SOURCE: San Gold Corporation

San Gold Corporation

November 06, 2009 08:39 ET

The L-13 Zone - San Gold Discovers Another New High Grade Zone Near Surface

BISSETT, MB--(Marketwire - November 6, 2009) - Dale Ginn, CEO of San Gold Corporation (TSX-V: SGR), is pleased to announce that surface exploration drilling has discovered a new collection of mineralized zones known as L-13, located approximately 500 meters to the west of the Hinge zones and 1 km to the northeast of the Rice Lake mine and mill. These zones are also located directly under the existing Hinge zone decline access at approximately the half way point between the decline collar and the Hinge zones under current development. The lower zone or L-13 #2 appears to host the strongest mineralization of the zones to date as highlighted by the deepest drill hole #KL-09-29 which encountered 45 g/tonne (1.31 oz/ton) over 3.1 meters (10.2 ft) at 275 meters (900 ft) below surface. The L-13 zones have been confirmed by a number of drill holes as listed below, and have identified at least three "stacked" lenses to date within a 300 meter strike length. Surface drilling continues to expand the zones which are open along strike and to depth.

Fourteen intersections are reported within fourteen drill holes below:

                                                 Gold g/tonne
 Hole #     From       To          Length          (oz/ton)        Zone
--------   -------   -------   ---------------   -------------   ---------
KL-09-20   234.3 m   237.0 m   2.7 m  (8.9 ft)    10.6  (0.31)    Lower #2

KL-09-21   261.3 m   262.8 m   1.5 m  (5.0 ft)     6.8  (0.20)    Lower #2

KL-09-22   224.6 m   230.7 m   6.1 m (20.0 ft)     5.1  (0.15)    Lower #2

KL-09-27   232.5 m   232.8 m   0.3 m  (1.0 ft)    92.8  (2.71)    Lower #2

KL-09-28   171.9 m   173.5 m   1.6 m  (5.3 ft)    22.9  (0.67)    Lower #2

KL-09-29   281.1 m   284.2 m   3.1 m (10.2 ft)    44.9  (1.31)    Lower #2

KL-09-42   241.1 m   243.4 m   2.3 m  (7.6 ft)    19.2  (0.56)    Lower #2


GC-09-005  343.3 m   344.5 m   1.2 m  (4.0 ft)     4.1  (0.12)    Lower #3

GC-09-006  358.8 m   361.5 m   2.7 m  (8.9 ft)    13.0  (0.38)    Lower #3


KL-09-14   133.2 m   134.2 m   1.0 m  (3.3 ft)    13.0  (0.38)    Upper #1

KL-09-15   147.6 m   149.7 m   2.1 m  (6.9 ft)     3.4  (0.10)    Upper #1

KL-09-16   126.6 m   127.3 m   0.7 m  (2.3 ft)     4.1  (0.12)    Upper #1

KL-09-17   141.4 m   143.0 m   1.6 m  (5.3 ft)     2.7  (0.08)    Upper #1

KL-09-19   198.3 m   199.3 m   1.0 m  (3.3 ft)     5.5  (0.16)    Upper #1

The L-13 area is the third high grade discovery made within the past 18 months using a geological targeting model that has identified a repetitive structural pattern. The first zone, the Hinge Zone discovered in April 2008, is now entering production following a successful bulk sampling program completed in July 2009, the second is the Cohiba zone located 500 meters to the east of the Hinge zone (see press releases dated Sept 9 and June 11, 2009). Several additional nearby targets have been located using the same structural model and are being drilled or are scheduled to be drilled over the next few months. An estimated 10 to 20 kilometers of San Gold lands containing identical proposed structures remain unexplored to date. San Gold staff have designed exploration and development drifts from the existing Hinge decline in order to access the Cohiba zone as well as to access the L-13 zones, and additionally to join the Hinge decline with the upper levels of the Rice Lake mine. This new underground development will allow independent access to the upper levels of the Rice Lake mine, which contain numerous targets that were identified by previous operators. Synergies with regards to exploration, ventilation, emergency escape ways, and ore haulage are also being considered between Rice Lake and surrounding zones as a result of the L-13 discovery. The currently known Hinge, Cohiba and L-13 zones are all located to the north-east of San Gold's operating Rice Lake and mine and mill, and are fully accessible by San Gold's private road, and all lie within San Gold's fully permitted mine lease.

Location plans and a generalized longitudinal section as well as existing and planned development are available in the graphical version of this press release at San Gold's website: www.sangoldcorp.com.

This program was carried out under the supervision of W.S. Ferreira, P.Geo., and D. Ginn, P.Geo., the Qualified Persons for this project under National Instrument 43-101. Exploration drill core is 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. San Gold's quality control and assurance program includes the insertion of 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.

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