SOURCE: San Gold Corporation

San Gold Corporation

November 23, 2009 07:47 ET

San Gold Drills 1787 g/tonne Gold Over 2.1 Meters at New "007" Discovery

BISSETT, MB--(Marketwire - November 23, 2009) - Dale Ginn, CEO of San Gold Corporation (TSX-V: SGR), is pleased to report that a new high grade gold occurrence christened the 007 Zone has been discovered by surface diamond drilling and is located approximately 600 meters to the southeast of the Hinge Mine. Drill hole #CD-09-007 encountered 1787.7 g/tonne (52.20 oz/ton) over 2.1 meters (6.9 ft) at 200 meters (660 feet) below surface in a continuous quartz-carbonate vein containing abundant visible gold throughout. Results from this hole are summarized below but due to the extremely high grade nature of this intersection, an accompanying table is also provided in order to present each individual assay interval within the geologically defined mineralized boundaries. The first hole drilled in this area -- CD-09-001 is also reported below and is located above and to the east of hole #CD-09-007. The locations of the above intersections and of the remaining holes with pending assay data are displayed in the longitudinal section provided within the graphical version of this press release.

Hole #       From       To           Length        Gold g/tonne     Zone
                                                     (oz/ton)
---------   -------    -------    -------------   --------------    -----
CD-09-007   290.3 m    292.4 m    2.1 m (6.9 ft)   1787.7 (52.20)     007

CD-09-001   294.0 m    295.6 m    1.6 m (5.3 ft)      2.4  (0.07)     007

Distribution of grade within CD-09-007:

From            To       Length   Gold  g/tonne (oz/ton)       Rock Type
                                  Assay
--------     --------    ------   -----------------------  ----------------
290.30 m     290.84 m    0.54 m           0.3    (0.01)    Qtz Vein, Py
290.84 m     291.36 m    0.52 m        1691.4   (49.39)    Qtz Vein, Py, VG
291.36 m     291.79 m    0.43 m        6465.4  (188.79)    Qtz Vein, Py, VG
291.79 m     292.40 m    0.61 m         200.7    (5.86)    Qtz Vein, Py, VG

Dale Ginn, CEO of San Gold stated: "Our exploration team led by Bill Ferreira has made its fourth high grade discovery near surface in close proximity to our mill in the past 18 months and its third discovery this year. Hole #007 is the highest grade intersection that I can recall in the Rice Lake Belt, rivaling the best holes ever drilled in the neighboring Red Lake camp and certainly eclipses anything we have drilled to date in the Hinge zone. This discovery is again testimony to the solid and unique geological thinking that our exploration team has undertaken as well as a credit to the time tested success that drilling near past and producing mines brings."

Assays are pending from intersections of the same zone in four holes: CD-09-002, 003, 004 and 005. Hole #006 has not yet been logged while hole #008 was shut down early due to hole deviation from the intended target. This zone remains open along strike to the north-east and to the south-west as well as at depth and to surface. The 007 zone dips steeply to the north-northwest and is made up of quartz and carbonate veins containing gold and pyrite mineralization. The dominant deposit control appears to be structural as with the previous three deposits (Hinge, Cohiba and L13); however the lithology is slightly different in that this deposit occurs at or near an intermediate-mafic contact. Strong chloritic alteration of the mafic unit is observed at the footwall contact immediately below the mineralized veining, the strike length of this contact is currently unknown. A second diamond drill has been moved from the Cohiba area in order to assist in grid drilling this zone. The 007 zone is located approximately 2 kms to the north-east of San Gold's operating Rice Lake mine and mill, is fully accessible by road and is potentially accessible from the Hinge Mine decline.

Please see the San Gold website (www.sangoldcorp.com) for photos of this high grade intersection, location maps, cross and longitudinal sections.

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 metallic assays 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.

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