GOLD DEVELOPMENT: High-grade 007 zone returns 260 g/t

MANITOBA - San Gold of Bissett says that infill drilling confirms the high-grade nature - up to 260.0 g/t Au o...

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MANITOBA - San Gold of Bissett says that infill drilling confirms the high-grade nature - up to 260.0 g/t Au over 2.1 metres - of the 007 zone at all depths. That assay came from a section included within a 9.5-metre length of core that averaged 53.1 g/t Au. The hole was drilled in the high-grade corridor (HGC) that extends from surface to at least 400 metres. The area is the target of a bulk sampling program.

During Q2 2010, San Gold concentrated on development of the upper and eastern extension known as the 98 area of its Rice Lake gold mine. Development in this area is underway to eliminate using the lower D winze, thus reducing the re-handling of ore.

Addition development of the 007 zone is planned. The company is also planning exploration drilling of the L13, Hinge and 007 zones and bulk sampling of the L13 zone. Development is proceeding toward the remaining reserves and resources in the upper levels of the Rice Lake mine.

Sections, plans and diagrams related to this work at available at www.SanGoldCorp.com, including a detailed longitudinal section displaying the results to date.

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