MANITOBA – SAN GOLD CORP. of Bissett has begun development of the newly discovered 101 vein at the 30th level of its Rice Lake gold mine. The initial cross-cut and drift sampling has an average gold grade of 63.4 g/t Au over an average vein width of 2.0 m for the first 12.2 m that were developed. The 101 vein is open along strike as well as both above and below the 30th level.
The 101 vein is the third in a series of high grade veins (greater than 34.0 g/t Au average) recently discovered and developed by San Gold within the Rice Lake mine. The 93 and 98 vein developments have also been progressing giving high grades as expected. All of these veins have been located at the eastern extremities of known productive areas and project upwards and to the east into unmined and unexplored areas of the mine. The average grade used in this calculation was generated by 12 assays over four development faces, with individual assays ranging from a low of 13.4 g/t Au to a high of 239.0 g/t Au. Coarse, visible gold was observed in all development faces so far.
Two new additional structures with similar geology and potential have been located on the 26th level and are scheduled to begin development in June 2007.
The 93, 98 and 101 vein high-grade developments over the past months are not included in the companys most recent reserve and resource report (ACA Howe, Feb. 1, 2007). That report may be read at www.SanGoldCorp.com.