San Gold Corporation (SGRCF)

[NYBob]

San Gold Tables Mineral Resource Estimate Update for Rice Lake Project Area

SAN GOLD CORP.


SAN GOLD CORPORATION
Press Release Source: San Gold Corporation On Friday September 3, 2010, 10:24 am EDT
SGR: TSX-V http://www.sangoldcorp.com
BISSETT, MB, Sept. 3 /CNW/ -

Dale Ginn, CEO of San Gold Resources Corporation
is pleased to report that a comprehensive, NI 43-101 compliant
report has been completed for the Rice Lake project area that
includes the Rice Lake, Hinge and SG1 mines as well as the 007,
Cartwright, SG2/3 and Cohiba zones.
This report was undertaken in order to make current all mineral
resources deemed to be within the Rice Lake project area,
to account for mining adjustments and to upgrade inferred
resources at the 007 zone.
The Resource tables are summarized below:


SUMMARY OF RESOURCES

Tons Grade Contained
oz./ton (g/tonne) Ounces
-------------------------------------
Rice Lake Mine
--------------
Measured Mineral Resources 388,200 0.24 (8.2) 93,140
Indicated Mineral Resources 679,240 0.26 (8.9) 176,960
---------------------------------------------------------------------
Total Measured and Indicated
Resources 1,067,440 0.25 (8.6) 270,100
Inferred Mineral Resources 1,519,750 0.29 (9.9) 439,090
---------------------------------------------------------------------

Hinge Mine
----------
Measured Mineral Resources 91,790 0.29 (9.9) 26,510
Indicated Mineral Resources 425,670 0.40 (13.7) 171,190
--------------------------------------------------------------------
Total Measured and Indicated
Resources 517,460 0.38 (13.0) 197,700
Inferred Mineral Resources 1,375,200 0.39 (13.4) 538,700
--------------------------------------------------------------------
SG1 Mine
--------
Indicated Mineral Resources 214,200 0.24 (8.2) 52,150
Inferred Mineral Resources 936,500 0.22 (7.5) 206,900
--------------------------------------------------------------------
007 Zone
--------
Indicated Mineral Resources 305,240 0.75 (25.7) 230,330
Inferred Mineral Resources 398,200 0.47 (16.1) 186,980
--------------------------------------------------------------------
Cohiba Zone
-----------
Indicated Mineral Resources 55,970 0.23 (7.9) 12,675
Inferred Mineral Resources 25,210 0.16 (5.5) 4,050
--------------------------------------------------------------------
Cartwright Zone
---------------
Indicated Mineral Resources 136,200 0.22 (7.5) 29,830
Inferred Mineral Resources 1,761,200 0.21 (7.2) 388,940
--------------------------------------------------------------------
SG-2 and SG-3 Zones
-------------------
Indicated Mineral Resources 173,100 0.20 (6.8) 34,600
Inferred Mineral Resources 195,600 0.26 (8.9) 50,860
--------------------------------------------------------------------
Rice Lake Project
-----------------
Total Measured plus Indicated 2,469,610 0.34 (11.7) 828,105
Total Inferred Resources 6,211,660 0.29 (9.9) 1,814,870



Tonnage in the indicated category increased significantly at
the 007 Zone
due to a high level of drilling activity during the first half
of 2010 in order to upgrade from the inferred category.
The 007 Zone database is now comprised of 135 drill holes
completed in 2009 and 2010 both within and outside of the
mineralized area for a total of 135,000 feet (41,150 meters).

The mineral resource estimate is based upon 163 composited vein
intersections comprised of a total of 482 individual assays.

The total area covered by the measured, indicated and inferred
mineral resources estimate for the 007 zone
is a strike length of 600 feet (183 meters) and a vertical
extent of 1,500 feet (460 meters) between 100 feet (30 meters)
and 1,600 feet (490 meters) of depth from surface.
The zone is open up and down dip and along strike to the
west.
Exploration and definition drilling as well as initial
development will continue throughout the last half of 2010.

Minor changes in mineral resources at the other deposits were
mainly due to adjustments in order to account for mining.
A portion of the Cohiba zone that is planned to be accessed from
the new 007 ramp was incorporated into this report as well.

The Hinge Mine
is located 1.5 kms to the north east of the Rice Lake Mine and
mill and is accessed by an independent decline.
The Hinge deposit was discovered in March, 2008, development
towards the deposit began in July, 2008 and a bulk sample was
completed in July, 2009.
The 007 zone is located 2,100 feet (650 meters) to the south
east of the Hinge Mine and was discovered in November, 2009.
Initial development within the 007 Zone is now underway,
originating from the Hinge decline.
Site preparation has started in order to collar a new decline to
be used for access to the upper 007 Zone, an initial area of
the Cohiba zone, and for exploration and potential access to
the Emperor zone and historic Wingold Mine.
For reference, the nearby Rice Lake mine has been mined from
the surface to 5,500 feet (1,680 meters) below surface
(7,000 feet (2,130 meters) down the dip of the zone)
with current development and production between 4,500 feet
(1,370 meters) and 5,500 feet (1,680 meters) from surface.

The mineral resources are in-situ, undiluted, and uncapped
and have not had economic parameters applied to them. The mineral resources are defined in terms of NI 43-101 regulations and their estimation was carried out using industry standard polygonal longitudinal section methodology. The drill hole data was evaluated in plan and section in three dimensional AutoCAD to determine continuity between holes. Vein structures in the Rice Lake Mine area have vertical extents from 4 to 8 times their strike length. Because of this, areas of influence used around drill hole pierce points on the longitudinal section for purposes of defining measured and indicated resources are ellipses, elongated down dip and plunge. For measured resources an ellipse with a short axis of 50 feet (15 meters) and a long axis of 100 feet (30 meters) was used and for indicated resources an ellipse with a short axis 75 feet (23 meters) and a long axis of 150 feet (46 meters) was used. Inferred resources are based on projection of measured plus indicated resources to a depth four times the strike length of the mineralized zone. A tonnage factor of 11.4 cubic feet per ton (equivalent to a specific gravity of 2.8) was used to convert polygon volumes to tons.

Peter George, P.Geo. of Geoex Limited is the independent qualified person in accordance with NI 43-101 responsible for the report referenced in this news release. Mr. George has made numerous site visits to this project over the past ten years, is a geologist with over 40 years of experience and has prepared evaluation reports for a number of significant mining operations. During the past 5 years, Mr. George has completed mineral resource reports on a number of significant Archean gold projects including the Gold Eagle (now Goldcorp) Bruce Channel deposit in Red Lake, Ontario, Valgold's (now Northern Gold) Jonpol deposit in the Timmins area, Black Pearl's (now Canadian Lithium) Tully deposit in the Timmins area, and San Gold's Rice Lake Mine, Cartwright, SG-1, SG-2, and SG-3 deposits in Bissett, Manitoba. Dale Ginn, P.Geo., CEO of San Gold is the qualified person responsible for this news release.

Caution concerning forward-looking statements: The information in this release may contain forward-looking information under applicable securities laws. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied in the forward-looking information. Factors that may cause actual results to vary include, but are not limited to, inaccurate assumptions concerning the exploration for and development of mineral deposits, political instability, currency fluctuations, unanticipated operational or technical difficulties, changes in laws or regulations, the risks of obtaining necessary licenses and permits, changes in general economic condition or conditions in the financial markets and the inability to raise additional financing. Readers are cautioned to not place undue reliance on this forward-looking information. The Company does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events except as may be required under applicable securities laws. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

For further information

Dale Ginn, CEO of San Gold Corporation,
at [phone] or email [e-mail].
A copy of the full report will be made available on
the company's website and has been filed with Sedar.


http://investorshub.advfn.com/boards/read_msg.aspx?message_id=53839414