SOURCE: San Gold Corporation

February 26, 2008 14:45 ET

San Gold Phase 2 Drill Program Reveals Additional New High Grade Zone at Rice Lake Deep

BISSETT, MB--(Marketwire - February 26, 2008) - Dale Ginn, CEO of San Gold Corporation (TSX-V: SGR) is pleased to announce that the second phase of deep drilling below the working levels of the Rice Lake Mine has already resulted in the discovery of a new high grade zone in addition to extending down dip the high grade "96" vein, as highlighted by hole # 464-08-00, intersecting 5.4 meters (17.7 ft) of 31.1 g/tonne (0.91 oz/ton) gold. The newly discovered zone is highlighted by hole # 464-08-03 which intersected 2.7 meters (8.9 ft) of 31.8 g/tonne (0.93 oz/ton) gold. The first seven holes of the phase 2 program are reviewed below:

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

464-08-02   16.8 m   20.9 m   4.1 m (13.5 ft)   13.1 (0.38)       New

464-08-03   12.0 m   14.7 m   2.7 m  (8.9 ft)   31.8 (0.93)       New

464-08-04   14.7 m   18.8 m   4.1 m (13.5 ft)    6.0 (0.18)       New

464-08-00   37.3 m   42.7 m   5.4 m (17.7 ft)   31.1 (0.91)        96

464-08-05   39.9 m   43.6 m   3.7 m (12.1 ft)   23.6 (0.67)        96

464-08-06   26.5 m   32.7 m   6.2 m (20.3 ft)    5.9 (0.17)        96

464-08-07   48.6 m   52.7 m   4.1 m (13.5 ft)   16.2 (0.47)        96

Phase 2 drilling is targeting the down dip/plunge area of the main vein sets within the host diabase or SAM unit and containing the most prominent vein sets named the "96," "A," "C" as well as others. Phase 1 drilling in 2007 intersected these veins up to 150 meters below the 4730 (5270 ft) Level, the lowest of the developed levels of the mine. All of the above listed veins remain open at depth where 2008 phase 2 drilling will continue to define and extend from the currently advancing decline access being advanced by Dumas mine contracting crews.

The 96 vein which is currently being developed at the 4670 level (5330 feet below surface), has a strike length of 200 meters, is tabular in nature and has an average dip of 70 degrees. Phase 2 drilling so far has returned four intersections with an average width of 4.9 meters (16.1 ft) and an average grade of 19.2 g/tonne (0.56 oz/ton).

The new zone is located immediately west of and parallel to the 96 vein. The recently completed lower mine development has created new drill stations near the western and deepest extent of known mineralization. This has allowed for drilling to access this area with angles giving near true widths which are estimated at over 90% of the above reported widths. Phase 2 drilling so far has returned three intersections with an average width of 3.6 meters (12 ft) and an average grade of 17.0 g/tonne (0.50 oz/ton).

Please see the San Gold website (www.sangoldcorp.com) for plan and section diagrams relevant to the areas drilled.

This program was carried out under the supervision of James Harvey, 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 selected samples. 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.

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

Contact Information

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