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 - September 10, 2001

South American Gold and Copper Company Limited Announces Drill Results on its Lorito Copper Prospect

Toronto, Ontario, Canada - South American Gold and Copper Company Limited ("SAGC")(TSE Symbol SAG) announced today that three reverse circulation drill holes totaling 555 meters have tested the Lorito prospect. The results which were not up to expectations are given below. Samples were taken at every two (2) meters under supervision of the Vancouver-based ACME Laboratory who also did the assaying.

 

  1. Drill hole 4 with UTM coordinates N. 6818269, E. 399127, bearing 235, inclination - 60 degrees and length 150 meters showed the following results:

 

0 - 20 meters 0.215% copper per ton

20 - 40 0.176%

40 - 60 0.235%

60 - 80 0.324%

80 - 100 0.222%

100 - 120 0.213%

120 - 140 0.205%

140 - 150 0.213%

 

  1. Drill hole 3 with UTM coordinates N. 0875137, E. 392828, bearing 55, inclination - 60 degrees and length 245 meters showed the following results:

 

0 - 22 meters 0.118% copper per ton

22 - 76 0.167%

76 - 98 0.396%

98 - 142 0.752%

142 - 178 0.211%

178 - 245 Assay results pending

 

  1. Drill hole 2 with UTM coordinates N. 6875223, E. 392774, bearing 105, inclination - 60 degrees and length 160 meters showed the following results

 

0 - 24 meters 0.191% copper per ton

24 - 40 0.542%

40 - 58 0.051%

58 - 68 0.262%

68 - 102 0.044%

102 - 122 0.450%

122 - 160 0.141%

Drill hole 2 tested the north part of the mineralization mass drilling out from the center into the footwall. Based on drill hole information, the total strike northwest appears to dip toward the southwest at 65 degrees.

 

While the mineralized mass at Lorito is well defined on the surface the results from these drill holes have eliminated the possibility of there being any significant economic tonnage of copper mineralization and the drill program has been terminated.

 

Stephen W. Houghton, President and CEO stated, "While we are obviously disappointed in the results of the drill program at Lorito, the Company is continuing to assess other exploration prospects."

South American Gold and Copper Company Limited is a mineral exploration and development company with properties and activities currently focused in Chile. It is also developing industrial minerals projects and will utilize potential earnings from these projects to further advance its exploration and development 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.