San
Gold's Rice Lake Mine Exploration Produces New High Grade and Large Multi-Vein
Gold Systems
BISSETT,
MB--(Marketwire - January 25, 2010) - Dale Ginn, CEO of San Gold Corporation
(TSX-V: SGR),
is pleased to report that underground exploration drilling has discovered multiple
new high grade gold zones above the eastern end of the 26th level of the Rice
Lake mine. A series of high grade veins as well as large, broad breccia vein
systems have been encountered above the eastern extremity of mine development
in an open area above the "D" internal winze (shaft). New drill hole
assay information has also been received for the high grade "98" area
immediately below the 26th level and above the 28th level as reported January
20, 2010. Drill hole #28-10-38 cut 82 g/tonne (2.4 oz/ton) over 6.4 meters (21
ft) below 26 level extending the high grade "98" vein upward and
above mine development that recently reported grades as high as 909 g/tonne
(26.5 oz/t) over 3 m (10 ft). Drill hole #26-09-35 intersected three new zones
including a large, homogenous breccia vein grading 12 g/tonne (0.36 oz/t) over
a 21.4 m (70 ft) width. A previously unknown downward extension of the
"84" vein was also encountered as demonstrated by drill hole
#26-09-37, cutting 13 m (42 ft) of 10 g/tonne (0.30 oz/t) with other holes as
listed below representing widths of up to 28 m (92 ft).
Twenty-one intersections are reported within nine drill holes 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/Lens26-09-35 103.2 105.0 1.8 5.8 6.5 0.19 newand 315.7 318.7 3.0 9.9 8.6 0.25 93and 323.2 325.7 2.5 8.2 14.7 0.43 newand 339.5 360.9 21.4 70.2 12.3 0.36 newincluding 343.5 345.9 2.4 7.9 56.2 2.35 new26-09-37 179.2 181.1 1.9 6.2 7.5 0.22 newand 189.8 202.7 12.9 42.4 10.3 0.30 84including 191.0 194.4 3.4 11.2 23.3 0.68 84and 353.7 360.9 7.2 23.6 12.3 0.36 new26-09-38 112.2 114.6 2.4 7.9 53.1 2.44 newand 196.3 224.4 28.1 92.2 6.0 0.18 8426-09-39 no significant values26-09-40 21.7 24.2 2.5 8.2 3.4 0.10 newand 138.2 143.5 5.3 17.4 3.8 0.11 new26-09-41 123.3 126.3 3.0 9.9 8.6 0.25 8426-09-44 15.7 17.8 2.1 6.9 8.2 0.24 newand 125.6 127.1 1.5 4.9 9.9 0.29 newand 238.2 240.5 2.3 7.6 13.4 0.39 8428-09-46 145.5 148.8 3.3 10.8 11.3 0.33 9828-10-38 140.5 146.9 6.4 21.0 81.8 2.39 98including 140.5 144.2 3.7 12.1 138.0 4.03 98
The eastern end of the 26th level (4200 ft) has not been accessible
since the 1950s and has remained untested by drilling until recently by San
Gold. The recent exploration and development success from the 28th level in the
high grade "98" vein system extends upward toward this end of the
26th level. As well,
the large "84" vein which was last developed on the 24th level (3900
ft) in the 1940s extends downward. The recent exploration success has
encountered numerous new high grade veins plus broad breccia style veins in an
area with rough dimensions of 200 meters in height, 200 meters in width and 400
meters in length, between the mine's 24th and 28th levels. Any new mining that
is to occur above the 26th level has the efficient advantage of moving directly
to the main shaft, avoiding the internal "D" winze (shaft), a step
that all Rice Lake ore must currently pass through. As well, the 26th level
will be used as an exploration platform in order to look for deep extensions of
the Hinge and 007 systems which are currently only explored to depths of 400
meters below surface.
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 contribution of 0.30 oz/ton to a record production grade 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..
Sections, plans and
diagrams related to this press release are available at the company's website http://sangoldcorp.com/assets/files/20100125_28Level.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.