San Gold (SGR.TSX) announced that exploration step-out drilling from surface and underground has extended the 007 Zone to the east by as much as 100 meters, bringing the total strike length of the 007 zones to 500 meters to date. The 007 zone is located approximately 2 kilometers northeast of San Gold’s operating Rice Lake Mine and mill, is fully accessible by road and is accessible from the Hinge Mine decline.

George Pirie, President and CEO:
“These results continue to demonstrate the size and strength of the gold mineralization within the Shoreline Basalt. The discovery and development of this new mine trend is an exciting new era for San Gold. The success of our exploration efforts in these zones allows us to execute our plan to develop a new mine complex and continues to support the very aggressive drill program in place.”

Highlights:
* San Gold encountered robust widths and grades as drilling pushes the deposit eastward and to depth
* Drill hole # S915-11-33 intersected 15.4 grams per tonne (0.45 oz/ton) over 13.7m (45ft) at a depth of 260m below surface

Paolo Lostritto, Wellington West:

“San Gold Corp’s preliminary Q1/11 production data illustrates our view that things are starting to improve operationally as they beat our expectations.”