San Gold drills 2.3 m of 207 g/t at the Hinge zone

2009-04-14 07:40 ET - News Release

Mr. Dale Ginn reports

HINGE ZONE STEP OUT HOLE HITS HIGHEST GRADE TO DATE FOR SAN GOLD

San Gold Corp.'s step-out drilling from surface has encountered the highest-grade intersection to date in the Hinge zone. Drill hole No. GS-09-63 intersected 207 grams per tonne (g/t) (6.05 ounces per ton) gold over 2.3 metres (7.5 feet) in the target No. 4 zone. This intersection is located slightly below and approximately 50 metres along strike from the current western Hinge ore development face. Hole No. 63 is extremely significant, not only for its extreme high grade, but also in that it has extended the known zone along strike to the west by approximately 50 metres.

                        DRILL HOLE NO. GS-09-63

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

GS-09-63   169.3   171.6    2.3    (7.5)   207.1  (6.05)   Hinge 4 West

Dale Ginn, San Gold's chief executive officer, commented: "We are extremely pleased that drilling which was designed to extend and confirm extensions of the Hinge zone has generated a result that is comparable to the Goldcorp Red Lake high-grade zone located 80 kilometres to the east of us. The largest difference being in the shallow depth of discovery of San Gold's Hinge zone and immediate accessibility by our ongoing development program."

This zone remains open along strike to the northeast and to the southwest as well as at depth. Two drill rigs continue to define the known Hinge zones, a third drill rig is searching for parallel veins to the north and a fourth drill has commenced drilling on the next hinge-like target axis located approximately one kilometre to the east of the known Hinge zones. The currently known Hinge 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 San Gold's private road, and all lie within San Gold's fully permitted mine lease. An updated longitudinal section with development and drilling to date, as well as a plan view is available on San Gold's website.

This program was carried out under the supervision of W.S. Ferreira, PGeo, and D. 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. Definition 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 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.