2008-03-11 02:02 ET - News Release
Mr. Dale Ginn reports
SAN GOLD CORPORATION ACQUIRES STRATEGIC GOLD PROPERTY IN TIMMINS
San Gold Corp. has seized a rare opportunity to acquire a prospective
and strategic position at the centre of one of the world's most outstanding
gold camps, the Porcupine gold camp at Timmins, Ont. This acquisition
complements San Gold's strategy of organic growth and aggressive exploration in
Manitoba's Rice Lake gold belt, together with selective acquisition of
high-grade lode gold vein exploration properties in recognized gold camps.
San Gold has entered into an option agreement with certain persons (the
optionors) to acquire the mineral rights to 25 patented consecutive gold mining
claims described as the Dalton property located near Timmins, Ont., next to the
Moneta mine and close to the Hollinger, Schumaker and McIntyre mines. The
surface rights to the patented claims may be acquired at San Gold's option for
fair market value. In order to exercise its option to acquire the Dalton property,
the corporation is required to make certain payments and share issuances to the
optionors over the next two years. Additionally, the corporation is required to
incur specified exploration expenditures on the Dalton property over the next
three years. The corporation has agreed to issue common shares of the
corporation to a finder in consideration for services in assisting the
corporation with respect to the option agreement. The acquisition of the Dalton
claims is subject to the final approval of the TSX Venture Exchange.
The Dalton property, covering approximately 375 hectares, is
located in Mountjoy and Ogden townships, adjacent to the southwest boundary of
the Timmins, Ont., and adjacent to claims held by Goldcorp that were formerly
part of the Placer-Kinross Porcupine joint venture. The Dalton claims lie at
the heart of the Porcupine gold camp in the Archean-age Abitibi greenstone belt
that has a total historic gold production in excess of 62 million ounces of
gold. The deposits along the belt typically occur in vertically extensive
quartz-carbonate lode systems, hosted in volcanic and sedimentary units, that
have been metamorphosed into greenschist facies rock assemblages. The gold
deposits have been found to occur in a corridor up to 10 kilometres wide,
parallel to the Porcupine Destor fault zone (PDFZ), which extends for a length
of 200 kilometres.
Within the Porcupine gold camp, the gold deposits generally occur within five
km of the PDFZ. The Dalton property lies between 1.5 km and 3.5 km north of the PDFZ. The
Dalton property contains two distinct rock packages, the younger Temiskaming
group, consisting of conglomerates, turbidites, greywackes and slates, that are
in unconformable contact with the underlying Tisdale basic volcanic rocks, the
later being hosts to many of the gold deposits in the Porcupine gold camp.
Surprisingly, the Dalton property appears to have never been explored. Jack
Dalton, one of the original inhabitants of Timmins, ran a livery stable and
later formed Dalton Bus Lines. He also acted as a grubstaker for local
prospectors. The property has been held intact for over 80 years without any
record of mineral exploration. San Gold is currently compiling geological
information for an aggressive 2008 exploration program. The Dalton exploration
program is currently being supervised by Dale Ginn, PGeo, the qualified person
for this project. It is intended that the exploration of the Dalton project
will be managed by consulting geologists, with experience in the Timmins area,
in order to allow San Gold's geologists to concentrate on exploring the
company's projects in Manitoba's Rice Lake gold belt.
A property map is available at the company's website.
Investor Information
1-800-321-8564
www.sangoldcorp.com
info@sangoldcorp.com