-- Sur American Gold Corporation: Philippines Supreme Court Ruling Opens Door for --
Large Scale Foreign
Investment in Development of Major Mining Projects
Business Editors
VANCOUVER, British Columbia--(BUSINESS WIRE)--Dec. 2, 2004--SUR
AMERICAN GOLD CORPORATION (TSX VENTURE:SUR) is very pleased to advise
that the Supreme Court of the Philippines has announced a very
positive landmark decision that is likely to have a major impact on
the future of the Philippines mining industry and Sur American Gold
Corporation.
In a 246 page decision the court has overturned its January 2004
decision that nullified sections of the 1995 Mining Law including the
Financial and Technical Assistance Agreement (FTAA). The Supreme Court
decision is final and cannot be appealed.
The new high court ruling upholds the mining law that allows 100%
foreign ownership of major (greater than $US50million) Philippines
mining operations (the FTAA).
The Board of Sur American Gold Corporation is extremely encouraged
by this new development and believes that the decision is of great
potential importance to SUR, the mining industry in the Philippines
and importantly the national economy of the Country.
Mr. Rennie Blair, President of Sur American Gold Corporation
stated that:
"This favorable ruling will enable the National Government to
implement its Mining Revitalization Strategy for the mining industry
and as a result will strongly encourage foreign investment in not only
mineral exploration but large scale mine development."
"The Philippines is one of the most highly mineralized regions in
the world and hosts several world class gold and copper-gold deposits
and the potential to host many more.
The decision, furthermore is a strong indication that the
Philippines is very keen to attract foreign investment in the mining
industry which has been placed high on the agenda for future
development."
The President of the Philippines Ms. Arroyo welcomed the decision
and stated "The Philippines is poised for a strong economic takeoff
based on a revigorated mining industry."
Sur American Gold Corporation is currently exploring and
developing the large Comval gold and copper-gold projects and the
T'Boli gold-silver projects all of which have the potential to develop
into major mining operations.
Recent work at Comval in particular has outlined an area of 8sq km
of alteration containing gold bearing veins, veinlets and
microveinlets collectively called a stockwork gold system at the
Batoto Project.
The work complete to date has been very successful and based on
extensive surface and underground mapping and sampling as well as a
Bulk Metallurgical Testing Program which has indicated high (average
94%) and rapid recoveries and low reagent consumptions from the
mineralization already treated.
It has also outlined a huge system of gold mineralization
potentially amenable to processing by either/or simple CIP processing
or low cost heap leaching. Drilling is planned for early 2005.
Sur American Gold Corporation is a well financed exploration and
mining company which 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--KO/na*
