WINNIPEG, MANITOBA--(Marketwired - Sep 17, 2013) - San Gold Corporation (SGR.TO)(SGRCF) today announced the discovery of multiple new zones of gold mineralization along its Shoreline Basalt host unit within close proximity to existing infrastructure at its Rice Lake Mining Complex in Manitoba, Canada.
The Company's ongoing structural analysis of the region immediately surrounding its mining complex has yielded numerous new targets within lesser known structures. The analysis used all available data to better define the controls on gold mineralization to refine the Company's exploration model. Initial drilling on the resulting targets returned very encouraging grades and widths in each of four new zones tested, as demonstrated in the table below, most notably by drill holes JH-13-060 which returned 7.0 g/t Au over 10.1 metres within the 6163 zone, and AB-13-001 which returned 12.4 g/t Au over 4.3 metres in the newly discovered Scout zone.
"The analysis undertaken this year by our exploration geologists has provided significant and valuable insight into the controlling structures that govern gold mineralization both regionally and within immediate reach of our mine infrastructure," said Ian Berzins, San Gold's President, CEO and Chief Operating Officer.
Table 1: New Zone Drill Results
|† NOTE: Widths provided here represent actual core length and are not adjusted for estimated true widths.|
The higher gold grades intersected at the 6163 zone occur near the intersection of a northeast trending shear zone and the Shoreline Basalt Unit, and is interpreted to be the western extension of the 007 deposit having the potential to add to the existing resource base in the near term. Notably, the 6163 zone is located between the Hinge zone to the west and the 007 zone to the east, and is only 100 metres from Hinge zone development, easily accessible via the existing decline.
The remaining three zones all occur in the hanging wall or immediately north of nearby mine infrastructure. The 334 zone is northwest trending and dips moderately to the northeast between the Cartwright and Scout zones. The upper portion of the zone had been accessed by limited development from 3 Level at the Rice Lake Mine, following up on surface trenching completed in the 1920s. Similarly, the Scout zone occurs along a northwest structure in the hanging wall volcanic rock package and is located only 250 metres to the west of the L13 decline.
The L13 extension occurs along a northeastern shear that is host to L13 zones currently being mined from the Hinge zone ramp system. This extension was discovered by drilling that was designed to test the lateral extent of the L13 shear zone for additional gold mineralization, and thereby has the potential to add to the current resource base in the near term and to be developed using the adjacent mining infrastructure.
The Company now understands that the local gold-bearing veins are preferentially developed in competent lithological units such as the San Antonio Mine (SAM) Unit and Shoreline Basalt Unit, specifically where those units are cut by east-northeast-trending shear zones and associated conjugate northwest trending shears. The analysis also revealed that significant mineralization is present at locations along these same shear zones where folding or dilation occurs within the surrounding volcanic host rock or proximal to any favorable lithogical unit. This finding demonstrates the potential for additional gold mineralization within the Company's mineral lease, which is composed mainly of intermediate volcanic host rock and is cross-cut by multiple shear zones, and also across large portions of the Company's surrounding 400 sq km land package.
The Company is currently nearing completion of its flow-through drilling commitments, which were entered into in early 2012. Underground drilling will follow up on mineralization identified through this program where deposition is close enough to existing infrastructure to suggest a high potential to add incremental feed to the Company's Rice Lake mill.
Figure 1 at the end of this release provides a graphic illustration showing a plan view of the magnetic survey with interpreted regional shear zones, associated gold zones, and favourable target locations.
The drilling program was carried out by San Gold mine geologists under the supervision of Michael Michaud, P.Geo., the Qualified Person for San Gold under National Instrument 43-101 who has reviewed and approved this news release. Drill core samples are assayed at TSL Laboratories in Saskatoon, SK. The Company's quality control and assurance program includes the insertion of standards, the retention of pulps and rejects, and spot checks utilizing third-party independent labs.
About San Gold
San Gold is an established Canadian gold producer, explorer, and developer that owns and operates the Rice Lake Mining Complex near Bissett, Manitoba. The Company employs more than 420 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".
For further information on San Gold, please visit www.sangold.ca.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. 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.
To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/sgrcf0917fig1.pdf.