San Gold Intersects New Zone at Depth

San Gold Intersects New Zone at Depth 
WINNIPEG, MANITOBA -- (Marketwired) -- 04/24/13 -- San Gold
Corporation (TSX:SGR)(OTCQX:SGRCF) today announced drilling results
from a new underground drilling station located on 26 Level,
approximately 1,180 metres underground, at its Rice Lake Mining
Complex in Manitoba, Canada. This new drill location was established
in the first quarter of 2013 in order to provide better access for
definition drilling of the 007 structures at depth. Drilling will
continue for the balance of the year.  
Initial results from the 6130 drill station demonstrate robust grades
and widths and confirm the strong vertical continuity of the 007 gold
mineralization structures to depth. The 007 veins continue to be a
large contributor to the planned feed to the mill. 
Drill hole 613-13-039 also encountered 14.2 g/tonne Au (capped) over
4.2 metres in a new structure that is located immediately north of
and parallel to the 710 lens of the 007 deposit. Drill hole
613-13-021 also intersected the new structure and returned 8.2
g/tonne Au over 3.7 metres. Both of these holes were designed to
follow up on previous drilling related to drill hole 607-12-048
(released Nov 26, 2012) which returned 12.0 g/tonne Au over 6.0
metres in the 710 lens and 15.5 g/tonne Au over 11.1 metres in what
is now considered to be the new structure.  
Drilling in the main 710 lens was highlighted by drill hole
613-13-022 which returned 15.2 g/tonne Au (capped) over 3.1 metres.  
Both the 710 lens and the new structure are in immediate proximity to
existing infrastructure on 26 Level of the Rice Lake Mine. The
Company is currently tunneling toward the 710 lens and expects to
reach the lens in the second quarter of 2013. This will provide
access to mining of the 710 lens and the opportunity to establish new
drill locations in closer proximity to the 007 structures. 
Highlights of the preliminary drilling from the 6130 drill station
are as follows: 


 
----------------------------------------------------------------------------
                                          Est.                              
                                          True                              
                      From    To  Core   Width Grade (gpt) Grade (gpt) Depth
Hole Number     Zone   (m)   (m)   (m)     (m) (capped)(+)  (uncapped)   (m)
----------------------------------------------------------------------------
613-13-039       710 290.1 294.1   4.0     2.5                     2.6 1,164
----------------------------------------------------------------------------
Including            292.9 293.8   0.9     0.6                     9.7      
----------------------------------------------------------------------------
And              New 348.8 353.1   4.2     2.7        14.2        22.5 1,159
----------------------------------------------------------------------------
Including            350.5 351.7   1.2     0.8        45.6        64.3      
----------------------------------------------------------------------------
And              New 356.9 361.0   4.1     2.5                    15.7 1,158
----------------------------------------------------------------------------
613-13-021       New 301.1 304.8   3.7     3.3                     8.2 1,110
----------------------------------------------------------------------------
613-13-022       710 155.7 158.8   3.1     2.6        15.2        42.8 1,148
----------------------------------------------------------------------------
Including            156.2 156.7   0.5     0.4       102.8       266.8      
----------------------------------------------------------------------------
( + ) Assay values were capped at 102.8 g/tonne (3 oz per ton).             

 
"We are extremely pleased with the initial results from this new
drilling platform. The first stage of drilling has already identified
vertical continuity of the 007 structures from surface as well as
additional structures outside of the original geological model that
are all within striking distance of our existing mining
infrastructure," said Ian Berzins, San Gold's President, CEO and COO. 
The ongoing definition drilling program is designed to increase the
confidence in the distribution of the gold mineralization and convert
the large inferred mineral resource in the 007 deposit to measured
and indicated resources, and subsequently, to mineral reserves. The
extensive drilling program planned for 2013 is part of the Company's
aggressive campaign to increase the mineral reserve base and fully
develop the deposit for mining. 
Figure 1 at the end of this release provides a graphic illustration
showing the interpreted orientation of the new mineralized structure
discovered in the hanging wall of the 710 vein. 
Figure 2 at the end of this release provides a graphic illustration
showing the location of the 6130 drilling station and the region
accessible for drilling from this and other 007 drilling platforms.
These figures can also be found on the Company web site
(www.sangold.ca) and on SEDAR (www.sedar.com).  
This 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. Underground drill core samples are assayed on site
in the Company's assay lab using the fire assay method with an AA and
gravimetric finish. San Gold's quality control and assurance program
includes the insertion of standards, the retention of pulps and
rejects, and spot checks utilizing independent labs including TSL
Laboratories in Saskatoon, SK and Accurassay Laboratories of Thunder
Bay, ON.  
About San Gold 
San Gold is an established Canadian gold producer, explorer, and
developer that owns and operates the Hinge, 007, and Rice Lake mines
near Bissett, Manitoba, approximately 235 kilometres northeast of
Winnipeg, Manitoba, Canada. The Rice Lake Project has a permitted,
modern gold mill currently processing ore at a capacity of 2,500 tons
per day, modern surface infrastructure including a licensed tailings
management facility, and is connected to the Manitoba power grid
system. The Company employs approximately 450 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. 
Cautionary Note   
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: Interpreted Orientation of Parallel Structure in
the 710 Vein Hanging Wall, please visit the following link:
http://media3.marketwire.com/docs/Figure1SanGold.pdf.  
To view Figure 2: 007 Zone Regions Accessible from 9030 and 6130
drilling stations, please visit the following link:
http://media3.marketwire.com/docs/SanGoldFigure2007Zone.pdf. 
Contacts:
San Gold Corporation
Ian Berzins
President, CEO, and Chief Operating Officer
Toll Free: 1 (855) 585-4653 
San Gold Corporation
Tim Friesen
Communications Director
Toll Free: 1 (855) 585-4653
info1@sangold.ca
www.sangold.ca
 
 
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