SOURCE: San Gold Corporation

March 31, 2010 08:32 ET

San Gold Discovers High Grade Eastern Extension to Rice Lake Mine

BISSETT, MB--(Marketwire - March 31, 2010) -  Dale Ginn, CEO of San Gold Corporation (TSX-V: SGR), is pleased to report that underground exploration drilling has discovered a new high grade gold zone located beyond the eastern limits of known exploration from the 28th and 26th levels of the Rice Lake Mine. Drill hole #28-10-51 cut 37 g/tonne (1.08 oz/ton) over 8.2 meters (27 ft) extending high grade gold mineralization extensively to the east into undeveloped and unexplored areas of the Rice Lake mine. This intersection included an extremely high grade segment of 140 g/tonne (4.10 oz/ton) over 2.0 m (6.6 ft) and contained coarse visible gold. The new zone, currently named RL East, has also been intersected by hole #26-10-60, approximately 200 meters (700 feet) up dip from hole #51. This intersection is located above the 26th level of the mine and yielded 23 g/tonne (0.67 oz/t) over 4.1 meters (13.5 feet).

The RL East zone discovery drill hole intersections are tabulated below:

Hole #   From (m)   To (m)   Length m (ft)   Gold g/tonne (oz/ton)   Zone/Lens
28-10-51   162.1   170.3   8.2 26.9   37.0 1.08   RL East
                         
including   165.8   170.2   4.4 14.4   67.1 1.96   RL East
                         
including   166.7   168.7   2.0 6.6   140.4 4.10   RL East
                         
26-10-60   318.9   323.0   4.1 13.5   23.0 0.67   RL East 26 Lev

The RL East zone is located approximately 150 meters (500 feet) to the east of the high grade "98" vein area currently under development and is beyond the recently discovered 98FW1 and FW2 zones (see press release dated January 20, 2010). The above drill holes are the first in a series that were drilled deeper and further east than previous exploration in order to follow up on the recent 98FW discoveries. The main "98" vein above the 28th level (4500 ft below surface) has been developed to over 150 meters (500 feet) in length, has a known dip length of over 600 meters (2000 feet) and is open above the 26th level (4200 ft below surface). Mining is now underway in numerous stopes within this vein above the 29th and 28th levels. The wide spacing and correlation of drill holes in the 98FW and RL East zones are beginning to display similar dimensions as the main 98 vein described above. The numerous new veins being discovered to the southeast and in the footwall of the "98" vein are in previously unexplored areas as there has been no access to this ground in the past. Numerous drill holes are now in the process of being deepened since the number and extent of new and new 98 footwall zones is greater than anticipated.

Exploration within the Rice Lake Mine is intensifying towards the east where access allows for numerous reasons:

  • The productive host Rice Lake Mine unit continues and is open to the east.
  • Eastward development will allow for drill platforms in order to explore deep extensions of the new near surface deposits (Hinge, 007, Cohiba, L13).
  • New eastern zones above the 26th level do not require the use of the D-winze (internal shaft) for access and haulage.
  • Successful exploration of the deeper extensions of the new near surface zones may justify the consolidation of the Rice Lake Mine, together with the near surface zones into one larger, more efficient production center.

Sections, plans and diagrams related to this press release are 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 and chip 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.

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

Contact Information

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