SOURCE: San Gold Corporation

March 11, 2008 08:15 ET

San Gold Corporation Acquires Strategic Gold Property in Timmins

BISSETT, MB--(Marketwire - March 11, 2008) - Mr. Dale Ginn, Chief Executive Officer of San Gold Corporation (the "Corporation") (TSX-V: SGR) (www.sangoldcorp.com) announces that the Corporation has seized a rare opportunity to acquire a prospective and strategic position at the centre of one of the world's most outstanding gold camps, the Porcupine gold camp at Timmins, Ontario. This acquisition complements San Gold's strategy of organic growth and aggressive exploration in Manitoba's Rice Lake gold belt, together with selective acquisition of high-grade lode gold vein exploration properties in recognized gold camps.

San Gold has entered into an option agreement (the "Option Agreement") with certain persons (the "Optionors") to acquire the mineral rights to 25 patented consecutive gold mining claims described as the "Dalton Property" located near Timmins, Ontario next to the Moneta Mine and close to the Hollinger, Schumaker and McIntyre Mines. The surface rights to the patented claims may be acquired at San Gold's option for fair market value. In order to exercise its option to acquire the Dalton Property, the Corporation is required to make certain payments and share issuances to the Optionors over the next two years. Additionally, the Corporation is required to incur specified exploration expenditures on the Dalton Property over the next three years. The Corporation has agreed to issue common shares of the Corporation to a finder in consideration for his services in assisting the Corporation with respect to the Option Agreement. The acquisition of the Dalton Claims is subject to the final approval of the TSX Venture Exchange.

The Dalton property, covering approximately 375 hectares, is located in Mountjoy and Ogden townships, adjacent to the southwest boundary of the City of Timmins, Ontario and adjacent to claims held by Goldcorp that were formerly part of the Placer-Kinross Porcupine Joint Venture. The Dalton claims lie at the heart of the Porcupine gold camp in the Archean-age Abitibi greenstone belt that has a total historic gold production in excess of 62 million ounces of gold. The deposits along the belt typically occur in vertically extensive quartz-carbonate lode systems hosted in volcanic and sedimentary units that have been metamorphosed into greenschist facies rock assemblages. The gold deposits have been found to occur in a corridor up to 10km wide parallel to the Porcupine Destor Fault Zone (PDFZ) that extends for a length of 200km. Within the Porcupine gold camp, the gold deposits generally occur within 5km of the PDFZ. The Dalton property lies between 1.5km and 3.5km north of the PDFZ. The Dalton property contains two distinct rock packages, the younger Temiskaming Group consisting of conglomerates, turbidites, greywackes and slates that are in unconformable contact with the underlying Tisdale basic volcanic rocks, the later being hosts to many of the gold deposits in the Porcupine gold camp.

Surprisingly, the Dalton property appears to have never been explored. Jack Dalton, one of the original inhabitants of Timmins ran a livery stable and later formed Dalton Bus Lines, also acted as a grubstaker for local prospectors. The property has been held intact for over 80 years without any record of mineral exploration. San Gold is currently compiling geological information for an aggressive 2008 exploration program. The Dalton exploration program is currently being supervised by Dale Ginn, P. Geo, the Qualified person for this project. It is intended that the exploration of the Dalton project will be managed by consulting geologists with experience in the Timmins area in order to allow San Gold's geologists to concentrate on exploring the Company's projects in Manitoba's Rice Lake gold belt.

A property map is contained in the graphic version of this press release, available at www.sangoldcorp.com.

About San Gold Corporation

San Gold Corporation is a well-financed Manitoba-based gold producer and explorer. San Gold operates two gold mines at Bissett, Manitoba and is an aggressive explorer in Manitoba's Rice Lake gold belt with a 2008 exploration budget of $8 million.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • For further information contact
    Dale Ginn
    Chief Executive Officer
    San Gold Corporation
    (204) 794-5818
    1-800-321-8564