SOURCE: San Gold Corporation

November 09, 2010 08:46 ET

San Gold's New L10 Zone Grows With Robust Widths and Grade

BISSETT, MB--(Marketwire - November 9, 2010) - Dale Ginn, CEO of San Gold Corporation (TSX: SGR) (OTCQX: SGRCF) is pleased to report that underground exploration drilling is confirming and extending the new L10 Zone located below and to the footwall side (south) of the Hinge Mine. Drill hole # H955-10-010 yielded 36.3 g/tonne (1.06 oz/ton) over 13.3 meters (43.4 ft), continuing to demonstrate robust widths. Significant grade was also encountered as highlighted by drill hole # H955-10-073, cutting 120 g/tonne (3.50 oz/ton) over 2.3 meters (7.5 ft). Six of the new holes listed below were successful in extending the L10 Zone upwards above the 300 meter level. The L10 zone is located 150 meters to the footwall (south) of the Hinge zone and has similar geological characteristics and strike direction as the 007 zone. Ten intersections are reported within nine drill holes in the L10 zone as tabulated below. A summary of previous underground drilling is also included as well as a list of surface exploration holes that are now interpreted to have intersected the L10 zone:

                                    Length             Gold           Zone/
Hole #         From (m)    To(m)   (m) (ft)  (g/tonne)      (oz/ton)  Lens

H955-10-008     218.6      220.5   1.9  6.1     3.1           0.09     L10

H955-10-010     226.4      239.7  13.3 43.4    36.3           1.06     L10

including       228.7      236.0   7.3 24.0    64.1           1.87     L10

H955-10-063     211.4      213.3   1.9  6.2    19.5           0.57     L10

H955-10-065     207.3      213.9   6.6 21.6    12.3           0.36     L10

H955-10-067     200.8      205.2   4.4 14.4    15.8           0.46     L10

H955-10-068     203.8      207.0   3.2 10.6    18.5           0.54     L10

H955-10-073     191.5      193.8   2.3  7.5   119.9           3.50     L10

H955-10-134     189.4      193.1   3.7 12.1    15.8           0.46     L10

H955-10-135     191.2      195.1   3.9 12.8     7.9           0.23     L10

The L10 zone remains open along strike in both directions as well as to depth. The drill hole intersections as listed above within the L10 zone are located between 270 meters and 430 meters in depth and over a strike length of approximately 160 meters. The L10 Zone is tabular and steeply dipping to the north and possesses robust widths with consistent mineralization which appear to be amenable to mechanized (possibly longhole) mining methods. The L10 zone is accessible from the Hinge/007 decline; development is underway and will reach the L10 zone early in the first quarter of 2011.

The following table is a summary of underground drilling results on the L10 Zone prior to today's release:

                                    Length             Gold           Zone/
Hole #         From (m)    To(m)   (m) (ft)  (g/tonne)      (oz/ton)  Lens

H955-10-003     252.2      259.0   6.8 22.4     7.2           0.21     L10

H955-10-004     233.7      242.4   8.7 28.6     7.5           0.22     L10

H955-10-005     217.2      218.6   1.4  4.6    19.9           0.58     L10

H955-10-006     226.3      233.4   7.1 23.3     6.5           0.19     L10

H955-10-007     231.6      243.2  11.6 38.1    12.7           0.37     L10

including       239.0      242.7   3.7 12.1    22.3           0.65     L10

H955-10-009     220.2      225.8   5.6 18.4     6.5           0.19     L10

H955-10-039     244.8      259.1  14.3 46.9     4.1           0.12     L10

H955-10-051     245.0      251.6   6.6 21.8     8.6           0.25     L10

including       249.2      251.6   2.4  7.9    16.4           0.48     L10

H955-10-062     271.4      274.8   3.4 11.2     9.6           0.28     L10

H955-10-064     212.9      218.2   5.3 17.4    12.0           0.35     L10

H955-10-069     220.0      222.8   2.8  9.2    13.7           0.40     L10

H985-10-003     272.0      278.4   6.4 21.0     6.2           0.18     L10

H985-10-004     264.8      267.0   2.2  7.2     6.9           0.20     L10

H985-10-007     279.9      282.2   2.3  7.6     7.5           0.22     L10

H985-10-008     275.6      277.1   1.5  4.9    10.7           0.31     L10

H985-10-012     274.7      276.2   1.5  4.9     8.2           0.24     L10

H985-10-030     305.9      308.5   2.6  8.5    31.5           0.92     L10

H96-09-096      255.4      263.0   7.6 24.9     8.2           0.24     L10

The following table is a summary of all past exploration holes drilled from surface that are now known to have been drilled deep enough to have intersected the L10 Zone:

                      Length                Gold           Zone/
Hole #            (m)       (ft)  (g/tonne)      (oz/ton)  Lens

GS-08-37         16.6       54.5     16.8          0.49     L10

including         4.3       14.1     48.4          1.41     L10

GS-08-62          2.1        6.7      3.8          0.11     L10

GS-08-64          4.3       14.1      6.2          0.18     L10

GS-08-69          5.6       18.5      6.9          0.20     L10

GS-08-90          1.7        5.5      7.5          0.22     L10

GS-08-104         4.7       15.3      7.9          0.23     L10

GS-09-06          5.4       17.8      6.9          0.20     L10

GS-09-22          7.3       24.0      7.2          0.21     L10

Sections 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. Underground drill core samples may be assayed on site in the company's assay lab using the fire assay method with an AA finish. San Gold's quality control 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 in Thunder Bay, ON. 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 a lower grade, wider interval, all assays are utilized including any internal waste which may have zero grade. Whole metallic assays were performed on samples containing visible gold.

Neither the TSX Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX 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