007 Drill Results Continue to Expand the Deposit
WINNIPEG, MANITOBA -- (Marketwire) -- 10/22/12 -- George Pirie, President and Chief Executive Officer for San Gold Corporation (TSX: SGR)(OTCQX: SGRCF), is pleased to announce interim results of its ongoing 2012 diamond drilling program on the 007 deposit within the Company's 100% owned Rice Lake Project located in Bissett, approximately 235 kilometres northeast of Winnipeg, Manitoba, Canada. The Rice Lake Project has a permitted, modern gold mill currently processing ore at a capacity of 2,500 tons per day, modern surface infrastructure including a licensed tailings management facility, and is connected to the Manitoba power grid system.
Since being discovered in 2009, the 007 deposit continues to demonstrate robust grades and widths across all four lenses of the deposit and it continues to be consistent at depth while structural characteristics are becoming increasingly predictable.
This drilling activity is part of the Company's program to upgrade resources into higher confidence categories and to increase reserves within the mining complex. Overall results are positive and comparable with the Company's March 31, 2012 resource update. The Company will continue drilling for the remainder of 2012 and provide a resource update in the first quarter of 2013.
"The 007 deposit drilling continues to prove up high-quality resources which are accessible from existing infrastructure. The drilling continues to confirm the continuity of the deposit at depth. The ongoing development of the 16 and 26 Levels will provide drill platforms for further resource and reserve definition. Mining is currently scheduled to begin from these levels in early 2014," said Mr. Pirie.
Highlights of the drilling program include:
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From To Grade Length Below
Hole Zone (m) (m) (g/t) (m) Surface (m)
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DX-12-023 007 1026.7 1038.0 11.3 11.3 718
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DX-12-034 007 1044.9 1050.7 15.9 5.7 757
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S887-12-021 730 44.2 49.1 24.2 4.9 361
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S890-12-007 730 117.7 120.2 42.6 2.5 416
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607-12-031 Shoreline Basalt 185.1 187.4 28.8 2.3 1239
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607-12-032 Shoreline Basalt 208.1 209.9 20.0 1.8 1246
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Drilling for this program was carried out in three regions from drill stations located on surface and underground, with a total of 98 drill holes intercepting the 007 deposit and adjacent regions of the Shoreline Basalt Unit so far this year. The Company is very encouraged by the results of the Shoreline Basalt Unit drilling program as it continues to demonstrate the expansion of existing mineralized zones and the potential of new zones to be discovered along the Shoreline Basalt Unit both east and west and at depth.
The following provides a brief summary of the drilling program in each of the three regions:
1. 61 intersections were obtained between 300 and 595 metres below surface.
Drilling in this region occurred both from surface and underground drill
stations. These infill targets were identified to support the Company's
near-term mining plans within the active mining region accessed by ramp
from the Hinge/007 portal.
2. 7 intersections were obtained from between 700 and 895 metres below
surface from surface drilling stations. The Company intends to drill
this region more fully once development from 16 Level has reached the
Hinge district.
3. 30 intersections were obtained from between 900 and 1,250 metres below
surface. These infill targets were identified to support planned
development of the 007 deposit from 26 Level. The 26 Level is the
closest portion of the Rice Lake mine infrastructure to the projections
of the 007 deposit. Development is currently underway in this region and
mining is expected to commence in early 2014.
Table 1 at the end of this release provides the full list of results
from this year's drilling program to date.
Figure 1 at the end of this release provides a longitudinal section of
the three main drilling regions within the 007 deposit and planned
development from 16 and 26 Level.
Figure 2 at the end of this release provides a plan view of planned
development of the 007 deposit from 16 Level of the Rice Lake mine.
Figure 3 at the end of this release provides a plan view of planned
development of the 007 deposit from 26 Level of the Rice Lake mine.
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.
This drilling 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 43-10, who has reviewed and approved the press release.
About San Gold
San Gold is an established Canadian gold producer, explorer, and developer that owns and operates the Hinge, 007, and Rice Lake mines near Bissett, Manitoba. The Company employs more than 400 people and is committed to the highest standards of safety and environmental stewardship. San Gold is on the Toronto Stock Exchange under the symbol "SGR" and on the OTCQX under the symbol "SGRCF".
Cautionary Note
This news release includes certain "forward-looking statements". All statements, other than statements of historical fact included in this release, including, without limitation, statements regarding forecast gold production, gold grades, recoveries, cash operating costs, potential mineralization, mineral resources, mineral reserves, exploration results, and future plans and objectives of the Company, are forward-looking statements that involve various risks and uncertainties. These forward-looking statements include, but are not limited to, statements with respect to mining and processing of mined ore, achieving projected recovery rates, anticipated production rates and mine life, operating efficiencies, costs and expenditures, changes in mineral resources and conversion of mineral resources to proven and probable mineral reserves, and other information that is based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management.
Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be "forward-looking statements." Forward-looking statements are subject to a variety of risks and uncertainties that could cause actual events or results to differ from those reflected in the forward-looking statements.
There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include, among others, the actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of precious metals, as well as those factors discussed in the section entitled "Other MD&A Requirements and Additional Disclosure and Risk Factors" in the Company's most recent quarterly Management's Analysis and Discussion ("MD&A"). Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Exploration results that include geophysics, sampling, and drill results on wide spacings may not be indicative of the occurrence of a mineral deposit. Such results do not provide assurance that further work will establish sufficient grade, continuity, metallurgical characteristics, and economic potential to be classed as a category of mineral resource. A mineral resource that is classified as "inferred" or "indicated" has a great amount of uncertainty as to its existence and economic and legal feasibility. It cannot be assumed that any or part of an "indicated mineral resource" or "inferred mineral resource" will ever be upgraded to a higher category of resource. Investors are cautioned not to assume that all or any part of mineral deposits in these categories will ever be converted into proven and probable reserves.
Table 1: 2012 007 Drill Intersections by Elevation (1)
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From To Grade Length Below
Drill Hole Zone (m) (m) (g/t) (m) Surface (m)
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Active Mining Region Drilling
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1 JH-11-044 700 453.9 457.0 19.4 3.1 300
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2 JH-11-047 700 469.3 470.1 1.4 0.8 308
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3 CD-11-296 740 433.5 436.9 12.5 3.4 324
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4 CD-11-297 740 443.0 444.8 1.6 1.8 335
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5 887-12-050 730 2.4 6.4 4.3 3.9 336
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6 887-12-051 730 4.1 6.7 11.4 2.7 336
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7 CD-12-298 740 446.7 449.4 9.3 2.7 338
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8 CD-12-290 730 455.1 456.5 10.3 1.4 338
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9 CD-12-311 740 443.6 453.5 1.2 10.0 340
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10 CD-12-268 730 453.2 463.5 9.8 10.3 342
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11 S887-12-005 730 43.4 44.6 1.5 1.2 346
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12 CD-12-317 740 457.6 457.9 20.5 0.3 347
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13 CD-12-283 730 460.2 464.4 24.5 4.1 347
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14 CD-11-303 740 452.6 453.4 74.6 0.8 348
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15 S887-12-001 740 54.4 56.3 18.1 1.9 348
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16 CD-12-324 730 461.1 465.9 5.2 4.8 349
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17 CD-12-276 730 460.9 466.0 6.0 5.2 353
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18 CD-12-289 730 464.8 468.0 3.5 3.2 354
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19 S887-12-006 730 46.4 47.7 2.0 1.3 354
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20 S887-12-025 730 41.9 46.0 11.1 4.1 357
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21 S887-12-002 740 62.3 65.5 17.1 3.2 360
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22 CD-12-275 730 466.4 470.4 7.4 4.0 360
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23 S887-12-029 730 52.4 57.8 2.6 5.4 361
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24 CD-11-304 740 460.5 462.2 3.8 1.7 361
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25 S887-12-021 730 44.2 49.1 24.2 4.9 361
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26 CD-12-269 730 467.8 473.6 10.5 5.8 364
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27 S887-12-026 730 50.1 53.9 4.3 3.8 367
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28 JH-11-029 720 512.4 514.9 3.7 2.2 369
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29 S887-12-030 730 61.7 63.2 29.3 1.5 369
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30 CD-12-263 730 473.8 477.1 4.9 3.3 369
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31 S887-12-003 740 76.0 78.0 16.3 2.0 374
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32 S887-12-022 730 56.3 60.5 8.3 4.2 377
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33 S887-12-017 730 59.6 63.4 5.2 3.8 379
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34 JH-11-048 700 486.1 487.3 1.3 1.2 379
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35 S890-12-009 730 81.3 89.9 0.3 8.5 382
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36 S887-12-027 730 61.9 70.0 5.8 8.1 384
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37 S887-12-008 730 76.8 80.3 7.6 3.5 389
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38 S887-12-004 740 92.4 94.2 2.5 1.8 396
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39 S890-12-001 730 95.0 97.0 8.2 2.0 398
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40 CD-12-271 730 496.4 498.1 9.5 1.7 399
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41 S887-12-018 730 79.0 85.3 13.9 6.3 402
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42 CD-12-264 730 490.7 496.5 3.3 5.8 402
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43 CD-12-299 740 495.3 497.3 1.3 2.0 406
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44 CD-12-325 740 499.7 501.5 0.5 1.9 414
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45 S890-12-007 730 117.7 120.2 42.6 2.5 416
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46 CD-12-291 730 505.1 508.1 18.8 3.0 417
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47 S887-12-023 730 98.6 104.7 16.1 6.1 420
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48 S882-12-008 700 166.5 167.4 5.7 0.9 424
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49 CD-12-270 730 506.5 512.1 1.9 5.6 424
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50 CD-12-279 730 511.6 513.9 36.0 2.3 433
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51 CD-12-274 730 518.3 520.8 0.4 2.5 435
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52 S887-12-013 740 118.5 122.3 7.3 3.7 437
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53 S882-12-006 700 197.5 201.5 4.4 4.0 440
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54 S882-12-004 700 215.4 216.8 0.1 1.4 442
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55 S882-12-002 700 239.2 240.2 0.3 1.0 449
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56 S882-12-003 700 243.4 244.2 0.0 0.9 473
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57 CD-12-301 740 548.5 549.2 1.0 0.6 480
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58 CD-12-266 730 545.7 547.3 13.1 1.6 480
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59 CD-12-329 730 570.0 574.5 3.8 4.5 505
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60 CD-12-267 730 585.7 589.5 6.4 3.7 533
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61 CD-12-326 740 592.0 596.8 0.9 4.8 538
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16 Level Access Drilling
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62 DX-12-032 007 1025.0 1049.0 1.7 24.0 701
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63 DX-12-023 007 1026.7 1038.0 11.3 11.3 718
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64 DX-12-034 007 1044.9 1050.7 15.9 5.7 757
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65 DX-12-028 007 1059.9 1063.4 1.2 3.5 763
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66 DX-11-021 007 1082.8 1084.9 0.2 2.1 819
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67 DX-12-026 007 1045.0 1047.9 12.1 2.8 823
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68 DX-12-027 007 1094.2 1094.5 32.1 0.3 829
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26 Level Access Drilling
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69 607-12-005 Shoreline Basalt 118.7 119.1 56.2 0.4 905
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70 607-12-003 Shoreline Basalt 115.0 117.1 3.3 2.1 1128
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71 607-12-021 Shoreline Basalt 113.5 123.6 3.8 10.0 1143
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72 607-12-017 Shoreline Basalt 151.5 152.2 2.5 0.6 1148
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73 607-12-006 Shoreline Basalt 76.6 79.1 3.2 2.5 1148
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74 607-12-023 Shoreline Basalt 191.9 192.1 31.6 0.2 1149
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75 607-12-020 Shoreline Basalt 180.5 183.5 2.8 3.0 1153
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76 607-12-019 Shoreline Basalt 269.8 272.2 4.5 2.4 1169
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77 607-12-010 Shoreline Basalt 161.5 162.4 1.5 0.9 1172
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78 607-12-001 Shoreline Basalt 192.4 194.0 10.0 1.7 1172
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79 607-12-022 Shoreline Basalt 192.0 192.5 8.3 0.4 1175
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80 607-12-016 Shoreline Basalt 186.3 187.1 0.1 0.8 1178
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81 607-12-009 Shoreline Basalt 69.1 71.6 0.7 2.6 1181
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82 607-12-004 Shoreline Basalt 92.0 94.2 0.0 2.2 1182
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83 607-12-002 Shoreline Basalt 130.9 135.8 5.2 4.9 1183
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84 607-12-011 Shoreline Basalt 8.2 9.1 4.0 0.9 1184
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85 607-12-013 Shoreline Basalt 66.0 68.4 1.6 2.4 1185
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86 607-12-007 Shoreline Basalt 16.5 16.7 4.8 0.2 1186
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87 607-12-024 Shoreline Basalt 152.3 153.1 6.2 0.8 1192
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88 607-12-033 Shoreline Basalt 187.5 191.4 3.6 3.9 1194
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89 607-12-028 Shoreline Basalt 185.6 186.4 11.5 0.8 1198
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90 607-12-025 Shoreline Basalt 175.7 179.2 3.6 3.5 1205
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91 607-12-029 Shoreline Basalt 142.4 144.2 0.1 1.9 1207
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92 607-12-030 Shoreline Basalt 152.9 154.7 1.2 1.8 1217
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93 607-12-039 Shoreline Basalt 222.9 224.4 1.5 1.5 1217
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94 607-12-034 Shoreline Basalt 252.8 253.7 2.8 0.9 1224
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95 607-12-026 Shoreline Basalt 182.3 183.2 8.4 0.9 1224
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96 607-12-035 Shoreline Basalt 260.2 262.9 1.5 2.7 1234
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97 607-12-031 Shoreline Basalt 185.1 187.4 28.8 2.3 1239
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98 607-12-032 Shoreline Basalt 208.1 209.9 20.0 1.8 1246
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(1) The intersections presented herein may not necessarily represent the
true width of mineralization.
To view the figures associated with this release, please visit the following links:
Figure 1: http://media3.marketwire.com/docs/SGR1019Figure1.pdf
Figure 2: http://media3.marketwire.com/docs/SGR1019Figure2.pdf
Figure 3: http://media3.marketwire.com/docs/SGR1019Figure3.pdf
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
Contacts:
San Gold Corporation
George Pirie
President and CEO
Toll Free: 1 (855) 585-4653
San Gold Corporation
Manish Grigo
Director Investor Relations
info1@sangold.ca
www.sangold.ca