San Gold announces the richest gold discovery in Manitoba history!

San Gold Corporation

TSX : SGR
 Nasdaq  OTCQX : SGRCF

December 20, 2011 09:22 ET

San Gold Reviews Over 200 Drill Holes from 2011 007 Zone Drilling

WINNIPEG, MANITOBA--(Marketwire - Dec. 20, 2011) - San Gold Corporation (TSX:SGR)(OTCQX:SGRCF) today announced the results of drilling conducted since January in the 007 Zone of the company's Rice Lake Mining Complex in Manitoba, Canada.

Drilling on the 007 Zone occurred throughout the year, from surface and underground drilling stations, in order to infill and extend the zone both along strike and to depth. At the beginning of 2011, the 007 Zone had a limited strike length of less than 200 m. A second new zone, then known as Emperor, was located approximately 300 m to the east along the same horizon. Drilling during the year to the east of 007 resulted first in the discovery of 007 East(730 zone) and then 007 Far East(740 zone). As drilling progressed during the year, it was determined that all four zones including the Emperor were part of a continuous stretch of mineralization extending about 500 m (1,640 feet) along strike.

Results obtained from the 2011 drilling program demonstrate consistent grades and widths throughout the 007 Zone, as highlighted by the following drill holes:

• S922-11-036, intersecting 23.2 g/tonne over 11.5 metres at a depth of 362 metres
• S922-11-013, intersecting 110.1 g/tonne over 2.1 metres at a depth of 330 metres
• S922-11-049, intersecting 44.2 g/tonne over 4.3 metres at a depth of 348 metres
• S922-11-089, intersecting 63.0 g/tonne over 2.8 metres at a depth of 362 metres
• S922-11-091, intersecting 21.7 g/tonne over 7.4 metres at a depth of 362 metres
• S915-11-003, intersecting 11.8 g/tonne over 12.3 metres at a depth of 396 metres
• S915-11-024, intersecting 60.7 g/tonne over 3.0 metres at a depth of 275 metres
• S915-11-045, intersecting 45.6 g/tonne over 4.3 metres at a depth of 291 metres
• S915-11-084, intersecting 17.4 g/tonne over 9.4 metres at a depth of 269 metres
• S915-11-106, intersecting 18.1 g/tonne over 3.2 metres at a depth of 358 metres

"These results provide a detailed account of one of the richest gold deposits ever discovered in Manitoba. It's extremely impressive that a gold deposit that wasn't even known about two years ago will be contributing 50% of our mill feed well into the foreseeable future," said George Pirie, San Gold's President and Chief Executive Officer.

The 007 Zone is located along and within the Shoreline Basalt rock unit. San Gold views the full length of the Shoreline Basalt and similar parallel rock units as extremely prospective. In 2012, San Gold's drilling program will pursue the 007 Zone westward towards the L10 Zone, a region that has already returned encouraging results. San Gold will also pursue 007 to the east toward the SG-1 Zone, another Shoreline Basalt deposit located 2 km northeast of the 007 Zone. The region between 007 and SG-1 has yet to be significantly drill tested.

The drilling released today covers 261 intercepts over 215 drill holes within the 007 mineralized envelop. 17 of these holes have been released previously and are included here to provide a complete summary of the 007 drilling program in 2011. The full listing of the drill holes can be found in Table 1 of this release. Figures 1 to 5, which illustrate the location of drill holes and intercepts, can be found on the company web site (www.sangold.ca) and on SEDAR (www.sedar.com).

2011 Exploration Program
This drilling was carried out as part of San Gold's 2011 drill program. As of the end of October, the company had completed 300,000 metres of drilling within the Rice Lake Mining Complex. The Company's near-surface exploration activities in 2011 have focused on both exploration and definition drilling along the 007 Zone and within the L10, L13, SG-1 and Cohiba zones. Deep drilling has focused on extensions of the L10 and 007 zones, both from surface and from drilling stations on 16 Level and 26 Level in the Rice Lake Mine. Drilling within the Rice Lake Mine has focused primarily on definition drilling on 26, 28 and 31 Levels.
The surface drill program was carried out under the supervision of W.S. Ferreira, P.Geo., the Qualified Person for this project under National Instrument 43-101. The drill core was split, with half sent to TSL Laboratories in Saskatoon, SK and fire assayed with an AA and gravimetric finish. Whole metallic assays were performed on samples containing visible gold. Check assays were also performed on pulps and rejects by both TSL and by Accurassay Laboratories of Thunder Bay, ON. The underground drill program was carried out by San Gold mine geologists under the supervision of D. Ginn, P.Geo., the Qualified Person for San Gold under National Instrument 43-101. 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. The core lengths are actual lengths as drilled and have not been adjusted for the true width of the mineralized zones.

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. The Company employs more than 400 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".

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.
Exploration results that include geophysics, sampling, and drill results on wide spacings may not be indicative of the occurrence of a mineral deposit. Such results do not provide assurance that further work will establish sufficient grade, continuity, metallurgical characteristics, and economic potential to be classed as a category of mineral resource. A mineral resource that is classified as "inferred" or "indicated" has a great amount of uncertainty as to its existence and economic and legal feasibility. It cannot be assumed that any or part of an "indicated mineral resource" or "inferred mineral resource" will ever be upgraded to a higher category of resource. Investors are cautioned not to assume that all or any part of mineral deposits in these categories will ever be converted into proven and probable reserves.

Table 1: Full Listing of 007 Drilling Results (January-October 2011) (1)

	Depth	From	To	Length	Au
Drill Hole	metres				g/tonne
Drilling Station 007-S915 UG
S915-11-001	200.3	65.7	66.0	0.3	3.2
S915-11-002	197.0	88.7	89.4	0.6	0.0
S915-11-003	395.9	157.6	169.9	12.3	11.8
S915-11-004	228.0	59.6	60.1	0.5	2.2
S915-11-006	280.9	75.6	76.5	0.9	0.3
S915-11-007	296.1	78.9	82.0	3.1	17.8
and		55.3	62.5	7.3	2.0
S915-11-008	314.6	96.3	120.2	23.9	1.3
incl		117.8	120.2	2.4	3.9
and		59.3	71.3	12.0	4.3
S915-11-009	207.3	55.3	61.0	5.7	4.3
incl		55.3	56.1	0.8	7.5
incl		58.6	59.0	0.3	29.1
S915-11-010	217.3	46.0	58.2	12.2	5.1
incl		50.0	56.4	6.4	9.0
S915-11-011		33.7	37.1	3.4	2.2
incl		34.1	34.9	0.8	7.4
incl		36.8	37.1	0.3	3.6
and	226.6	42.0	55.2	13.2	11.6
incl		49.5	55.2	5.7	24.5
S915-11-013	243.4	33.4	43.8	10.4	7.6
incl		33.8	43.8	10.0	7.2
incl		43.2	43.8	0.6	67.2
S915-11-014	278.3	50.7	63.2	12.5	11.6
incl		54.7	56.4	1.7	58.9
S915-11-015	293.2	69.4	74.6	5.2	2.2
S915-11-016	304.5	76.2	84.2	8.0	15.3
S915-11-017	331.6	99.3	103.1	3.8	8.0
and	345.6	115.6	124.7	9.1	13.1
S915-11-019	211.8	48.6	51.8	3.2	3.8
S915-11-020	221.6	44.3	46.8	2.4	4.9
S915-11-022	242.6	41.4	43.4	2.1	4.5
S915-11-023		No Significant Results
S915-11-024	274.5	50.0	52.9	3.0	60.7
S915-11-026	289.9	56.8	60.2	3.4	7.1
S915-11-027	313.3	75.1	78.9	3.8	4.6
and	322.8	87.8	91.6	3.8	6.0
S915-11-028		52.1	52.4	0.4	3.6
and	203.3	62.0	63.2	1.2	0.9
S915-11-030		33.2	37.8	4.6	7.2
incl		37.3	37.8	0.5	57.6
and		42.7	43.9	1.2	4.7
and	224.5	47.3	51.2	3.8	58.3
incl		49.0	49.3	0.3	607.4
S915-11-032		34.1	36.2	2.1	4.3
and	243.5	39.2	45.7	6.5	6.2
incl		39.2	40.7	1.5	17.5
S915-11-033	258.5	128.4	130.3	1.9	72.7
incl		128.4	128.9	0.5	282.1
and	257.7	133.4	142.1	8.7	7.9
incl		133.4	137.3	3.9	3.8
incl		135.7	137.3	1.6	7.0
incl		138.8	142.1	3.3	16.5
incl		138.8	140.5	1.7	30.0
and		149.5	150.5	1.0	4.9
S915-11-034	272.5	39.0	50.3	11.3	11.5
S915-11-035	291.9	57.0	62.6	5.6	7.6
S915-11-037	316.5	79.7	84.1	4.4	5.9
S915-11-038		42.4	45.2	2.8	3.1
incl		44.6	45.2	0.6	8.7
and	203.7	56.3	67.1	10.8	13.2
incl		57.5	58.1	0.6	31.4
incl		63.1	65.3	2.2	42.1
S915-11-040	226.4	41.1	49.5	8.4	14.3
incl		47.8	49.0	1.2	93.7
S915-11-042	240.5	41.6	44.4	2.8	33.6
S915-11-043	275.3	45.4	52.8	7.4	14.8
S915-11-045	290.8	56.9	61.2	4.3	45.6
S915-11-047	317.0	78.3	89.8	11.5	9.5
incl		79.7	87.4	7.7	11.6
S915-11-048		55.0	56.2	1.2	8.0
and	197.4	66.8	72.1	5.3	80.4
incl		66.9	70.3	3.4	119.9
S915-11-050		16.2	18.1	1.9	4.6
and	223.4	52.2	57.0	4.8	43.5
incl		55.6	57.0	1.4	144.2
S915-11-052	241.5	47.0	52.2	5.2	2.7
incl		47.0	47.5	0.5	8.6
and	240.2	54.2	54.8	0.6	13.4
S915-11-054	274.7	57.8	60.0	2.2	6.3
S915-11-055	320.6	111.9	114.4	2.5	6.3
S915-11-056	372.5	169.3	170.6	1.3	3.7
S915-11-057	233.5	151.0	155.8	4.8	7.7
S915-11-058	221.0	86.1	86.5	0.3	59.3
S915-11-059	240.9	62.5	62.5	0.0	0.0
and		93.5	94.5	1.0	7.1
S915-11-060	248.7	94.9	95.1	0.2	0.0
S915-11-061	262.2	66.8	67.5	0.7	0.0
S915-11-062	275.6	111.6	121.9	10.3	17.0
incl		115.0	118.2	3.2	42.2
S915-11-063		No Significant Results
S915-11-065		No Significant Results
S915-11-064	228.3	41.3	41.9	0.6	0.2
S915-11-066	217.0	51.9	54.3	2.3	0.3
S915-11-067	227.6	44.2	49.0	4.7	1.6
S915-11-068	202.2	61.6	64.5	2.9	4.4
S915-11-069	226.9	37.9	41.6	3.7	0.7
and	219.2	52.0	53.4	1.5	3.5
S915-11-070	230.8	35.8	36.6	0.7	0.0
S915-11-071	210.0	49.5	51.7	2.3	3.4
S915-11-072	228.0	32.8	33.2	0.4	41.7
S915-11-073	229.2	44.0	47.4	3.5	0.4
S915-11-074	208.2	50.0	52.9	2.8	3.9
S915-11-075	213.7	52.0	53.8	1.8	3.8
S915-11-076	245.4	12.5	13.9	1.4	4.1
and	230.7	40.7	41.6	1.0	1.3
S915-11-077	235.1	35.7	41.1	5.5	2.0
incl		35.7	37.8	2.1	3.6
S915-11-078	263.7	40.3	45.0	4.7	2.5
and	269.1	64.2	65.7	1.6	2.6
S915-11-079		No Significant Results			0.0
S915-11-080	207.9	68.5	73.5	4.9	3.2
incl		69.9	72.8	2.9	5.2
and	224.5	41.8	44.9	3.2	2.3
S915-11-081	235.3	52.7	55.4	2.8	1.8
S915-11-082	265.2	49.7	50.7	1.0	2.8
S915-11-083	285.6	68.6	69.6	1.0	0.0
S915-11-084	268.6	48.4	57.9	9.4	17.4
incl		48.4	52.1	3.7	35.6
incl		54.3	56.7	2.5	12.9
and	272.1	62.6	67.8	5.2	33.7
S915-11-085		No Significant Results
S915-11-086		No Significant Results
S915-11-087		No Significant Results
S915-11-088		No Significant Results
S915-11-089	250.5	6.8	9.0	2.2	0.3
S915-11-090		No Significant Results
S915-11-091	250.5	27.6	30.1	2.5	0.3
S915-11-092	262.9	33.9	35.2	1.3	36.2
and	267.4	50.3	50.5	0.3	17.7
S915-11-093	261.5	30.0	30.7	0.7	34.0
and	263.7	36.1	37.6	1.5	3.9
and	266.7	45.7	46.7	1.0	51.7
S915-11-094	260.6	24.2	27.4	3.3	7.7
and	267.0	39.4	47.7	8.2	58.4
incl		43.9	47.7	3.7	124.8
S915-11-100	330.1	130.5	131.4	0.9	0.3
S915-11-102	193.5	75.4	77.1	1.6	1.8
S915-11-105	339.5	108.7	113.4	4.7	20.3
S915-11-106	357.5	124.2	127.4	3.2	18.1
S915-11-107	345.9	106.8	111.7	4.9	29.2
S915-11-108	347.2	103.2	110.2	7.0	9.2
S915-11-109	351.7	110.1	112.0	1.9	1.7
S915-11-110	373.1	134.8	136.7	1.9	15.7
Drilling Station 007-S922 UG
S922-11-001	300.8	126.5	128.4	1.9	0.1
S922-11-002	312.3	118.7	119.9	1.3	48.6
S922-11-003	328.8	121.0	122.8	1.7	16.3
S922-11-004	300.2	114.7	117.0	2.3	7.6
S922-11-005	315.2	115.1	117.3	2.2	1.7
S922-11-007	297.5	117.0	118.8	1.8	1.4
S922-11-008	308.5	116.0	118.9	2.8	0.8
S922-11-009	324.0	117.5	120.1	2.6	1.6
S922-11-010	300.8	110.2	112.3	2.1	0.3
S922-11-011	312.7	109.9	113.3	3.4	4.0
S922-11-012	311.2	112.0	112.7	0.7	7.1
S922-11-013	329.8	117.0	119.1	2.1	110.1
S922-11-014	298.1	115.3	116.6	1.3	12.2
S922-11-015	321.6	111.7	114.8	3.2	3.1
S922-11-016	310.9	120.8	129.4	8.6	0.6
S922-11-017	333.1	128.9	132.3	3.5	4.0
S922-11-018	300.5	137.9	139.4	1.5	0.2
S922-11-019	311.2	122.8	127.0	4.3	2.3
S922-11-020	321.4	118.3	120.5	2.2	1.5
S922-11-021	290.6	144.8	145.6	0.8	6.1
and	296.6	160.4	161.1	0.7	24.8
S922-11-022	321.2	157.2	159.9	2.7	4.8
S922-11-023	331.9	148.9	153.0	4.1	2.3
incl		151.6	152.8	1.1	6.1
S922-11-024	295.1	147.2	151.3	4.1	4.7
S922-11-025	315.8	155.0	157.0	2.0	5.7
S922-11-026	331.9	180.9	189.3	8.5	4.2
incl		180.9	181.6	0.8	11.6
incl		184.6	185.8	1.2	16.4
S922-11-029	327.2	178.6	183.1	4.5	5.5
S922-11-030	349.8	131.2	134.0	2.8	8.2
incl		131.2	131.5	0.3	62.3
S922-11-034		57.6	57.8	0.2	12.0
and		124.1	126.9	2.8	1.3
S922-11-035	338.6	119.7	122.6	2.9	11.4
S922-11-036	362.4	132.3	143.8	11.5	23.2
incl		132.3	140.0	7.7	33.0
S922-11-038	290.2	157.5	158.5	1.0	2.6
and		170.0	170.7	0.6	5.5
S922-11-039	326.7	154.0	154.3	0.3	1.0
and	329.4	158.9	159.6	0.7	0.9
S922-11-040		136.7	137.3	0.7	3.6
and	343.0	146.2	149.9	3.7	6.9
incl		146.9	149.9	3.0	8.7
S922-11-042	343.0	154.5	154.6	0.0	0.0
and		175.0	178.5	3.5	2.7
and		175.0	175.6	0.6	6.9
and		176.9	177.5	0.7	3.9
S922-11-043	282.2	171.0	176.9	5.9	9.2
S922-11-044	301.8	148.4	151.6	3.2	5.2
S922-11-045	333.1	156.0	157.3	1.3	4.6
S922-11-046	343.5	150.9	157.5	6.6	1.3
S922-11-047	351.1	133.2	134.1	0.9	185.3
and	362.5	144.8	148.5	3.7	11.4
S922-11-048	372.5	147.5	148.6	1.2	1.1
S922-11-049	348.1	132.6	136.8	4.3	44.2
S922-11-050	364.5	144.4	144.6	0.2	0.1
S922-11-051	358.7	143.5	146.2	2.7	11.1
S922-11-052	349.9	148.0	149.2	1.2	0.6
S922-10-054	250.2	147.5	151.1	3.6	8.6
incl		148.2	150.4	2.2	10.5
S922-11-055	351.7	138.0	140.8	2.8	3.2
S922-11-057	293.8	107.5	110.8	3.3	3.7
S922-11-058	211.5	198.6	200.1	1.5	23.9
incl		199.2	199.4	0.2	159.4
S922-11-061	344.4	125.9	129.0	3.1	28.6
S922-11-062	321.9	131.7	133.0	1.3	3.9
S922-11-064	341.1	136.2	142.0	5.8	1.1
S922-11-065	358.4	139.0	141.6	2.6	3.3
incl		175.9	176.6	0.7	161.6
S922-11-072	279.2	175.5	177.8	2.3	5.9
S922-11-076	305.5	146.1	147.1	1.0	5.2
incl		146.4	146.7	0.3	8.5
and	309.3	155.4	156.4	1.0	4.0
incl		155.4	155.7	0.3	11.6
S922-11-078	231.3	174.5	177.5	3.0	20.5
S922-11-079	378.6	161.9	164.4	2.5	6.8
S922-11-080	322.3	117.5	118.0	0.4	0.2
S922-11-081	323.7	106.9	109.7	2.8	0.1
S922-11-082	361.8	136.5	138.0	1.6	24.1
S922-11-084	373.4	143.1	144.3	1.1	13.0
and	384.4	154.7	156.7	2.0	5.9
S922-11-085	350.5	130.1	132.1	2.0	10.2
incl	350.0	130.1	131.0	0.9	22.4
S922-11-086	381.0	150.5	152.1	1.6	7.3
and	392.6	161.6	164.2	2.6	0.2
S922-11-087	272.8	48.5	51.5	3.0	3.9
and	327.7	119.5	122.2	2.7	0.4
S922-11-088	345.8	126.8	130.3	3.5	7.2
S922-11-089	361.6	136.7	139.4	2.8	63.0
incl		136.7	137.4	0.7	240.5
and	365.8	142.0	143.6	1.6	10.5
incl		142.9	143.6	0.7	22.4
and	369.8	146.5	148.0	1.5	5.5
incl		146.5	146.9	0.4	17.5
S922-11-090	347.5	124.5	128.0	3.5	1.8
S922-11-091	362.2	135.6	143.0	7.4	21.7
incl		135.6	137.9	2.3	18.3
incl		139.9	141.8	2.0	59.2
S922-11-092	374.9	143.0	153.2	10.2	1.9
incl		143.4	147.1	3.7	4.5
S922-11-093	371.4	140.9	145.3	4.4	14.6
and	378.9	149.9	152.4	2.5	3.2
S922-11-094	404.5	174.5	177.3	2.8	2.1
S922-11-095	381.5	147.0	149.0	2.0	0.8
S922-11-096	359.4	134.8	137.3	2.5	23.6
S922-11-097	375.2	144.2	149.5	5.3	19.5
and	383.7	154.8	157.8	3.0	7.6
S922-11-098	305.8	144.2	148.3	4.1	4.1
S922-11-099	311.2	138.2	139.6	1.5	4.0
and	314.9	144.6	146.6	2.0	4.8
S922-11-100	334.4	135.5	139.7	4.1	1.8
S922-11-101	349.3	139.2	143.3	4.0	13.0
S922-11-102	365.4	141.5	146.4	4.9	1.3
S922-11-103	336.2	135.1	139.6	4.5	7.3
S922-11-104	352.3	136.3	138.5	2.2	2.4
Drilling Station Surface DDH 007
CD-11-162		No Significant Results			0.0
CD-11-165		No Significant Results			0.0
CD-11-166		No Significant Results			0.0
CD-11-169	269.1	279.5	284.8	5.3	0.9
and	281.1	293.8	295.5	1.7	10.7
incl		293.8	294.7	0.9	18.4
CD-11-200	144.8	199.5	205.1	5.6	0.0
CD-11-202	205.1	223.8	233.9	10.1	0.5
incl		230.7	231.3	0.6	5.3
CD-11-204	196.8	217.8	218.0	0.2	0.1
CD-11-205	199.9	222.6	223.7	1.1	5.5
CD-11-206	225.6	242.1	243.0	0.9	7.0
incl		242.7	243.0	0.3	17.1
CD-11-207	184.7	221.6	225.0	3.4	0.6
incl		224.6	225.0	0.5	4.4
CD-11-208	172.2	222.9	224.5	1.6	0.6
CD-11-209	178.3	217.9	218.1	0.2	2.4
CD-11-210	173.7	218.5	219.3	0.7	1.9
CD-11-211	156.7	213.8	215.6	1.9	0.0
CD-11-212	151.8	195.2	195.7	0.5	10.8
CD-11-217	162.5	205.8	206.9	1.1	11.1
CD-11-218	149.7	198.2	200.5	2.2	3.7
CD-11-222	147.9	196.1	198.5	2.3	0.3
CD-11-223	142.6	196.2	197.8	1.6	0.5
CD-11-227		No Significant Results
CD-11-228	184.1	218.0	221.7	3.7	4.6
CD-11-232	178.9	215.6	216.6	0.9	0.5
CD-11-230	218.2	235.8	239.1	3.3	2.2
CD-11-233	200.9	218.5	219.5	0.9	0.1
CD-11-234	202.4	225.1	225.3	0.2	2.4
CD-11-235	188.7	213.8	214.2	0.4	0.4
CD-11-236	172.2	203.9	204.5	0.6	9.8
CD-11-238	121.6	136.8	142.2	5.4	0.0
CD-11-241	227.1	242.7	249.6	6.9	7.9
and	261.5	280.5	283.8	3.3	10.6
CD-11-242	192.9	216.1	218.7	2.6	0.9
CD-11-244	112.7	137.8	139.3	1.5	0.4
CD-11-245	236.5	259.1	260.3	1.2	5.2
CD-11-246	239.0	265.6	266.9	1.3	4.3
CD-11-248	157.0	188.1	191.4	3.3	0.2
CD-11-250	157.9	198.0	201.0	3.0	1.1
CD-11-251	138.7	187.1	190.7	3.5	1.1
CD-11-252	139.9	206.6	209.7	3.1	0.0
CD-11-253	121.7	199.5	202.4	2.9	4.6
incl	120.9	199.5	199.7	0.2	45.3
CD-11-254	152.9	202.7	205.0	2.3	0.3
CD-11-255	133.5	187.1	189.5	2.4	0.0
CD-11-257	119.5	199.6	202.5	3.0	8.2
incl		199.6	199.8	0.2	120.4
CD-11-259	127.4	189.4	190.8	1.4	10.9
CD-11-262	320.8	336.9	345.6	8.7	3.8
incl		339.2	343.0	3.8	7.4
JH-11-019	361.7	472.4	474.9	2.5	20.3
JH-11-026	326.1	456.6	458.0	1.4	7.6
JH-11-028	370.9	473.1	475.7	2.6	18.6
and	374.9	478.8	480.3	1.6	2.3
JH-11-030	394.3	522.9	525.0	2.2	2.2
JH-11-055	435.0	521.9	526.4	4.5	5.1

(1) Due to the exploratory nature of this exploration program and the variable orientations of the high-grade mineralized zones, the intersections presented herein may not necessarily represent the true width of mineralization.

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/Figure_1-3D_view_west800.pdf.
To view Figure 2, please visit the following link: http://media3.marketwire.com/docs/Figure%202-007%20Long%20Section-3.pdf.
To view Figure 3, please visit the following link: http://media3.marketwire.com/docs/Figure_3-16_Level_Plan_View.pdf.
To view Figure 4, please visit the following link: http://media3.marketwire.com/docs/Figure_4-3D_view_south800.pdf.
To view Figure 5, please visit the following link: http://media3.marketwire.com/docs/Figure_5-3D_view_all800.pdf.

The TSX and the OTCQX exchanges have not reviewed and do not accept responsibility for the adequacy or accuracy of this release.

Contact Information

San Gold Corporation
Tim Friesen
Communications Director
1 (204) 772-9149 ext. 202

San Gold Corporation
George Pirie
President and CEO
1 (416) 214-0024
www.sangold.ca

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Dec 15-2011 - Brigus Gold raises resource estimate by 50%

 Brigus Gold Corp  (TSX BRD) (Nasdaq BRD)

 Dec 15 (Reuters) - Brigus Gold raised the resources estimate at its Black Fox project in Ontario by more than 50 percent.

The indicated resources at the project are expected to increase from the current 116,710 ounces upon further drilling next year.

The company's exploration program continues to confirm the potential for new gold discoveries within the Black Fox Complex, which covers about 18 square kilometres within the Timmins mining district, it said in a statement.

Brigus has an C$8 million surface exploration budget for 2012, it said.

Shares of the company closed at C$1.10 on Wednesday on the Toronto Stock Exchange

As reported by TD Ameritrade via Reuters.

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Western Lithium Pre-Feasibility Study Indicates $550 Million NPV and Supports Low Cost Lithium Production in Nevada

Western Lithium USA Corporation

TSX : WLC
OTCQX : WLCDF

December 14, 2011 08:30 ET

RENO, NEVADA--(Marketwire - Dec. 14, 2011) - Western Lithium USA Corporation (TSX:WLC)(NASDAQ-OTCQX:WLCDF) ("Western Lithium" or the "Company") is pleased to announce the completion of a positive Pre-feasibility Study for its wholly-owned Kings Valley Lithium Project in Nevada, USA. Two scenarios were evaluated: A startup scenario based on mining and processing ore at a design throughput rate of 2,100 tonnes per day (13,000 tonnes per annum lithium carbonate), and a full production scenario to double production four years after startup (26,000 tonnes per annum lithium carbonate). The study demonstrates that the project could produce lithium carbonate at an estimated average cash cost, net of by-product credits, of $968 per tonne once full production of 26,000 tonnes per year lithium carbonate is achieved. Initial startup capital, including contingency is expected to be approximately $248 million. Incremental development capital to double lithium carbonate production to 26,000 tonnes per year is estimated at approximately $161 million. Sustaining capital of $40 million including contingency, is primarily composed of surface mine equipment, expansions of dry stack tailings and surface water management, and mine closure.

The study was undertaken by a collaboration of independent industry specialist firms including Tetra Tech, Inc. (Tt), Reserva International, LLC and K-UTEC AG Salt Technologies (K-UTEC). The study has been prepared in accordance with Canadian securities National Instrument 43-101 and Form 43-101F1 regulatory requirements. All amounts are stated in US dollars, unless otherwise indicated.
Project highlights for nominal production of 26,000 tonnes per year lithium carbonate:

• Pre-tax Net Present Value (NPV) of $552 million with an Internal Rate of Return (IRR) of 24% at an 8% discount rate;
• Operating cash costs, net of by-product credits, of $968 per tonne of lithium carbonate;
• Cash operating costs distributed between the individual products are: lithium carbonate $3,011 per tonne, potassium sulfate $87 per tonne, sodium sulfate $36 per tonne;
• Total cash operating costs per tonne (excluding credits) for lithium carbonate are $3,472 per tonne lithium carbonate;
• Once full lithium carbonate production of 26,000 tonnes per year is achieved, average annual cash flow is projected to be $124 million per year;
• Nominal production of by-product potassium sulfate and sodium sulfate of 90,000 and 100,000 tonnes per year, respectively;
• 20 year mine life, processing 25.5 million tonnes of ore at an average grade of 0.40% lithium using a 0.320% cut-off grade;
• Initial annual production of 13,000 tonnes lithium carbonate, increasing to 26,000 tonnes in year four;
• Nevada supports a large diversified mining industry;
• The project benefits from established infrastructure including road access, power supply and a local water source;
• Based on commodity prices of $6,000 per tonne lithium carbonate, $600 per tonne potassium sulfate, and $75 per tonne sodium sulfate;
• Overall recoveries are expected to be 87.2% for lithium, 77.7% for potassium and 82.7% for sodium.

Under the startup scenario, lithium carbonate production is expected to commence in 2015 at an annual rate of 13,000 tonnes per year. Full production of 26,000 tonnes per year is planned four years after initial startup, if demand for lithium increases.

Jay Chmelauskas, President of Western Lithium, stated, "As an electric car owner, the move to automobile electrification now seems obvious and imminent. Our deposit in Nevada has the potential to make the USA self sufficient in Lithium to support up to one million electric vehicles per year. Production of lithium in Nevada not only has the benefit of long-term mining and chemical industry jobs, but also has the potential to support downstream technology and manufacturing jobs in America. Lithium is the enabling metal for electric transportation."

Mr. Chmelauskas continued, "Upcoming key milestones for the Company include; submission of the Plan of Operations to the Bureau of Land Management initiating the formal permitting process (Q1 2012), starting construction of a lithium carbonate demonstration plant, and commencing work on a definitive feasibility study in 2012. We believe that there is a strong future for electrification and that the Stakeholders of Western Lithium and Nevada can strongly benefit and profit from this industry."

Project Overview
The Project is located in Humboldt County, Nevada, USA approximately 100 km north-northwest of Winnemucca along U.S. Highway 95 to Orovada and then 40 km west-northwest of Orovada, Nevada on paved State Highway 293. WLC has claims that encompass five areas of lithium mineralization. These five areas are covered by 1,049 Federal unpatented claims over an area of 8,480 hectares.
Lithium ore and waste rock will be extracted via an open-pit mine operation using end-dump haul trucks, hydraulic shovels, and a Wirtgen surface miner. Waste rock will be mined with a shovel/truck combination, while ore will be mined with the Wirtgen unit and direct loaded into haul trucks.
Mineral Reserves

Kings Valley Ore Reserves at 0.320% Lithium Cut-off
Category	Tonnes (millions)	Lithium (%)	Potassium (%)	Sodium (%)
Proven	14.937	0.400	3.850	1.370
Probable	12.198	0.388	3.930	1.360
Total	27.135	0.395	3.880	1.360

The reserve estimate takes into consideration all geologic, mining, processing, and economic factors, and is stated in accordance with Canadian securities NI 43-101 and Form 43-101F1.

A National Instrument 43-101 compliant technical report will be filed within 45 days of this announcement.

Qualified Person
The Pre-Feasibility Study was supervised by Randolph P Schneider of Tetra Tech, Inc. He is a Qualified Person as defined by NI 43-101, and is independent of the Company, as defined by Section 1.5 of NI 43-101. Mr. Schneider has reviewed and approved the scientific and technical data in this news release.
Edwin C. Lips, PE, of Tetra Tech, Inc. was responsible for mine planning and the ore reserve estimate. He is a Qualified Person as defined by NI 43-101, and is independent of the Company, as defined by Section 1.5 of NI 43-101.
Western Lithium is developing the Kings Valley, Nevada lithium deposit into potentially one of the world's largest strategic, scalable and reliable sources of high quality lithium carbonate. The Company is positioning itself as a major U.S.-based supplier to support the rising global demand for lithium carbonate that is expected from the increased use of hybrid/electric vehicles.

Forward-Looking Statements
Certain of the statements made and information contained herein, including the mine plan, costs, financial estimates and other conclusions in the Pre-feasibility Study, the reserve estimates themselves, the timing of the commencement of development and commercial production, the completion of milestones necessary to commence commercial production, is "forward-looking information" within the meaning of the Ontario Securities Act. Forward-looking information is subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, risks and uncertainties relating to commodity price fluctuations; uncertain political and economic environments; changes in laws or policies, delays or the inability to obtain necessary governmental permits, risks inherent in mine planning and development such as cost overruns, metallurgical and recovery factors and financing risks; risks associated with the estimation of mineral resources and reserves and the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; actual ore mined varying from estimates of grade, tonnage, dilution and metallurgical and other characteristics; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, and other risks and uncertainties, including those described in our Annual Information Form and each management discussion and analysis. Forward-looking information is in addition based on various assumptions including, without limitation, the expectations and beliefs of management, the assumed long term price of lithium; appropriate equipment and sufficient labour and that the political environment where the Company operates will continue to support the development and operation of mining projects. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the forward-looking information. Accordingly, readers are advised not to place undue reliance on forward-looking information. The Company does not assume any obligation to update forward looking statements except to the extent required by applicable securities laws.

Contact Information

Western Lithium USA Corporation
Brian Bergot
Investor Relations
604-331-9842
info@westernlithium.com
www.westernlithium.com

Western Lithium Production Video

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