SOURCE: San Gold Corporation

June 18, 2008 09:34 ET

Hinge Zone Displays High Grades and Excellent Width at Depth With Hole #37

BISSETT, MB--(Marketwire - June 18, 2008) - Dale Ginn, CEO of San Gold Corporation (TSX-V: SGR), is pleased to report that drill hole #GS-08-37, designed to test and to extend the Hinge deposit to depth encountered 16.8 g/tonne (0.49 oz/ton) over 16.6 meters (54.3 ft) including a high grade interval of 48.4 g/tonne (1.41 oz/ton) over 4.3 meters (14.0 ft). Hole #37 represents the deepest drill hole in the Hinge deposit to date. Results from drill hole # GS-08-37 are summarized below:

Hole #     From       To         Length      Gold g/tonne(oz/ton)  Zone
--------  -------   -------  ---------------  ------------------   -----
GS-08-37  383.3 m   399.9 m  16.6 m (54.3 ft)    16.8 (0.49)      Hinge #4

including 383.3 m   387.6 m  4.3 m  (14.0 ft)    48.4 (1.41)      Hinge #4

This intersection is located approximately 365 meters (1200 feet) below surface and 215 meters (700 feet) below previously released drill hole #GS-08-25 (see press release dated June 10) which intersected 28.0 g/tonne (0.82 oz/ton) over 9.4 meters (30.8 ft). The intersection angle between drill hole #37, collared on section 400E and the Hinge #4 zone are between 75 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.

Dale Ginn, CEO of San Gold, noted, "The first nine holes drilled in 2008 on the Hinge #4 zone have a basic average width of 5.6 meters and a grade of 32 grams per tonne between surface and 400 meters deep. Hinge zone #1 and #3 as well are quite significant parallel zones to the south. To discover a mineralized system, especially with such high grades, near surface, on our mining lease and so close to our existing operations is not only remarkable but also clearly demonstrates the potential of the Rice Lake Belt. Our exploration team has identified numerous drill targets nearby which have identical structure, geology and even evidence of past workings from the 1920s and 1930s. It is becoming quite obvious that the new Hinge deposits have the potential to add significant ounces to our resource base, to accelerate our production profile, and to redefine San Gold."

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 400 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.

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