SOURCE: San Gold Corporation

October 15, 2007 12:20 ET

New High Grade Discovery -- 113 g/tonne Over 1.5 m Drilled at Rice Lake

BISSETT, MB--(Marketwire - October 15, 2007) - Dale Ginn, CEO of San Gold Corporation (TSX-V: SGR), is pleased to report that drilling from the 30th level (4500 ft deep) of the Rice Lake gold mine has resulted in the discovery of a new high grade zone as highlighted by hole #30-07-12 which intersected 113 g/tonne (3.30 oz/ton) over a width of 1.5 meters (5.0 feet). This drill program has been designed around the new geological model as discussed in the press release dated September 5, 2007 which is testing the footwall side of the host unit at higher elevations in the Rice Lake mine. All of the intersections as listed below are new, have not been previously reported and are not included in the company's most recent mineral resource estimation (ACA Howe, 2007).

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

30-07-12    31.2 m     32.7 m      1.5 m (5.0 ft)        113.1 (3.30)

30-07-11    28.9 m     31.8 m      2.9 m (9.5 ft)         14.1 (0.41)

30-07-04    23.4 m     25.8 m      2.4 m (7.9 ft)          9.9 (0.29)

All of the above listed intersections are accessible and nearby existing mine infrastructure. Drilling continues to test the potential as generated by the new geological model as repeated below.

New Geological Model

Recent geological work has focused on the structural component of the deposition of the gold bearing veins as being the primary reason for their location. Past operators and explorers had focused on the hangingwall or north portion of the host "gabbro" unit due to a belief that a slight chemical change in the host unit contributed to a greater concentration of veining and gold mineralization on the hangingwall side versus the footwall or south side. San Gold and consulting geologists now believe that the vein deposition is mainly structural in nature and should be prospective throughout the entire 200m (600 ft) thick host unit. The result of this profound change in interpretation is that the entire thickness of the host unit from surface to maximum mine depth (currently over 1.9 vertical Kms or 5500 ft) becomes prospective for veining and gold mineralization.

Please see the San Gold website (www.sangoldcorp.com) for a plan view diagram relevant to the area drilled.

Results generated from underground exploration and development are carried out under the supervision of Lawrence Norquay, P.Geo., surface exploration programs are supervised by W.S. Ferreira, MSc, P.Geo., the Qualified Persons under National Instrument 43-101. 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 selected samples. 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.

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

Contact Information

  • Contact:
    Dale Ginn
    CEO
    San Gold Corporation
    (204) 794-5818

    Investor Information
    1-800-321-8564
    www.sangoldcorp.com