SOURCE: San Gold Corporation

San Gold Corporation

October 20, 2009 07:15 ET

Rice Lake Mine Deep Drilling Discovers New High Grade West Zone

BISSETT, MB--(Marketwire - October 20, 2009) - Dale Ginn, CEO of San Gold Corporation (TSX-V: SGR) is pleased to report that underground exploration drilling has discovered a new high grade gold zone (Deep West) located to the west of currently known mineralization within the Rice Lake Mine below the 5,500 ft level. Drill hole #455-09-055 encountered 86 g/tonne (2.6 oz/ton) over 2.7 meters (9 ft) including an extremely high grade section of 208 g/tonne (6.1 oz/ton) over 0.9 meters (3 ft). Hole #61 is the second hole of a of a deep drilling program designed to look for hinge axis and intersecting hinge structures below the Rice Lake mine, as well as for possible repeating Mine Unit rocks similar to the Rice Lake mine unit. This hole intersected a near to massive sulphide unit, mainly pyrite with minor chalcopyrite, grading 13 g/tonne (0.37 oz/ton) gold over 4.0 meters (13 ft) within a broader zone of mineralized quartz-carbonate-chlorite alteration extending beyond the Mine Diabase host unit into the surrounding intermediate volcanic rocks. This type of gold mineralization and sulphide concentration is unique and has not been observed to date by San Gold staff, nor has it been recorded by previous mine operators dating back to the 1930s. Drilling of hole #455-09-61 has not yet been completed with only the results from the upper portion reported so far.

New Deep West drill hole results received to date are tabulated below:

Hole #     From (m)  To (m)  Length m (ft)  Gold g/tonne (oz/ton) Zone/Lens


455-09-054  31.8 m  34.9 m   3.1 m (10.2 ft)     30.3 (0.88)      Deep West

455-09-055  73.4 m  76.1 m   2.7 m  (8.9 ft)     86.1 (2.59)      Deep West
including   73.4 m  74.3 m   0.9 m  (3.0 ft)    208.2 (6.08)      Deep West

455-09-057  24.3 m  30.0 m   5.7 m (18.7 ft)     26.7 (0.78)      Deep West
including   24.9 m  28.8 m   3.9 m (12.8 ft)     35.6 (1.04)      Deep West

455-09-061  66.0 m  78.0 m  12.0 m (39.4 ft)      5.2 (0.15)      Deep West
including   76.2 m  78.0 m   1.8 m  (6.0 ft)     14.0 (0.41)      Deep West

and        100.7 m 107.6 m   6.9 m (22.6 ft)     11.3 (0.33)      Deep West

sulphide
 zone      102.7 m 106.7 m   4.0 m (13.2 ft)     12.8 (0.37)      Deep West
Assays pending below 107.6 m

Dale Ginn, CEO, stated: "The Deep West zones are nearby existing mine workings, are much higher grade than the historical Rice Lake average and will be developed in the near term. The deep exploration program is already showing signs of large and strong alteration systems and potential hosting structure beyond known mineralization and rock types. We are extremely encouraged by these results so far and will continue to aggressively explore below the Rice Lake mine both inside and outside of the mine host unit."

Sections showing the current drilling programs within the Rice Lake Mine, Hinge Mine and surface exploration are available at the company'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. Definition drill core samples are assayed on site in the company's assay lab using the fire assay method with an AA and gravimetric finish. 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