BISSETT, MB--(Marketwire - August 11, 2010) - Dale Ginn, CEO of San Gold Corporation (TSX-V: SGR) (PINKSHEETS: SGRCF) (OTCQX: SGRCF), is pleased to report that a new high grade gold deposit has been discovered by multiple diamond drill holes located near surface and approximately 400 meters to the east of the 007 deposit.
Drill hole #MP-10-005 encountered 179 g/tonne (5.22 oz/ton) over 2.1 meters (6.9 ft) at 100 meters (330 feet) below surface in a continuous quartz-carbonate vein containing abundant visible gold throughout. The deepest hole completed to date #MP-10-004 at 210 meters (700 feet) below surface also contained encouraging results reporting 75 g/tonne (2.19 oz/ton) over 2.3 meters (7.5 feet).
The Emperor drilling was designed to test a unique target, however, this zone is located along strike to the east of 007 deposit within the same host structure and may in fact be an extension of the 007 deposit. Results from four drill holes are reported in the table below:
Hole # From To Length Gold g/tonne (oz/ton) Zone --------- ------- ------- ------ ---------------------- -------
MP-10-004 344.3 m 346.6 m 2.3 m (7.5 ft) 75.0 (2.19) Emperor
MP-10-005 159.9 m 162.0 m 2.1 m (6.9 ft) 178.8 (5.22) Emperor
MP-10-008 160.0 m 164.3 m 4.3 m (14.1 ft) 15.1 (0.44) Emperor
MP-10-010 140.3 m 141.9 m 1.6 m (5.3 ft) 6.5 (0.19) Emperor
The Emperor zone dips steeply to the north and is made up of quartz and carbonate veins containing gold and pyrite mineralization and remains open along strike as well as to depth. The Emperor zone is located approximately 2.5 kms to the north-east of San Gold's operating Rice Lake mine and mill, is fully accessible by road and is potentially accessible from the Hinge Mine decline or from the planned 007 decline. Please see the company website at www.sangoldcorp.com for attached location maps and longitudinal sections showing drill hole locations and values, current and pending for the 007 and Emperor zones.
These results were generated as part of San Gold's second quarter drilling program, which consisted of 22,250 meters (73,000 feet) of exploration from surface, 10,700 meters (35,000 feet) of underground drilling in the Rice Lake Mine, and 6,700 meters (22,000 feet) of underground drilling at the Hinge Mine. The programs were focused on further defining and extending the Hinge, 007, and RL East zones while pursuing new exploration targets such as the Emperor zone. Drilling especially focused on extending the known limits of the 007 zone down plunge and along strike, as well as infill drilling in order to upgrade resources to reserves.
This 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 core lengths are actual lengths as drilled and have not been adjusted for the true width of the mineralized zones.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
FOR FURTHER INFORMATION PLEASE CONTACT:
Dale Ginn
Chief Executive Officer
