SOURCE: San Gold Corporation

June 11, 2007 11:12 ET

Rice Lake Deep Drilling Yields Substantial Width and Grade

BISSETT, MB--(Marketwire - June 11, 2007) - Dale Ginn, CEO of San Gold Corporation (TSX-V: SGR), is pleased to announce further results from underground drilling below the 5300 foot level on its new gold bearing breccia veins below the Rice Lake Gold Mine. Hole # 473-06-25 encountered an intersection of substantial width and grade in the "A" vein grading 12.4 g/tonne (0.36 oz/ton) over a length of 30.3 meters (99.4 feet). Available results are tabulated below:

Hole #    From       To       Length        Gold g/tonne
                                              (oz/ton)

473-06-25  15.0 m  45.3 m  30.3 m (99.4 ft)  12.4 (0.36)
and        58.0 m  60.1 m   2.1 m  (6.9 ft)  12.0 (0.35)

473-06-24  12.1 m  18.0 m   5.9 m (19.4 ft)   6.9 (0.20)
and        28.1 m  34.3 m   6.2 m (20.3 ft)   5.1 (0.15)
and        37.3 m  40.4 m   3.1 m (10.2 ft    6.2 (0.18)
and        49.8 m  52.7 m   2.9 m  (9.5 ft)  11.4 (0.33)
The "A" vein is a "38" or breccia style vein which strikes parallel to the mine host gabbro unit and dips vertically and is open to depth. Drilling on this vein and others below the 5300 foot level continues with new holes of lengths greater than 1000 feet underway. So called "breccia" or "38" style veins have been encountered before and mined at higher levels in the Rice Lake mine. In fact, breccia veins have been responsible for about 54% of the gold production of the Rice Lake mine with individual breccia veins producing over one million tons of ore at grades of 0.30 oz/ton (10.3 g/tonne), (ACA Howe, 2004, 2007). A short pictorial collection of breccia vein photos and data is available in the What's New section at sangoldcorp.com

The greater widths, consistency and grades recently encountered at depth in combination with the newly developing high grade (greater than 1.0 oz/ton) veins from the 28th, 29th and 30th levels are anticipated to positively alter the company's current production plan and mineral resource base. The recent findings will also necessitate completion of a new mineral resource and reserve estimate as soon as the required consulting personnel are available.

This program was carried out under the supervision of D. Ginn, P.Geo., the Qualified Persons 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

    or

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