San Gold finds new gold zones at Rice Lake

San Gold (SGR-V) has found a new set of mineralized zones about 500 metres to the west of the Hinge zones and just 1 km to the northeast of the Rice Lake mine and mill in southeastern Manitoba.

The L-13 area, as it’s being called, is the third high grade discovery that San Gold has made at the Rice Lake project in the last year and a half.

There’s an upper and a lower zone at L-13 and so far, the higher grades are being found in the lower #2 zone (it’s been divided into three sections).

Drill highlights from the lower zone include 2.7 metres grading 10.6 grams gold per tonne, 6.1 metres grading 5.1 grams gold per tonne and 3.1 metres grading 44.9 grams gold per tonne. The highest grade intersection came from deepest drill hole, which extended to 243 metres depth.

Intercepts from the upper zone include 2.7 metres grading 13 grams gold per tonne, 2.1 metres grading 3.4 grams gold per tonne and 1 metre grading 5.5 grams gold per tonne.

San Gold has been using a geological targeting model that has identified a repetitive structural pattern.

First it found the Hinge zone in April 2008, which will soon be entering production. A bulk sampling program was completed in July.

In June and September this year, San Gold announced the findings of the Cohiba zone.

The company has other targets that it plans to explore over the next few months.

San Gold is also including the new zones as it develops the Hinge zone. Drifts from the existing Hinge decline allow the company to access the Cohiba zone and the L-13 zones. Hinge is also connected to the Rice Lake mine. These drifts will also allow the company to access the upper levels of the Rice Lake zone where there are targets that have been identified by past operators.

San Gold shares were up 4¢, or about 1.4% today, to $2.97 on a trading volume of 2.5 million shares.