SOURCE: San Gold Corporation

San Gold Corporation

October 13, 2010 07:30 ET

San Gold Reports Initial Drill Results From L4 Zone Discovery Below Hinge Mine

BISSET, MB--(Marketwire - October 13, 2010) -  Dale Ginn, CEO of San Gold Corporation (TSX-V: SGR), is pleased to report initial results from underground exploration drilling of the L4 zone, the discovery of which was announced October 7, 2010. Consistent and superior widths and grade are being encountered so far as demonstrated by drill hole #H955-10-032 which yielded 29.1 g/tonne (0.85 oz/ton) over 6.8 meters (22.3 ft), including a high grade section containing 92.8 g/tonne (2.71 oz/ton) over 1.7 meters (5.6 ft). The L4 zone is located immediately to the south of the main Hinge zones and initial development of this zone is now underway near the top of the known zone limits near the 9400 elevation (600 ft below surface). The L4 zone exhibits a high average width of 6.1 meters (20 ft) so far as demonstrated by the discovery drill hole #H938-10-002, cutting 17.1 g/tonne (0.50 oz/ton) over 11.5 meters (37.7 ft). Ten intersections are reported within eight drill holes within the L4 zone as tabulated below:

Hole #   From (m)   To (m)   (m) Length (ft)   (g/tonne) Gold (oz/ton)   Zone/Lens
H938-10-002   9.2   20.7   11.5   37.7   17.1   0.50   L4
including   13.8   17.2   3.4   11.1   52.7   1.54   L4
H938-10-003   11.8   15.4   3.6   11.8   3.8   0.11   L4
H938-10-005   14.1   22.2   8.1   26.7   6.2   0.18   L4
H955-10-032   72.5   79.3   6.8   22.3   29.1   0.85   L4
including   76.7   78.4   1.7   5.6   92.8   2.71   L4
H955-10-046   78.0   81.2   3.2   10.5   8.6   0.25   L4
H955-10-048   79.1   81.5   2.4   7.9   46.9   1.37   L4
H955-10-052   82.3   85.7   3.4   11.2   21.0   0.61   L4
H955-10-061   81.6   91.5   9.9   32.5   9.3   0.27   L4

The L4 zone begins at approximately 170 meters (550 ft) below surface and is located immediately south of the lowest current operating levels of the Hinge Mine. The L4 zone remains open along strike in both directions, as well as to depth. The drill hole intersections as listed above within the L4 zone are located between 170 meters and 230 meters in depth and over a strike length of 61 meters so far. The L4 zone has already been accessed from the Hinge decline and initial mine development is underway. Access to the recently announced L10 zone will be from the 007 decline and will reach the L10 zone early in the first quarter of 2011. Drilling continues in and below the L4 zone, while a second underground drill rig is focused on the definition and extension of the L10 zone.

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

The above program was carried out by mine geologists under the supervision of D. Ginn, P.Geo., the Qualified Person for San Gold under National Instrument 43-101. Underground drill core samples and chip samples are assayed on site in the company's assay lab using the fire assay method with an AA and gravimetric finish. San Gold's quality control and assurance program includes the insertion of blanks and standards, the retention of pulps and rejects, and spot checks utilizing independent labs including TSL Laboratories in Saskatoon, SK and 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. In instances where high grade intervals are combined resulting in lower grade, wider intervals, all assays are utilized including any internal waste which may have zero grade.

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