WINNIPEG, MANITOBA--(Marketwired - April 24, 2013) - San Gold Corporation (TSX:SGR)(OTCQX:SGRCF) today announced drilling results from a new underground drilling station located on 26 Level, approximately 1,180 metres underground, at its Rice Lake Mining Complex in Manitoba, Canada. This new drill location was established in the first quarter of 2013 in order to provide better access for definition drilling of the 007 structures at depth. Drilling will continue for the balance of the year.
Initial results from the 6130 drill station demonstrate robust grades and widths and confirm the strong vertical continuity of the 007 gold mineralization structures to depth. The 007 veins continue to be a large contributor to the planned feed to the mill.
Drill hole 613-13-039 also encountered 14.2 g/tonne Au (capped) over 4.2 metres in a new structure that is located immediately north of and parallel to the 710 lens of the 007 deposit. Drill hole 613-13-021 also intersected the new structure and returned 8.2 g/tonne Au over 3.7 metres. Both of these holes were designed to follow up on previous drilling related to drill hole 607-12-048 (released Nov 26, 2012) which returned 12.0 g/tonne Au over 6.0 metres in the 710 lens and 15.5 g/tonne Au over 11.1 metres in what is now considered to be the new structure.
Drilling in the main 710 lens was highlighted by drill hole 613-13-022 which returned 15.2 g/tonne Au (capped) over 3.1 metres.
Both the 710 lens and the new structure are in immediate proximity to existing infrastructure on 26 Level of the Rice Lake Mine. The Company is currently tunneling toward the 710 lens and expects to reach the lens in the second quarter of 2013. This will provide access to mining of the 710 lens and the opportunity to establish new drill locations in closer proximity to the 007 structures.
Highlights of the preliminary drilling from the 6130 drill station are as follows:
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Est.
True
From To Core Width Grade (gpt) Grade (gpt) Depth
Hole Number Zone (m) (m) (m) (m) (capped)(+) (uncapped) (m)
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613-13-039 710 290.1 294.1 4.0 2.5 2.6 1,164
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Including 292.9 293.8 0.9 0.6 9.7
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And New 348.8 353.1 4.2 2.7 14.2 22.5 1,159
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Including 350.5 351.7 1.2 0.8 45.6 64.3
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And New 356.9 361.0 4.1 2.5 15.7 1,158
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613-13-021 New 301.1 304.8 3.7 3.3 8.2 1,110
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613-13-022 710 155.7 158.8 3.1 2.6 15.2 42.8 1,148
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Including 156.2 156.7 0.5 0.4 102.8 266.8
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( + ) Assay values were capped at 102.8 g/tonne (3 oz per ton).
"We are extremely pleased with the initial results from this new drilling platform. The first stage of drilling has already identified vertical continuity of the 007 structures from surface as well as additional structures outside of the original geological model that are all within striking distance of our existing mining infrastructure," said Ian Berzins, San Gold's President, CEO and COO.
The ongoing definition drilling program is designed to increase the confidence in the distribution of the gold mineralization and convert the large inferred mineral resource in the 007 deposit to measured and indicated resources, and subsequently, to mineral reserves. The extensive drilling program planned for 2013 is part of the Company's aggressive campaign to increase the mineral reserve base and fully develop the deposit for mining.
Figure 1 at the end of this release provides a graphic illustration showing the interpreted orientation of the new mineralized structure discovered in the hanging wall of the 710 vein.
Figure 2 at the end of this release provides a graphic illustration showing the location of the 6130 drilling station and the region accessible for drilling from this and other 007 drilling platforms. These figures can also be found on the Company web site (
www.sangold.ca) and on SEDAR (
www.sedar.com).
This program was carried out by San Gold mine geologists under the supervision of Michael Michaud, P.Geo., the Qualified Person for San Gold under National Instrument 43-101 who has reviewed and approved this news release. Underground drill core 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 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.
About San Gold
San Gold is an established Canadian gold producer, explorer, and developer that owns and operates the Hinge, 007, and Rice Lake mines near Bissett, Manitoba, approximately 235 kilometres northeast of Winnipeg, Manitoba, Canada. The Rice Lake Project has a permitted, modern gold mill currently processing ore at a capacity of 2,500 tons per day, modern surface infrastructure including a licensed tailings management facility, and is connected to the Manitoba power grid system. The Company employs approximately 450 people and is committed to the highest standards of safety and environmental stewardship. San Gold is on the Toronto Stock Exchange under the symbol "SGR" and on the OTCQX under the symbol "SGRCF".
For further information on San Gold, please visit
www.sangold.ca.
Cautionary Note
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This news release includes certain "forward-looking statements". All statements, other than statements of historical fact included in this release, including, without limitation, statements regarding forecast gold production, gold grades, recoveries, cash operating costs, potential mineralization, mineral resources, mineral reserves, exploration results, and future plans and objectives of the Company, are forward-looking statements that involve various risks and uncertainties. These forward-looking statements include, but are not limited to, statements with respect to mining and processing of mined ore, achieving projected recovery rates, anticipated production rates and mine life, operating efficiencies, costs and expenditures, changes in mineral resources and conversion of mineral resources to proven and probable mineral reserves, and other information that is based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management.
Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be "forward-looking statements." Forward-looking statements are subject to a variety of risks and uncertainties that could cause actual events or results to differ from those reflected in the forward-looking statements.
There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include, among others, the actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of precious metals, as well as those factors discussed in the section entitled "Other MD&A Requirements and Additional Disclosure and Risk Factors" in the Company's most recent quarterly Management's Analysis and Discussion ("MD&A"). Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
To view Figure 1: Interpreted Orientation of Parallel Structure in the 710 Vein Hanging Wall, please visit the following link:
http://media3.marketwire.com/docs/Figure1SanGold.pdf.
To view Figure 2: 007 Zone Regions Accessible from 9030 and 6130 drilling stations, please visit the following link:
http://media3.marketwire.com/docs/SanGoldFigure2007Zone.pdf.