SOURCE: San Gold Corporation

September 09, 2010 07:15 ET

San Gold Extends 007 to Depth and Along Strike Nearing Emperor Zone

BISSETT, MB--(Marketwire - September 9, 2010) -  Dale Ginn, CEO of San Gold Corporation (TSX-V: SGR), is pleased to report that exploration drilling is extending the 007 Zone to depth and along strike towards the Emperor Zone. Drill hole # CD-10-042 yielded 32 g/tonne (0.93 oz/ton) over 4.8 meters (15.8 ft) at a depth of 415 meters (1,360 ft) below surface within the main trend of the 007 deposit. Drill hole # CD-10-087 located over 100 meters (330 ft) to the east of hole 42 intersected 5.9 meters (19 ft) of 10.3 g/tonne (0.30 oz/ton) and is the most easterly hole drilled on the 007 deposit to date. This hole, as well as hole # CD-10-44, extends the 007 zone along strike to within 150 meters (500 ft) of the known western limits of the recently discovered Emperor Zone (see press release dated August 11, 2010). The combined strike length of the 007 and Emperor Zones is currently over 500 meters long as demonstrated by drilling to date. Near surface or upper extension results continue to impress as highlighted by drill hole # CD-10-99 which cut 32.9 g/tonne (0.96 oz/ton) over 1.9 meters (6.2 ft). Drill hole # CD-10-091 has been corrected for grade at 61 g/tonne (1.78 oz/ton) versus the incorrect grade listed at 53.1 g/tonne (1.55 oz/ton) in the press release dated July 19, 2010. A summary of the current round of drill results is contained within the following table, as well, a detailed longitudinal section showing all results received to date are available on the company's website. Ten intersections are reported within nine drill holes as tabulated below:

Hole #   From (m)   To (m)   Length m (ft)   Gold g/tonne (oz/ton)   Zone/Lens
                         
Lower and Strike Extension       
                         
CD-10-091   307.7   317.3   9.6 31.5   61.0 1.78   007 HGC
                         
CD-10-014   320.1   323.1   3.0 9.8   21.6 0.63   007 East
                         
CD-10-042   435.5   440.3   4.8 15.8   32.0 0.93   007 HGC
                         
CD-10-044   357.1   360.8   3.7 12.1   6.5 0.19   007 East
                         
CD-10-046   408.4   410.8   2.4 7.9   3.4 0.10   007 East
                         
CD-10-083   459.1   461.5   2.4 7.9   6.5 0.19   007 Upper
And   505.5   506.7   1.2 3.9   15.1 0.44   007 Lower
                         
CD-10-087   450.3   456.2   5.9 19.3   10.3 0.30   007 East
                         
Upper Extension       
                         
CD-10-099   175.9   177.8   1.9 6.2   32.9 0.96   007 HGC
                         
CD-10-117   163.0   165.0   2.0 6.6   17.5 0.51   007 HGC

Initial underground development is on schedule and has accessed the 007 zone at the 240 meter (800 ft) elevation at the west end of the deposit. Over 120 meters (400 ft) of this zone has been developed at this elevation to date. New levels are being established above and below this elevation in preparation for test mining and bulk sampling. As well, the surface area above the zone is currently being prepared for an independent decline access set to begin over the next two weeks. This decline will be used to access the 007 deposit, to initially explore and develop the Cohiba deposit and to further explore the Emperor zone and historic Wingold deposit. The 007 zone is located approximately 2 kms to the north-east of San Gold's operating Rice Lake mine and mill, is fully accessible by road and is accessible from the Hinge Mine decline. The 007 zone was initially discovered by San Gold geologists in November, 2009 and mine development towards the zone began early in 2010 originating from the Hinge Mine.

Surface exploration and infill drilling is currently being conducted by three rigs on the 007 zone, one defining and extending the upper elevations towards surface, one drilling infill holes in and around the area currently being accessed and bulk sampled, and one drilling deep holes below 400 meters. Two other surface drill rigs are turning on the Emperor zone located 500 meters east of the 007 zone and on the Murphy target located 500 meters south of the Hinge Mine.

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