SOURCE: San Gold Corporation

April 10, 2006 13:02 ET

San Gold Drilling Extends New Gold Zone Westward

BISSETT, MB -- (MARKET WIRE) -- April 10, 2006 -- Mr. Dale Ginn, President, reports:

San Gold Corporation (TSX-V: SGR) is pleased to announce further results from the continuing drill program located one kilometer west of San Gold's Rice Lake Gold Mine. All of the drilling on this new discovery to date has taken place above 150 meters (500 ft) in depth and is located between 1.0 km and 1.2 km west of the currently operating Rice Lake Gold Mine shaft. The results listed below are in addition to the discovery hole CW-06-01 which returned 21 g/tonne (0.61 oz/ton) over 3.4 meters (11.0 ft) as reported in the company's press release of March 21st, 2006.

Hole #      From     To        Length        Gold g/tonne (oz/ton)
------      ----     --        ------        ---------------------
CW-06-02  165.8 m  166.3 m  0.5 m  (1.6 ft)  42.5  (1.24)

CW-06-03  112.5 m  166.3 m  1.1 m  (3.5 ft)  12.7  (0.37)
and       146.2 m  146.8 m  0.6 m  (2.0 ft)  11.6  (0.34)

CW-06-04  159.6 m  161.1 m  1.5 m  (5.0 ft)   3.8  (0.11)  Visible gold
                                                            observed

CW-06-05  171.5 m  173.0 m  1.5 m  (5.0 ft)   6.2  (0.18)

CW-06-06  178.8 m  180.3 m  1.5 m  (5.0 ft)   4.8  (0.14)

CW-06-07  180.6 m  182.2 m  1.6 m  (5.4 ft)   4.5  (0.13)  Visible gold
                                                            observed
and       204.8 m  205.3 m  0.5 m  (1.6 ft)  19.2  (0.56)

CW-06-08  182.2 m  184.0 m  1.8 m  (6.0 ft)   9.3  (0.27)
The mineralized veins as represented by the above intersections consist of pyrite and free gold within quartz veining, all contained within the mine horizon or mafic "SAM" unit and is identical to the Rice Lake Gold Mine. This horizon is open to the west and at depth and contains very limited exploration and development within the one kilometer to the east, between the Rice Lake Gold Mine and this discovery. The Rice Lake Gold Mine has produced 1.5 million ounces of gold to date and is currently being mined between 4500 and 5500 foot depths. This new mineralization is within San Gold's current fully permitted mineral lease and is fully accessible from the third level (450 ft) of the Rice Lake Gold Mine. San Gold continues to explore this horizon in all directions and at depth with two drill rigs and company engineers are considering development and mining options in order to provide rapid access.

San Gold management considers this new mineralization to be extremely significant and consistent with its strategy of feeding its centrally located mill with numerous gold deposits, providing flexibility and efficiency.

This program was carried out under the supervision of W. S. Ferreira, M.Sc., P.Geo., and D. Ginn, P.Geo., the Qualified Persons 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 selected samples. Check assays were also performed on pulps and rejects by both TSL and by Accurassay Laboratories of Thunder Bay, ON.

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

Contact Information

  • For further information contact:
    Dale Ginn
    President of San Gold Corporation
    (204) 794-5818
    www.sangoldcorp.com