/NOT TO BE DISTRIBUTED OR DISSEMINATED IN THE UNITED STATES/
TORONTO, Jan. 13 /CNW/ - South American Gold and Copper Company (the "Company) (SAG-TSX) announced today that its wholly owned subsidiary, Compania Minera Pimenton, reported total gold sales of US $2,001,176 or 1,688.3 ounces of gold for its first fiscal quarter ended December 31, 2009. Gold sales for the months of October 2009 and November 2009 totalled US $1,030,113 or 860.9 ounces of gold while gold sales for the month of December, 2009 totalled US $971,063 or 872.4 ounces of gold.
Total cash costs per ounce net of by product credits for copper and silver averaged US $1,535 for the months of October and November 2009 versus US $878 for the month of December, 2009. As a result, the Pimenton mine reported a small cash cost profit of US $127,039 for its first fiscal quarter ended December 31, 2009, net of by product credits from copper and silver sales which totalled US $247,969 and before depreciation, amortization and mine closure costs totalling US $361,216.
The Company reports only gold, copper and silver sales which have been paid for during the period. Actual ounces of gold produced in December, 2009 were 915.0 ounces of gold compared to the reported 872.4 ounces of gold sold. Final settlements of the sales value are not available for 10 to 12 weeks after delivery of gold and copper/gold concentrates to the smelter. In addition the smelter does not accept delivery of gold and copper/gold concentrates during the last five business days of each month.
The fourth quarter ended September 30, 2009 and the first quarter ended December 31, 2009 were impacted by a partial closure of a part of the mine due to an unfortunate accident which occurred in late July 2009. This temporary closure of a part of the mine resulted in poor ore grades at reduced production levels being mined from other parts of the mine which remained open.
David Thomson, EVP and Director of Exploration stated that the month of December 2009 was a significant improvement over October and November 2009 and we expect further continued improvement in mine operations and production levels in the coming months.
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 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.
SOURCE Cerro Grande Mining Corporation
For further information: For further information: Stephen W. Houghton, CEO, David R. S. Thomson, EVP, E-Mail: email@example.com, Telephone: 56-2-264-2295, Website: www.sagc.com