SOURCE: San Gold Corporation

October 03, 2005 10:17 ET

San Gold and Marum to Jointly Explore the Beresford Lake Gold Property in Manitoba

BISSETT, MB and CALGARY, AB -- (MARKET WIRE) -- October 3, 2005 -- San Gold Corporation (TSX-V: SGR) and Marum Resources Inc. (TSX-V: MMU) have entered into an option agreement to jointly explore Marum's Beresford Lake gold property in Manitoba. The Beresford Lake property consists of 10 claims covering 2,320 hectares located at the east end of Manitoba's Rice Lake gold belt, about 25 kilometres by road southeast of the San Gold Rice Lake gold mine and mill in Bissett, Man. The Beresford Lake property is adjacent and immediately to the east of San Gold's Oro Grande property.

The Beresford Lake property consists of two components, a three claim "Blue Ace" group previously optioned by Marum and the seven claim "RedGreen" group owned 100% by Marum. San Gold and Marum can earn an undivided 100% interest (50% each) in the Blue Ace claims by performing $750,000 in exploration work on the Blue Ace Property, at a cumulative rate of $100,000 by August 31, 2006, $350,000 by August 31, 2007 and $750,000 by August 31, 2008. San Gold shall spend the first $200,000 in exploration expenditures on the Blue Ace claims in return for a 50% interest in Marum's 100% owned RedGreen claims. Thereafter both Marum and San Gold shall expend, in equal amounts, $275,000 to each complete the earning of a 100% interest (50% each) in the Blue Ace claims. The earned interest of both Marum and San Gold shall be subject to a Gross Overriding Royalty of 3% for the Blue Ace claims (subject to an optional buyout of two percentage points for $1,500,000) and a 1/2% royalty for the RedGreen claims.

The Oro Grande property is host to two former past producers: the Gunnar mine (101,000 ounces of gold produced at a grade of 12 grams per tonne, or 0.35 ounce per tonne) and the Oro Grande mine (5,000 ounces of gold produced at a grade of 20 grams per tonne, or 0.58 ounce per tonne), which operated during the 1930s and 1940s. Numerous other high-grade gold showings also exist along a multi-kilometre, north-trending horizon as defined by a recent San Gold ground geophysical program.

In addition to the obvious gold potential of the area that is indicated by the record of two historic producers, the geology in the vicinity of the Beresford Lake and Oro Grande properties is characterized by thick zones of chlorite-sericite-ankerite alteration that characterize the regional-scale Beresford Lake shear zone that runs in a north-south direction through the properties. The ankerite veins, and the regional iron-carbonate alteration zones that host them, are substantially similar to those that host high-grade gold mineralization in the Red Lake gold camp of Ontario.

Exploration consisting of prospecting, followed by ground geophysics and diamond drilling will commence in two weeks. A map showing the location of these claims is available for viewing at the San Gold website --

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

Contact Information

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