SOURCE: San Gold Corporation

November 16, 2010 08:40 ET

Step-out Drilling Discovers Substantial Extension to San Gold's 007 Zone

BISSETT, MB--(Marketwire - November 16, 2010) - Dale Ginn, CEO of San Gold Corporation (TSX: SGR) (OTCQX: SGRCF), is pleased to report that surface exploration step-out drilling has discovered a significant eastern extension to the 007 zone at a depth below surface of 260 meters (850 feet). Drill hole # CD-10-178 generated 66.1 g/tonne (1.93 oz/ton) over 12.0 meters (39.4 ft) at over 200 meters to the east of the currently developed strike length extents. This intersection is flanked evenly by the 007 Zone and the Emperor Zone at this elevation. Drill hole # CD-10-178 is summarized below, as well a detailed table with each assay interval comprising this intersection has been made available in order to show grade distribution and variability:

Hole # From (m) To (m) Length m (ft) Gold g/tonne (oz/ton) Zone/Lens
           
CD-10-178 351.2 363.2 12.0 39.4 66.1 1.93 007 East

The 007 East Zone, as well as the 007, L10 and Emperor Zones all occur near to or within a mafic flow known as the Shoreline Basalt, striking roughly east-west and parallel to the Rice Lake Mine or SAM unit. All of the above zones are located proximal to a series of identified shears and their intersections with the mafic flow unit. The above mentioned mineralized zones on the Shoreline Basalt combine to form a strike length of over 1.5 kms. The combined strike length of the 007 and Emperor Zones is currently over 500 meters long as demonstrated by drilling to date. Mineralization consists of free gold and pyrite within quartz-carbonate veining and associated alteration consistent with the Rice Lake and Hinge Mines and the 007 development.

All of the individual assays that make up this intersection are tabled below:

From   To   Interval   Assay
(m)   (m)   (m)   oz/ton   g/tonne
351.2   351.6   0.3   3.67   125.6
351.6   352.9   1.4   3.38   115.8
352.9   353.5   0.5   0.60   20.4
353.5   354.0   0.6   0.80   27.3
354.0   354.5   0.5   0.08   2.8
354.5   355.3   0.9   0.04   1.4
355.3   356.1   0.8   0.92   31.5
356.1   357.3   1.2   0.36   12.3
357.3   357.9   0.6   2.88   98.8
357.9   358.8   1.0   11.87   406.4
358.8   359.3   0.5   0.26   8.9
359.3   359.7   0.3   0.30   10.3
359.7   360.0   0.3   1.16   39.9
360.0   360.2   0.2   0.09   2.9
360.2   360.6   0.4   0.36   12.5
360.6   361.1   0.5   0.10   3.4
361.1   361.5   0.3   0.03   1.0
361.5   362.0   0.5   0.05   1.6
362.0   362.4   0.3   0.01   0.3
362.4   362.8   0.5   0.01   0.2
362.8   363.2   0.4   2.88   98.6

Dale Ginn, CEO stated, "It appears as though the Shoreline Basalt has the ability to host mineralization wherever it interacts with a shear zone. This is consistent with the original host rock for the Rice Lake Mine and as such, we expect that our new zones will have great depth extensions as well. We look forward to reporting results from the deep exploration drilling that we are conducting on these zones from the 26th and 28th levels of the Rice Lake Mine."

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.

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 Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Toronto Stock 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

    www.sangold.ca
    www.MyStudio.net