San Gold has reported that exploration step-out drilling from surface and underground continues to expand on the eastern extension to the 007 Zone.

Drill hole # CD-10-189 intersected 30.6g/tonne (0.89 oz/ton) over 8.3m (27.2 ft) down dip from and below initial discovery holes CD-10-178 and CD-10-183.

Drilling confirmed the high grades and widths that were initially encountered as demonstrated by #CD-10-185: 103.5g/tonne (3.02 oz/ton) over 3.3m (10.8 ft) and by #CD-10-181: 17.0g/tonne (0.50 oz/ton) over 11.0m (36.1 ft).

Additionally, drilling continues from an underground drill station at the 9220 level (240m below surface) of the 007 decline.

The first underground hole (S922-10-60) intersected substantial grade and width: 24.0g/tonne (0.70 oz/ton) over 26.6m (87.3 ft) midway between the known eastern limit of the 007 Zone and the East Extension discovery hole.

The follow-up drill holes appear to join the main body of the 007 Zone with the eastern extension below the 250m level, giving a combined strike length of over 450m so far.

Initial development of the main 007 Zone is underway at the 260m level and is expected to initially intersect the eastern extension later this month.

The 007 East Extension Zone, as well as the 007, L10 and Emperor Zones all occur near to or within a mafic flow rock unit known as the Shoreline Basalt, striking roughly east-west, parallel to and stratigraphically above the Rice Lake Mine or SAM unit.

Mineralization consists of free gold and pyrite within quartz-carbonate veining and associated alteration consistent with the Rice Lake and Hinge Mines and the 007 development.