Slate Grocery REIT T.SGR

3.8 m of 14.4 g/t Au at Gabrielle

[nino9]

SGR: TSX-V www.sangoldcorp.com San Gold drills 3.8 m of 14.4 g/t Au at Gabrielle Wednesday August 02 2006 - News Release Mr. Dale Ginn reports SAN GOLD'S GABRIELLE ZONE FILLS GAP San Gold Corp.'s drilling from surface has confirmed and extended the gold mineralization in and around the historic Gabrielle mine. Hole number CW-06-70 encountered 3.8 metres (12.5 feet) of 14.4 grams per tonne (g/t) (0.42 ounce per ton) gold at over 100 metres (328 feet) below the lowest workings of the Gabrielle mine. Hole number CW-06-67 was drilled above the lowest developed level in order to confirm development assay data from the 1920s and encountered 2.3 metres (7.5 feet) of 16.4 g/t (0.48 ounce per ton) gold. In addition to confirming the historical data, the latest results also begin to fill in the information gap between the producing Rice Lake gold mine located 600 metres (2,000 feet) to the east and the newly discovered Cartwright zone located 500 metres (1,600 feet) to the west. Rice Lake mine style of gold mineralization has now been proven to be continuous for over two kilometres from the known western extents of the Cartwright zone to the Rice Lake gold mine, with the Gabrielle zone between. Results to date from the Gabrielle zone are tabulated below. Hole No. From To Length Gold g/t (oz/ton) CW-06-70 233.2 m 237.0 m 3.8 m (12.5 ft) 14.4 (0.42) CW-06-67 76.5 m 78.8 m 2.3 m (7.5 ft) 16.4 (0.48) CW-06-66 76.6 m 78.6 m 2.0 m (6.6 ft) 4.8 (0.14) CW-06-64 282.6 m 283.6 m 1.0 m (3.3 ft) 12.4 (0.36) CW-06-63 275.5 m 276.5 m 1.0 m (3.3 ft) 7.2 (0.21) The Gabrielle shaft and two levels at the 150- and 250-foot elevations were developed in the 1920s on six mineralized veins; however, no significant mining or exploration have been conducted until recently by San Gold. The Gabrielle mine is joined to and is accessible via the Rice Lake gold mine third-level western exploration drift. Results from a further 20 drill holes on the Cartwright zone are being compiled at this time and will be released shortly. A plan view location map of San Gold's mines and new discoveries is available on the company's website. This program was carried out under the supervision of W.S. Ferreira, MSc, PGeo, and D. Ginn, PGeo, the qualified persons for this project under National Instrument 43-101. The drill core was split, with half sent to TSL Laboratories in Saskatoon, Sask., and fire assayed with an AA and gravimetric finish. Whole metallics were performed on selected samples. Check assays were also performed on pulps and rejects by both TSL and by 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. For further information visit our website at www.sangoldcorp.com or call us toll free at 1-800-321-8564 To unsubscribe, please go to https://www.sangoldcorp.com/index.php?option=com_contact&Itemid=3 and type unsubscribe.