San Gold Corporation
TSX VENTURE : SGR

San Gold Corporation

November 01, 2006 08:30 ET

San Gold Develops High Grade "98" Vein at Rice Lake

BISSETT, MB--(CCNMatthews - November 01, 2006) - Dale Ginn, President of San Gold Corporation (TSX-V: SGR) is pleased to report that mining development on the 29th level (4400 feet) of the Rice Lake Gold Mine has identified significantly higher grade gold values than anticipated. Face sampling of the drift and raise development along the "98" Vein has resulted in an average diluted grade of 1.04 oz/ton (35.60 g/tonne) over a strike length of 300 feet (91.5 m) and an average true width of 6 feet (1.8 m). Coarse, visible gold was commonplace throughout the development of this block of the "98" vein.

The mine development of the "98" Vein on 29 level is considered to be significant in that it indicates that the large Rice Lake gold mine and area hold the potential for additional significant high grade discoveries in areas that are currently serviced by underground access infrastructure.

The "98" Vein was estimated, based on prior drilling and limited development, to contain 100,000 tons of 0.35 oz/ton in the measured and indicated mineral resource category (ACA Howe, 2004). This vein is a shear hosted tabular quartz vein located at the easternmost edge of development on the 29th level (4400 feet) and was identified and partially developed in the 1960's. Recently, over 300 feet of lateral and raise development were undertaken to date on this vein by San Gold in preparation for production mining. 60 faces were sampled and 320 chip samples were assayed for gold with values ranging from 0.01 oz/ton to 7.99 oz/ton.

The above programs were carried out under the supervision of W. S. Ferreira, M.Sc., P.Geo., and D. Ginn, P.Geo., the Qualified Persons for San Gold under National Instrument 43-101. Chip, muck and mill 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.

For further information contact Dale Ginn, President of San Gold Corporation, at (204) 794-5818 or visit the company's website at www.sangoldcorp.com.

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


Contact Information

  • San Gold Corporation
    Bissett, Manitoba, Canada R0E 0J0
    Tel.: +1.204.794.5818
    Fax: +1.807.543.2435 (FAX)
    info@sangoldcorp.com