Summary of Hinge Zone Results Including New High Grade Gold Intersections: Financial News

Summary of Hinge Zone Results Including New High Grade Gold Intersections
Monday November 10, 2008 9:02 am ET

BISSETT, MB--(MARKET WIRE)--Nov 10, 2008 -- Dale Ginn, CEO of San Gold Corporation (CDNX:SGR.V - News), is pleased to report that ongoing Hinge zone surface exploration drilling continues to encounter extremely high gold grades. Hole # GS-08-78 which contained abundant visible gold, encountered 75.7 g/tonne (2.21 oz/ton) gold over 2.8 meters (9.2 ft) at a vertical depth of 135 meters. Deeper drilling also continues to extend and expand the Hinge zones to depths below 400 meters as demonstrated by drill hole #'s GS-08-69 and GS-08-64. Results from the new holes are tabulated below.

 

Hole #     From       To            Length            Gold g/tonne (oz/ton)
--------  -------  --------  ----------------------   --------------------
GS-08-78  147.2 m   150.0 m   2.8 m    (9.2 ft)  75.7  (2.21) visible gold

GS-08-69  418.4 m   421.5 m   3.1 m    (10.2 ft) 10.3  (0.30)

GS-08-64  258.0 m   259.0 m   1.0 m    (3.3 ft)  23.3  (0.68) visible gold

and       413.8 m   418.1 m   4.3 m    (14.1 ft)  6.2  (0.18)

A summary of drill results received to date within the mineralized boundaries of the known Hinge zones is also provided in this press release with results sorted by zone and depth. The Wingold zone results drilled in 2004 have also been included in this summary as this zone has now been determined by San Gold to be a part of the Hinge zone geological and spatial package. The Wingold veins are located approximately 300 meters to the north and east of the Hinge #4 deposit and were partially developed by 2 levels with shaft access in the early 1930's. A limited drill program from surface was conducted by San Gold Resources in 2004 prior to the development of the current Hinge geological model.

The company is also pleased to announce that Scott Wilson Roscoe Postle Associates Inc. (Scott Wilson RPA) have been retained to audit San Gold's current mineral resource estimate on the high grade Hinge Zone located approximately 1 km from the Rice Lake mill. The Scott Wilson RPA mandate is to perform the audit and to prepare a Summary Technical Report to support the disclosure of an initial mineral resource estimate on the Hinge Zone deposit. The Hinge Zone resource audit will be carried out under the overall supervision of William E. Roscoe, Ph.D., P.Eng., President of Scott Wilson RPA and Consulting Geologist. The Scott Wilson Mining Group, including Scott Wilson Roscoe Postle Associates Inc., is based in Toronto with offices in Canada, the United Kingdom, China, and Zambia. The Mining Group consults to major mining companies, junior mining and exploration companies, financial institutions, governments, law firms and individual investors on all aspects of mining development and operation.

 



Hole #      From    To            Length       Gold g/tonne (oz/ton)

Hinge #4 above 200 meters

GS-08-07   110.4 m  111.6 m   1.2 m   (4.0 ft)   4.5 (0.13)

GS-08-15   136.2 m  140.6 m   4.4 m  (14.4 ft)   7.5 (0.22)

GS-08-17   149.9 m  151.5 m   1.6 m   (5.3 ft)  60.6 (1.77)

GS-08-25   152.6 m  162.0 m   9.4 m  (30.8 ft)  28.1 (0.82)

including  159.0 m  162.0 m   3.0 m   (9.9 ft)  79.0 (2.31)

GS-08-29    98.6 m  102.6 m   4.0 m  (13.2 ft)  56.7 (1.66)

and        105.5 m  107.3 m   1.8 m   (6.0 ft)  42.5 (1.24)

GS-08-31    99.0 m  104.4 m   5.4 m  (17.6 ft)  21.2 (0.62)

and        110.7 m  112.3 m   1.6 m   (5.1 ft)  47.6 (1.39)

GS-08-33   109.1 m  115.4 m   6.3 m  (20.7 ft)  85.1 (2.49)

GS-08-43   102.3 m  103.5 m   1.2 m   (4.0 ft)  16.8 (0.49)

GS-08-45   105.7 m  109.6 m   3.9 m  (12.8 ft)  19.9 (0.58)

GS-08-55   201.2 m  207.7 m   6.5 m  (21.3 ft)   9.9 (0.29)

GS-08-65   223.4 m  225.9 m   2.5 m   (8.2 ft)  13.4 (0.39)

GS-08-74   166.4 m  172.4 m   6.0 m  (19.7 ft)  30.5 (0.89)

including  166.4 m  168.2 m   1.8 m   (5.9 ft) 103.0 (3.00)

GS-08-76   122.2 m  124.2 m   2.0 m   (6.6 ft) 141.8 (4.14)

GS-08-78   147.2 m  150.0 m   2.8 m   (9.2 ft)  75.7 (2.21)


Hinge zones below 200 meters

GS-07-15   248.2 m  249.2 m   1.0 m   (3.3 ft)  18.5 (0.55)

GS-07-18   255.3 m  256.3 m   1.0 m   (3.3 ft)  26.0 (0.77)

GS-07-28   319.9 m  321.5 m   1.6 m   (5.3 ft)   9.7 (0.29)

and        330.4 m  332.7 m   2.3 m   (7.6 ft)  20.1 (0.62)

and        346.2 m  351.1 m   4.9 m  (16.1 ft)   7.4 (0.22)

GS-08-17   315.8 m  318.7 m   2.9 m   (9.5 ft)   5.8 (0.17)

GS-08-19   347.5 m  349.3 m   1.8 m   (6.0 ft)   9.9 (0.29)

GS-08-37   383.3 m  399.9 m  16.6 m  (54.3 ft)  16.8 (0.49)

including  383.3 m  387.6 m   4.3 m  (14.0 ft)  48.4 (1.41)

GS-08-49   243.4 m  248.8 m   5.4 m  (17.5 ft)  12.0 (0.35)

including  246.0 m  248.8 m   2.8 m   (9.1 ft)  21.0 (0.61)

GS-08-53   272.7 m  276.1 m   3.4 m  (11.2 ft)  19.2 (0.56)

GS-08-64   258.0 m  259.0 m   1.0 m   (3.3 ft)  23.3 (0.68)

and        413.8 m  418.1 m   4.3 m  (14.1 ft)   6.2 (0.18)

GS-08-69   418.4 m  421.5 m   3.1 m  (10.2 ft)  10.3 (0.30)

GS-08-71   308.2 m  310.5 m   2.3 m   (7.6 ft)   8.9 (0.26)

GS-08-75   256.4 m  257.8 m   1.4 m   (4.6 ft)  59.6 (1.74)


Hinge #3 zone above 200 meters

GS-07-15    56.0 m   57.5 m   1.5 m   (5.0 ft)  18.5 (0.55)

GS-07-16    48.7 m   49.7 m   1.0 m   (3.3 ft)  30.2 (0.90)

GS-07-17    63.0 m   65.4 m   2.4 m   (7.9 ft)  11.4 (0.34)

GS-07-18    69.3 m   71.8 m   2.5 m   (8.3 ft)  23.2 (0.69)

GS-07-19    74.7 m   80.0 m   5.3 m  (17.4 ft)   7.1 (0.21)

GS-07-23    62.3 m   65.5 m   3.2 m  (10.5 ft)   6.5 (0.19)

GS-07-27    76.3 m   77.9 m   1.6 m   (5.2 ft)   9.6 (0.28)

GS-07-28   132.5 m  134.2 m   1.7 m   (5.6 ft)   9.7 (0.29)

GS-08-17   210.0 m  211.0 m   1.0 m   (3.3 ft)  17.1 (0.50)

GS-08-27   176.2 m  178.1 m   1.9 m   (6.2 ft)   3.4 (0.10)



Other Hinge zones not yet correlated

GS-07-28   158.6 m  159.6 m   1.0 m   (3.3 ft)  13.1 (0.39)

GS-07-11   263.9 m  265.5 m   1.6 m   (5.2 ft)   9.6 (0.28)

Wingold zone drilled in 2004

RL-04-01    30.6 m   31.6 m   1.0 m   (3.3 ft)  18.0 (0.53)

and         36.1 m   37.2 m   1.1 m   (3.6 ft)  18.3 (0.54)

RL-04-02    45.4 m   51.6 m   6.2 m  (20.3 ft)  18.7 (0.55)

including   48.7 m   50.9 m   2.2 m   (7.2 ft)  37.0 (1.08)

The Hinge #4 zone has now been drill tested between section 0 east and 700 east feet (215 m), and to depths of over 1,200 feet (400 m) demonstrating excellent continuity in both structure and grade. This zone remains open along strike to the north-east and to the south-west as well as at depth. Current work includes an attempt to correlate this mineralization with similarly textured and similar high grade grade intersections drilled from the Rice Lake mine workings over 5,200 feet (1,600 m) down dip from the Hinge #4 zone. Many of the holes listed above contain visible gold within quartz veins that are in clear, sharp contact with the host volcanic rocks, as well, core recoveries were nearly 100%.

Please see the San Gold website (www.sangoldcorp.com) for a longitudinal section showing the location of the intersections in the Hinge #4 zone together with prior Hinge Zone press releases and a plan view location map. Additionally, three dimensional and cross sectional drill hole data of the Hinge Zone mineralization is now available at http://www.corebox.net/properties/rice_lake/.

This program was carried out under the supervision of W.S. Ferreira, P.Geo., and D. Ginn, P.Geo., the Qualified Persons 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. San Gold's quality control and assurance program includes the insertion of blanks and 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.

For further information contact Dale Ginn, CEO of San Gold Corporation, at (204) 794-5818 or investor information at 1-800-321-8564 or visit www.sangoldcorp.com.