SOURCE: San Gold Corporation

January 15, 2008 07:30 ET

New Discovery of Multiple Gold Zones Near Rice Lake Mine

BISSETT, MB--(Marketwire - January 15, 2008) - Dale Ginn, CEO of San Gold Corporation (TSX-V: SGR), is pleased to report that exploration drilling from surface has discovered multiple new gold bearing zones located approximately 1.5 kilometers northeast of the Rice Lake Mine. A series of shallow dipping quartz veins have been intersected in 5 sequential holes to date in intermediate and mafic volcanic tuffs and flows. Only two holes, #15 and #18 have been drilled deep enough to intersect the lower zone as reflected in the results as tabled below:

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

UPPER ZONE

GS-07-15    56.0 m   57.5 m     1.5 m (5.0 ft)      18.5  (0.55)

GS-07-16    48.7 m    9.7 m     1.0 m (3.3 ft)      30.2  (0.90)

GS-07-17    63.0 m   65.4 m     2.4 m (7.9 ft)      11.4  (0.34)

GS-07-18    69.3 m   71.8 m     2.5 m (8.3 ft)      23.2  (0.69)

GS-07-19    74.7 m   80.0 m     5.3 m (17.4 ft)      7.1  (0.21)
and         82.2 m   85.3 m     3.1 m (10.0 ft)      4.5  (0.13)


LOWER ZONE

GS-07-15   248.2 m  249.2 m      1.0 m (3.3 ft)     18.5  (0.55)

GS-07-18   255.3 m  256.3 m      1.0 m (3.3 ft)     26.0  (0.77)

The new zones are roughly parallel and gently dipping to the north and are made up of quartz and carbonate veins containing gold mineralization. All of the above listed intersections contain numerous visible occurrences of gold. The volcanic units which contain the new veins are located in a sequence of rocks which lie approximately 1500 meters into the hanging wall stratigraphically above and geographically to the north of the mineralized mine unit of the Rice Lake Gold Mine. This new zone does not outcrop at surface but drill locations are within view of the San Gold #1 haulage road and power line. The new zones lie between San Gold's operating Rice Lake and San Gold #1 mines, an extensive area that is largely unexplored.

Much of the past exploration within the Rice Lake Belt has been confined to the "Mine Unit" gabbroic rocks as dictated by a historical Rice Lake Mine geological model. The model followed in this case, a model developed from observations deep underground at Rice Lake and by means of surface structural interpretations, projects a series of north-south "hinges" or axes along which past and current showings and small production pits and mines were located. Drilling along the third, easternmost, hinge or axis which also contains the historic Wingold and Gold Standard deposits resulted in this discovery. Numerous targets have been identified within the thick sequence of hanging wall volcanic rocks. A second surface drill rig has moved to the area around this new discovery.

Please see the San Gold website (www.sangoldcorp.com) for a plan view location map and cross-sectional view of this new discovery as well as selected pictures of drill core intersections.

This program was carried out under the supervision of W.S. Ferreira, P.Geo., the Qualified Person for this project under National Instrument 43-101. The drill core was split, with half sent to TSL Laboratories in Saskatoon, SK and fire assayed with an AA and gravimetric finish. Whole metallics were performed on samples containing visible gold. Check assays were also performed on pulps and rejects by both TSL and by 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.

Contact Information

  • For further information contact:
    Dale Ginn
    CEO of San Gold Corporation
    (204) 794-5818

    or

    investor information
    1-800-321-8564
    visit www.sangoldcorp.com.