San Anton Resource Corporation
TSX : SNN

San Anton Resource Corporation

November 27, 2009 09:21 ET

San Anton Announces Cerro Del Gallo Scoping Update

Optimized Pit Results

TORONTO, ONTARIO--(Marketwire - Nov. 27, 2009) -

Highlights:

  • Preliminary pit optimization study for the Mexican Cerro del Gallo gold project has identified a:
    • More than 51Mt potential in-pit resource with an average grade of
    • 0.94g/t gold (Au) equivalent1, comprising 0.69g/t Au and 14.8g/t Ag, resulting in
    • 1.54Moz of gold (Au) equivalent1, at a
    • 0.47 strip ratio
  • Results highly encouraging - compare favorably with characteristics of deposits currently being mined and/or developed for heap leach mining in Mexico
  • Findings to be used to complete scoping study for potential heap leach mine
  • Scoping study completion expected shortly

1 Resource based on a US$900/oz gold price and US$15.00/oz silver price

San Anton Resource Corporation (SNN:TSX) is pleased to announce initial results from preliminary pit optimizations on the Cerro del Gallo gold-silver deposit located at the San Anton project in the state of Guanajuato, Mexico.

Mr. Tim Carew of Reserva International LLC based in Reno, USA was commissioned to complete preliminary pit optimization studies based on the resource estimate announced on 17 June 2008, an updated geological model and metallurgical test work completed at SGS Lakefield Oretest in Perth, Australia. The preliminary pit optimization will form part of the scoping study for a gold-silver heap leach project at Cerro del Gallo to be reported in a subsequent NI 43-101 Technical Report.

Pit Optimization Results

Mr. Carew generated a series of open pit optimization studies using Gemcom Whittle Optimization software based on a heap leach flow sheet and representative costs for operations of a similar size and nature including mining costs of US$1.85/t, processing and administrative costs of US$4.36/t, plus transport and refining costs which are variable on a per tonne basis. Preliminary metallurgical recoveries (see Table 4) were assumed for each of three rock types based on the results of intermittent bottle roll tests. The revised estimated amounts of material within the previously reported Gold Domain (June 2008) resource that may be suitable for heap leach processing are shown in Table 1.

Table 1
Gold Domain Potentially Heap Leachable Material (@ 0.2g/t Au cut-off)

Rock TypeTonnes millionsAu
g/t
Ag
g/t
Au
Moz
Ag
Moz
Weathered15.00.6015.80.297.63
Oxidized40.30.6510.70.8513.83
Fresh76.70.5411.91.3429.40
Total132.00.5812.02.4750.86

At a gold price of US$900/oz and silver price of US$15.00/oz, resources within the pit were estimated at 51.2 Mt grading 0.94g/t gold equivalent2, or 1.54 million oz of gold equivalent2 (Table 2). The strip ratio is 0.47:1.

Table 2
Summary of Resources in Optimized Pit Shell
Based on Au $900/oz and Ag $15.00/oz

Resource CategoryTonnes
(Million)
Au
g/t
Ag
g/t
AuEq2 g/tAuEq2 Moz
Measured45.90.7115.00.961.41
Indicated5.30.5612.90.770.13
Total51.20.6914.80.941.54

2 Gold equivalence ("AuEq") has been calculated based on a US $900/oz gold price and US $15.00/oz silver price. The gold equivalent grade was calculated using the following formula: AuEq = Au + (Ag / 60). It is the Company's opinion that the gold and silver included in the metal equivalent calculation have a reasonable potential to be recovered as outlined in this announcement.

The pit optimization resources were incorporated into a preliminary mine and metal production schedule (see Table 3).

Table 3
Cerro del Gallo Deposit – Preliminary Mine Metal Production Schedule

YearMaterial Processed TonnesStrip RatioFeed GradeMetal Recovered
Au
g/t
Ag
g/t
Au Eq2 g/tAu
oz
Ag
oz
Au Eq2 oz
14,000,0000.010.7519.71.0871,1261,381,82994,157
24,000,0000.030.7317.11.0165,4971,176,42385,104
34,000,0000.070.6915.00.9457,014990,70073,526
45,000,0000.220.6613.60.8863,1111,028,95180,260
55,000,0000.440.6315.20.8952,368996,85968,982
65,000,0000.560.7017.40.9953,621946,69169,399
75,000,0000.760.6316.10.9043,620760,82656,301
85,000,0001.660.6516.30.9243,577703,65455,305
95,000,0000.620.6611.90.8643,299503,14851,684
105,000,0000.360.729.80.8845,856389,91252,354
114,200,5760.150.8311.71.0247,881470,17155,717
Totals51,200,5760.470.6914.80.94586,9709,349,164742,789

Metallurgy

Metallurgical testing to support the scoping study has focused on a cyanide heap leach flow sheet utilizing the three material types from the gold/silver domain. Metallurgical testing was completed by SGS Lakefield Oretest in Perth, Australia.

For the purposes of the pit optimization study, it was assumed that an optimized heap leach flow sheet would result in gold and silver recoveries as shown in Table 4.

Table 4
Assumed Heap Leach Process Recovery

MaterialAu Rec
(%)
Ag Rec
(%)
Weathered7555
Oxidized5545
Fresh3015

These assumed values were established from indicative results from metallurgical testing completed to date, which included 18 intermittent bottle roll tests, as well as the reported results of comparable operations.

John Cook, President & CEO of San Anton Resource Corporation stated that "We are highly encouraged by these initial pit optimisation results. The optimized pit contains significant resources that has a very favourable strip ratio and are located in an area with well established infrastructure. These results form a portion of the scoping study which is due to be completed shortly."

Bill Fleshman FAusIMM(CP) Project Manager and a Qualified Person under National Instrument 43-101, has reviewed and approved the technical information in this release.

About San Anton Resource Corporation

San Anton Resource Corporation is an exploration and development company that is listed on the Toronto Stock Exchange and is totally focused on the mining friendly jurisdiction of Mexico. The Company's principal asset is a 64% interest in the San Anton Property (Goldcorp 36%), which hosts the near-surface Cerro del Gallo gold-silver-copper deposit. The Property is located in a historic gold-silver mining district and has only recently been subjected to modern exploration techniques. This work quickly identified several targets and has led to the delineation of a NI 43-101 Measured & Indicated Mineral Resource of 461 million tonnes grading 0.27g/t gold (3.9Moz), 11g/t silver (163Moz) and 0.11% copper (1.09Blb) and an Inferred Mineral Resource of 166 million tonnes grading 0.11g/t gold (0.6Moz), 7 g/t silver (39Moz) and 0.10% copper (0.36Blb). Within the overall deposit, there is a 'gold domain zone' containing Measured & Indicated Mineral Resource of 209 million tonnes grading 0.48g/t gold (3.2Moz) and 11g/t silver (71Moz) and within this zone, there is a relatively higher grade gold resource defined at surface. The deposit remains open in several directions.

The Toronto Stock Exchange has neither approved nor disapproved the contents of this press release. This News Release includes certain "forward-looking statements". All statements other than statements of historical fact included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of San Anton are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the expectations of San Anton are detailed from time to time in the filings made by San Anton with securities regulators.

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