Manitoba Mining Information

Sand Gold Corporation press release:

San Gold drills 2.3 m of 20.1 g/t Au at Hinge2008-02-19 10:00 ET - News Release

Mr. Dale Ginn reports

DRILLING EXTENDS NEW HINGE #3 ZONE FOR SAN GOLD

San Gold Corp.’s exploration drilling from surface has extended the new gold-bearing zones by as much as 200 metres to the north of the recently discovered Hinge No. 3 zones located northeast of the Rice Lake mine and mill. Hole GS-07-28 encountered multiple gold-bearing intersections including high-grade sections (2.3 metres of 20.1 grams per tonne) as well as a broad (4.9 metres of 7.4 g/t) zone at depth. Results from hole 28 are tabulated.

Hole No. From To Length Gold g/tonne (oz/ton)

Upper zones
GS-07-28 132.5 m 134.2 m 1.7 m (5.6 ft) 9.7 (0.29)
and 158.6 m 159.6 m 1.0 m (3.3 ft) 13.1 (0.39)
Lower zones
GS-07-28 319.9 m 321.5 m 1.6 m (5.3 ft) 9.7 (0.29)
and 324.1 m 326.4 m 2.3 m (7.6 ft) 4.7 (0.14)
and 330.4 m 332.7 m 2.3 m (7.6 ft) 20.1 (0.62)
and 346.2 m 351.1 m 4.9 m (16.1 ft) 7.4 (0.22)

Please see the news in Stockwatch Jan. 15, 2008, for the first discovery results of the new Hinge No. 3 zone. The new zones are roughly parallel and gently dipping to the north and are made up of quartz and carbonate veins containing gold mineralization. The volcanic units which contain the new veins are located in a sequence of rocks which lie approximately 1,500 metres into the hangingwall stratigraphically above and geographically to the north of the mineralized mine unit of the Rice Lake gold mine. This new zone does not outcrop at surface but drill locations are within view of the San Gold No. 1 haulage road and power line. The new zones lie between San Gold’s operating Rice Lake and San Gold No. 1 mines, an extensive area that is largely unexplored.

Much of the past exploration within the Rice Lake belt has been confined to the mine unit gabbroic rocks as dictated by a historical Rice Lake mine geological model. The model followed in this case, a model developed from observations deep underground at Rice Lake and by means of surface structural interpretations, projects a series of north-south hinges or axes along which past and current showings and small production pits and mines were located. Drilling along the third, easternmost hinge or axis which also contains the historical Wingold and Gold Standard deposits resulted in this discovery. Numerous targets have been identified within the thick sequence of hangingwall volcanic rocks. A second surface drill rig has moved to the area around this new discovery.

Please see the San Gold website for a plan view location map and cross-sectional view of this new discovery as well as selected pictures of drill core intersections.

San Gold Wesbsite

A publication from the country’s mines ministry has suggested that gold bullion production, which fell by nine per cent last year, could drop to 50.11 tons or 12% in 2008, Reuters reports.

Mali is Africa’s third biggest producer of gold after South Africa and Ghana. Mali mines produced some 56.75 tons of the gold last year. Gold is the leading export for the country accounting for 59 per cent of goods exports in 2003, according to the World Gold Council.

“Most of the big mines have reached the end of their lives and encouraging exploration is underway to find new resources and increase their lifespan,” Lassana Guindo of the Mali mines ministry told Reuters.”We’ve started the phase of lower production,” he added. Rueters Link

The forecast comes on the heels of production drops due to power shortages and recent predictions from countries and mining firms of lower gold output for the next year as a result of fewer gold deposits being found, higher costs, declining ore reserves and other factors. On a whole these factors bode well for exploration company’s and gold investors alike.

Manitoba should continue to benefit from increased gold exploration and mine development as a result. If recent news is any indication there is a renewed effort to uncover Manitoba gold deposits.

David Tafel the President of Garson Gold told Lorne Edwards of CJOB radio that the company is about to reactivate the gold mine at Snow Lake in northcentral Manitoba. The Snow lake mine is a past producer in Northcentral Manitoba with historic production of about 1.5 million onces of the yellow metal.

Tafel says the mill that was operating up until 2005, and has been kept on care and maintenance. The mine and mill remains fully permitted.

CJOB News Link 

This has been a busy month for gold mining news in Manitoba with several companies making important announcements.  Visit our Gold Information link for more details on the new Manitoba Gold Rush.