SOURCE: San Gold Corporation

December 01, 2008 08:18 ET

Deep Drilling at Rice Lake Mine Encounters New Massive High Grade Zones

BISSETT, MB--(Marketwire - December 1, 2008) - Dale Ginn, CEO of San Gold Corporation (TSX-V: SGR) is pleased to report that exploration drilling has encountered numerous gold-bearing zones that have not previously been discovered, drilled or developed at higher levels of the mine. In addition to the new breccia zones discovery, recent drilling has outlined important extensions to the length and plunge of the "C" vein. Significant widths and grades were encountered in numerous holes as highlighted by drill hole #460-08-10 which cut 25.2 meters (82.7 feet) of 17.1 g/tonne (0.50 oz/ton) gold including 2.1 meters (6.9 feet) of 60.6 g/tonne (1.77 oz/ton) and 6.2m (20.3 feet) of 26.0 g/tonne.

Results are tabulated below:

Hole #     From    To      Length              Gold g/tonne     Zone
                                               (oz/ton)
---------  ------  ------  -----------------   -------------    -------
460-08-10  11.4 m  36.6 m  25.2 m   (82.7 ft)  17.1    (0.50)   NEW / C

including  25.7 m  27.8 m   2.1 m    (6.9 ft)  60.6    (1.77)   NEW

including  30.4 m  36.6 m   6.2 m   (20.3 ft)  26.0    (0.76)   C

460-08-14   0.0 m   7.1 m   7.1 m   (22.0 ft)  26.7    (0.78)   NEW

460-08-15   1.7 m  10.6 m   8.9 m   (29.1 ft)   4.7    (0.14)   NEW

460-08-16   0.8 m   3.4 m   2.6 m    (8.5 ft)  11.6    (0.34)   NEW

460-08-17   3.7 m   6.2 m   2.5 m    (8.2 ft)  16.1    (0.47)   NEW

and        29.4 m  33.6 m   4.2 m   (13.8 ft)  12.4    (0.36)   C

460-08-18   3.6 m   7.9 m   4.3 m   (14.1 ft)  18.2    (0.53)   NEW

and        14.2 m  21.4 m   7.2 m   (23.6 ft)  12.7    (0.37)   C

460-08-19   3.0 m   4.9 m   1.9 m    (6.2 ft)  16.8    (0.49)   NEW

460-08-21   9.5 m  11.8 m   2.3 m    (7.6 ft)   7.3    (0.21)   NEW

and        18.4 m  20.7 m   2.3 m    (7.6 ft)  12.1    (0.35)   C

460-08-22   0.0 m   7.8 m   7.8 m   (25.6 ft)  10.6    (0.31)   NEW

460-08-22   0.0 m   7.8 m   7.8 m   (25.6 ft)  10.6    (0.31)   NEW

460-08-03  24.5 m  29.8 m   5.3 m   (17.5 ft)   9.6    (0.28)   NEW

and        34.7 m  39.2 m   4.5 m   (14.8 ft)   9.6    (0.28)   C

During the course of drilling for the extension of the "C" vein, numerous new zones, mainly of the massive breccia or stockwork type were encountered. The average drilled width of the above intersections is 6.4 meters (21 feet) with an average grade of 14.1 g/tonne (0.41 oz/ton). The "C" vein is one of the primary zones currently being developed and mined in the lower levels of the Rice Lake mine along with the "A" and "96" veins. The "C" vein intersections above have extended this orebody significantly down plunge and along strike to the north towards the hanging wall contact of the host gabbro unit. The new zones are primarily of the breccia or "38 stockwork" ore type, again toward the north hangingwall side of the host unit and are open to depth. The superior widths and grades displayed, as well as proximity to current mine development dictate that mining of these zones will begin immediately.

Dale Ginn, CEO, stated, "San Gold's recent and dramatic exploration successes at the Hinge Zone near surface, together with rapid incremental discoveries to known vein systems and now with these impressive and totally unmeasured high grade breccias systems will likely transform the perception of the Rice Lake mine from a typical Canadian Shield lode gold deposit to one with superior grade and tonnage development potential."

A general section showing the location of the current drilling, development and mining areas within the Rice Lake Mine is available at the company's website www.sangoldcorp.com.

The above program was carried out by mine geologists under the supervision of D. Ginn, P.Geo., the Qualified Person for San Gold under National Instrument 43-101. Underground drill core samples are assayed on site in the company's assay lab using the fire assay method with an AA and gravimetric finish. San Gold's quality control and assurance program includes the insertion of blanks and standards, the retention of pulps and rejects, and spot checks utilizing independent labs including TSL Laboratories in Saskatoon, SK and Accurassay Laboratories of Thunder Bay, ON. The core lengths are actual lengths as drilled and have not been adjusted for the true width of the mineralized zones.

For further information contact Dale Ginn, CEO of San Gold Corporation, at (204) 794-5818 or investor information at 1-800-321-8564 or visit www.sangoldcorp.com.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Contact:
    Dale Ginn
    CEO of San Gold Corporation
    (204) 794-5818
    or
    Investor Information
    1-800-321-8564

    www.sangoldcorp.com