SOURCE: San Gold Corporation

San Gold Corporation

October 07, 2010 09:23 ET

San Gold Discovers New Zones Below Hinge Mine

BISSETT, MB--(Marketwire - October 7, 2010) - Dale Ginn, CEO of San Gold Corporation (TSX-V: SGR) (OTCQX: SGRCF), is pleased to report that underground exploration drilling is confirming and extending additional parallel zones in the footwall side (south) and to depth at the Hinge Mine. Drilling from underground has recently focused on the L10 and L4 zones which are located to the south of the main Hinge zones currently being mined and developed. The L4 zone begins at approximately 200 meters (660 ft) below surface and is located immediately south of the lowest current operating levels of the Hinge Mine. The L10 zone begins at a lower elevation of approximately 300 meters (990 ft) below surface as highlighted by drill hole # H955-10-007 which yielded 12.7 g/tonne (0.37 oz/ton) over 11.6 meters (38.1 ft). While the L10 zone displays a higher than average width of 5.5 meters (18 ft) so far, it also contains high grade sections as demonstrated by drill hole #H985-10-030, cutting 31.5 g/tonne (0.92 oz/ton) over 2.6 meters (8.5 ft). The L10 zone is located 150 meters to the footwall (south) of the Hinge zone and has similar geological characteristics and strike direction as the 007 zone. Twenty intersections are reported within eighteen drill holes in the L10 zone as tabulated below:

Hole #   From (m)   To (m)   (m) Length (ft)   (g/tonne) Gold (oz/ton)   Zone/Lens
                         
H955-10-003   252.2   259.0   6.8 22.4   7.2 0.21   L10
                         
H955-10-004   233.7   242.4   8.7 28.6   7.5 0.22   L10
                         
H955-10-005   217.2   218.6   1.4 4.6   19.9 0.58   L10
                         
H955-10-006   226.3   233.4   7.1 23.3   6.5 0.19   L10
                         
H955-10-007   231.6   243.2   11.6 38.1   12.7 0.37   L10
                         
including   239.0   242.7   3.7 12.1   22.3 0.65   L10
                         
H955-10-009   220.2   225.8   5.6 18.4   6.5 0.19   L10
                         
H955-10-039   244.8   259.1   14.3 46.9   4.1 0.12   L10
                         
H955-10-051   245.0   251.6   6.6 21.8   8.6 0.25   L10
                         
including   249.2   251.6   2.4 7.9   16.4 0.48   L10
                         
H955-10-062   271.4   274.8   3.4 11.2   9.6 0.28   L10
                         
H955-10-064   212.9   218.2   5.3 17.4   12.0 0.35   L10
                         
H955-10-069   220.0   222.8   2.8 9.2   13.7 0.40   L10
                         
H985-10-003   272.0   278.4   6.4 21.0   6.2 0.18   L10
                       
H985-10-004   264.8   267.0   2.2 7.2   6.9 0.20   L10
                         
H985-10-007   279.9   282.2   2.3 7.6   7.5 0.22   L10
                         
H985-10-008   275.6   277.1   1.5 4.9   10.7 0.31   L10
                         
H985-10-012   274.7   276.2   1.5 4.9   8.2 0.24   L10
                         
H985-10-030   305.9   308.5   2.6 8.5   31.5 0.92   L10
                         
H96-09-096   255.4   263.0   7.6 24.9   8.2 0.24   L10

Initial drill results are pending for the L4 zone, while both the L10 and L4 zone remain open along strike in both directions as well as to depth. The drill hole intersections as listed above within the L10 zone are located between 300 meters and 450 meters in depth and over a strike length of 100 meters. The L4 zone is immediately accessible from the Hinge decline while development from the 007 decline will reach the L10 zone early in the first quarter of 2011.

Dale Ginn, CEO, stated: "It appears that the L10 zone possesses a thicker and a more consistent and orderly geometry that will be amenable to mechanized mining methods. We look forward to presenting the L4 drill results as soon as they are received and integrated into our mine planning system."

Sections, plans and diagrams related to this press release are available at the company's website www.sangold.ca, including a detailed longitudinal section displaying the results to date.

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 metallic assays 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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts 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

    Investor Relations
    1-800-321-8564