San Gold's Rice Lake Mine Continues to Evolve With Higher Production
Grades and Significant New High Grade Discoveries -- Including Mining Face
Samples of 909 g/t Over 3 m (26.5 oz/t Over 10 ft)
BISSETT,
MB--(Marketwire - January 20, 2010) - Dale Ginn, CEO of San Gold Corporation
(TSX-V: SGR)
is pleased to report that underground exploration drilling has discovered new
high grade zones running parallel and to the south-east or to the footwall side
of the "98" vein above the 28th mining level within the Rice Lake
mine. Drill hole #28-09-21 cut 37 g/tonne (1.07 oz/ton) over 12.2 meters (40
ft) extending high grade gold mineralization extensively to the east into
undeveloped and unexplored areas of the Rice Lake mine. This intersection
included an extremely high grade segment of 122 g/tonne (3.55 oz/ton) over 3.6
m (12 ft) and contained coarse visible gold. Recent development of the
''98" vein above the 28 level (4500 ft) has also recently yielded the
highest grading chip sampled face to date at 909 g/t (26.5 oz/t) over 3 m (10
ft).
Fourteen intersections are reported within nine drill holes sorted by
zone as tabulated below, hole numbers not listed in sequence have not yet been
drilled or logged:
Hole # From (m) To (m) Length m (ft) Gold g/tonne (oz/ton) Zone/Lens28-09-21 130.4 142.6 12.2 40.0 36.6 1.07 98 FW 1including 130.4 134.0 3.6 11.8 121.6 3.55 98 FW 128-09-26 79.1 80.8 1.7 5.6 50.7 1.48 98 FW 128-09-28 92.8 104.5 11.7 38.4 15.1 0.44 98 FW 1including 92.8 94.5 1.7 5.6 68.2 1.99 98 FW 128-09-43 100.1 102.7 2.6 8.6 7.5 0.22 98 FW 1and 139.1 143.0 3.9 12.8 7.5 0.22 98 FW 228-09-44 106.3 107.9 1.6 5.3 21.2 0.62 98 FW 128-09-45 212.7 218.3 5.6 18.4 9.6 0.28 98 FW 128-09-46 assays pending28-09-47 152.0 154.5 2.5 8.2 10.6 0.31 98 FW 1and 178.7 186.5 7.8 25.5 11.0 0.32 98 FW 2and 190.4 193.1 2.7 8.9 4.8 0.14 98 FW 3and 196.4 198.6 2.2 7.2 6.8 0.20 98 FW 428-09-50 132.1 133.9 1.8 5.9 27.7 0.81 98 FW 1
The "98" vein area is located at the southeastern extremities
of current Rice Lake mine development above the 28th level (4500 ft). The past
two years have been spent improving access and infrastructure to this area in
preparation for mining and exploration. This area of the mine is anticipated to
account for 30% of San Gold's production for 2010 and has already contributed
to an improvement in Rice Lake's production grade to 0.30 oz/ton in December. The
main "98" vein above the 28th level has been developed to over 500
feet in length and is open above where drilling from the 26th level (4200 ft)
is searching for extensions. Mining is now underway in numerous stopes within
this vein above the 29th and 28th levels. The numerous new veins being discovered to the southeast and
in the footwall of the "98" vein are in previously unexplored areas
as there has been no access to this ground in the past. Numerous drill holes
are now in the process of being deepened since the number and extent of new
footwall zones is greater than anticipated.
Dale Ginn, CEO, stated,
"San Gold management have long understood that developing higher grade areas
of the Rice Lake mine in an upward and outward direction, rather than solely
downward, are key to improved economics within this mine. This effort is now
resulting in new high grade discoveries in open extensions to the host Rice
Lake mine unit, as well as providing deep platforms for exploration well below
the newer near surface Hinge, 007, L13 and Cohiba zones that are located in the
hanging volcanic rock units. Our ability to chase these new deposits to depth
is greatly enhanced by these developments. Our efforts will continue in an
upward direction in order to improve ounces per vertical meter and to above 26
level where the use of our internal D winze (shaft) is not required, resulting
in greater ore handling efficiencies."
Sections, plans and diagrams
related to this press release are available at the company's website: http://sangoldcorp.com/assets/files/20100120_HG28Level_WebVersion.pdf
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.
For further information
contact San Gold Corporation 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.