Registered Office New York Representative Office
SUITE 800, PURDY’S WHARF 420 MADISON AVENUE
1999 UPPER WATER STREET, TOWER 1 NEW YORK, NEW YORK 10017
HALIFAX, NOVA SCOTIA B3J 2X2
For further information, contact:
Stephen W. Houghton,
President and CEO
Telephone: (212) 751-0083
Thomas K. Sills,
Chief Operating Officer
Telephone: (416) 527-0475
Michael Churchill,
EVP
Telephone: (416) 678-0928
Website: www.sagc.com
Not to be distributed or disseminated in the U.S.
FOR IMMEDIATE RELEASE – June 14, 2007
South American Gold and Copper Company Limited Announces First Drill Hole Results by its Partner, Mantos Blancos, at Pimenton.
Toronto, Ontario, Canada South American Gold and Copper Company Limited (the “Company”)(TSX - SAG) announces the results of the first diamond drill hole, R.1, put down at Pimenton by it’s partner, Mantos Blancos, a wholly owned subsidiary of Anglo American.
In summary, while R.1 encountered uneconomic mineralization it has contributed geological information. This information together with results from Rio Tinto’s drill holes 4 and 6, will be used to site Mantos Blancos follow up drilling. Results from Rio Tinto’s two holes were used to estimate within the immediate area a 400 million ton resource potential of 0.40 per cent copper and 0.43 grams per ton gold (the equivalent of 0.7 per cent copper, assuming metallurgical recoveries and net smelter returns are 100%, using US $650 per ounce gold and US $3.00 per pound of copper) with possibilities of higher grades at depth to coincide with a postulated bornite rich core. The estimate and higher grade possibilities appear in a Rio Tinto report dated May 2006. The pyrite to chalcopyrite ratio in hole R.1 decreases down hole, over approximately the hole’s final 110 meters, magnetite and bornite appear as accompaniments to the chalcopyrite. This last fact lends support to the postulated existence of a deeper bornite rich core.
Preliminary assay results on the R.1 drill hole failed to pass Mantos Blanco’s quality control standards and consequently some intervals are being re assayed and should be available within a month. Mantos Blancos expects to be drilling at Pimenton in December 2007.
Rio Tinto’s hole 4 is 390 meters south of Anglo American’s R.1 at an azimuth of 210 degrees. Rio Tinto’s hole 6 is 570 meters south of R.1 at an azimuth of 206 degrees.
R. 1 is located on UTM coordinates 386059 E, 6407204 N with an azimuth of 190 degrees and an inclination of minus 80 degrees. The length of the hole is 1003 meters.
Geology of drill hole R.1 is summarized as follows:
0- 17.55 meters. 17.55 meters glacial overburden.
17.55 –360 meters. 342.45 meters of Diorite. Strongly silicified with patchy potassium feldspar superimposed on secondary biotite carrying 2 to 4 per cent disseminated pyrite with scarce disseminated magnetite in the upper part.
360 – 758.58 meters. 398.58 meters of Andesite moderately silicified with zones of secondary biotite, sparse disseminated pyrite and fine veinlets carrying pyrite anhydrite traces of chalcopyrite and occasional veinlets of anhydrite, chalcopyrite, and molybdenite.
758.58 – 840. 81.42 meters of Diorite Porphyry with chloritic alteration and silicification superimposed on secondary biotitization. Scarce disseminated pyrite and fine veinlets of pyrite, anhydrite, molybdenite, and traces of chalcopyrite
840 – 1003.00 meters. 163 meters. Diorite Porphyry showing dominant secondary biotite alteration with retrograde moderate chlorite alteration. 2 to 3 per cent disseminated pyrite and chalcopyrite with traces of disseminated bornite and occasional veinlets of gypsum-chalcopyrite, and anhydrite- molybdenite.
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.