SOURCE: San Gold Corporation

September 09, 2009 08:30 ET

San Gold Cohiba Zone Extends to Depth and Along Strike

BISSETT, MB--(Marketwire - September 9, 2009) - Dale Ginn, CEO of San Gold Corporation (TSX-V: SGR) is pleased to announce that exploration drilling has extended the Cohiba zone (see discovery press release dated June 11) along strike and to depth. The Cohiba zone has not only been confirmed by a number of drill holes, but has now been extended to depths of over 200 meters so far. Hole #LM-09-28 encountered 29.2 g/tonne (0.85 oz/ton) over 2.2 meters (7.2 ft) within 100 meters of surface, with numerous other drill holes confirming continuity over a 150 meter strike length so far. As well, new footwall zones are beginning to materialize as demonstrated by holes LM-09-19 and LM-09-40. The deepest intersection to date at over 200 meters is hole #LM-09-41 which cut 12.3 g/tonne (0.36 oz/ton) over 2.4 meters (8.0 oz/ton). Drilling continues to focus on the 0.5 km information void between the Hinge #1 lens and the Cohiba zone.

Eleven intersections are reported within nine drill holes below:

                                                Gold g/
Hole #     From       To          Length         tonne  (oz/ton)   Zone
          -------   -------   --------------    ---------------   -------
LM-09-18  127.4 m   130.6 m   3.2 m (10.4 ft)      3.8   (0.11)   Cohiba

LM-09-19  113.2 m   115.7 m   2.5 m  (8.2 ft)      7.9   (0.23)   Cohiba
and       195.3 m   196.6 m   1.3 m  (4.2 ft)      8.6   (0.25)   Cohiba#2

LM-09-20   93.0 m    95.4 m   2.4 m  (7.7 ft)     13.4   (0.39)   Cohiba

LM-09-28  101.1 m   103.3 m   2.2 m  (7.2 ft)     29.2   (0.85)   Cohiba

LM-09-29  151.2 m   153.4 m   2.1 m  (6.9 ft)      4.5   (0.13)   Cohiba

LM-09-30  104.7 m   105.8 m   1.1 m  (3.6 ft)     62.7   (1.83)   Cohiba

LM-09-32  110.3 m   113.1 m   2.8 m  (9.2 ft)      9.6   (0.28)   Cohiba

LM-09-40  106.9 m   111.5 m   4.7 m (15.3 ft)     11.3   (0.33)   Cohiba
and       227.4 m   229.2 m   1.8 m  (6.0 ft)      6.2   (0.18)   Cohiba#2

LM-09-41  235.5 m   237.9 m   2.4 m  (8.0 ft)     12.3   (0.36)   Cohiba

The Cohiba zone is located approximately 0.5 kilometers to the east of the developing Hinge zones and 2 kilometers to the north east of San Gold's Rice Lake mine site and mill facility. The mineralization and geological characteristics of this new discovery are identical to the Hinge zones in every respect including the presence of abundant visible gold. Surface drilling continues to expand this deposit which is completely open along strike and to depth. The currently known Hinge 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 San Gold's private road, and all lie within San Gold's fully permitted mine lease.

Two drills have also targeted the next hinge-like axis or pathway area known as L-13 located approximately 0.5 kilometers to the west of the known Hinge zones, approximately halfway between the Rice Lake mill and the Hinge Zone. Veining and mineralization similar to the Hinge and Cohiba zones in terms of geometry and composition, including observed visible gold have now been encountered by multiple drill holes in this area. A total of 5 surface drill rigs are now turning on the L-13, Hinge, Cohiba and Emperor target areas. Assay results will be released upon receipt by San Gold.

Location plans and a generalized longitudinal section are available in the graphical version of this press release at San Gold'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. 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

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