/NOT TO BE DISTRIBUTED OR DISSEMINATED IN THE UNITED STATES/
TORONTO, Feb. 16 /CNW/ - South American Gold and Copper Company Limited (the "Company")(TSX Symbol "SAG") announced its first fiscal quarter ended December 31, 2009, consolidated financial results compared to its first fiscal quarter ended December 31, 2008.
Revenues for the first quarter totaled US $2,163,000 of which US $1,915,000 was from gold sales and US $248,000 was from copper and silver sales compared to revenues of US $1,824,000 for its first quarter a year ago which included gold sales of US $1,665,000 and copper and silver sales of US $159,000.
The Company reported a net loss for the first quarter ended December 31, 2009, of (US $1,020,000) compared to a loss of (US $401,000) for the comparative period a year ago. The increase in operating costs was primarily due to increased development costs of the Esperanza No. 2 and Esperanza No. 3 levels. These development costs are expected to result in increased production of gold/copper ore in the near future as new production stopes are added as a result of the development of the Esperanza No. 2 and No. 3 levels. In addition, the Company incurred additional drilling costs as it defines potential additional inferred resources of gold and copper mineralization.
The Company reported a positive working capital position of US $923,000 for the first quarter ended December 31, 2009, compared to a positive US $490,000 a year ago.
The Company also reported that it has taken delivery of a new Atlas Copco Model l04-H jumbo drill which will substantially increase the rate development in terms of meters of advance per month at substantially reduced costs and greatly increase the company's ability to open up the potential of the Pimenton mine. The addition of this new drill marks the start of a program to upgrade the mining equipment in the Pimenton mine from used equipment to new equipment.
South American Gold and Copper Company Limited is a minerals producing, exploration and development company with properties and activities currently focused in Chile.
The numbers contained in this news release have not been audited.
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 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 costs 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.
SOURCE Cerro Grande Mining Corporation
For further information: For further information: Stephen W. Houghton, CEO; David R. S. Thomson, EVP, E-Mail: firstname.lastname@example.org, Telephone: 56-2-265-2295, Website: www.sagc.com