/NOT FOR DISTRIBUTION IN THE UNITED STATES OF AMERICA/
TORONTO, June 14 /CNW/ - South American Gold and Copper Company Limited
(the "Company")(TSX - SAG) announces the results of the first diamond drill
hole, R.1, put down at Pimenton by it's partner, Mantos Blancos, a wholly
owned subsidiary of Anglo American.
In summary, while R.1 encountered uneconomic mineralization it has
contributed geological information. This information together with results
from Rio Tinto's drill holes 4 and 6, will be used to site Mantos Blancos
follow up drilling. Results from Rio Tinto's two holes were used to estimate
within the immediate area a 400 million ton resource potential of 0.40 per
cent copper and 0.43 grams per ton gold (the equivalent of 0.7 per cent
copper, assuming metallurgical recoveries and net smelter returns are 100%,
using US $650 per ounce gold and US $3.00 per pound of copper) with
possibilities of higher grades at depth to coincide with a postulated bornite
rich core. The estimate and higher grade possibilities appear in a Rio Tinto
report dated May 2006. The pyrite to chalcopyrite ratio in hole R.1 decreases
down hole, over approximately the hole's final 110 meters, magnetite and
bornite appear as accompaniments to the chalcopyrite. This last fact lends
support to the postulated existence of a deeper bornite rich core.
Preliminary assay results on the R.1 drill hole failed to pass Mantos
Blanco's quality control standards and consequently some intervals are being
re assayed and should be available within a month. Mantos Blancos expects to
be drilling at Pimenton in December 2007.
Rio Tinto's hole 4 is 390 meters south of Anglo American's R.1 at an
azimuth of 210 degrees.
Rio Tinto's hole 6 is 570 meters south of R.1 at an azimuth of 206
R. 1 is located on UTM coordinates 386059 E, 6407204 N with an azimuth of
190 degrees and an inclination of minus 80 degrees. The length of the hole is
Geology of drill hole R.1 is summarized as follows:
0- 17.55 meters. 17.55 meters glacial overburden.
17.55 -360 meters. 342.45 meters of Diorite. Strongly silicified with
patchy potassium feldspar superimposed on secondary biotite carrying 2 to 4
per cent disseminated pyrite with scarce disseminated magnetite in the upper
360 - 758.58 meters. 398.58 meters of Andesite moderately silicified with
zones of secondary biotite, sparse disseminated pyrite and fine veinlets
carrying pyrite anhydrite traces of chalcopyrite and occasional veinlets of
anhydrite, chalcopyrite, and molybdenite.
758.58 - 840. 81.42 meters of Diorite Porphyry with chloritic alteration
and silicification superimposed on secondary biotitization. Scarce
disseminated pyrite and fine veinlets of pyrite, anhydrite, molybdenite, and
traces of chalcopyrite
840 - 1003.00 meters. 163 meters. Diorite Porphyry showing dominant
secondary biotite alteration with retrograde moderate chlorite alteration. 2
to 3 per cent disseminated pyrite and chalcopyrite with traces of disseminated
bornite and occasional veinlets of gypsum-chalcopyrite, and anhydrite-
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, Telephone: (212)