SOURCE: San Gold Corporation

September 15, 2008 08:05 ET

Hinge Zone Intersected From Rice Lake Mine Over 1500 Meters Below Surface

BISSETT, MB--(Marketwire - September 15, 2008) - Dale Ginn, CEO of San Gold Corporation (TSX-V: SGR) is pleased to report that exploration drilling from the 4980 Deep East exploration drift (5,000 ft depth) of the Rice Lake Gold Mine has intersected mineralization identical to the new Hinge zones that are currently being drill tested from surface. Drill hole #498-08-07 encountered 2.7 meters of 51.4 g/tonne while hole #498-08-02 ended in mineralization and will be deepened. The underground Hinge intersections are located over 1,500 meters down dip and below the current surface drill program. Numerous new zones were also discovered within the mine host gabbro unit and are listed below. This program was designed to explore untested ground between the Rice Lake Mine and the Deep East zones which were discovered and partially drilled in 1994. Results from the new holes are tabulated below:

Hole #    From     To      Length        Gold g/tonne (oz/ton)    Zone
------    -------  ------- -------------- -------------------   ----------

498-08-07 78.3 m   81.0 m   2.7 m (8.9 ft)  51.4    (1.50)      Hinge Deep

498-08-02 239.8 m  243.9 m  4.1 m (13.5 ft) 5.2     (0.15)      Hinge Deep*
                                           *hole ended in mineralized zone

498-08-01 149.5 m  151.8 m  2.3 m (7.5 ft)  8.0     (0.23)      Deep East

and       193.8 m  195.2 m  1.4 m (4.6 ft)  21.0    (0.61)      Deep East

498-08-02 155.6 m  157.0 m  1.4 m (4.6 ft)  41.8    (1.22)      Deep East

498-08-03 209.3 m  211.1 m  1.8 m (5.9 ft)  21.6    (0.63)      Deep East

Dale Ginn, CEO of San Gold stated, "The discovery of the high grade Hinge zones from surface is the most significant development to date in San Gold's history. Not only are we beginning to extend the Hinge zones to mine depths, but we are also filling in the area between the main mine and the Deep East zones, effectively doubling the strike length of the Rice Lake Mine. These deep intersections indicate that there is tremendous potential in the unexplored volcanic rocks and is especially obvious between the surface drilling and the current underground drilling, not to mention the numerous other surface Hinge targets we have identified."

Please see our website for prior Hinge zone press releases with surface drill results and a description of geology and location. All of the above intersections are near to and accessible via current mine workings and are not a part of the current resource report (ACA Howe, 2006). The above results are a part of an important expansion program targeting potential high grade mineralization within undeveloped and open areas of the Rice Lake Mine.

Other current drill exploration programs within the mine include:

--  26 level or upper D-shaft, an undeveloped target area potentially
    containing veins similar to the high grade "98" vein.
--  Open and undeveloped areas between the main Rice Lake orebodies and
    the Deep East zones.
--  Phase 2 drilling on the downward extensions of the main Rice Lake
    orebodies.
    

General sections showing locations of the Hinge zones relative to the Rice Lake mine as well as locations of the new drill results are available at www.sangoldcorp.com.

The above program was carried out 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

  • Dale Ginn
    CEO
    San Gold Corporation
    (204) 794-5818
    or investor information at 1-800-321-8564
    www.sangoldcorp.com