SOURCE: San Gold Corporation

April 21, 2008 08:31 ET

San Gold Discovers Fourth New High Grade Hinge Vein

BISSETT, MB--(Marketwire - April 21, 2008) - Dale Ginn, CEO of San Gold Corporation (TSX-V: SGR), is pleased to report that exploration drilling in the Hinge Zone area has discovered a new high grade gold bearing vein (Hinge #4) to the north and parallel to the previously discovered zones. Hole #GS-08-17, drilled in a south-east direction on section 300E, encountered 1.5 meters of 60.6 g/tonne in this new vein as well as multiple deeper "breccia vein" intersections. Results from this hole as well as the remaining holes drilled on this section line are tabulated below:

Hole #    From     To        Length         Gold g/tonne (oz/ton)    Zone

GS-08-15 136.2 m 140.6 m  4.4 m (14.4 ft)  7.5 (0.22) visible gold Hinge #4

GS-08-17 149.9 m 151.5 m  1.6 m (5.3 ft)  60.6 (1.77) visible gold Hinge #4

and      210.0 m 217.0 m  7.0 m (23.0 ft)  4.8 (0.14)              breccia

and      315.8 m 318.7 m  2.9 m (9.5 ft)   5.8 (0.17)              breccia

GS-08-19 347.5 m 349.3 m  1.8 m (6.0 ft)   9.9 (0.29)              Hinge #4

The section lines run north-west to south-east and are 100 feet (30 meters) apart. This new zone has been drilled as well on section 400E (3 holes: GS-08-23, 25 and 27) and 500E (3 holes: GS-08-29, 31 and 33) and has encountered the new zone with strong mineralization including visible gold in each hole. The holes drilled on section 500E encountered significant widths of between 20 and 30 feet (6 to 10 meters) with numerous occurrences of visible gold recorded throughout the intersections. Assays are pending on these holes and will be made available upon receipt. Hole # GS-07-28 drilled from section 000E previously encountered this zone (see press release dated February 19, 2008) with an intersection of 2.3 meters of 20.1 g/tonne, which gives the Hinge #4 zone a drilled strike length of 500 feet (150 meters) to date. This zone remains open along strike to the north-east and to the south-west as well as at depth.

To date a total of at least 4 sub parallel new veins have been discovered in the Hinge area, as well as numerous uncorrelated breccia zones within 100 to 300 meters of surface. Two diamond drills are currently drilling in the Hinge area.

Please see press releases dated January 15th, 2008 and February 19th, 2008 for the first posted results of the Hinge zones discovered to the south. The new zones are roughly parallel, dip to the north-west and are made up of quartz and carbonate veins containing gold mineralization. The volcanic units which contain the new veins are located in a sequence of rocks which lie approximately 1500 meters into the hanging wall stratigraphically above and geographically to the north of the mineralized mine unit of the Rice Lake Gold Mine. The new 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.

Please see the San Gold website (www.sangoldcorp.com) for a plan view location map and cross-sectional view of this new discovery as well as selected pictures of drill core intersections.

This program was carried out under the supervision of W.S. Ferreira, P.Geo., the Qualified Person for this project under National Instrument 43-101. The drill core was split, with half sent to TSL Laboratories in Saskatoon, SK and fire assayed with an AA and gravimetric finish. Whole metallics were performed on samples containing visible gold. Check assays were also performed on pulps and rejects by both TSL and by 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.

Contact Information

  • For further information contact:
    Dale Ginn
    CEO
    San Gold Corporation
    (204) 794-5818
    or
    Investor Information
    1-800-321-8564
    visit www.sangoldcorp.com