Cerro del Gallo Project Update - Initial Pit Optimization and Metallurgical Test Results



    /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
    THE UNITED STATES/

    OTTAWA, Aug. 14 /CNW Telbec/ - San Anton Resource Corporation (SNN:TSX)
("San Anton") is pleased to announce initial results from preliminary pit
optimizations and metallurgical test work on the Cerro del Gallo deposit which
is located on the San Anton property in the state of Guanajuato, Mexico. The
property is 51 per cent owned by the Company and 49 per cent owned by
Goldcorp. Golder Associates Pty. Ltd. ("Golder") of Brisbane, Australia was
commissioned to complete preliminary pit optimization studies subsequent to
the completion of their NI 43-101 Report and resource estimate dated April 17,
2007. Metallurgical testwork was carried out by SGS Lakefield Oretest in
Perth, Australia. The preliminary pit optimization and metallurgical work will
assist management in its ongoing evaluation of the Cerro del Gallo deposit and
in planning future programs.
    Based on a gold price of US $600/oz, silver price of US $10.80/oz and a
copper price of US $3.00/lb, resources within the pit were estimated at
260.6Mt grading 1.02g/t gold equivalent(1), or 8.5 million ounces of gold
equivalent(1) (see Table 1). The conceptual strip ratio is 0.57 and
89 per cent of resources within the pit shell are classified as Measured and
Indicated. At a US $500/oz gold price, US $9/oz silver price and a US $1.50/lb
copper price, resources within the pit were estimated at 124.5Mt grading
1.02g/t gold equivalent(2), or 4.1 million ounces of gold equivalent(2) (see
Table 2). The conceptual strip ratio is 0.44 and 97 per cent of resources
within the pit shell are classified as Measured and Indicated.
    Gregory Bowes, President & CEO stated that "We are very encouraged by the
fact the optimized pits already contain a significant resource that has a very
favorable strip ratio and is located in an area with well established
infrastructure. Importantly, the deposit remains open laterally and at depth.
However, a decision on initiating a pre-feasibility study will not be made
until early next year when the results from additional expansion drilling and
metallurgical testing are available. He added that "While metallurgical
testing is an ongoing process, no issues have been identified which present a
major concern."

    Pit Optimization Results

    Golder carried out a series of open pit optimization studies using
Whittle Four-X software (Tables 1 & 2) based on a 15Mtpa flotation circuit and
representative costs for operations of a similar size and nature including
mining costs of US$0.85/t, processing and general and administrative costs of
US$6.70/t, plus post-concentrator costs. Preliminary metallurgical recoveries
(see below) were assumed at 85 per cent for copper and 80 per cent for gold
and silver. First pass slope angles of 45 degrees and a mining recovery factor
of 95 per cent were assumed, and no allowance was made for mining dilution
other than that incorporated in the geological model.

    
                                   Table 1
               Cerro del Gallo Deposit - Summary of Resources
                     contained within Optimized Pit Shell
                Based on Au $600/oz, Ag $10.8/oz, Cu $3.00/lb

    -------------------------------------------------------------------------
    Resource Category     Tonnes      Au      Ag      Cu   AuEq(1)  AuEq(1)
                              (M)    g/t     g/t       %      g/t      Moz
    -------------------------------------------------------------------------
    Measured                  59    0.74      13    0.08     1.27      2.4
    -------------------------------------------------------------------------
    Indicated                173    0.25      15    0.12     0.96      5.3
    -------------------------------------------------------------------------
    Inferred                  28    0.21      14    0.12     0.90      0.8
    -------------------------------------------------------------------------
    Total                    261    0.36      14    0.11     1.02      8.5
    -------------------------------------------------------------------------

    (1) - Gold equivalence ("AuEq") has been calculated based on a US $600/oz
    gold price, US $10.8/oz silver price and US $3.00/lb copper price and
    assumes metallurgical recoveries of 80% for both gold and silver, and 85%
    for copper. The gold equivalent grades were calculated using the
    following formula: AuEq = Au + (Ag / 55.56) + (Cu x 3.64).


                                   Table 2
               Cerro del Gallo Deposit - Summary of Resources
                     contained within Optimized Pit Shell
                 Based on Au $500/oz, Ag $9/oz, Cu $1.50/lb

    -------------------------------------------------------------------------
    Resource Category     Tonnes      Au      Ag      Cu   AuEq(2)  AuEq(2)
                              (M)    g/t     g/t       %      g/t      Moz
    -------------------------------------------------------------------------
    Measured                  54    0.76      14    0.08     1.18      2.0
    -------------------------------------------------------------------------
    Indicated                 67    0.29      18    0.13     0.90      2.0
    -------------------------------------------------------------------------
    Inferred                   4    0.22      17    0.12     0.78      0.1
    -------------------------------------------------------------------------
    Total                    125    0.49      16    0.11     1.02      4.1
    -------------------------------------------------------------------------

    (2) - Gold equivalence ("AuEq") has been calculated based on a US $500/oz
    gold price, US $9/oz silver price and US $1.50/lb copper price and
    assumes metallurgical recoveries of 80% for both gold and silver, and 85%
    for copper. The gold equivalent grades were calculated using the
    following formula: AuEq = Au + (Ag / 55.56) + (Cu x 2.19).
    

    Expansion Drilling

    The Cerro del Gallo resource has been defined by 57,600m of drilling in
232 holes within an area that is almost one kilometer in diameter. Relatively
little drilling has taken place outside of this area and a 36 hole, 11,700m
step out drilling program is currently underway to test the mineral potential
around the deposit and at depth (see News section at
http://www.sanantonresourcecorp.com/en/News_41.html for the figure of the
drilling program). This program is expected to be completed in
October/November of this year. The Company is also planning an extensive
exploration program to determine if other deposits exist within the 10km2
alteration halo that surrounds Cerro del Gallo.

    Metallurgy

    Metallurgical testing to date has focused on the investigation of
comminution, rougher flotation and cyanide leaching flow sheet options
utilizing material from the gold/silver zone. Metallurgical testing was
carried out by SGS Lakefield Oretest in Perth Australia. A second phase of
testing is currently underway at SGS utilizing copper zone material to
evaluate both flow sheet options and comminution and flotation parameters to
determine if pay metal recoveries can be improved and a saleable copper
concentrate produced. This work is expected to be completed in October, 2007.
    For the purposes of the pit optimization study, it was assumed that an
optimized grind-flotation flow sheet would result in copper recoveries
approaching 85 per cent and silver and gold recoveries of 80 per cent. These
assumed values were established from indicative results from metallurgical
testing completed to date, which included 42 bulk flotation tests producing a
rougher concentrate, as well as the reported results of comparable operations.
    The Qualified Person as defined by NI 43-101 ("QP") responsible for the
pit optimization study is Mr. Hernan Retamal, who was an employee of Golder at
the time of the study. Rob Stewart, Vice President, Development of the Company
and QP has reviewed and approved the content of this press release.

    The Toronto Stock Exchange has neither approved nor disapproved the
contents of this press release. This News Release includes certain
"forward-looking statements". All statements other than statements of
historical fact included in this release, including, without limitation,
statements regarding potential mineralization and reserves, exploration
results, and future plans and objectives of San Anton are forward-looking
statements that involve various risks and uncertainties. There can be no
assurance that such statements will prove to be accurate and actual results
and future events could differ materially from those anticipated in such
statements. Important factors that could cause actual results to differ
materially from the expectations of San Anton are detailed from time to time
in the filings made by San Anton with securities regulators.




For further information:

For further information: Gregory Bowes, President & CEO, (613) 729-9006;
Christian Del Valle, Manager, Corporate Development, (613) 729-9006; Renmark
Financial Communications Inc.: Barry Mire: bmire@renmarkfinancial.com; John
Boidman: jboidman@renmarkfinancial.com; (514) 939-3989, Fax: (514) 939-3717,
www.renmarkfinancial.com

Organization Profile

SAN ANTON RESOURCE CORPORATION

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890