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San Gold Corporation – 007 East Zone Expands Along Shoreline Basalt

April 7, 2011

TSX: SGR || OTCQX: SGRCF
www.sangold.ca

BISSETT, MB, April 7 /PRNewswire/ – George Pirie, President and CEO of San Gold
Corporation (TSX: SGR) (OTCQX: SGRCF) is pleased to report that
exploration step-out drilling from surface and underground has extended
the 007 Zone to the east by as much as 100 meters, bringing the total
strike length of the 007 zones to 500 meters to date.

Robust widths and grades are being encountered as drilling pushes the
deposit eastward and to depth as demonstrated by the most easterly
drill hole to date, # S915-11-33 which intersected 15.4 g/tonne (0.45
oz/ton) over 13.7 meters (45 ft) at a depth of 260 meters below
surface.   Deeper drilling below 300 meters is also extending the
deposit to depth as shown by drill hole #CD-11-003 which intersected
17.8 g/tonne (0.52 oz/ton) over 4.2 meters (14 ft) and by #CD-11-13,
cutting  56.5 g/tonne (1.65 oz/ton) over 2.6 meters (8.5 ft).  The 25
intersections within 24 drill holes as reported below are located
within a 220 meter long by 220 meter deep envelope beginning at 200
meters below surface at the eastern extremity of the 007 deposit.

All drill holes for which assays have been received within the 007 East
Extension and Far East zones are listed below:


    Hole #      From    To  Length        Gold               Zone

                   m     m     m    ft  g/tonne oz/ton  

    CD-10-192   453.5 459.8   6.4  20.9    6.5   0.19     007E Ext

    CD-10-193   351.8 358.1   6.3  20.8   51.0   1.49     007E Ext

    CD-10-195   361.7 364.2   2.5  8.3    34.2   1.00     007E Ext

    CD-11-01    374.8 380.5   5.7  18.6   18.5   0.54     007E Ext

    CD-11-02    447.3 455.9   8.6  28.1    7.9   0.23     007E Ext

    CD-11-03    405.6 409.8   4.2  13.9   17.8   0.52     007E Ext

    S915-11-010 50.0  56.4    6.4  21.1    9.0   0.26     007E Ext

    S915-11-011 42.0  55.2   13.2  43.4   11.6   0.34     007E Ext

    S915-11-013 33.8  43.8   10.0  32.8    7.2   0.21     007E Ext

    S915-11-014 50.7  63.2   12.5  41.0   11.6   0.34     007E Ext

    S915-11-032 39.2  45.7    6.5  21.3    6.2   0.18     007E Ext

    S915-11-040 41.1  49.5    8.4  27.5   14.3   0.42     007E Ext

    S915-11-042 41.6  44.4    2.8  9.3    33.6   0.98     007E Ext

    S915-11-050 52.2  57.0    4.8  15.6   43.5   1.27     007E Ext

    S922-11-043 171.0 176.9   5.9  19.2    9.2   0.27     007E Ext

    S922-11-047 133.2 134.1   0.9  3.0   185.3   5.41     007E Ext

    and         144.8 148.5   3.7  12.0   11.3   0.33     007E Ext

    S922-10-070 172.7 176.6   3.9  12.8   32.5   0.95     007E Ext

    CD-11-11    436.4 438.6   2.2  7.2    25.0   0.73  007 Far East

    CD-11-12    476.4 478.6   2.2  7.1     4.8   0.14  007 Far East

    CD-11-13    439.3 441.8   2.6  8.5    56.5   1.65  007 Far East

    CD-11-14    444.6 447.0   2.4  8.0    16.1   0.47  007 Far East

                                                       007 Far East

    S915-11-033 128.4 142.1  13.7  44.9   15.4   0.45  007 Far East

    S915-11-057 151.5 155.2   3.7  12.2    9.2   0.27  007 Far East

    S915-11-062 111.6 121.9  10.3  33.7   17.1   0.50  007 Far East

“These results continue to demonstrate the size and strength of the gold
mineralization within the Shoreline Basalt. The discovery and
development of this new mine trend is an exciting new era for San Gold.
The success of our exploration efforts in these zones allows us to
execute our plan to develop a new mine complex and continues to support
the very aggressive drill program in place,” said Mr. Pirie.

Over 350 meters of 007 Zone strike length has been developed so far at
the 260 meter level in preparation for mining.  Mine development also
continues to the west towards the L10 deposit, the second major deposit
to be developed along the Shoreline Basalt.

The 007 zone is located approximately 2 km 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.  San Gold is on track to complete over 300,000 meters of
diamond drilling in 2011, making it one of Canada’s most aggressive
gold exploration companies.

A detailed longitudinal section displaying the results obtained to date
is available at the company’s website: www.sangold.ca.

The surface drill 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 underground drill 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.  Underground
drill core 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. The core lengths are
actual lengths as drilled and have not been adjusted for the true width
of the mineralized zones.

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.

The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.

 

SOURCE San Gold Corporation


Source: newswire



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