SRGL News Source Gold Corp. Negotiating to Acqu

TORONTO, Oct. 8, 2012 /PRNewswire/ -- Source Gold Corp. (OTCBB: SRGL) ("the Company") is pleased to announce it has entered into final negotiations to acquire a privately held mineral lease holding Company.

The primary asset of the private holding company is approximately 10,000 contiguous hectares of 100% title interest Gold and Silver leases, located in the municipality of Mascota, at an elevation of between 1600 and 2200 meters above sea level. It is accessed from Guadalajara (the capital city of Jalisco) by a 135 km-long paved highway to the town of Mascota then northeast 10km on gravel roads to the small town of Natividad, all drivable year-round.

Geology: The area of the Project is located in the western margin of the Sierra Madre Occidental tectonostratigraphic terrane, a linear, north-northwest elongated package of thick rhyolite ignimbrites, where it is partially covered by the younger Trans Mexican Volcanic Belt. The main rock outcropping on the property are rhyolite tuffs of the Upper Series Rhyolites on the hills with some of the Lower Series Andesites in the lower vallies.

Mineralization at the Project is silver with lesser gold hosted in a banded and brecciatied quartz veins. The mineralized zone, as seen determined by independent geologists, extends over an area of about 10 km in strike with three main centers having supported past mining activities. Mineralization is known to exist over at least 100 meter vertical distance. High Grade chip samples have yielded ore grades of over one thousand grams of Silver per ton.