SAN GOLD FINDS DEEP EXTENSIONS TO 007 AND L10 ZONES
Recent drilling from the 26th and 28th levels of San Gold Corp.'s Rice
Lake mine traces the Shoreline basalt geologic feature to depths of over 1,400
metres (4,900 feet), with significant gold mineralization. Multiple and
variable intersections were encountered in many of the drill holes, with
significant widths as in hole #28-10-135, which contained a grade 10.3 g/tonne
over 18 meters.
The Shoreline Basalt is a second and parallel mine horizon that has been
identified as a key host to the numerous new gold deposits that occur near
surface. Numerous new deposits (L13, L10, 007, 007 East and Emperor) that lie
within or in close proximity to the Shoreline Basalt have been extensively
drilled from surface over the past 18 months to maximum depths of approximately
420 meters.
"These results strongly suggest that the mineralization associated
with the Shoreline Basalt extends to depths that are completely accessible for
both exploration and development from current infrastructure. This is very
exciting for the company and continues to confirm San Gold's regional
exploration model," stated George Pirie, San Gold's President and CEO.
To obtain these results, San Gold geologists targeted the Shoreline
Basalt rock unit down plunge by over 1,000 meters from the L10 and 007 zones to
projected locations near the 26th level (1,250 meters) of the Rice Lake Mine.
Selected drill holes were sent out to these projected targets from underground
drill stations resulting in the following intersections:
Hole # From (m) To (m) Length m (ft) Gold g/tonne (oz/ton) Zone/Lens
28-10-134 179.1 180.2 1.1 3.6 33.6 0.98 SB Deep
and 239.4 251.7 12.3 40.4 11.7 0.34 SB Deep
including 239.4 247.7 8.3 27.2 16.1 0.47 SB Deep
28-10-135 191.9 209.6 17.7 58.1 10.3 0.30 SB Deep
including 192.6 197.8 5.2 17.1 23.0 0.67 SB Deep
28-10-136 255.2 257.9 2.7 8.9 4.5 0.13 SB Deep
28-10-137 199.7 201.0 1.3 4.3 15.9 0.46 SB Deep
and 255.0 256.9 1.9 6.2 17.8 0.52 SB Deep
28-10-145 288.5 289.7 1.2 3.9 37.8 1.10 SB Deep
and 321.4 325.7 4.3 14.1 6.6 0.19 SB Deep
26-10-093 255.1 256.7 1.6 5.3 9.9 0.29 SB Deep
and 347.2 348.2 1.0 3.3 20.9 0.61 SB Deep
and 355.9 357.9 2.0 6.6 6.9 0.20 SB Deep
and 391.2 394.7 3.5 11.5 5.2 0.15 SB Deep
The new deposits as listed above generally occur on or near to the
hangingwall (north) contact of the Shoreline Basalt unit which runs parallel to
the Rice Lake Mine or SAM unit which hosts the Rice Lake Mine. The Shoreline
Basalt is located between 300 to 500 meters north of the SAM unit, dips steeply
to the north and is up to 100 meters wide. The known associated mineralized
zones (west to east) are: 334 Vein, L13 Zones, L10 Zone, 007 and 007 East
Zones, Emperor Zone, and occur along a 3 kilometer section of the Shoreline
Basalt. The intersections as listed above appear to be down dip and down plunge
from the L10 and 007 Zones by over 1,000 meters from the nearest current drill
hole information.
The 334 Vein was developed on the 3rd level (150 meters) of the Rice
Lake Mine over a strike length of 100 meters. This vein also outcrops at
surface, strikes roughly east-west and parallel to the Shoreline Basalt and has
not yet been drill tested by San Gold.
The L13 Zones have now been drill tested between surface and 400 meters
in depth over a strike length of approximately 200 meters. Two main lenses have
been defined which strike north-east, roughly parallel to the main Hinge zones.
Ramp development is underway towards the L13 Zone from the Hinge decline and is
scheduled to intersect the zone at the 250 meter level by the third quarter of
this year. Drilling is currently underway from surface on this zone.
The L10 Zone has now been drill tested between 240 meters and 500 meters
in depth over a strike length of approximately 150 meters. Ramp development is
underway towards the L10 Zone from the 007 decline and is anticipated to begin
initial mining in April, 2011. This zone lies underneath and offset approximately
75 meters to the south of the Hinge Mine and was initially thought to be part
of the Hinge series of lenses. It is now understood that this zone strikes
approximately east-west and is located along the hangingwall (north) contact of
the Shoreline Basalt. Drilling is currently underway from drill stations within
the Hinge Mine.
The 007 and 007 East Zones have been drill tested between surface and
400 meters in depth. Mine development has reached the main body of the 007 zone
from the Hinge decline and initial development is underway on multiple levels
below 240 meters. Sill development at the 260 meter level is showing at least 4
mineralized zones over a strike length of 400 meters, including the 007 East.
Detailed mill and mine results including width, grade and recovery will be
released upon completion of bulk sampling in March, 2011. Drilling is currently
underway from surface and underground, especially concentrated on the new 007
East extension.
The Emperor Zone has been sparsely drilled from surface to 200 meters in
depth and lies along strike to the east of the 007 Zone. Drilling from the 007
Zone will move eastward toward and underneath the Emperor Zone during 2011.
Deeper exploration of the above mentioned zones in order to fill in the
information void between 400 meters and 1,400 meters in depth is now underway
as part of the 2011 exploration plan. Drill sites are being prepared on the
16th and 26th levels of the Rice Lake Mine in order to aid in the exploration
of the Shoreline Basalt zones. It is also anticipated that these levels would
be the logical first access for the deeper development of these zones.
Detailed sections and 3-dimesional views displaying the results obtained
to date are available at the company's website: www.sangold.ca.
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.
We seek Safe Harbor.