BMO
• GMP

2

Avg daily volume 3 month – 1,500,0000

CEO, director: Dale Ginn, B.Sc., P.Geo, geologist, mine management including
Harmony Gold, Goldcorp, Westmin and Hudbay.
Chair, director: Hugh Wynne, mine, mill, exploration, founded SGR in 1997
Director:

Richard Boulay, B.Sc., geologist, finance

Director:

Courtney Schearer, MBA, mining, oil, business

Director:

Ben Hubert, B.Sc., M.Sc., MBA , environmental consultant

Director:

Micheal Power, P.Eng., CFA, mining and evaluation consultant

Director:

James W. McCutcheon, QC, law and major mining company experience

COO:

Ian Berzins, P.Eng, , mining engineer, management, construction
including Harmony Gold, Echo Bay, Suncor, Sherwood Copper

CFO:

Gestur Kristjansson, CA, MBA, public finance
3

Competitive Advantages
• Multiple high grade deposits in proximity to mill






Extremely successful exploration programs
Fully permitted in all aspects
Strong balance sheet, no debt
Stable politics and business climate
Lowest power costs in the world at 2.5 cents per kw/hr
Full infrastructure and access
Skilled personnel, extensive local training

4

Current capacity = 1250 tpd, 1800 tpd potential with crushing addition (2011)
Built 1997 – gravity circuit additions 2009, flotation, CIP, dore

High component of gravity gold

Grinding circuit, primary ball mill

5

Land Position

Scale: 10 Kms

Rice Lake/Red Lake Belt

6

Hinge Zone

L-13

Wingold

Cohiba Zone

Six high grade zones discovered in five years

7

L 13 area

Drilling Now

Site and Zone Location
New LiDar Survey highlights structure

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Includes Rice Lake Upper and Lower, Hinge and Cartwright
Hinge zone adds significant ounces and reduces cost per ounce via grade
Hinge resource calc underway.
Hinge Mine developed and in production
Replace jaw crusher, increase mill capacity from 1250 to 1800 tpd by 2011
Cohiba, L-13 and other new zones may contribute as upside

9

Surface

New
L13 >12 g/T

Emperor
Cohiba >12 g/T
-1000 ft

Hinge >15 g/T
1 km To
Cartwright

-2000 ft

-3000 ft

26L New
-4000 ft

98 W Ext

Location of current drill programs

Mine and Deposit
Long Section Looking
North

-5000 ft

Deep East
Deep West

96, A, C

10

6-level
334 vein
Rice Lake
A-shaft

L-13

N
Hinge
Cohiba

26-level
D-shaft

New Zone Locations and Rice Lake Mine
With Planned Development
Inclined View looking West

28-level
98 vein

11

Rice Lake Mine
D Shaft Long
Section Looking
North

26-09-34
4.5m 14.8g

93 vein

28-09-15
5.9m 43.8g

98 vein

-4000 ft

94 vein

-5000 ft

DE zones

Location of drill results Oct 19, 2009

96, A, C veins

Deep West Zone
New geology – large sulphide zone

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New High Grade Discovery Zones

Cohiba Zone
Hinge Zone

Emperor

New
L13

Hinge Portal

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High Quality Ounces – Ability to Fast Track

Hinge Zone Timeline
• Spring, 2008 – Hinge Zone Discovered
• March 17, 2009 – Hinge Ore Exposed
• July 1, 2009 – Bulk Sample Completed
• November, 2009 – In Production for < $10m
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Hinge Zone
Bulk Sample Results
July 14, 2009

Mine development underway

Source

Tons

g/T (oz/t)

oz

Stope

2738

21.7 (0.63)

1737

Devel

9024

18.0 (0.53)

4448

Mill

Drilling now

Legend

Gold ounces recovered:
Overall Mill Recovery:
Recovered by Gravity:
Average per hour:
Max achieved:
Cost data ($ Cdn)

5,938
96%
37%
50 tons
80 tons

Cost/ton mill
Cost/ton mine
Total $/ton

$19
$59
$78

Total $/ounce

$184

Total expenditure
Total ft developed

$6.5m
8,000

15

A’

Wingold shaft 1930’s

Rice Lake
29
31

A

Now drilling

33
37

1000 ft

2000 ft

OPEN – Not drilled
2000 meters

3000 ft

“hinge-like” vein
51.4g over 2.7m
And 7.5g over 5m

High grade “98” vein

4000 ft

Current underground drilling
Deep East expl drift

Now drilling
Deep West Veins
Deep East Veins
Drilled 1994

General X-Section
Hinge Zones and Deep Rice Lake
Looking East

5000 ft

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+ Predictive evolving model
+ Repeating host structures
+ Structural control fluid “pathways”
+ Unexplored volcanic rocks

San Gold

L13 Zone A’
Cohiba Zone

Now drilling
A

In-house Structural Geological Model Bearing Fruit

17
17

Timmins area geology

Scale: 10 Kms
San Gold

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This presentation contains certain statements that may be deemed "forward-looking statements". All statements in this
document, other than statements of historical fact, that address events or developments that the Company expects to
occur, are forward looking statements. Forward looking statements are statements that are not historical facts and are
generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates",
"projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should"
occur. Forward-looking statements in this document include statements regarding the Company's intention to potentially
acquire mineral properties, statements with respect to a potential financing of units, and statements with respect to the
Companies exploration programs, the Company's. Expenditures on such exploration and the anticipated results of such
exploration
Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable
assumptions, such statements are not guarantees of future performance and actual results may differ materially from
those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in
forward looking statements include, failure to successfully negotiate or subsequently close such transactions, inability to
obtain required shareholder or regulatory approvals, uncertainty with respect to findings under exploration programs and
general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of
future performance and actual results or developments may differ materially from those projected in the forward-looking
statements. Forward looking statements are based on the beliefs, estimates and opinions of the Company's management
on the date the statements are made. The Company undertakes no obligation to update these forward-looking
statements in the event that management's beliefs, estimates or opinions, or other factors, should change.
These statements are based on a number of assumptions, including, among others, assumptions regarding general
business and economic conditions, the timing of the receipt of shareholder, regulatory and governmental approvals for
the Company's proposed transactions, the ability of management to successfully consummate the proposed transactions
and implement the planned exploration. The foregoing list of assumptions is not exhaustive. Events or circumstances
could cause results to differ materially.
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