SOURCE: San Gold Corporation

San Gold Corporation

August 25, 2009 08:40 ET

Rice Lake Mine Deep Drilling Yields Multiple Significant High Grade Gold Zones

BISSETT, MB--(Marketwire - August 25, 2009) - Dale Ginn, CEO of San Gold Corporation (TSX-V: SGR), is pleased to report that ongoing definition and exploration drilling continues to confirm and explore numerous targets within the Rice Lake mine including a new extension of the high grade "98" vein and new discoveries above the 26th level. Drill hole #28-09-15 cut 44 g/tonne (1.3 oz/ton) over 5.9 meters (19 ft) extending the 98 vein extensively to the west at the newly developed 28th level. This intersection included two high grade segments grading 130 g/tonne (3.8 oz/ton) over 1.0 m and 77 g/tonne (2.3 oz/ton) over 1.6 m containing coarse visible gold. Drill hole #26-09-34 discovered multiple new zones in undeveloped and unexplored areas above the 26th level. Drilling began to extend and define the undeveloped Deep East zones, while the main zones -- 96, A and C, continued to display excellent continuity, grades and width to depth.

Forty-four intersections are reported within thirty-two drill holes sorted by zone as tabulated below:

                                                   Gold g/tonne      Zone/
Hole #       From (m)  To (m)    Length m (ft)       (oz/ton)        Lens
             -------- -------- ----------------- ----------------- --------
26-09-34        162.2    166.7      4.5     14.8     16.2     0.47      new
and             177.4    180.5      3.1     10.3      6.3     0.18      new
and             184.3    187.0      2.7      8.9     12.3     0.36      new

28-09-08         57.2     58.0      0.9      2.8     25.7     0.75   98 ext
28-09-15         74.9     80.8      5.9     19.3     43.8     1.28   98 ext
including        74.9     75.9      1.0      3.3    129.8     3.79   98 ext
and              79.2     80.8      1.6      5.3     77.4     2.26   98 ext

455-09-001       48.8     51.2      2.5      8.1     16.4     0.48       96
455-09-006       50.1     59.7      9.5     31.2     13.0     0.38       96
455-09-007       38.0     39.7      1.7      5.6      7.2     0.21       96
455-09-010       56.4     65.6      9.1     29.9      8.2     0.24       96
455-09-016       43.2     44.4      1.2      4.0     13.4     0.39       96
455-09-018       67.9     71.4      3.5     11.6     22.0     0.64       96
455-09-019       53.1     56.7      3.6     11.8     10.3     0.30       96
455-09-020        8.4      9.2      0.8      2.6     34.2     1.00        A
and              45.1     46.3      1.2      4.0     19.9     0.58       96
455-09-029       42.6     46.8      4.2     13.9     13.5     0.39       96
455-09-030       27.8     31.8      4.0     13.0      4.9     0.14       96
455-09-033       41.2     45.6      4.4     14.4     18.5     0.54       96
455-09-037        1.8      4.6      2.7      9.0      6.2     0.18        A
455-09-038       10.4     11.6      1.2      3.8     47.6     1.39        A
455-09-039       23.8     25.2      1.4      4.5     12.3     0.36        A
455-09-041       32.9     35.1      2.2      7.2     15.4     0.45       96
455-09-043       76.2     80.8      4.6     15.0     11.6     0.34       96
455-09-044       34.7     39.7      5.0     16.4      7.5     0.22       96
455-09-046       41.9     43.3      1.4      4.6     44.2     1.29       96
and              46.5     51.0      4.4     14.5      9.9     0.29        C
and             157.0    161.5      4.5     14.8      4.8     0.14      new
455-09-048       45.7     47.2      1.5      5.0     27.7     0.81       96
455-09-049       61.0     65.5      4.5     14.9      4.1     0.12       96
455-09-050       41.1     43.3      2.1      6.9      9.3     0.27       96
455-09-051       37.7     40.3      2.7      8.7      6.5     0.19       96
455-09-052       91.9     93.1      1.2      3.9     18.8     0.55       96
460-08-52        33.7     39.2      5.5     18.0     11.3     0.33       96
498-08-53        31.0     39.2      8.1     26.7     10.6     0.31       96

498-08-35        55.5     57.0      1.6      5.1     19.9     0.58       DE
498-08-36A      123.1    132.4      9.3     30.5      4.5     0.13       DE
and             136.9    142.3      5.3     17.5      5.1     0.15       DE
and             204.4    207.3      2.9      9.5      8.6     0.25       DE
and             214.3    216.0      1.6      5.4     19.2     0.56       DE
and             223.3    225.7      2.4      7.8      8.6     0.25       DE
498-08-37        72.0     75.8      3.8     12.6      5.5     0.16       DE
and              79.4     80.8      1.5      4.8     17.1     0.50       DE
498-08-38        33.5     36.7      3.2     10.4     11.0     0.32       DE

Dale Ginn, CEO, stated, "Recent attention has justifiably focused on the new high grade Hinge and Cohiba Zones in the hanging wall volcanic rocks near surface. However, our aggressive search for large, deep zones at depth is paying off as we focus our drills on new high grade targets accessible from Rice Lake Mine workings. Our growing database of drill holes and application of our new and successful structural model will allow us to redefine the Rice Lake mine along strike, downward, upward and, possibly, well into the hanging wall volcanics. Understanding of the hinge-like high grade mineralization which has been encountered from deep mine drill stations will be followed up with longer and deeper drilling from newly established stations from within Rice Lake."

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.

The above program was carried out by mine geologists under the supervision of D. Ginn, P.Geo., the Qualified Person for San Gold under National Instrument 43-101. Underground 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 blanks and 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

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