Santiago Office
Concepcion No. 266, Of. 701
PROVIDENCIA, SANTIAGO, CHILE
Telephone: 56 2 232 5578
Fax: 56 2 233 1037

Registered Office:
SUITE 800, PURDY'S WHARF
1959 UPPER WATER STREET, TOWER 1
HALIFAX, NOVA SCOTIA B3J 2X2

 

New York Representative Office:
420 MADISON AVENUE, SUITE 901
NEW YORK, NEW YORK 10017-1107
Telephone: (212) 751-0083
Fax: (212) 751-0083
Website: http://www.sagc.com

Toronto,Ontario - March 30, 2001

Toronto, Ontario, Canada - South American Gold and Copper Company Limited (SAGC)(TSE Symbol SAG) announced today that it has signed a letter of intent to earn a 100% interest in the "Lorito" copper stockwork breccias prospect located approximately 100 kilometers south of Copiapo, Chile, at an elevation less than 3,000 meters above sea level.

Dr. David Thomson, Executive Vice President and Director of Exploration of SAGC, stated "the potential resource of copper mineralization at Lorito is in the order of 30 to 40 million tons grading 1% to 1.5% copper, based on known surface dimensions from rock chip sampling over a known elevation difference of 150 meters projected down for a further 50 meters."

Included in the resource potential, is an envelope or ring with an estimated circumference of at least 850 meters in length and 20 to 30 meters in width, which has the potential to contain 5 to 8 million tons with a potential grade of 2% to 3% copper.

The Company plans to finalize contractual agreements on Lorito in the very near future, and will initiate a 1,000 meter reverse circulation drill program on Lorito within 30 to 45 days.

Dr. Thomson concluded his remarks by stating, the target at Lorito is unusually compact and well defined so that its potential can be initially tested rapidly, with as few as four drill holes leading, if successful, to later in-fill drilling. The mining method will be by open pit, with a very favorable strip ratio, especially in the early years.

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