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News Release
SOUTH AMERICAN GOLD AND COPPER COMPANY LIMITED
Registered OfficeNew York Representative Office SUITE 800, PURDY’S WHARF420 MADISON AVENUE 1999 UPPER WATER STREET, TOWER 1NEW YORK, NEW YORK10017 HALIFAX, NOVA SCOTIA B3J 2X2 For further information, contact: Stephen W. Houghton, President William C. O’Donnell, EVP Telephone:(212) 751-0083 Fax:(212) 751 0319 Website: http://www.sagc.com
FOR IMMEDIATE RELEASE – April 28, 2005 South American Gold and Copper Company Limited Announces Drills Turning on the Porphyry Copper Deposit at Pimenton Toronto, Ontario, Canada – South American Gold and Copper Company Limited (“the Company”) (Toronto Stock Exchange Symbol SAG) announced today that a diamond drill program has begun on the porphyry copper deposit at Pimenton.This initial drill program will focus on the Northern and Central stockwork areas contained within the Pimenton Central area which is located 1,000 meters to the north of the Company’s Pimenton Gold/Copper mine which started producing in July 2004.Pimenton is located 180 road kilometers northeast of Santiago, Chile, and lies within the Central Porphyry Copper Belt of Chile. Stephen W. Houghton, President and Chief Executive Officer, stated that the drill program is being conducted in accordance with the terms of a previously announced binding Letter of Understanding with Rio Tinto Mining and Exploration Ltd., a wholly owned subsidiary of Rio Tinto plc, London, England (“Rio Tinto”).Under the terms of the Letter of Understanding (“LOU”) both parties have agreed to enter into a formal Joint Venture Agreement on the successful completion of the initial drill program, which is being funded by Rio Tinto and is now in progress.Under the terms of the LOU, the joint venture agreement will contain a minimum budgeted schedule of expenditures by Rio Tinto over a four year time frame and the completion of a feasibility study on the project within seven years of the date of the LOU, at which time Rio Tinto would earn a 60% interest in the project. Dr. David R. S. Thomson, Executive Vice President and Director of Exploration, stated that results of a recently completed Mobil Metal Ion (“MMI”) program conducted by the Company and analyzed by SGS/Lakefield Laboratories, Toronto, Canada, have indicated that the initial three planned drill holes in the Pimenton Central Area, are well sited to test strong copper, molybdenum, arsenic and gold anomalies identified by the MMI program. The drill holes will be inclined at 70 degrees and are planned to a depth of 650 meters, but can be extended to beyond 1,200 meters, if justified.Dr. Thomson stated that an induced polarization study conducted by Quantec Geophisical S.A. in early 2004 also shows an anomaly going to depth in the Pimenton Valley which coincides with the porphyry copper setting in the Pimenton Central Area. Dr. Thomson also stated that recently received MMI sample results have highlighted two other anomalous zones with copper, molybdenum, arsenic and gold that have a northwest dimension of 550 and over 800 meters which are less than 200 meters apart.These start at the Pimenton mine area and extend to the southeast along the Pimenton Valley and down to the Rio Colorado River.These two zones show an apparent relationship with a large anomaly going to depth in the Pimenton Valley which was also identified by the induced polarization geophysical program conducted by Quantec Geophisical S.A. in early 2004.These two MMI anomalies are thought to be related to deeper-seated porphyry mineralization and are expected to provide an additional target area for drilling. Dr. David R. S. Thomson is a “Qualified Person” with more than forty years exploration experience in Chile and Peru. South American Gold and Copper Company Limited is a minerals producing, exploration and development company with properties and activities currently focused in Chile. Certain information contained in this press release constitutes “forward looking statements” within the meaning of securities laws Forward-looking statements may relate to the future outlook of the Company and anticipated events or results.In particular, statements regarding the Company’s future operating results and economic performance are forward-looking statements.Forward-looking statements are made on management’s belief as well as assumptions made and information currently available to, management of the Company.While such beliefs and assumptions are considered reasonable by the Company, they are inherently subject to significant business, economic and competitive uncertainties and contingencies or they may prove to be incorrect.These issues can affect the Company’s actual results and could cause its actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of the Company.Readers are cautioned that forward-looking statements are not guarantees of future performance, and should not place undue reliance on them.The Company expressly disclaims any obligation or undertaking to publicly release any updates or revisions to any forward-looking statements contained herein to reflect any change in expectations with regard thereto or any changes in events, conditions or circumstances on which any statement is based.
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