Nov 17 2010
Dale Ginn, CEO of San Gold Corporation (SGR:TSX || SGRCF:OTCQX) has reported that surface exploration step-out drilling has discovered a significant eastern extension to the 007 zone at a depth below surface of 260 meters (850 feet).
Drill hole # CD-10-178 generated 66.1 g/tonne (1.93 oz/ton) over 12.0 meters (39.4 ft) at over 200 meters to the east of the currently developed strike length extents. This intersection is flanked evenly by the 007 Zone and the Emperor Zone at this elevation.
The 007 East Zone, as well as the 007, L10 and Emperor Zones all occur near to or within a mafic flow known as the Shoreline Basalt, striking roughly east-west and parallel to the Rice Lake Mine or SAM unit. All of the above zones are located proximal to a series of identified shears and their intersections with the mafic flow unit. The above mentioned mineralized zones on the Shoreline Basalt combine to form a strike length of over 1.5 kms. The combined strike length of the 007 and Emperor Zones is currently over 500 meters long as demonstrated by drilling to date. Mineralization consists of free gold and pyrite within quartz-carbonate veining and associated alteration consistent with the Rice Lake and Hinge Mines and the 007 development.
Dale Ginn, CEO stated, "It appears as though the Shoreline Basalt has the ability to host mineralization wherever it interacts with a shear zone. This is consistent with the original host rock for the Rice Lake Mine and as such, we expect that our new zones will have great depth extensions as well. We look forward to reporting results from the deep exploration drilling that we are conducting on these zones from the 26th and 28th levels of the Rice Lake Mine."
The 007 zone is located approximately 2 kms to the north-east of San Gold's operating Rice Lake mine and mill, is fully accessible by road and is accessible from the Hinge Mine decline. The 007 zone was initially discovered by San Gold geologists in November 2009 and mine development towards the zone began early in 2010 originating from the Hinge Mine.
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.
Source: San Gold Corporation