San Gold drills 2.7 metres of 51.4 g/t Au at Rice Lake
2008-09-15 07:51 ET - News Release
Mr. Dale Ginn reports
HINGE ZONE INTERSECTED FROM RICE LAKE MINE OVER 1500
METERS BELOW SURFACE
San Gold Corp.'s exploration drilling from the 4,980 Deep
East exploration drift (5,000-foot depth) of the Rice Lake gold mine has
intersected mineralization identical to the new Hinge zones that are currently
being drill tested from surface. Drill hole No. 498-08-07 encountered 2.7
metres of 51.4 grams per tonne (g/t) while hole No. 498-08-02 ended in
mineralization and will be deepened. The underground Hinge intersections are
located over 1,500 metres down-dip and below the current surface drill program.
Numerous new zones were also discovered within the mine host gabbro unit and
are listed below. This program was designed to explore untested ground between
the Rice Lake mine and the Deep East zones which were discovered and partially
drilled in 1994. Results from the new holes are tabulated here.
Hole No. From To Length Gold g/t (oz/ton) Zone498-08-07 78.3 m 81.0 m 2.7 m (8.9 ft) 51.4 (1.50) Hinge Deep498-08-02 239.8 m 243.9 m 4.1 m (13.5 ft) 5.2 (0.15) Hinge Deep*498-08-01 149.5 m 151.8 m 2.3 m (7.5 ft) 8.0 (0.23) Deep Eastand 193.8 m 195.2 m 1.4 m (4.6 ft) 21.0 (0.61) Deep East498-08-02 155.6 m 157.0 m 1.4 m (4.6 ft) 41.8 (1.22) Deep East498-08-03 209.3 m 211.1 m 1.8 m (5.9 ft) 21.6 (0.63) Deep East* Hole ended in mineralized zone
Dale Ginn, chief
executive officer of San Gold, stated: "The discovery of the high-grade
Hinge zones from surface is the most significant development to date in San
Gold's history. Not only are we beginning to extend the Hinge zones to mine
depths, but we are also filling in the area between the main mine and the Deep
East zones, effectively doubling the strike length of the Rice Lake mine. These
deep intersections indicate that there is tremendous potential in the
unexplored volcanic rocks and is especially obvious between the surface
drilling and the current underground drilling, not to mention the numerous
other surface Hinge targets we have identified."
Please see the company's
website for prior Hinge zone press releases with surface drill results and a
description of geology and location. All of the above intersections are near to
and accessible via current mine workings and are not a part of the current
resource report (ACA Howe, 2006). The above results are a part of an important
expansion program targeting potential high-grade mineralization within
undeveloped and open areas of the Rice Lake mine.
Other current drill exploration programs within the mine
include:
·
26 level or upper D shaft, an
undeveloped target area potentially containing veins similar to the high-grade
"98" vein;
·
Open and undeveloped areas between
the main Rice Lake orebodies and the Deep East zones;
·
Phase 2 drilling on the downward
extensions of the main Rice Lake orebodies.
General sections showing locations of the Hinge zones
relative to the Rice Lake mine as well as locations of the new drill results
are available at the company website.
The above program was carried out under the supervision
of D. Ginn, PGeo, 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 blanks
and standards, the retention of pulps and rejects, and spot checks using
independent labs including TSL Laboratories in Saskatoon, Sask., and Accurassay
Laboratories of Thunder Bay, Ont. The core lengths are actual lengths as
drilled and have not been adjusted for the true width of the mineralized zones.
Investor
Relations 1-800-321-8564
www.sangoldcorp.com
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