/NOT FOR DISTRIBUTION IN THE UNITED STATES OF AMERICA/
TORONTO, Aug. 13 /CNW/ - South American Gold and Copper Company (the
"Company")(TSX-SAG) is pleased to announce it has signed an option agreement
on claims covering approximately 1,982 hectares (or 4,897 acres) in the 5th
region of Chile where its Pimenton gold/copper mine and Tordillo prospects are
located. The new prospect area is called Bandurrias.
The optioned claims entirely surround 142 hectares of claims from which a
small miner over the last five months has produced, with minimum hand sorting,
4654.3 tons of mineralization grading an average of 2.09 % copper. This grade
and tonnage is based on averaged custom mill returns reviewed by the Company.
All of this mineralization has come from within the small miner's claims.
Infrastructure is good with easy terrain at altitudes below 2,200 meters.
Dr. David R. S. Thomson, EVP and Director of Exploration, stated that the
ore that has been mined comes from ten shallow backhoe pits spread out over a
length of 700 meters. The ore occurs within gently inclined volcanic tuffs.
The ore thickness is difficult to determine as the pits are rudimentary, but
appear to be 3 meters or more in thickness in some pits. There are at least
two beds. Mineralization comprises copper oxides with residual finely
disseminated bornite, chalcocite, and lesser chalcopyrite. Similar surface
leached mineralized outcrops occur within the 1,982 hectares under option. The
mineralization in the producing pits and elsewhere is consistently the same
and is always within the same type of volcanic tuff, closely associated with
chloritic alteration. The possibilities for ore continuity between the
producing shallow pits and out into the surrounding optioned claims is thought
to be good.
Initial shallow diamond drill holes, not exceeding 100 meters in length
and on 100-meter centers, will establish a preliminary idea of ore continuity
extending out from the small miner's claims. Drilling will start within the
next two weeks. If results meet expectations, the intention is to quickly
build up a reserve by further drilling that meets National Instrument 43-101
Under the terms of the option agreement, US $30,000 has been paid on
signing, US $70,000 dollars is due in six months, followed by four payments of
US $100,000 dollars every six months, with a final payment at 36 months of US
$600,000 dollars. The balance of the US $6,500,000 dollar price (or US
$5,400,000) will be paid out in the form of a 5% Net Smelter Royalty.
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, CEO, Dr. David R.S.
Thomson, EVP, Telephone: (56-2) 264-2295