/NOT TO BE DISTRIBUTED OR DISSEMINATED IN THE U.S./
TORONTO, June 26 /CNW/ - South American Gold and Copper Company ("SAGC"
or the "Company") (TSX-SAG) announced today that the restart of mining and
milling operations at its 100% owned Pimenton gold mine is underway. The plant
is completed and the break in period has begun. The plant will be run for a
commissioning period before the start of commercial production. During this
period sales of gold concentrate and copper concentrate will be generated but
not booked as revenues until commercial production is declared.
Except for delays due to labor strikes affecting trucking and port
facilities in Chile that held up delivery of certain equipment, the Company
has exceeded originally planned goals at Pimenton in several important areas.
The new plant building housing new and reconditioned equipment, including new
milling and flotation circuits, has been completed to a better design for
greater protection against snow loads. Plant capacity has been increased to
200 plus tons per day from our original plans of 100 tons per day. An onsite
laboratory has been completed and additional mining equipment including a
rebuilt Wagner ST-2D scoop was purchased which were not contemplated in the
Company's original plans.
The Esperanza crosscut has reached the Michele vein as expected. The
crosscut to date has been driven a further sixty meters beyond the Michele
vein and work is progressing. In addition, a raise is currently being driven
from the Michele vein to the 3430 level fifty meters above and headings to the
north and south on Michele are in ore. Five hundred and forty meters of
crosscut have been completed to date on Esperanza. A further ninety meters is
needed to intercept known veins at Pimenton, including Leyton and Lucho. The
Company plans to initially process ore from development drifts and raises at
50 tons per day or more as the mine is prepared to produce at a greater rate.
By the end of July, all snow clearing equipment is expected to be onsite.
The complete fleet will include five front end loader mounted snow blowers.
Currently, the company has four front end loaders each with a snow blower. Two
of the loaders are new Komatsu units, which doubles the Company's capacity to
remove snow compared to our original plans.
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: Registered Office: 100 WELLINGTON STREET WEST,
SUITE 500, TORONTO, ONTARIO, M5K 1H1, CANADA; New York Representative Office:
420 MADISON AVENUE, NEW YORK, NY, 10017, (212) 751-0083; Santiago Office: LA
CONCEPCION 266, OF. 704, PROVIDENCIA, SANTIAGO, CHILE, Telephone:
56-2-264-2295, E-Mail: email@example.com; Patrick Esnouf, President, Stephen W.
Houghton, C.E.O., Dr. David R. S. Thomson, E.V.P., Exploration, Telephone:
56-2-264-2295, Website: www.sagc.com