Comparisons to Goldcorp (GG) are intensifying, as Canadian-based gold mining producer, San Gold (SGR.TSXV), announced the discovery of a new high grade gold occurrence at the 007 Zone - located approximately 600 meters southeast of the Hinge Zone. The highlight of the discovery was drill hole #CD-09-007, which intersected a whopping 1787.7 grams per tonne gold (52.20 ounces per ton) over 2.1 meters (6.9 feet), 200 meters (660 feet) below surface, in a continuous quartz-carbonate vein containing abundant visible gold throughout. These results indicate the “extremely high grade nature of this intersection, ” according to the company. Goldcorp evolved in a similar way during the 1990’s, consistently discovering high-grade gold veins in the Red Lake district.

Dale Ginn, CEO and geologist of San Gold, commented that “Our exploration team led by Bill Ferreira has made its fourth high grade discovery near surface in close proximity to our mill in the past 18 months and its third discovery this year. Hole #007 is the highest grade intersection that I can recall in the Rice Lake Belt, rivaling the best holes ever drilled in the neighboring Red Lake camp and certainly eclipses anything we have drilled to date in the Hinge zone. This discovery is again testimony to the solid and unique geological thinking that our exploration team has undertaken as well as a credit to the time tested success that drilling near past and producing mines brings.”

San Gold went on to say that assays are pending from intersections of the same zone in four holes : CD-09-002, 003, 004 and 005. This zone remains open along strike to the northeast and to the southwest, as well as at depth and to surface. The 007 zone dips steeply to the north-northwest and is made up of quartz and carbonate veins containing gold and pyrite mineralization. A second diamond drill has been moved from the Cohiba area in order to assist in grid drilling this newly discovered zone. The 007 zone is located approximately 2 kilometers to the northeast of San Gold’s operating Rice Lake mine and mill, and is potentially accessible from the Hinge Mine decline, as well as fully accessible by road.

Dale Ginn and his exploration team have delivered exceptional results through their geological interpretation of the Rice Lake district over the last few years, consistently finding high-grade gold. Shares of San Gold have steadily appreciated throughout 2009 as the high-grade gold discoveries have been found within the confines of the existing infrastructure at Rice Lake. Comparisons abound of San Gold’s numerous high-grade gold vein discoveries to Goldcorp’s Red Lake of a decade ago. San Gold, who has been drilling and defining one of Canada’s highest-grade gold discoveries in years, the Hinge, continues to raise its profile in the gold mining sector. The company’s share price is up 228% this year as Mr. Ginn continues to find high-grade gold within a large land package controlled by the company that continues to offer significant blue-sky potential.

San Gold is a Canadian-based mining company focused on gold exploration and mining in the Rice Lake Greenstone Belt in SE Manitoba, Canada. San Gold owns or controls nearly 15,000 hectares of exploration lands along the Rice Lake Greenstone Belt of SE Manitoba. In morning trading shares of SGR.TSXV were up 11.9%, or C$0.42, to C$3.95, while the gold price was up $20.65 to a new all-time high of $1,171.45 per ounce.