Dale Ginn, CEO of San Gold Corporation (SGR: TSX-V) is pleased to report that underground exploration drilling
has discovered a new high grade gold zone (Deep West) located to the west of currently known mineralization,
a deep drilling program designed to look for hinge axis and intersecting hinge
structures below the Rice Lake mine, as well as for possible repeating Mine Unit rocks similar to the Rice Lake
mine unit. This hole intersected a near to massive sulphide unit, mainly pyrite with minor chalcopyrite, grading 13
g/tonne (0.37 oz/ton) gold over 4.0 meters (13 ft) within a broader zone of mineralized quartz-carbonate-chlorite
alteration extending beyond the Mine Diabase host unit into the surrounding intermediate volcanic rocks. This
type of gold mineralization and sulphide concentration is unique and has not been observed to date by San Gold.
The deep exploration program is already
showing signs of large and strong alteration systems and potential hosting structure beyond known mineralization
and rock types. We are extremely encouraged by these results so far and will continue to aggressively explore
below the Rice Lake mine both inside and outside of the mine host unit.”
