-- Sur American Gold Corporation: Exploration Discovery-Major Extension of the --
Batoto Gold Deposit,
Comval Gold Project, Philippines
Business Editors
VANCOUVER, British Columbia--(BUSINESS WIRE)--Oct. 4, 2004--Sur
American Gold Corporation (TSX VENTURE:SUR) is pleased to provide an
update of its on-going exploration program its Comval Gold and
Copper-Gold project in the highly mineralized Eastern Mindanao Mineral
Belt, Philippines.
BATOTO EXTENSION DISCOVERED
The Company has significantly expanded the known SW limits of the
Batoto gold porphyry system by regional mapping, trenching, sampling
and geophysics. The system of alteration and mineralization now
appears to be continuous for at least 3000 metres in a NE-SW
direction and about 2500 metres in a NW-SE direction. In addition,
based on surface outcrop sampling and underground development the
Batoto system has been observed to continue in a vertical direction
for at least 400 metres. The system is still open to the south and
west and at depth.
The newly discovered extension of Batoto measures more than 500
metres by 300 metres and consists of intense alteration and silica
veining. Free gold has been panned from several areas. Detailed
sampling is now underway to ascertain the gold values at surface.
Thereafter deeper trenches cut by the Company's excavator may be
necessary to obtain assays from less oxidized rock. In addition, more
than 20 larger veins grading as high as 7g/t gold have also been
discovered in recent weeks in the Batoto extension by the Company's
prospecting team.
The Batoto mineralization is a low sulphide, high silica system
and consists of countless small quartz veins, veinlets and
microveinlets cut by at least 80 larger veins. Based on detailed
surface and underground mapping and sampling, a high percentage of
the system appears to contain economically interesting gold
mineralization.
All the gold mineralization is associated with the veins and
veinlets/microveinlets and has been shown to possess excellent
metallurgical characteristics with recoveries using the CIP
(carbon-in pulp) process of about 94% with low reagent consumptions.
Following the success of the on-going CIP bulk metallurgical
testing program at the Monkayo CIP plant SUR plans to embark on a
heap leach trial at the CIP plant which will be supervised by
personnel who are experienced in heap leaching in local conditions.
As previously advised, SUR is progressing with a long exploration
crosscut-the Clark Exploration Crosscut in the northern sector of
Batoto which to date has advanced more than 90 metres in a SSW-NNE
direction. The Company is pleased to report that gold mineralization
is strong over the entire 90 metre length averaging about 2g/t gold.
The face of the crosscut is currently in a higher grade zone which to
date has averaged nearly 4 g/t gold over the last 30 metres. The
crosscut is projected to continue for at least a further 100 metres
subject to ventilation requirements.
Given the excellent leachability characteristics of the
mineralization as demonstrated by the on-going bulk testing program,
the Company is now viewing the Batoto project as a potential large
bulk mineable project with two possible treatment routes:
1. Higher grade mineralization being finely crushed and treated
by conventional cyanidation followed by carbon and pulp or similar
methods and
2. Lower grade mineralization being crushed to 3/8" to 1/2" and
heap leached with recovery of the gold again by CIP or similar
methods. Given the high humidity and temperature leaching is expected
to be significantly quicker than operations in cooler climates.
Heap leaching methods have been widely and successfully used by
the gold mining industry for more than 25 years and provided they are
large scale and have good metallurgical characteristics, grades as
low as 0.25g/t gold can be economically mined and treated. For
example, the Yanacchocha mine in Peru produces about 3 million ozs of
gold annually from average grades of less than 1g/t gold and with
cash operating costs of less than $US100 per ounce whilst the Round
Mountain mine in Nevada leaches mineralization averaging just 0.37g/t
gold with higher grade ores (averaging 1.4 g/t) going to the CIP
plant. Total cash operating costs at Round Mountain are about $US
210/ounce.
Furthermore heap leaching requires significantly lower capital
expenditures than CIP operations.
The above operations serve to illustrate that given good leaching
characteristics and grades around 1/gt, large bulk mineable heap
leaching operations are particularly attractive targets. This is the
model that the Company is following for Batoto.
Batoto has a significant added advantage over other deposits in
that the gold mineralization is generally not covered by much waste
rock and also that excellent infrastructure in the form of roads,
water and skilled labour already exists.
Following the successful geological, mining and metallurgical
work completed to date the Company is now in the advanced stage of
planning an initial drilling program to define large scale low-medium
grade gold mineralization at Batoto. A drilling company with
extensive local experience has inspected the project and will be
submitting a tender for an initial core drilling program consisting
of about 2000-3000 metres.
As previously disclosed the Company plans to delineate a
500,000-1 million oz National Policy 43-101 compliant inferred
resource by an aggressive core drilling program during 2005.
All sampling practices are approved by Mr Rennie Blair, Company
President who is the qualified person as required by National Policy
43-101 and who is the technical person responsible for this news
release.
Sur American Gold Corporation trades on the TSX Venture Exchange
(Canada) with trading symbol SUR-V.
On behalf of the board of directors
J. Rennie Blair, President
The TSX Venture Exchange has neither approved nor disapproved the
contents of this news release
--30--LC/na*
CONTACT: Sur American Gold Corporation
J. Rennie Blair
President
(604) 904-8956
Email: suramerican@telus.net
Website: www.surgold.com
OR
Renmark Financial Communications
Neil Murray-Lyon or Franca Filippone
(514) 939-3989
KEYWORD: NEW YORK PHILIPPINES INTERNATIONAL CANADA ASIA PACIFIC
INDUSTRY KEYWORD: MINING/METALS
SOURCE: Sur American Gold Corporation
Copyright Business Wire 2004
