Tuesday, 22nd April 2008 (565 views)

Exploration drilling in the Hinge zone near the Rice Lake mine in Canada has led to the discovery of a new vein bearing high-grade gold mineralisation, it has been announced.

San Gold said the vein was located to the north and running parallel to previously discovered zones at the site. The company added that "strong mineralisation" was encountered by drilling in the new area, including visible gold returns in each completed hole.

Key results include 60.6 g/t gold over 1.6 metres, 9.9 g/t gold over 1.8 metres and 7.5 g/t gold over 4.4 metres.

There were also intercepts graded at 5.8 g/t gold over 2.9 metres and 4.8 g/t gold over 2.9 metres.

In addition to these results, "significant widths" of mineralisation measuring between six metres and ten metres were also returned from the area designated as 500E, with visible gold again apparent in the intercepts. Assay results are pending for these holes and will be issued shortly, San Gold said.

The Hinge zone also remains open along strike to the north-west and south-west, as well as at depth, it added.

The Rice Lake mine is one of three operations San Gold has, along with the San Gold #1 mine and the Cartwright zone. It has an estimated mineral resource of 986,700 tonnes averaging 0.28 g/t gold for a total of 261,670 ounces of gold.

 

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