San Gold drills 3.9 m of 19.9 g/t Au at Hinge No. 4

2008-07-30 08:23 ET - News Release

Mr. Dale Ginn reports

HIGH GRADE HINGE #4 ZONE EXTENDED ALONG STRIKE AND TO DEPTH

San Gold Corp.'s drilling has extended the newly discovered Hinge No. 4 zone to depth and along strike to the east. The Hinge No. 4 zone has now been drill tested between section 0 east and 600 east (feet), and to depths of over 1,200 feet (400 metres) demonstrating excellent continuity in both structure and grade. All of the holes listed here contain visible gold within quartz veining displaying clear, sharp contacts with the host volcanic rocks, as well, core recoveries were nearly 100 per cent. San Gold is also pleased to report that the Hinge area drill data are now available for viewing as a "work in progress."

                             RESULTS FROM THE NEW HOLESHole No.        From          To       Length          Gold              Zone                    (metres)      (metres)(feet)   (g/t) (oz/ton)GS-08-45        105.7      109.6     3.9  (12.8)   19.9   (0.58)  Visible gold   Hinge No. 4GS-08-49        243.4      248.8     5.4  (17.5)   12.0   (0.35)  Visible gold   Hinge No. 4including       246.0      248.8     2.8   (9.1)   21.0   (0.61)  Visible gold   Hinge No. 4GS-08-53        272.7      276.1     3.4  (11.2)   19.2   (0.56)  Visible gold   Hinge No. 4GS-08-55        201.2      207.7     6.5  (21.3)    9.9   (0.29)  Visible gold   Hinge No. 4

The intersection angles between the above drill holes and the Hinge No. 4 zone are between 80 degrees and 90 degrees resulting in drilled widths which are very close to the true width of the zone. This zone remains open along strike to the northeast and to the southwest as well as at depth. Exploration of the Hinge zone over the past seven months has been guided by a structural model recently developed by the San Gold exploration team. This model has proven to be an effective and very reliable exploration tool to generate high-grade gold intersections. Surface drilling on the Hinge No. 4 zone has extended high-grade gold mineralization to a vertical depth of 1,200 feet (400 metres). Current work includes an attempt to correlate this mineralization with similarly textured and similar-graded intersections drilled from the Rice Lake mine workings over 5,200 feet vertically below the Hinge No. 4 zone.

The volcanic units which contain the new veins are located in a sequence of rocks which lie approximately 1,500 metres into the hangingwall stratigraphically above and geographically to the north of the mineralized mine unit of the Rice Lake gold mine. To date, a total of at least four subparallel new veins have been discovered in the Hinge area, as well as numerous uncorrelated breccia zones within 100 to 300 metres of surface. Two diamond drills are currently drilling in the Hinge area. The new zones are located approximately 1.5 kilometres to the northeast of San Gold's operating Rice Lake and mine and mill, and are fully accessible by road.

A third drill rig is exploring over a kilometre to the north of the Hinge No. 4 zone (approximately another kilometre stratigraphically higher than the Hinge No. 4 zone), looking for parallel structures along or near the hinge or axis in identical host rocks. A fourth drill rig has moved to a parallel hinge axis line to approximately 500 metres to the west of Hinge No. 4 in order to test other similar structures which include early mine workings. These workings include the Big Four shaft (1916), and the No. 1 and No. 2 Goldcup veins and an inclined shaft from the 1920s. To date, a total of eight hinge or axis lines have been located, all of which have identical geology and host rocks as the Hinge No. 4 zone, most contain evidence of early (pre-1930s) exploration and development efforts such as pits, trenches and shafts. There is no known record of these showings having being systematically explored.

This program was carried out under the supervision of W.S. Ferreira, PGeo, the qualified person for this project under National Instrument 43-101. The drill core was split, with half sent to TSL Laboratories in Saskatoon, Sask., 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, Ont. The core lengths are actual lengths as drilled and have not been adjusted for the true width of the mineralized zones.

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