SOURCE: San Gold Corporation

June 10, 2008 08:57 ET

Hinge #4 Zone Continues to Grow With Additional High Grade Gold at Depth

BISSETT, MB--(Marketwire - June 10, 2008) - Dale Ginn, CEO of San Gold Corporation (TSX-V: SGR) is pleased to report that assay results have been received for drill hole #GS-08-25 in the new high-grade Hinge #4 zone. Hole #25 intersected 79.0 g/tonne (2.31 oz/ton) over 3.0 meters (9.9 ft) within a broader intersection of 28.0 g/tonne (0.82 oz/ton) over 9.4 meters (30.8 ft). This intersection is located approximately 150 meters (500 feet) below surface and 50 meters (150 feet) to the west of the previously released drill holes #29, 31 and 33 (see press releases dated May 21 and May 28). Results from drill hole # GS-08-25 are summarized below:

Hole #     From               To Length         Gold g/tonne       Zone
                                                    (oz/ton)
---------  --------------    -------------     ------------      --------
GS-08-25   152.6 m  162.0 m  9.4 m (30.8 ft)   28.1 (0.82)       Hinge #4
                                                 visible gold
including  159.0 m  162.0 m  3.0 m  (9.9 ft)    79.0 (2.31)      Hinge #4
                                                 visible gold

The intersection angle between drill hole #25, collared on section 400E and the Hinge #4 zone are between 80 degrees and 90 degrees resulting in drilled widths that are very close to the true width of the zone. This zone remains open along strike to the north-east and to the south-west as well as at depth. The Hinge #4 zone has been defined above 150 meters (500 feet) by 7 drill holes to date collared from surface. A further 2 drill holes have intersected this zone to a depth of 300 meters (1000 feet). The seven drill hole intersections into the Hinge #4 zone located above 150 meters (500 feet) have defined a distinct mineralized quartz-carbonate vein approximately 150 meters (500 feet) long so far, striking north-east and dipping steeply to the north-west. A summary of the seven drill holes defining the first 150 meters (500 feet) of depth is provided below, with a corresponding vertical longitudinal section available on the company's website.

Hole #           Width          Gold g/tonne    Section          Depth
                                  (oz/ton)
---------   ---------------- ---------------   --------   ---------------
GS-08-07    1.2 m   (4.0 ft)   4.5     (0.13)     240 E    88 m   (290 ft)

GS-08-15    4.4 m  (14.4 ft)   7.5     (0.22)     250 E   105 m   (345 ft)

GS-08-17    1.6 m   (5.3 ft)  60.6     (1.77)     220 E   120 m   (390 ft)

GS-08-25    9.4 m  (30.8 ft)  28.1     (0.82)     320 E   146 m   (480 ft)
Including   3.0 m   (9.9 ft)  79.0     (2.31)

GS-08-29    4.0 m  (13.2 ft)  56.7     (1.66)     500 E    64 m   (210 ft)
and         1.8 m   (6.0 ft)  42.5     (1.24)

GS-08-31    5.4 m  (17.6 ft)  21.2     (0.62)     500 E    80 m   (260 ft)
and         1.6 m   (5.1 ft)  47.6     (1.39)

GS-08-33    6.3 m  (20.7 ft)  85.1     (2.49)     500 E   100 m   (320 ft)

The company is also encouraged by strongly mineralized veining in a broad (15 m, 50 ft) zone encountered by drill hole # GS-08-37 down dip from the Hinge #4 zone at approximately 370 meter (1200 feet) elevation on section 400 E.

The Hinge zones are roughly parallel, dip to the north-west and are made up of quartz and carbonate veins containing gold mineralization. The units that contain the new veins are located in a sequence of mafic to intermediate volcanic rocks which lie approximately 1500 meters into the hanging wall stratigraphically above and geographically to the north of the mineralized mine unit of the Rice Lake Gold Mine. To date a total of at least 4 sub parallel new veins have been discovered in the Hinge area, as well as numerous uncorrelated breccia zones within 100 to 300 meters of surface. Two diamond drills are currently drilling in the Hinge area. The new zones are located approximately 1.5 kms to the north-east of San Gold's operating Rice Lake and mine and mill, and are fully accessible by road.

Please see the San Gold website (www.sangoldcorp.com) for prior Hinge Zone press releases, a plan view location map and a longitudinal section showing the location of the intersections in the Hinge #4 zone.

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.

Contact Information

  • Contact:
    Dale Ginn
    CEO of San Gold Corporation
    (204) 794-5818

    Investor Information:
    1-800-321-8564
    www.sangoldcorp.com