San Gold Corporation (SGRCF)

[NYBob]

San Gold Confirms High Grades with Bulk Sample of 007 Zone
Mar. 4, 2011 (PR Newswire) --



TSX:SGR || OTCQX:SGRCF

http://www.sangold.ca

BISSETT, MB, March 4 /PRNewswire/ -

George Pirie, CEO of San Gold Corporation
(TSX:SGR) (OTCQX: SGRCF), is pleased to report on
preliminary mine development and bulk sampling within the 007

http://www.sangold.ca/s/Ops.asp?ReportID=402510&_Type=Operations-Items&_Title=007-Zone

and 007 East Zones from 250 meters (820 ft) below surface.

Over 305 meters (1,000 ft) of strike length has been developed so
far at this elevation with three distinct zones identified
having strike lengths of 76 meters (250 ft) to 92 meters
(300 ft) each. 15,405 tons have been processed in
the Rice Lake mill so far this year from the 007 zones giving a mill head grade of
11.3 g/tonne (0.33 oz/ton).

Mining of the 007 zones have contributed to a record month in
terms of tonnage mined in February of 37,825 tons or 1,351 tons
per day average, including a new daily mined record of 2,674
tons.

Individual face grades have assayed up to 11.2 oz/ton
(384 g/tonne) over a true width of 3.4 meters (11.0 ft)
with visible gold being routinely observed throughout.

Chip sample results are presented in the table below using vein
only as well as full face widths in order to fully account for
dilution.
Chip sample face averages are also presented by zone using uncut
assay values and a 103 g/tonne (3 oz/ton) cutting factor for
all individual assays that lie over that threshold.

Zone Vein Width Vein Grade (g/tonne) Face Width Face Grade (g/tonne) Strike Length
(meters) uncut cut (meters) uncut cut (meters)
730 3.1 42.8 26.1 4.6 29.5 18.2 76.2
(007 East)
720 1.9 29.1 14.1 3.5 17.1 8.2 91.5
(007 mid)
700 1.5 60.3 24.3 3.4 27.4 11.6 76.2
(007 main)
Average 2.2 43.1 21.0 3.8 24.2 12.0

Ninety-two development faces were chip sampled resulting in a
total of 458 samples assayed for gold with individual values
ranging from 0.34 g/tonne (0.01 oz/ton) to 1,163 g/tonne
(33.96 oz/ton).
Level development continues in both the east and west directions
as well as in numerous vein offshoots while incline and decline
development is ongoing in order to access the zones at levels
above and below the 250 meter (820 foot) level.
Drilling from underground and surface continues over 100 meters
to the east of this development along strike from the 007 East
Zone and down dip from the Emperor Zone.

The 007 East Zone, as well as the 007, L10 and Emperor Zones
all occur near to or within a mafic flow rock unit known as
the Shoreline Basalt, striking roughly east-west, parallel
to and stratigraphically above the Rice Lake Mine or SAM unit.

More precisely, the close association of the 007 and recently
discovered eastward extensions with the Shoreline Basalt has
produced gold deposits that are more planar or regular in shape
than the overlying Hinge type deposits.
All of the Shoreline Basalt zones are located proximal to
a series of identified shears and their intersections with
the mafic flow unit.
The above mentioned mineralized zones of the Shoreline Basalt
system combine to form a known strike length of over 2 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.

The Shoreline Basalt has been pierced approximately 1,400 meters
(4,900 feet) below surface with horizontal drill intersections
from drill sites on 26 Level (see press statement released
Feb 17, 2011).
This basalt unit will be explored further and is planned to be
developed from current infrastructure on 10 Level, 16 Level and
26 Level.

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.

The above program was carried out by San Gold mine geologists
under the supervision of D. Ginn, P.Geo., the Qualified Person
for San Gold under National Instrument 43-101.
Chip, muck and mill samples are assayed on site in the
company's assay lab using the fire assay method with
an AA and gravimetric finish.
San Gold's quality control and assurance program includes the
insertion of 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.

NOTE: 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.

Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE San Gold Corporation

http://tmx.quotemedia.com/article.php?newsid=39211394&qm_symbol=SGR