Toronto,Ontario - July 16, 2001South American Gold and Copper Company Limited Announces Results of Diamond Drill Program at the Cal Norte Lime Project
Toronto, Ontario, Canada - South American Gold and Copper Company Limited ("SAGC")(TSE Symbol SAG) is pleased to report that the diamond drill program on its Cal Norte lime project’s "Hornito" limestone deposit has been successfully completed. The objective of the drill program was to confirm sufficient mine recoverable limestone reserves in the Hornito mine to support a 150 tonne per day capacity lime kiln operation for at least ten years. This objective was successfully achieved. The 906 meter drill program consisted of five drill holes ranging in length from 40 meters to 250 meters. They were drilled from surface with downward inclinations of 50 degrees and directed to intersect the limestone formations (mantos) which lie at approximately 90 degree horizontal angles. Three of the drill holes intersected the Principal Manto, establishing the CaC03 grade and limestone bed continuity down to elevation 570 meters, which is 120 meters below the current mine workings. These intersections together with the sampling of existing access ramps form the basis of the Mine Recoverable Reserve estimate of 1,180,000 tonnes grading 90.4% CaC03. The Manto D limestone formation, located 45 meters to the east of Manto Principal was also confirmed with three intersections, one of which averaged over 90% CaC03 over 18 meters of drill core. The Manto B formation, located some 25 meters to the west of Manto Principal had two intersections, one of which gave 9 meters of core averaging over 89% CaC03. Manto D and Manto B are estimated to contain 508,000 tonnes of the total 790,000 tonnes classified as Inferred Resources. Both Manto B and Manto D will be accessible from the mine access ramp to be developed for mining the reserves at Manto Principal. Two exploratory holes probing some 200 meters to the north of the Hornito mine found no commercial limestone in the interval between the Hornito mine and the North outcrops, thus confirming that development of resources below limestone outcrops in that zone should not be undertaken. The Hornito mine plan, which was originally prepared in 1999 as part of the Cal Norte project feasibility study, is being updated to incorporate the new information from the drill program. The team preparing this Reserve estimate and associated Mine Plan is led by John Selters, P.E. (an independent mining consultant and a Qualified Person), assisted by Carlos Thuene, consulting geologist with long experience in limestone deposits, and Edison Botto. a Director and Chief Geologist of Cal Norte, who also supervised the drilling program at Hornito. The sample preparation and assaying was performed by SGS Laboratories in Santiago, part of the SGS group which has international recognition for mineral assaying and quality control. The results of the drill program are summarized below:
Hornito Limestone Deposits
Note (1) The Mine Recoverable Reserve estimate is net of dilution and mine recovery rates. Note (2) The Resource Estimate is in addition to the Mine Recoverable estimate. The Resource Estimate includes 500,000 tonnes of limestone inferred from the drill hole intersections on Mantos D and B. If adequate grades and thickness are confirmed by further drilling from underground stations, these resources will be readily accessible for mining from the principal access ramp. In addition to the Hornito deposits, the Cal Norte mine properties include limestone resources in the Ceci Tres limestone deposit which was operated in the past. An independently prepared report dated June 1999 and prepared under formerly applicable ore reserve definitions gave the following estimates for Ceci Tres which have been reclassified as resources to conform to present reporting requirements.
Ceci Tres Limestone Deposit
Stephen W. Houghton, President and CEO of SAGC, stated that two of the primary conditions placed on the Cal Norte lime project by the major copper mining company with whom it has entered into the letter of intent for a lime (CaO) contract have now been satisfied. These two conditions were to conduct industrial crushing tests on the Hornito limestone, which, as previously reported, were conducted successfully, and to confirm sufficient limestone reserves at Hornito to support a ten year lime purchase contract. These two conditions have now been satisfied. Mr. Houghton also announced that both parties to the pre-contract letter of intent have agreed to move the project’s development forward based on favorable results of calcining tests which have been performed on composite samples of limestone taken from the "Hornito" limestone deposit. These tests were performed by the PYRO SYSTEMS Division of SVEDALA INDUSTRIES, Inc., located in Danville, Pennsylvania. South American Gold and Copper Company Limited is a mineral exploration and development company with properties in Chile. Its strategy is to develop its industrial minerals projects and to utilize potential earnings from these projects to further advance its exploration activities. Its common shares are listed on The Toronto Stock Exchange under the symbol SAG. For further information, please contact Stephen W. Houghton President and CEO at telephone (212) 751-0083, fax (212) 751-0319 and visit our website at http://www.sagc.com. |