Here is some of itThe maps and form are poor but go to the web site it is worth the effort
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FOR IMMEDIATE RELEASE
San Gold Corporation
212 - 1661 Portage Avenue
Winnipeg, Manitoba R3J 3T7
(All amounts are in Canadian dollars, unless stated otherwise)
August 11, 2011
San Gold Provides Near-Surface Exploration Update
Winnipeg, Manitoba – San Gold Corporation (TSX: SGR) (OTCQX: SGRCF) (“San Gold” or
the “Company”) provides a year-to-date update on its near-surface exploration program, as
well as an update on its planned exploration activities for the remainder of the year.
San Gold is currently undertaking its largest-ever exploration program, which includes 300,000
metres (“m”) of drilling utilizing 13 rigs, making it one of Canada’s largest drill programs by a
gold producer in 2011. The goals of this aggressive exploration program are to upgrade existing
mineral resources and discover new mineral resources in preparation for an updated mineral
reserve and resource statement in 2012 with the expectation of increasing mineral reserves
and extending mine life.
Exploration Summary
Year-to-date, San Gold has drilled over 200,000 m in more than 500 holes at its Rice Lake
Project. Drill results reported in this press release are limited to depths of up to 500 m from
surface. The Company expects to provide an update on its deep drilling activities in the fourth
quarter of 2011.
The Company’s near-surface exploration activities in 2011 have focused on both exploration
and definition drilling along the 007 trend and within the L10, L13 and Cohiba zones. The
general location of these exploration target areas and drill results’ pierce points reported
herein are presented in figures 1 and 2 at the end of this press release, respectively.
Along the 007 trend, drilling from more than 200 holes confirms robust grades over potentially
mineable widths within the mineralized envelopes. Drilling indicates that the 007 trend
outcrops at surface and extends to more than 500 m in depth. Drilling also indicates that the
cumulative, drill-indicated strike now exceeds 500 m and that the zone averages 5 m in width,
which can swell to more than 20 m. Drilling is ongoing and continues to encounter significant
extensions to the areas of known mineralization along strike and down-dip.
Within the L10 zone, drilling from more than 75 holes indicates that the mineralized envelope
typically begins 250 m below surface and extends to a depth exceeding 500 m. The drillindicated
strike length of the L10 zone is approximately 100 m and varies in width from 2 to 5
m. The L10 zone remains open along strike and down-dip.
At Cohiba, drilling from more than 50 holes indicates that the mineralized envelope begins near
surface and extends to a depth exceeding 300 m over a strike length of approximately 150 m.
2 | SAN GOLD CORPORATION
The Cohiba zone remains open along strike and down-dip and is interpreted to contain at least
two lenses that vary in width from 1 to 10 m.
Within the L13 zone, exploration results have been very encouraging. Assay results from more
than 50 holes and have demonstrated that the mineralized envelope has a strike of
approximately 150 m and extends to at least 400 m from surface. The L13 zone remains open
along strike and down-dip, and is interpreted to contain at least two lenses that vary in from 1
to 10 m in width.
007 Trend
The 007 trend, which includes the 007 Main, 007 East, and 007 Far East zones, begins
approximately two kilometres (“km”) northeast of San Gold’s Rice Lake Project and is accessed
from the Hinge Mine’s decline. Nearly 400 m of the 007 and 007 East zones’ strike length has
been developed in preparation for mechanized mining.
Drill results from the 007 trend continue to demonstrate strong grades over potentially
mineable widths within the mineralized envelopes. Mineralized zones along the 007 trend
typically occur as tabular quartz veining along, or in close proximity to, the north hanging wall
contact of the Shoreline Basalt Unit, strike east – west, and dip steeply to the north. The 007
trend has a drill-indicated, cumulative strike length of more than 500 m and has been drilltested
by more than 200 holes between surface and a depth exceeding 500 m. Deeper drilling
designed to test for mineralized extensions along the 007 trend between 500 m and 1,500 m
below surface is currently underway. Exploration results from the deep drilling program are
expected to be reported during the fourth quarter of 2011.
A small selection of recent and notable assay results from the 007 trend include:
§? S915-11-048: 5.3 m grading 80.4 g/t Au
§? S922-11-036: 11.5 m grading 23.2 g/t Au, including 7.7 m grading 33 g/t Au
§? S922-11-027: 5 m grading 48.7 g/t Au
§? S922-11-013: 2.1 m grading 110.1 g/t Au
§? S915-11-033: 13.7 m grading 15.4 g/t Au, including 1.9 m grading 72.7 g/t Au
§? S915-11-050: 5.1 m grading 40.5 g/t Au, including 1.4 m grading 144 g/t Au
§? S922-11-049: 4.3 m grading 44.2 g/t Au
§? S915-11-024: 3.0 m grading 60.7 g/t Au
§? S915-11-062: 10.3 m grading 17.0 g/t Au, including 3.2 m grading 42.2 g/t Au
§? S922-11-047: 0.9 m grading 185.3 g/t Au and 3.7 m grading 11.4 g/t Au
§? S915-11-011: 13.2 m grading 11.7 g/t Au, including 5.7 m grading 24.5 g/t Au
§? CD-11-13: 2.6 m grading 56.5 g/t Au
3 | SAN GOLD CORPORATION
Additional details regarding the assay results highlighted above are presented in Table 1 at the
end of this press release.
L10 Zone
The L10 zone is located approximately 1.5 km northeast of the Company’s Rice Lake Project
and is accessed from the Hinge Mine’s decline. The L10 zone is approximately 500 m west of
the 007 trend and is similar to the 007 Main zone with respect to geometry and location along
the Shoreline Basalt Unit. The L10 zone was initially interpreted to be an extension of the
Hinge deposit, but subsequent drilling has demonstrated that the L10 is a standalone deposit.
Mine development originating from the Hinge Mine has accessed the L10 deposit and initial level
development is underway. The L10 is the Company’s second significant deposit to be developed
along the Shoreline Basalt Unit.
Drilling from more than 75 holes within the L10 Zone indicates that mineralization typically
begins 250 m below surface and extends to a depth exceeding 500 m. The drill-indicated strike
length of the L10 zone is approximately 100 m and varies in width from 2 to 5 m. The L10 zone
remains open along strike and down-dip.
Notable recent assay results from the L10 zone include:
§? H933-11-018: 5.0 m grading 29.1 g/t Au
§? H955-11-114: 5.0 m grading 27 g/t Au
§? H933-11-015: 1.5 m grading 37.9 g/t Au
§? H955-11-099: 3.2 m grading 10.8 g/t Au
§? H955-11-129: 2.4 m grading 14.2 g/t Au
§? H933-11-016: 3.9 m grading 8.3 g/t Au
§? H955-11-117: 1.9 m grading 16.4 g/t Au
Additional details regarding the assay results highlighted above are presented in Table 2 at the
end of this press release.
Cohiba Zone
The Cohiba zone is located approximately 2.5 km northeast of the Company’s Rice Lake
Project and is directly north of the 007 trend. The Cohiba zone is accessed from the new
Cohiba – 007 decline and pre-production mining is underway for the collection of a bulk
sample. The Company has developed one level at 30 m below surface with two new lower
levels under development.
4 | SAN GOLD CORPORATION
The Cohiba zone occurs as tabular quartz veining within a northeast striking shear zone in
intermediate volcanic rocks located to the north of the Shoreline Basalt Unit. The Cohiba zone
has been drill-tested by more than 50 holes from surface to depths exceeding 300 m, has a
strike length of approximately 150 m, and is interpreted to contain at least two lenses that vary
from 1 to 10 m in width.
Recent and notable assay results from the Cohiba zone include:
§? C990-11-052: 2.1 m grading 105.8 g/t Au
§? C990-11-050: 5.9 m grading 17.4 g/t Au
§? C990-11-013: 8.2 m grading 12 g/t Au
§? C990-11-040: 6.4 m grading 10.9 g/t Au
§? C990-11-005: 4.2 m grading 15.0 g/t Au
§? C990-11-055: 6.0 m grading 8.2 g/t Au
§? C990-11-045: 12.8 m grading 3.6 g/t Au
Additional details regarding the assay results highlighted above are presented in Table 3 at the
end of this press release.
L13 Zone
The L13 zone is located approximately one km northeast of the Company’s Rice Lake Project.
Development towards this zone is underway from the Hinge Mine’s decline with underground
access expected later this year.
The L13 zone occurs as tabular quartz veining within a north-east striking shear zone in
intermediate volcanic rocks located to the north of the Shoreline Basalt Unit. The L13 zone is
interpreted to be located on the same shear structure that hosts the #6 vein, one of the
highest-grade veins at the Company’s Rice Lake Mine. The L13 zone has been drill-tested by
more than 50 holes between surface and a depth exceeding 400 m, has a strike of
approximately 150 m, and is interpreted to contain at least two lenses that vary from 1 to 10 m
in width.
Recent and notable assay results from the L13 zone include:
§? KL-11-026: 2.0 m grading 127.2 g/t Au
§? KL-11-034: 0.6 m grading 193.5 g/t Au
§? T923-11-008: 2.5 m grading 27.4 g/t Au and 3.1 m grading 11.8 g/t Au
§? KL-11-032: 1.5 m grading 30.4 g/t Au
§? KL-10-019: 1.7 m grading 6.3 g/t Au and 2.5 m grading 17.9 g/t Au
5 | SAN GOLD CORPORATION
Additional details regarding these highlighted holes are presented in Table 4 at the end of this
press release.
Exploration Activities for the Remainder of 2011
For the remainder of the year, the drilling program at the Company’s Rice Lake Project will
continue to focus on in-fill and step-out drilling at areas of known mineralization, plus drilltesting
grassroots exploration targets.
The goals of the 2011 drill program are to upgrade a significant portion of the Company’s
inferred mineral resources to the measured and indicated categories; identify new inferred
mineral resources; and to confirm that the near surface zones extend to a depth exceeding
1,000 m that could be potentially accessed from existing underground mining infrastructure.
The Company is planning to provide an updated mineral reserve and resource statement in
2012.
In addition to its Rice Lake Project exploration programs, the Company also plans to conduct a
series of high-resolution airborne geophysical surveys on its 100%-owned projects and the
projects that it has under option. The Company expects to follow up on prospective
geophysical anomalies with drill-testing.
QA/QC Programs
Surface drill programs are carried out under the supervision of W.W. Ferreira, B.Sc. Geology,
Registered Professional Geologist. Underground drill programs are carried under the
supervision of D. Ginn, B.Sc. Geology and Registered Professional Geologist. Mr. Ferreira and
Mr. Ginn are Qualified Persons as defined by National Instrument 43-101 of the Canadian
Securities Administrators.
Strict sampling and QA/QC protocol are followed, including the insertion of standards, blanks,
and duplicates on a regular basis, plus the retention of pulps and rejects. Surface drilling core
samples are sent to TSL Laboratories in Saskatoon, Saskatchewan (“TSL”) for sample
preparation and analysis. Analytical method is fire assay with atomic adsorption finish and
gravimetric finish. Whole metallic assays are performed on samples containing visible gold.
Additional QA/QC testing is provided by Accurassay Laboratories of Thunder Bay, Ontario
(“Accurassay”) on a routine basis.
Underground drill core samples are prepared and assayed on site in the Company’s assay lab
using the fire assay method with an atomic adsorption finish and gravimetric finish. Strict
sampling and QA/QC protocol are followed, including the insertion of standards, blanks, and
duplicates on a regular basis, plus the retention of pulps and rejects, and spot checks utilizing
independent labs including TSL and Accurassay.
6 | SAN GOLD CORPORATION
The core lengths reported in this press release are actual lengths as drilled and have not been
adjusted for the true width of the mineralized zones.
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. The Company has over $40 million in cash and equivalents and is unhedged to the
price of gold. As of August 1, 2011, San Gold had 310,966,175 common shares outstanding
(327,360,186 shares fully diluted), which are traded on the Toronto Stock Exchange under the
symbol “SGR” and on the OTCQX under the symbol “SGRCF”.
For further information on San Gold, please visit www.sangold.ca or contact:
Tim Friesen Jeremy Link
Director, Communications Vice-President, Corporate Development
+1 (204) 772-9149 ext. 202 +1 (416) 214-0024 ext. 201
The TSX and the OTCQX exchanges have not reviewed and do not accept responsibility for the adequacy or accuracy of this release.
Cautionary Note
No stock exchange, securities commission or other regulatory authority has approved or
disapproved the information contained herein. This news release includes certain “forwardlooking
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 forwardlooking
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
7 | SAN GOLD CORPORATION
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.
Cautionary Note to United States and Other Investors Concerning Estimates of
Measured, Indicated and Inferred Mineral Resources:
This press release uses the terms “Measured”, “Indicated”, and “Inferred” resources. United
States investors are advised that while such terms are recognized and required by Canadian
regulations, the United States Securities and Exchange Commission does not recognize them.
“Inferred Mineral Resources” have a great amount of uncertainty as to their existence, and as
to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred
Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates
of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies.
United States investors are cautioned not to assume that all or any part of Measured or
Indicated Mineral Resources will ever be converted into Mineral Reserves. United States
investors are also cautioned not to assume that all or any part of a Mineral Resource is
economically or legally mineable.
8 | SAN GOLD CORPORATION
Figure 1: Map of Rice Lake Area Identifying Near Surface Exploration Targets
Figure 2: Longitudinal Section Looking North Identifying General Drill Pierce Point Locations
9 | SAN GOLD CORPORATION
Table 1: Select 007 Trend Drilling Results (1)
Drill
Hole
Mineralized
From
To
Interval
Gold
Grade
Number
Zone
(m)
(m)
(m)
(ft)
(g/t
Au)
(oz/ton)
S922---11---013
007
Main
117.0
119.1
2.1
6.9
110.1
3.22
S922---11---036
007
Main
132.3
143.8
11.5
37.8
23.2
0.68
(including)
132.3
140.0
7.7
25.3
33.0
0.96
S922---11---047
007
Main
133.2
134.1
0.9
3
185.3
5.41
(and)
144.8
148.5
3.7
12
11.4
0.33
S922---11---049
007
Main
132.6
136.8
4.3
14
44.2
1.29
S915---11---011
007
East
Ext
42.0
55.2
13.2
43.4
11.7
0.34
(including)
49.5
55.2
5.7
18.7
24.5
0.72
S915---11---024
007
East
Ext
50.0
52.9
3.0
9.8
60.7
1.77
S915---11---048
007
East
Ext
66.8
72.1
5.3
17.25
80.4
2.35
S915---11---050
007
East
Ext
51.9
57.0
5.1
16.7
40.5
1.18
(including)
55.6
57.0
1.4
4.5
144.0
4.21
S922---11---027
007
East
Ext
128.9
133.9
5.0
16.5
48.7
1.42
S915---11---033
007
Far
East
128.4
142.1
13.7
44.9
15.4
0.45
(including)
128.4
130.3
1.9
6.1
72.7
2.12
S915---11---062
007
Far
East
111.6
121.9
10.3
33.7
17.0
0.50
(including)
115.0
118.2
3.2
10.6
42.2
1.23
CD---11---13
007
Far
East
439.3
441.8
2.6
8.5
56.5
1.65
(1) Due to the exploratory nature of this exploration program and the variable orientations of the high-grade
mineralized zones, the intersections presented herein may not necessarily represent the true width of
mineralization.
10 | SAN GOLD CORPORATION
Table 2: Select L10 Zone Drilling Results (1)
Drill
Hole
Mineralized
From
To
Interval
Gold
Grade
Number
Zone
(m)
(m)
(m)
(ft)
(g/t
Au)
(oz/ton)
H933---11---015
L10
134.5
136.0
1.5
4.9
37.9
1.10
H933---11---016
L10
131.4
135.3
3.9
12.9
8.3
0.24
H933---11---018
L10
125.6
130.6
5.0
16.4
29.1
0.85
H955---11---099
L10
411.2
414.4
3.2
10.6
10.8
0.31
H955---11---114
L10
385.6
390.5
5.0
16.3
27.0
0.78
H955---11---117
L10
367.7
369.6
1.9
6.1
16.4
0.47
H955---11---129
L10
368.9
371.3
2.4
7.9
14.2
0.41
(1) Due to the exploratory nature of this exploration program and the variable orientations of the high-grade
mineralized zones, the intersections presented herein may not necessarily represent the true width of
mineralization.
Table 3: Select Cohiba Zone Drilling Results (1)
Drill
Hole
Mineralized
From
To
Interval
Gold
Grade
Number
Zone
(m)
(m)
(m)
(ft)
(g/t
Au)
(oz/ton)
C990---11---005
Cohiba
79.7
83.9
4.2
13.8
15.0
0.44
C990---11---013
Cohiba
77.2
85.3
8.2
26.8
12.0
0.35
C990---11---040
Cohiba
88.1
94.5
6.4
20.9
10.9
0.32
C990---11---045
Cohiba
93.1
105.9
12.8
42.0
3.6
0.11
C990---11---050
Cohiba
125.6
131.5
5.9
19.3
17.4
0.51
C990---11---052
Cohiba
82.6
84.7
2.1
6.8
105.8
3.09
C990---11---055
Cohiba
126.5
132.5
6.0
19.7
8.2
0.24
(1) Due to the exploratory nature of this exploration program and the variable orientations of the high-grade
mineralized zones, the intersections presented herein may not necessarily represent the true width of
mineralization.
11 | SAN GOLD CORPORATION
Table 4: Select L13 Zone Drilling Results (1)
Drill
Hole
Mineralized
From
To
Interval
Gold
Grade
Number
Zone
(m)
(m)
(m)
(ft)
(g/t
Au)
(oz/ton)
KL---10---019
L13
259.5
261.2
1.7
5.5
6.3
0.18
(and)
297.0
299.5
2.5
8.2
17.9
0.52
KL---11---026
L13
330.6
332.6
2.0
6.7
127.2
3.72
KL---11---032
L13
343.2
344.7
1.5
5.0
30.4
0.89
KL---11---034
L13
343.0
343.6
0.6
2.0
193.5
5.65
T923---11---008
L13
246.6
249.1
2.5
8.2
27.4
0.80
(and)
348.1
351.2
3.1
10.3
11.8
0.34
(1) Due to the exploratory nature of this exploration program and the variable orientations of the high-grade
mineralized zones, the intersections presented herein may not necessarily represent the true width of
mineralization.