SOURCE: San Gold Corporation

February 19, 2009 08:48 ET

San Gold Corporation: Ongoing Drilling Defines and Extends the High Grade Hinge Zone

BISSETT, MB--(Marketwire - February 19, 2009) - Dale Ginn, CEO of San Gold Corporation (TSX-V: SGR), is pleased to report that ongoing surface drilling continues to both define and extend the newly discovered Hinge #4 zone along strike to the east and to the west. Hole # GS-09-27 encountered 28 g/tonne (0.82 oz/ton) gold over 8.2 meters (27 ft) including a higher grade intersection of 101 g/tonne (2.94 oz/ton) gold over 2.0 meters (6.6 ft) at a vertical depth of 110 meters near the elevation intended to be developed first by the ongoing decline ramp access. Over 700 meters (2300 ft) of decline access has been completed to date, with less than week of access development remaining before reaching the first ore levels. Hole #s GS-08-101, GS-08-103 and GS-08-107 extended the Hinge zone along strike to the east, while hole #s GS-09-15 and GS-09-17 extended the Hinge zone along strike to the west. All of the holes listed below contain visible gold and pyrite within quartz veins that are in clear, sharp contact with the host volcanic rocks, as well, core recoveries were nearly 100%.

Results from the new holes are tabulated below:

                                                          Gold g/tonne
Hole #            From         To          Length           (oz/ton)
------           -------    -------    --------------     ------------
Definition holes
----------------
GS-09-13         136.9 m    140.2 m    3.3 m (10.8 ft)      11.3 (0.33)

GS-09-15         106.9 m    110.3 m    3.4 m (10.9 ft)      40.2 (1.18)

GS-09-17         105.6 m    107.5 m    2.1 m  (6.9 ft)      31.3 (0.91)

GS-09-25         170.3 m    173.0 m    2.7 m  (8.9 ft)       6.2 (0.18)

GS-09-27         124.0 m    132.2 m    8.2 m (27.0 ft)      28.1 (0.82)

including        124.9 m    126.9 m    2.0 m  (6.6 ft)     100.7 (2.94)

GS-09-29         140.0 m    141.3 m    1.3 m  (4.3 ft)     133.9 (3.91)

Exploration holes
-----------------
GS-08-96         330.7 m    333.8 m    3.1 m (10.0 ft)      13.0 (0.38)

GS-08-101        146.0 m    149.0 m    3.0 m  (9.6 ft)      12.3 (0.36)

and              205.1 m    205.4 m    0.3 m  (1.0 ft)      38.7 (1.13)

GS-08-103        150.0 m    152.0 m    2.0 m  (6.6 ft)      14.7 (0.43)

GS-08-107        174.5 m    175.9 m    1.4 m  (4.6 ft)      66.5 (1.94)

and              196.8 m    201.2 m    4.4 m (14.4 ft)      11.3 (0.33)

The Hinge #4 zone has now been drill tested between section 0 east and 800 east (feet), (250 m) and to depths of over 1,200 feet (400 m) demonstrating excellent continuity in both structure and grade. This zone remains open along strike to the north-east and to the south-west as well as at depth. Two drill rigs continue to define the known Hinge zones, a third rig is searching for parallel veins to the north and a fourth rig has commenced drilling on the next hinge-like target located approximately 1 kilometer to the east of the hinge zones. The 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 road. The entrance to the Hinge Zone access decline is located approximately 300 meters northeast of the Rice Lake mill. The Hinge zone decline access is currently within one week of intersecting the first ore body at the 350 foot level, where ore development and bulk sampling is set to begin in preparation for mining.

Please see the San Gold website (www.sangoldcorp.com) for a longitudinal section showing the location of the new drill hole intersections in the Hinge #4 zone. Additionally, three dimensional and cross sectional drill hole data of the Hinge Zone mineralization will be made available at http://www.corebox.net/properties/rice_lake/.

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. The exploration drill core was 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 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