SOURCE: San Gold Corporation

San Gold Corporation

March 01, 2010 07:25 ET

San Gold Presents Initial Mineral Resource Estimates for Hinge and 007 Zones

BISSETT, MB--(Marketwire - March 1, 2010) - Dale Ginn, CEO of San Gold Resources Corporation (TSX-V: SGR) is pleased to report that an initial comprehensive, NI 43-101 compliant report has been completed for the Hinge and 007 zones. Peter George, P.Geo., of Geoex Limited was retained by San Gold Corporation in order to prepare a technical report which is an initial third-party estimate of mineral resources of the Hinge and the 007 Zones. The Report was prepared in accordance with the Guidelines set out in National Instrument 43-101 and NI Form 43-101F1. The Resource tables are summarized below:

                         Summary of Resources
                         --------------------

                                           Grade                Contained
                                Tons       oz./ton   (g/tonne)  Ounces
                               --------    ------------------   ---------
Hinge Mine
----------

  Measured Mineral Resources    116,300     0.53        (18.3)     61,980
  Indicated Mineral Resources   496,300     0.36        (12.3)    177,200
                               --------    ------------------   ---------

  Total Measured and
   Indicated Resources          612,600     0.39        (13.4)    239,180

  Total Inferred Resources    1,375,200     0.39        (13.4)    538,700

007 Zone
--------

  Indicated Mineral Resources    74,960     2.58        (88.4)    193,695

  Inferred Mineral Resources    293,740     1.78        (61.0)    522,857

Total Measured plus Indicated   687,560     0.63        (21.6)    432,875

Total Inferred Resources      1,668,940     0.64        (21.9)  1,061,557

The Hinge Mine is located 1.5 kms to the north east of the Rice Lake Mine and mill and is accessed by an independent decline. The Hinge deposit was discovered in March, 2008, development towards the deposit began in July, 2008 and a bulk sample was completed in July, 2009. The Hinge Mine is currently producing at a rate of 350 tons per day. The 007 zone is located 2,100 feet (650 meters) to the south east of the Hinge Mine and was discovered in November, 2009. Development towards the 007 Zone is underway, originating from the Hinge decline with over 660 feet (200 meters) completed to date. An additional 1,500 feet (450 meters) remain in order to access the zone at 820 feet (250 meters) vertical depth where initial development and bulk sampling of the 007 zone is anticipated to begin in the third quarter, 2010. In addition the decline will provide access to cut drill stations to test the Hinge at depth, to test other zones that have been indicated by drilling between Hinge and 007, and to test 007 down dip and along strike at depth.

The gold mineralization occurs in quartz veins located in shear-type and tensional-type fractures in lithologies that are more brittle than the surrounding lithologies. The Hinge and 007 structures are related to extensions of the Rice Lake Mine "RLM" vein shear-structures but are hosted within the volcanic rocks that overlie the San Antonio Mine unit which hosts the gold-bearing quartz veins of the RLM. The Hinge vein system is approximately 2,000 feet (600 meters) stratigraphically above the hanging wall of the SAM (Rice Lake Mine host) unit.

The mineral resources are in-situ, undiluted, and uncapped and have not had economic parameters applied to them. The mineral resources are defined in terms of NI 43-101 regulations and their estimation was carried out using industry standard polygonal longitudinal section methodology. The drill hole data was evaluated in plan and section in three dimensional AutoCAD to determine continuity between holes. Vein structures in the Rice Lake Mine area have vertical extents from 4 to 8 times their strike length. Because of this, areas of influence used around drill hole pierce points on the longitudinal section for purposes of defining measured and indicated resources are ellipses, elongated down dip and plunge. For measured resources an ellipse with a short axis of 50 feet (15 meters) and a long axis of 100 feet (30 meters) was used and for indicated resources an ellipse with a short axis 75 feet (23 meters) and a long axis of 150 feet (46 meters) was used. Inferred resources are based on projection of measured plus indicated resources to a depth four times the strike length of the mineralized zone. A tonnage factor of 11.4 cubic feet per ton (equivalent to a specific gravity of 2.8) was used to convert polygon volumes to tons.

The Hinge Mine database is comprised of 341 drill holes for a total of 272,187 feet (82,964 meters). The mineral resource estimate is based on 282 composited vein intersections comprised of a total of 2,700 individual assays. The total area covered by the measured, indicated and inferred mineral resources estimate for the Hinge deposit is a strike length of 700 feet (213 meters) and a vertical extent of 1,300 feet (400 meters) between 150 feet (46 meters) and 1,450 feet (442 meters) of depth from surface. Underground drilling and sampling of mining faces are ongoing, as the Hinge advances to full scale operations in 2010.

The 007 Zone database is comprised of 16 holes completed in 2009 for a total of 21,151 feet (6,447 meters). The mineral resource estimate is based upon 14 composited vein intersections comprised of a total of 111 individual assays. One hole was terminated before intersecting the zone due to extreme deviation in the bearing of the hole. Fourteen holes intersected the vein zone and one passed just to the east of the eastern limit of the zone. The total area covered by the measured, indicated and inferred mineral resources estimate for the 007 zone is a strike length of 300 feet (92 meters) and a vertical extent of 1,400 feet (427 meters) between 100 feet (30 meters) and 1,500 feet (457 meters) of depth from surface. The zone is open up and down dip and along strike to the west. Exploration drilling will continue throughout the first half of 2010.

For reference, the nearby Rice Lake mine has been mined from the surface to 5,500 feet (1,680 meters) below surface (7,000 feet (2,130 meters) down the dip of the zone) with current development and production between 4,500 feet (1,370 meters) and 5,500 feet (1,680 meters) from surface.

Peter George, P.Geo. of Geoex Limited is the independent qualified person in accordance with NI 43-101 responsible for the report referenced in this news release. Mr. George has made numerous site visits to this project over the past ten years, is a geologist with over 40 years of experience and has prepared evaluation reports for a number of significant mining operations. During the past 5 years, Mr. George has completed mineral resource reports on a number of significant Archean gold projects including the Gold Eagle (now Goldcorp) Bruce Channel deposit in Red Lake, Ontario, Valgold's (now Northern Gold) Jonpol deposit in the Timmins area, Black Pearl's (now Canadian Lithium) Tully deposit in the Timmins area, and San Gold's Rice Lake Mine, Cartwright, SG-1, SG-2, and SG-3 deposits in Bissett, Manitoba. Dale Ginn, P.Geo., CEO of San Gold is the qualified person responsible for this news release.

For further information contact Dale Ginn, CEO of San Gold Corporation, at (204) 794-5818 or email info@sangoldcorp.com. A copy of the full report will be made available on the company's website and will be filed with Sedar shortly upon receipt of the final product.

Caution concerning forward-looking statements: The information in this release may contain forward-looking information under applicable securities laws. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied in the forward-looking information. Factors that may cause actual results to vary include, but are not limited to, inaccurate assumptions concerning the exploration for and development of mineral deposits, political instability, currency fluctuations, unanticipated operational or technical difficulties, changes in laws or regulations, the risks of obtaining necessary licenses and permits, changes in general economic condition or conditions in the financial markets and the inability to raise additional financing. Readers are cautioned to not place undue reliance on this forward-looking information. The Company does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events except as may be required under applicable securities laws. 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
    San Gold Corporation
    (204) 794-5818
    Email: Email Contact