BISSETT, MB, Nov 06 (MARKET WIRE) --
Dale Ginn, CEO of San Gold Corporation (TSX-V: SGR), is pleased to
announce that surface exploration drilling has discovered a new
collection of mineralized zones known as L-13, located approximately 500
meters to the west of the Hinge zones and 1 km to the northeast of the
Rice Lake mine and mill. These zones are also located directly under the
existing Hinge zone decline access at approximately the half way point
between the decline collar and the Hinge zones under current development.
The lower zone or L-13 #2 appears to host the strongest mineralization of
the zones to date as highlighted by the deepest drill hole #KL-09-29
which encountered 45 g/tonne (1.31 oz/ton) over 3.1 meters (10.2 ft) at
275 meters (900 ft) below surface. The L-13 zones have been confirmed by
a number of drill holes as listed below, and have identified at least
three "stacked" lenses to date within a 300 meter strike length. Surface
drilling continues to expand the zones which are open along strike and to
depth.
Fourteen intersections are reported within fourteen drill holes below:
Gold g/tonne
Hole # From To Length (oz/ton) Zone
-------- ------- ------- --------------- ------------- ---------
KL-09-20 234.3 m 237.0 m 2.7 m (8.9 ft) 10.6 (0.31) Lower #2
KL-09-21 261.3 m 262.8 m 1.5 m (5.0 ft) 6.8 (0.20) Lower #2
KL-09-22 224.6 m 230.7 m 6.1 m (20.0 ft) 5.1 (0.15) Lower #2
KL-09-27 232.5 m 232.8 m 0.3 m (1.0 ft) 92.8 (2.71) Lower #2
KL-09-28 171.9 m 173.5 m 1.6 m (5.3 ft) 22.9 (0.67) Lower #2
KL-09-29 281.1 m 284.2 m 3.1 m (10.2 ft) 44.9 (1.31) Lower #2
KL-09-42 241.1 m 243.4 m 2.3 m (7.6 ft) 19.2 (0.56) Lower #2
GC-09-005 343.3 m 344.5 m 1.2 m (4.0 ft) 4.1 (0.12) Lower #3
GC-09-006 358.8 m 361.5 m 2.7 m (8.9 ft) 13.0 (0.38) Lower #3
KL-09-14 133.2 m 134.2 m 1.0 m (3.3 ft) 13.0 (0.38) Upper #1
KL-09-15 147.6 m 149.7 m 2.1 m (6.9 ft) 3.4 (0.10) Upper #1
KL-09-16 126.6 m 127.3 m 0.7 m (2.3 ft) 4.1 (0.12) Upper #1
KL-09-17 141.4 m 143.0 m 1.6 m (5.3 ft) 2.7 (0.08) Upper #1
KL-09-19 198.3 m 199.3 m 1.0 m (3.3 ft) 5.5 (0.16) Upper #1
The L-13 area is the third high grade discovery made within the past
18 months using a geological targeting model that has identified a
repetitive structural pattern. The first zone, the Hinge Zone discovered
in April 2008, is now entering production following a successful bulk
sampling program completed in July 2009, the second is the Cohiba zone
located 500 meters to the east of the Hinge zone (see press releases
dated Sept 9 and June 11, 2009). Several additional nearby targets have
been located using the same structural model and are being drilled or are
scheduled to be drilled over the next few months. An estimated 10 to 20
kilometers of San Gold lands containing identical proposed structures
remain unexplored to date. San Gold staff have designed exploration and
development drifts from the existing Hinge decline in order to access the
Cohiba zone as well as to access the L-13 zones, and additionally to join
the Hinge decline with the upper levels of the Rice Lake mine. This new
underground development will allow independent access to the upper levels
of the Rice Lake mine, which contain numerous targets that were
identified by previous operators. Synergies with regards to exploration,
ventilation, emergency escape ways, and ore haulage are also being
considered between Rice Lake and surrounding zones as a result of the
L-13 discovery. The currently known Hinge, Cohiba and L-13 zones are all
located to the north-east of San Gold's operating Rice Lake and mine and
mill, and are fully accessible by San Gold's private road, and all lie
within San Gold's fully permitted mine lease.
Location plans and a generalized longitudinal section as well as existing
and planned development are available in the graphical version of this
press release at San Gold's website: www.sangoldcorp.com.
This program was carried out under the supervision of W.S. Ferreira,
P.Geo., and D. Ginn, P.Geo., the Qualified Persons for this project under
National Instrument 43-101. Exploration drill core is 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. San Gold's quality control and assurance program
includes the insertion of 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.
For further information contact Dale Ginn, CEO of San Gold Corporation, at
(204) 794-5818 or investor information at 1-800-321-8564 or visit
www.sangoldcorp.com.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
Contact:
Dale Ginn
CEO
San Gold Corporation
(204) 794-5818
Copyright 2009, Market Wire, All rights reserved.
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