/NOT TO BE DISTRIBUTED OR DISSEMINATED IN THE U.S./
TORONTO, March 7 /CNW/ - South American Gold and Copper Company Limited
(the "Company") (TSX: SAG) is pleased to announce that it is in discussions in
Santiago, Chile, with Anglo American plc ("Anglo American") for entering into
a joint venture agreement on the Company's Pimenton porphyry copper gold
The Company and Anglo American have agreed to the basic terms of a Letter
of Understanding (LOU) that will set forth the conditions for a formal Joint
Venture Agreement that will be finalized later in the year.
In the meantime, Anglo American has informed the Company it expects to
initiate a diamond drill program on the porphyry deposit at Pimenton during
early March 2007, before the onset of the Chilean winter.
The first diamond drill holes are expected to test for extensions related
to diamond drill hole No. PM-004, which encountered 279 meters of 0.40% Cu and
0.43 g/t Au from 312 meters, and diamond drill hole No. PM-006, which
encountered 70 meters of 0.46% Cu, and 0.49 g/t Au from 100 meters. The two
drill intercepts were made by Rio Tinto plc during 2006.
Dr. David R. S. Thomson, Director of Exploration and a director of the
Company stated, "We would be very pleased indeed to have Anglo American as our
partner in exploring and developing the Pimenton porphyry copper deposit."
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, President and CEO,
Telephone: (212) 751-0083, Website: www.sagc.com