San Gold Expands Footprint in Manitoba

San Gold (SGR.TSX) announced that it has signed an option agreement to earn an 80% interest in Wildcat Exploration’s Mike Power, Jeep, and Poundmaker gold exploration projects in the Rice Lake area of Manitoba, Canada. Under the terms of the option agreement, San Gold may earn an 80% interest in the Wildcat Projects by spending $5.1 million on exploration activities over a four-year period.5


* San Gold will be required to make cash payments to Wildcat in aggregate of $1.0 million and, subject to regulatory approval, subscribe for an aggregate of $1.0 million of Wildcat shares via private placement over a three-year period.

* San Gold will be the operator of the exploration program for the duration of the option agreement.

* During the first year exploration program, San Gold intends to complete a minimum drill program of 5,000 meters and a high-resolution airborne magnetic geophysical survey.

George Pirie, President and CEO of San Gold:
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Gold Price Climbs Back Toward $1,770

GOLD PRICE NEWS – The ascent in the gold price raged on Wednesday morning, rising $25.30 to $1,766 per ounce. The price of gold climbed alongside the U.S. dollar as investor risk aversion re-emerged in global equity markets. Stock prices moved lower with S&P 500 stock futures falling 17.50 to 1154.20. Commodities bucked the weakness in the stock market as 16 of the 19 components of the Reuters-Jefferies CRB index posted gains. WTI crude oil advanced 3.5% to $82.07 per barrel while silver’s sister precious metal, silver, appreciated 2.6% to $38.55 per ounce.

In early morning trading on Tuesday, the gold price surged to another new record high of $1,780 per ounce as European and Asian markets opened with substantial losses. However, the price of gold subsequently tumbled to $1,725 as equity markets surged higher. Gold prices traded in a wide range yesterday before settling with a gain of $19.95 at $1,739.49 per ounce. The Dow Jones Industrial Average (DJIA) experienced its own rollercoaster ride, rising over 200 points, then falling over 400 points and finally soaring over 600 points into the close. The Dow ultimately finished higher by 429.92 points, or 4.0%, at 11,239.77, marking its best day since March 23, 2009.
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Dow Surges 430 Points, Gold Ends Near $1,740

The broader U.S. equity markets staged a remarkable rally Tuesday afternoon following the Fed’s statement, as the Dow Jones Industrial Average (DJIA) surged higher to close up 429.92 points, or 4.0%, at 11,239.77.

The Dow initially fell by nearly 200 points after the release of the FOMC announcement, but quickly rebounded as very oversold conditions lead to short-covering and bargain hunting by traders.

With its 4.0% rally, the Dow posted its largest single-day gain in over two years.

Gold futures remained in positive territory this afternoon, initially rising to $1,780 per ounce, within a fraction of its $1,782.50 all-time record high.

However, at approximately 3:50pm ET, the yellow metal tumbled from $1,760 to $1,730 per ounce. Gold’s slide corresponded with an acceleration of the rally in cyclically-sensitive asset classes.

As the U.S. equity markets came to a close, gold futures stabilized near $1,740 per ounce.

The AMEX Gold Bugs Index (HUI) rebounded alongside the broader market, finishing higher by 4.5% at 549.84.