San Gold drills 1.8 m of 103 g/t Au at Hinge No. 4

2008-10-07 08:56 ET - News Release

Mr. Dale Ginn reports

SAN GOLD DRILLS 103 G/TONNE OVER 1.8 M AT HINGE #4

Assay results have been received for drill hole No. GS-08-74 in San Gold Corp.'s new high-grade Hinge No. 4 zone. Hole No. 74 intersected 103.0 grams per tonne (g/t) (3.00 ounces per ton) over 1.8 metres (5.9 feet) within a broader intersection of 30.5 g/t (0.89 ounce per ton) over 6.0 metres (19.7 feet). This intersection is located between hole No. 33 and No. 25 and is the first hole in a program of infill drilling on the Hinge No. 4 zone above the 200-metre level.

Results from drill hole No. GS-08-74 are summarized in the table.

Hole No.    From        To         Length             Gold g/t (oz/ton)          Zone

GS-08-74    166.4 m   172.4 m   6.0 m (19.7 ft)    30.5 (0.89) visible gold     Hinge No. 4
including   166.4 m   168.2 m   1.8 m (5.9 ft)    103.0 (3.00) visible gold     Hinge No. 4

This drill program is designed to provide additional information in the immediate area of the Hinge No. 4 zone to be accessed and developed by the decline from surface which is currently under way. This decline has advanced approximately 300 metres since commencing in August this year and is advancing at a rate of 6.7 metres (20 feet) per day. This development is being conducted by San Gold personnel and is anticipated to reach the first of the Hinge zones by December of this year at the 150-metre level. The Hinge No. 4 zone was discovered during the first quarter of 2008.

To date a total of at least four subparallel new veins have been discovered in the Hinge area, as well as numerous uncorrelated breccia zones within 100 to 300 metres of surface. Four diamond drills are currently operating in the Hinge area. The new zones are located approximately 1.5 kilometres to the northeast of San Gold's operating Rice Lake and mine and mill, and are fully accessible by road.

Please see the San Gold website for prior Hinge zone press releases, a plan view location map and a longitudinal section showing the location of the intersections in the Hinge No. 4 zone. Hinge area drill data are also available for viewing as a "work in progress" at the Corebox website.

The above program was carried out under the supervision of W.S. Ferreira, PGeo, and D. Ginn, PGeo, the qualified persons for San Gold under National Instrument 43-101. Split 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 blanks and 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.