San Gold Corporation - 007 East Zone Expands Along Shoreline Basalt

BISSETT, MB, April 7 /CNW/ - George Pirie, President and CEO of San Gold Corporation (TSX: SGR) (OTCQX: SGRCF) is pleased to report that exploration step-out drilling from surface and underground has extended the 007 Zone to the east by as much as 100 meters, bringing the total strike length of the 007 zones to 500 meters to date.

Robust widths and grades are being encountered as drilling pushes the deposit eastward and to depth as demonstrated by the most easterly drill hole to date, # S915-11-33 which intersected 15.4 g/tonne (0.45 oz/ton) over 13..7 meters (45 ft) at a depth of 260 meters below surface.   Deeper drilling below 300 meters is also extending the deposit to depth as shown by drill hole #CD-11-003 which intersected 17.8 g/tonne (0.52 oz/ton) over 4.2 meters (14 ft) and by #CD-11-13, cutting  56.5 g/tonne (1.65 oz/ton) over 2.6 meters (8.5 ft).  The 25 intersections within 24 drill holes as reported below are located within a 220 meter long by 220 meter deep envelope beginning at 200 meters below surface at the eastern extremity of the 007 deposit.

All drill holes for which assays have been received within the 007 East Extension and Far East zones are listed below:

"These results continue to demonstrate the size and strength of the gold mineralization within the Shoreline Basalt. The discovery and development of this new mine trend is an exciting new era for San Gold. The success of our exploration efforts in these zones allows us to execute our plan to develop a new mine complex and continues to support the very aggressive drill program in place," said Mr. Pirie.

Over 350 meters of 007 Zone strike length has been developed so far at the 260 meter level in preparation for mining.  Mine development also continues to the west towards the L10 deposit, the second major deposit to be developed along the Shoreline Basalt.

The 007 zone is located approximately 2 km 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.  The 007 Zone was initially discovered by San Gold geologists in November 2009 and mine development towards the zone began early in 2010 originating from the Hinge Mine.  San Gold is on track to complete over 300,000 meters of diamond drilling in 2011, making it one of Canada's most aggressive gold exploration companies.

A detailed longitudinal section displaying the results obtained to date is available at the company's website: www.sangold.ca.

The surface drill 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 underground drill program was carried out by San Gold 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 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. The core lengths are actual lengths as drilled and have not been adjusted for the true width of the mineralized zones.