007 DECLINE
APPROACHES ZONES AS DRILLING EXTENDS THE HIGH GRADE 007 ZONE UPWARD TO SURFACE
AND TO DEPTH
San Gold Corp.'s surface exploration drilling has
considerably expanded the vertical dimensions of the 007 zone in both the up
and down directions, establishing a continuous, high-grade deposit from surface
extending to a depth of 450 metres (1,500 feet) to date. Highlighted results
from the upper extension of the deposit include drill hole # CD-10-066 which
yielded 95 g/tonne (2.8 oz/ton) over 2.1 meters (6.9 ft) at only 61 meters (200
ft) below surface. Results from the lower extension of the deposit include
drill hole # CD-10-020 which yielded 51 g/tonne (1.5 oz/ton) over 2.7 meters
(8.9 ft) at a depth of 335 meters (1,100 ft) below surface.
The discovery holes of the "007" zone from
November, 2009 (see press release dated Nov. 23, 2009) as well as the follow up
drill hole results (see press release dated Feb. 3, 2010) were previously
concentrated in a range of depths between 175 meters (575 ft) and 300 meters
(1,000 ft) from surface. The drill results contained within the table below are
located both above (Upper Extension) and below (Lower Extension) the previously
known range giving a new range of positive results between surface and 450
meters (1,500 ft). A summary of the current round of results is contained
within the following table, as well, a detailed longitudinal section showing
all results received to date and other descriptive graphics are available on
the company's website. Drill holes located outside of the mineralized zone with
low values are located on the detailed longitudinal section. Drill hole numbers not listed or displayed have not yet been
drilled, logged or sampled. Eleven intersections are reported within eleven
drill holes as tabulated below:
Hole # From (m) To (m) Length m (ft) Gold g/tonne (oz/ton) Zone/LensUpper ExtensionCD-10-066 79.4 81.5 2.1 6.9 94.9 2.77 007CD-10-075 101.3 102.3 1.0 3.3 44.9 1.31 007CD-10-025 141.5 143.5 2.0 6.6 8.9 0.26 007CD-10-073 161.1 163.5 2.4 7.9 7.9 0.23 007CD-10-023 170.1 174.3 4.2 13.8 3.9 0.11 007Lower ExtensionCD-10-022 353.0 355.6 2.6 8.5 5.8 0.17 007CD-10-008 347.9 349.6 1.7 5.6 20.9 0.61 007CD-10-018 353.9 356.5 2.6 8.5 28.9 0.84 007 CD-10-020 367.4 370.1 2.7 8.9 51.4 1.50 007 CD-10-024 411.8 415.7 3.9 12.8 17.1 0.50 007 CD-10-036 443.4 446.2 2.8 9.2 12.7 0.37 007
The "007" zone has now been drill tested
over an approximate 200 meter strike length and to depths of over 450 meters
with horizontal widths ranging between 1.0 and 4.5 meters with the zone
remaining open along strike to the south-west as well as at depth. The 007 zone
dips steeply to the north-northwest and is made up of quartz and carbonate
veins containing gold and pyrite mineralization. The dominant deposit control
appears to be structural as with the previous three hanging wall deposits
(Hinge, Cohiba and L13); however the 007 lithology is slightly different in that this deposit occurs
at or near an intermediate-mafic contact. Strong chloritic alteration of the mafic
unit is observed at the footwall contact immediately below the mineralized
veining. The strike length of this contact is currently unknown. The Lidar data (detailed topography) recently acquired by San
Gold displays a series of pronounced sub parallel lineations
(shears) in outcrop extending from the Rice Lake mine eastward to the
"007" discovery and beyond . These lineations
or shears are considered by San Gold geologists to be key controls for the gold
mineralization in the region including the Rice Lake Mine, Hinge Mine, 007, L13
and Cohiba deposits. 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.
San Gold also reports that development has been
progressing well toward the "007" zone from the Hinge decline. Over
600 meters (2,000 ft) of development has been completed since January with just
over 30 meters (100 ft) remaining to reach the 007 zone at the 240 meter (800
ft) level (depth from surface) where initial ore development and a bulk sample
program will take place during the third quarter.
Sections, plans and diagrams related to this press
release are available at the company's website www.sangoldcorp.com,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.
For further information contact San Gold Corporation at 1-800-321-8564
or visit www.sangoldcorp.com.