San Gold drills 44.9 g/t Au over 3.1 m at L-13 zone
2009-11-06 08:12 ET - News Release
Mr. Dale Ginn reports
SAN GOLD DISCOVERS ANOTHER NEW HIGH GRADE ZONE NEAR SURFACE
San Gold Corp.'s surface exploration drilling has discovered a new collection of mineralized zones known as L-13, located approximately 500 metres to the west of the Hinge zones and one kilometre to the northeast of the Rice Lake mine and mill. These zones are also located directly under the existing Hinge zone decline access at approximately the halfway point between the decline collar and the Hinge zones under current development. The lower zone or L-13 No. 2 appears to host the strongest mineralization of the zones to date as highlighted by the deepest drill hole KL-09-29 which encountered 45 grams per tonne (1.31 ounces per ton) over 3.1 metres (10.2 feet) at 275 metres (900 feet) below surface. The L-13 zones have been confirmed by a number of drill holes, and have identified at least three stacked lenses to date within a 300 m strike length. Surface drilling continues to expand the zones which are open along strike and to depth.
Hole No. From To Length Gold g/t (oz/t) Zone
KL-09-20 234.3 m 237.0 m 2.7 m (8.9 ft) 10.6 (0.31) Lower 2
KL-09-21 261.3 m 262.8 m 1.5 m (5.0 ft) 6.8 (0.20) Lower 2
KL-09-22 224.6 m 230.7 m 6.1 m (20.0 ft) 5.1 (0.15) Lower 2
KL-09-27 232.5 m 232.8 m 0.3 m (1.0 ft) 92.8 (2.71) Lower 2
KL-09-28 171.9 m 173.5 m 1.6 m (5.3 ft) 22.9 (0.67) Lower 2
KL-09-29 281.1 m 284.2 m 3.1 m (10.2 ft) 44.9 (1.31) Lower 2
KL-09-42 241.1 m 243.4 m 2.3 m (7.6 ft) 19.2 (0.56) Lower 2
GC-09-005 343.3 m 344.5 m 1.2 m (4.0 ft) 4.1 (0.12) Lower 3
GC-09-006 358.8 m 361.5 m 2.7 m (8.9 ft) 13.0 (0.38) Lower 3
KL-09-14 133.2 m 134.2 m 1.0 m (3.3 ft) 13.0 (0.38) Upper 1
KL-09-15 147.6 m 149.7 m 2.1 m (6.9 ft) 3.4 (0.10) Upper 1
KL-09-16 126.6 m 127.3 m 0.7 m (2.3 ft) 4.1 (0.12) Upper 1
KL-09-17 141.4 m 143.0 m 1.6 m (5.3 ft) 2.7 (0.08) Upper 1
KL-09-19 198.3 m 199.3 m 1.0 m (3.3 ft) 5.5 (0.16) Upper 1
The L-13 area is the third high-grade discovery made within the past 18 months using a geological targeting model that has identified a repetitive structural pattern. The first zone, the Hinge zone, discovered in April, 2008, is now entering production following a successful bulk sampling program completed in July, 2009, the second is the Cohiba zone located 500 metres to the east of the Hinge zone (see news in Stockwatch Sept. 9 and June 11, 2009). Several additional nearby targets have been located using the same structural model and are being drilled or are scheduled to be drilled over the next few months. An estimated 10 to 20 kilometres of San Gold lands containing identical proposed structures remain unexplored to date. San Gold staff has designed exploration and development drifts from the existing Hinge decline in order to access the Cohiba zone as well as to access the L-13 zones, and additionally to join the Hinge decline with the upper levels of the Rice Lake mine. This new underground development will allow independent access to the upper levels of the Rice Lake mine, which contain numerous targets that were identified by previous operators. Synergies with regard to exploration, ventilation, emergency escape ways and ore haulage are also being considered between Rice Lake and surrounding zones as a result of the L-13 discovery. The currently known Hinge, Cohiba and L-13 zones are all located to the northeast of San Gold's operating Rice Lake and mine and mill, and are fully accessible by San Gold's private road, and all lie within San Gold's fully permitted mine lease.
Location plans and a generalized longitudinal section as well as existing and planned development are available in the graphical version of this press release at San Gold's website.
This program was carried out under the supervision of W.S. Ferreira, PGeo, and Dale Ginn, PGeo, the qualified persons for this project under National Instrument 43-101. Exploration drill core is split, with half sent to TSL Laboratories in Saskatoon, Sask., 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 standards, the retention of pulps and rejects, and spot checks using independent labs including TSL Laboratories in Saskatoon, Sask., and Accurassay Laboratories of Thunder Bay, Ont. The core lengths are actual lengths as drilled and have not been adjusted for the true width of the mineralized zones.
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