South American Gold and Copper Company Limited Announces Financial and Operating Results for the Three Month and Six Month Period Ended March 31, 2009



    /NOT TO BE DISTRIBUTED OR DISSEMINATED IN THE UNITED STATES/

    TORONTO, May 14 /CNW/ - South American Gold and Copper Company Limited
(the "Company") (TSX: SAG) reported the following results for the three months
period ended March 31, 2009 and the six months period ended March 31, 2009.

    
                   3 Months Period Ended           6 Months Period Ended
                        March 31, 2009                 March 31, 2009
                          (Unaudited)                    (Unaudited)
    -------------------------------------------------------------------------
    Gold Sales   US   $3,470,000                US   $5,134,000
    -------------------------------------------------------------------------
    Gold Ounces
     Sold                  3,811    Au ounces             5,989    Au ounces
    -------------------------------------------------------------------------
    Copper &
     Silver
     Sales       US     $343,000                US     $503,000
    -------------------------------------------------------------------------
      Total
       Sales     US   $3,813,000                US   $5,637,000
    -------------------------------------------------------------------------
    Expenses     US  -$2,634,000                US  -$4,822,000
    -------------------------------------------------------------------------
    Other
     Expenses    US     -$40,000                US     -$77,000
    -------------------------------------------------------------------------
    Net Income   US   $1,139,000                US     $738,000
    -------------------------------------------------------------------------
    

    As of March 31, 2009 the Company had a positive working capital ratio and
a cash position of US $1,886,000.
    The Company reports only gold, copper and silver sales which have been
paid for during the period. Gold ounces paid for during the six months period
ending March 31, 2009 amounted to 5,989 ounces. Actual production of gold
ounces during the period amounted to approximately 6,392 ounces of gold. Final
settlements of the sales values are not available for 10 to 12 weeks after the
delivery of the gold and gold/copper concentrates to the smelter. In addition,
the smelter does not accept delivery of gold and gold/copper concentrates
during the last five business days of each month.
    The Pimenton mine, in the six months under review, had Total Cash
Operating Costs of US $336 per ounce of gold produced. Total Cash Costs which
include Total Cash Operating Costs plus Royalties and Production taxes totaled
US $428 per ounce of gold produced. Total Production Costs which include Total
Cash Operating Costs plus Total Cash costs and Depreciation and Reclamation
and Mine Closure Costs were US $544 per ounce of gold produced.
    These Cash Operating Costs, Total Cash Costs and Total Production Costs
are shown below in accordance with the Gold Institute standards.

    
                                         Pimenton Mine
                                      Six Months Ended
                                        March 31, 2009
                                      -----------------
    a)
    Direct mining expenses             US  $ 2,459,417
    Third-party smelting, refining
     and transport costs                     $ 231,048
    By-product credits (deduct)
     Copper and Silver credits              ($ 540,496)
    Other
                                      -----------------
      Total Cash Operating Costs       US  $ 2,149,969    US $336 per Au oz.

    b)
    Royalties                                $ 347,292
    Production taxes                         $ 238,868
                                      -----------------
      Total Cash Costs (a) + (b)       US  $ 2,736,128    US $428 per Au oz.

    c)
    Depreciation                             $ 738,228
    Reclamation and mine closure              $ 68,337
                                      -----------------
      Total Production Costs (a)
       + (b) + (c)                     US  $ 3,542,694    US $544 per Au oz.


    Gold Ounces Produced during the 6 months period ended March 31, 2009 =
6,392 ounces
    

    Operationally, the Esperanza 3375 crosscut, from which we have been
producing a part of the ore mined to date has been advanced to 620 meters and
is being further advanced. Additionally, work is progressing on the Pimenton
mine's Esperanza 3315 level which is sixty meters below the Esperanza No. 1
level.
    Work has also been completed on the first phase of the new tailing pound
which stretches across the Pimenton valley. This first of a total of four
phases will give the Pimenton mine approximately three years of additional
capacity.
    We enter the winter months now. Our plan is to continue at full
production, weather permitting and the mine, plant, camp and road are equipped
to accomplish this plan.

    South American Gold and Copper Company Limited is a minerals producing,
exploration and development company with properties and activities currently
focused in Chile.

    FORWARD-LOOKING STATEMENTS: This news release contains certain
"forward-looking statements" within the meaning of Section 21E of the United
States Securities Exchange Act of 1934, as amended. Except for statements of
historical fact relating to the company, certain information contained herein
constitutes forward-looking statements. Forward-looking statements are
frequently characterized by words such as "plan," "expect," "project,"
"intend," "believe," "anticipate", "estimate" and other similar words, or
statements that certain events or conditions "may" or "will" occur.
Forward-looking statements are based on the opinions and estimates of
management at the date the statements are made, and are subject to a variety
of risks and uncertainties and other factors that could cause actual events or
results to differ materially from those projected in the forward-looking
statements. These factors include the inherent risks involved in the
exploration and development of mineral properties, the uncertainties involved
in interpreting drilling results and other ecological data, fluctuating metal
prices, the possibility of project cost overruns or unanticipated costs and
expenses, uncertainties relating to the availability and costs of financing
needed in the future and other factors. The Company undertakes no obligation
to update forward looking statements if circumstances or management's
estimates or opinions should change. The reader is cautioned not to place
undue reliance on forward-looking statements.





For further information:

For further information: Stephen W. Houghton, CEO, Patrick Esnouf,
President, David R. S. Thomson, EVP, E-Mail: sagc@sagchile.cl, Telephone:
56-2-264-2295, Website: www.sagc.com


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