SGR: TSX-V www.sangoldcorp.com
BISSETT, MB, Sept. 3 /CNW/ - Dale Ginn, CEO of San Gold Resources
Corporation is pleased to report that a comprehensive, NI 43-101
compliant report has been completed for the Rice Lake project area that
includes the Rice Lake, Hinge and SG1 mines as well as the 007,
Cartwright, SG2/3 and Cohiba zones. This report was undertaken in order
to make current all mineral resources deemed to be within the Rice Lake
project area, to account for mining adjustments and to upgrade inferred
resources at the 007 zone. The Resource tables are summarized below:
|
SUMMARY OF RESOURCES
|
|
|
Tons
|
Grade
|
Contained
|
|
|
|
oz./ton
|
(g/tonne)
|
Ounces
|
|
|
Measured Mineral Resources
|
388,200
|
0.24
|
(8.2)
|
93,140
|
|
|
Indicated Mineral Resources
|
679,240
|
0.26
|
(8.9)
|
176,960
|
|
|
Total Measured and Indicated Resources
|
1,067,440
|
0.25
|
(8.6)
|
270,100
|
|
|
Inferred Mineral Resources
|
1,519,750
|
0.29
|
(9.9)
|
439,090
|
|
|
Measured Mineral Resources
|
91,790
|
0.29
|
(9.9)
|
26,510
|
|
|
Indicated Mineral Resources
|
425,670
|
0.40
|
(13.7)
|
171,190
|
|
|
Total Measured and Indicated Resources
|
517,460
|
0.38
|
(13.0)
|
197,700
|
|
|
Inferred Mineral Resources
|
1,375,200
|
0.39
|
(13.4)
|
538,700
|
|
|
Indicated Mineral Resources
|
214,200
|
0.24
|
(8.2)
|
52,150
|
|
|
Inferred Mineral Resources
|
936,500
|
0.22
|
(7.5)
|
206,900
|
|
|
Indicated Mineral Resources
|
305,240
|
0.75
|
(25.7)
|
230,330
|
|
|
Inferred Mineral Resources
|
398,200
|
0.47
|
(16.1)
|
186,980
|
|
|
Indicated Mineral Resources
|
55,970
|
0.23
|
(7.9)
|
12,675
|
|
|
Inferred Mineral Resources
|
25,210
|
0.16
|
(5.5)
|
4,050
|
|
|
Indicated Mineral Resources
|
136,200
|
0.22
|
(7.5)
|
29,830
|
|
|
Inferred Mineral Resources
|
1,761,200
|
0.21
|
(7.2)
|
388,940
|
|
|
Indicated Mineral Resources
|
173,100
|
0.20
|
(6.8)
|
34,600
|
|
|
Inferred Mineral Resources
|
195,600
|
0.26
|
(8.9)
|
50,860
|
|
Total Measured plus Indicated
|
2,469,610
|
0.34
|
(11.7)
|
828,105
|
|
Total Inferred Resources
|
6,211,660
|
0.29
|
(9.9)
|
1,814,870
|
Tonnage in the indicated category increased significantly at the 007
Zone due to a high level of drilling activity during the first half of
2010 in order to upgrade from the inferred category. The 007 Zone
database is now comprised of 135 drill holes completed in 2009 and 2010
both within and outside of the mineralized area for a total of 135,000
feet (41,150 meters). The mineral resource estimate is based upon 163
composited vein intersections comprised of a total of 482 individual
assays. The total area covered by the measured, indicated and inferred
mineral resources estimate for the 007 zone is a strike length of 600
feet (183 meters) and a vertical extent of 1,500 feet (460 meters)
between 100 feet (30 meters) and 1,600 feet (490 meters) of depth from
surface. The zone is open up and down dip and along strike to the west.
Exploration and definition drilling as well as initial development will
continue throughout the last half of 2010. Minor changes in mineral
resources at the other deposits were mainly due to adjustments in order
to account for mining. A portion of the Cohiba zone that is planned to
be accessed from the new 007 ramp was incorporated into this report as
well.
The Hinge Mine is located 1.5 kms to the north east of the Rice Lake
Mine and mill and is accessed by an independent decline. The Hinge
deposit was discovered in March, 2008, development towards the deposit
began in July, 2008 and a bulk sample was completed in July, 2009. The
007 zone is located 2,100 feet (650 meters) to the south east of the
Hinge Mine and was discovered in November, 2009. Initial development
within the 007 Zone is now underway, originating from the Hinge decline.
Site preparation has started in order to collar a new decline to be used
for access to the upper 007 Zone, an initial area of the Cohiba zone,
and for exploration and potential access to the Emperor zone and
historic Wingold Mine. For reference, the nearby Rice Lake mine has been
mined from the surface to 5,500 feet (1,680 meters) below surface (7,000
feet (2,130 meters) down the dip of the zone) with current development
and production between 4,500 feet (1,370 meters) and 5,500 feet (1,680
meters) from surface.
The mineral resources are in-situ, undiluted, and uncapped and have not
had economic parameters applied to them. The mineral resources are
defined in terms of NI 43-101 regulations and their estimation was
carried out using industry standard polygonal longitudinal section
methodology. The drill hole data was evaluated in plan and section in
three dimensional AutoCAD to determine continuity between holes. Vein
structures in the Rice Lake Mine area have vertical extents from 4 to 8
times their strike length. Because of this, areas of influence used
around drill hole pierce points on the longitudinal section for purposes
of defining measured and indicated resources are ellipses, elongated
down dip and plunge. For measured resources an ellipse with a short axis
of 50 feet (15 meters) and a long axis of 100 feet (30 meters) was used
and for indicated resources an ellipse with a short axis 75 feet (23
meters) and a long axis of 150 feet (46 meters) was used. Inferred
resources are based on projection of measured plus indicated resources
to a depth four times the strike length of the mineralized zone. A
tonnage factor of 11.4 cubic feet per ton (equivalent to a specific
gravity of 2.8) was used to convert polygon volumes to tons.
Peter George, P.Geo. of Geoex Limited is the independent qualified
person in accordance with NI 43-101 responsible for the report
referenced in this news release. Mr. George has made numerous site
visits to this project over the past ten years, is a geologist with over
40 years of experience and has prepared evaluation reports for a number
of significant mining operations. During the past 5 years, Mr. George
has completed mineral resource reports on a number of significant
Archean gold projects including the Gold Eagle (now Goldcorp) Bruce
Channel deposit in Red Lake, Ontario, Valgold's (now Northern Gold)
Jonpol deposit in the Timmins area, Black Pearl's (now Canadian Lithium)
Tully deposit in the Timmins area, and San Gold's Rice Lake Mine,
Cartwright, SG-1, SG-2, and SG-3 deposits in Bissett, Manitoba. Dale
Ginn, P.Geo., CEO of San Gold is the qualified person responsible for
this news release.
Caution concerning forward-looking statements: The information in
this release may contain forward-looking information under applicable
securities laws. This forward-looking information is subject to known
and unknown risks, uncertainties and other factors that may cause actual
results to differ materially from those implied in the forward-looking
information. Factors that may cause actual results to vary include, but
are not limited to, inaccurate assumptions concerning the exploration
for and development of mineral deposits, political instability, currency
fluctuations, unanticipated operational or technical difficulties,
changes in laws or regulations, the risks of obtaining necessary
licenses and permits, changes in general economic condition or
conditions in the financial markets and the inability to raise
additional financing. Readers are cautioned to not place undue reliance
on this forward-looking information. The Company does not assume the
obligation to revise or update this forward-looking information after
the date of this release or to revise such information to reflect the
occurrence of future unanticipated events except as may be required
under applicable securities laws. The TSX Venture Exchange does not
accept responsibility for the adequacy or accuracy of this release.
For further information:
Dale Ginn, CEO of San Gold Corporation, at (204) 794-5818 or email info@sangoldcorp.com. A copy of the full report will be made available on the company's website and has been filed with Sedar.
