SOURCE: San Gold Corporation

September 06, 2007 10:36 ET

Drilling Confirms New Geological Model at Rice Lake - 31 g/tonne Over 6.5 m in New Zone

BISSETT, MB--(Marketwire - September 6, 2007) - Dale Ginn, CEO of San Gold Corporation (TSX-V: SGR) (PINKSHEETS: SGRCF) is pleased to report that drilling from the 32nd level (4800 ft deep) of the Rice Lake gold mine has resulted in the discovery of multiple significant new zones as highlighted by hole #32-07-05 which intersected 30.7 g/tonne (0.90 oz/ton) over a width of 6.5 meters (21.3 feet). 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)
------      ----         --             ------       --------------------

32-07-01    4.1 m       6.6 m      2.5 m   (8.0 ft)     7.1    (0.21)
and        29.9 m      30.5 m      0.6 m   (2.0 ft)    59.4    (1.74)

32-07-02  111.4 m     112.8 m      1.4 m   (4.6 ft)    13.8    (0.40)

32-07-03   no significant values

32-07-04   58.9 m      61.4 m      2.5 m   (8.2 ft)     4.4    (0.13)
and        70.0 m      72.1 m      2.1 m   (6.9 ft)     4.8    (0.14)

32-07-05   81.1 m      87.6 m      6.5 m  (21.3 ft)    30.7    (0.90)

32-07-06   57.9 m      60.5 m      2.6 m   (8.5 ft)    12.3    (0.36)

32-07-28   33.6 m      34.9 m      1.3 m   (4.3 ft)    24.1    (0.70)
and        72.5 m      73.2 m      0.7 m   (2.3 ft)    65.7    (1.92)
and        79.3 m      81.9 m      2.6 m   (8.5 ft)    48.8    (1.42)
within     77.1 m      81.9 m      4.8 m  (15.8 ft)    28.5    (0.83)

32-07-31   10.2 m      12.0 m      1.8 m   (5.9 ft)     8.4    (0.24)
and        38.2 m      42.2 m      4.0 m  (13.1 ft)    15.2    (0.44)
and        98.2 m     100.0 m      1.8 m   (5.9 ft)    19.6    (0.57)

The location and accessibility of the new zones is very significant for future exploration and production. All of the above listed intersections are located within 100 meters of the lower shaft ("D" shaft") and its ore loading infrastructure resulting in very low haulage distances and access time to develop and mine the new high grade material.

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 (600ft) 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.

The Phase 2 drill program at the Rice Lake mine continues and results will be announced as they become available.

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

This program was carried out under the supervision of D. Ginn, 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 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.

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

    investor information
    1-800-321-8564
    www.sangoldcorp.com