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SOUTH AMERICAN
GOLD AND COPPER COMPANY LIMITED
Registered Office New York Representative Office FOR IMMEDIATE RELEASE – May 24, 2005 South American Gold and Copper Company
Limited Announces Second Quarter Results. Toronto, Ontario, Canada – South American
Gold and Copper Company Limited reported today its financial
and operating results for its second fiscal quarter compared
to its first fiscal quarter ended December 31, 2004 and for
its six month fiscal period ended March 31, 2005 have been
filed and can be reviewed in detail on www.sedar.com. - Revenues from gold, copper and silver increased to US$ 847,000 from US$ 704,000, an increase of 20%. - Operating Expenses remained the same at US$ 947,000. - Loss from Operations was reduced to US$90,000 from US$233,000. - Excluding Amortization and Foreign Exchange gains and losses, Other Expenses increased from to US$819,000 from US$471,000 due primarily to increased audit and accounting fees, legal fees and third party consulting expenses. - Gold ounces sold increased to 1,786 ozs compared to 1,458 ozs, an increase of 20%. - Silver ounces sold increased to 1,800 ozs from 1,535 ozs, an increase of 22%. - Copper sold increased to 105,900 lbs from 97,192 lbs, an increase of 9%. During the first 17 days of May, 2005 average tons of ore produced had increased to 120 tons per day. As mine ore production increases in line with further mine development, the Pimenton mine’s plant operating costs per ton of ore processed will decline as a result of a more efficient use of the plant’s operating capacity. A regrind mill in the plant’s operating circuit has also been put into operation during the past month which has increased the copper content in the flotation concentrates from 11% to above 20% by weight of copper per ton of concentrate. This will reduce smelting costs as well as transportation expenses. Management is continuing to focus its attention on reducing mine operating costs per ton of ore produced while at the same time, to progressively increase mine ore production with minimum ore grade dilution. The mine’s next level of planned production is 150 tons of ore per day, at a head grade of 12.5 grams of gold per ton plus 1.2% copper and associated silver and is targeted to be achieved over the next three months. South American Gold and Copper Company Limited
is a minerals producing, exploration and development company
with properties and activities currently focused in Chile. |