SOURCE: San Gold Corporation

August 06, 2008 08:34 ET

Multiple High Grade Gold Zones Drilled at Rice Lake 30 Level

BISSETT, MB--(Marketwire - August 6, 2008) - Dale Ginn, CEO of San Gold Corporation (TSX-V: SGR), is pleased to report the results of exploration drilling from the 30th level (4500 feet depth) of the Rice Lake Gold Mine. This program was designed to extend known mineralization eastward and to test the unexplored footwall of the host gabbro mine unit. New high grade zones discovered by this program are highlighted by drill hole #07-12 which intersected 6.4 meters of 28 g/tonne in the footwall area and by drill hole #08-18, intersecting 7.2 meters of 21 g/tonne in a new eastern zone. 27 intersections were encountered giving an average length of 3.6 meters (12 ft) with an average grade of 19.3 g/tonne (0.56 oz/ton).

Results from the new holes are tabulated below:

                                                        Gold
Hole #     From (m)     To (m)   Length (m)   (ft)    (g/tonne)  (oz/ton)
--------   ---------- ---------- ---------- --------- ---------- ----------
30-07-01         21.7       24.7        2.9       9.6       8.90       0.26
30-07-02         21.7       25.1        3.4      11.3       8.25       0.24
30-07-03         26.2       28.1        1.9       6.2       5.14       0.15
30-07-04         22.9       26.2        3.4      11.0       7.88       0.23
30-07-06         19.5       21.1        1.6       5.2      17.81       0.52
30-07-07         17.6       19.7        2.1       6.8       7.53       0.22
30-07-08          4.0        4.6        0.6       2.0      43.15       1.26
and              17.8       20.5        2.7       8.7      10.96       0.32
30-07-11         28.9       31.8        2.9       9.4      14.04       0.41
30-07-12         24.2       25.8        1.6       5.4      15.41       0.45
and              31.2       37.7        6.4      21.1      27.84       0.81
including        31.2       32.7        1.5       4.8     113.01       3.30
30-07-13         37.5       50.1       12.6      41.3       9.25       0.27
including        47.0       49.0        2.0       6.6      30.17       0.88
30-07-32         24.8       27.5        2.7       8.8       7.88       0.23
30-07-33         26.2       29.3        3.0      10.0       5.82       0.17
30-07-34         28.5       30.6        2.1       6.9       5.82       0.17
30-07-35         12.5       15.0        2.5       8.2      13.70       0.40
and              17.8       21.4        3.6      11.8      12.67       0.37
30-07-36          8.9       10.3        1.4       4.5      19.52       0.57
and              15.2       27.7       12.5      41.1       7.64       0.22
30-08-15         31.2       33.1        2.0       6.4       7.53       0.22
30-08-17         19.8       25.1        5.2      17.1       8.22       0.24
30-08-18         24.8       32.0        7.2      23.5      20.89       0.61
including        28.4       29.8        1.3       4.4      67.47       1.97
and              37.6       39.6        2.0       6.4      15.41       0.45
30-08-19         25.2       32.3        7.1      23.3       8.22       0.24

The bulk of the holes as listed above were designed to extend known mineralization from previous development on the 30th and 31st levels including the "101" vein, where drift sampling gave an average of 63.4 g/tonne over an average width of 2.0 meters (see press release dated May 22, 2007). Many of the holes listed contain multiple intersections as well as frequent additional mineralized zones requiring follow-up exploration and/or drilling. 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) and will be incorporated into an upcoming technical and resource report. 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.
    

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 under the supervision of James Harvey, Chief Mine Geologist and D. Ginn, P.Geo., the Qualified Persons 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

    Investor information
    1-800-321-8564

    www.sangoldcorp.com