San Gold finding deep gold at Rice Lake (July 23, 2007)

Vancouver — San Gold (SGR-V, SGRCF-O) is looking deep, drilling below the 5,300-ft. level of the Rice Lake gold mine in Manitoba, and finding that significant mineralization continues at depth.

Hole 27 recently intersected 18 grams gold per tonne over 4.6 metres within a broader intersection of 14.6 grams gold over 6.5 metres, indicating the drill hit the downward extension of the high-grade “96” vein. Hole 26 also hit the 96 vein, returning 50.1 grams gold over 6.8 metres. The 96 vein is being developed on two levels — 5,400 ft. and 5,450 ft. — by jumbo crews in preparation for mining. It yielded 62 grams gold over 1.7 metres in the first development crosscut.

In mid-June, San Gold released results from two previous cores, drilled near the 5,300-ft. level of the mine. Hole 25 encountered the “A” vein, returning 12.4 grams gold over 30.3 metres. The “38” is a breccia-style vein that strikes parallel to the main host gabbro unit and dips vertically, remaining open at depth. Breccia-style veins have been mined at higher levels at Rice Lake and have been responsible for roughly 54% of Rice Lake’s gold production.

Several other veins below the base of the Rice Lake mine are being explored. All are in the eastern extremities of known productive areas and project upwards and east into unexplored areas of the mine.

San Gold opened Rice Lake in August 2006, moving the company from exploration into production. The company then opened the San Gold No. 1 mine in April 2007. San Gold also holds the nearby Cartwright deposit. The Rice Lake mine, San Gold No. 1 mine, and the Cartwright zone are all parts of the Rice Lake project, located 200 km northeast of Winnipeg, Man.

All together, the Rice Lake project holds proven and probable reserves of 1.3 million tonnes grading 7.4 grams gold, for 336,150 ounces contained gold.