Sur American Gold Corporation
TSX VENTURE : SUR

Sur American Gold Corporation

January 15, 2007 09:52 ET

Sur American Gold Corporation Defines Major Copper Porphyry System at Tagpura Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 15, 2007) - SUR AMERICAN GOLD CORPORATION (TSX VENTURE:SUR) is pleased to advise that core drilling at its Tagpura project, Compostela Valley, Philippines, is outlining long intersections of typical porphyry style copper mineralization with important gold and molybdenum credits in addition to narrower 50-100m wide zones of higher grade semi-massive to massive sulphide mineralization.

The Company has now completed 6 drill holes totaling 2450 metres and has received assays for three drill holes which are reported below in Table 1.

HIGHLIGHTS TO DATE

- Tagpura #1 drill hole, as previously reported returned 88 meters grading 0.92% copper, 0.34g/t gold and 1.73g/t silver from 61-149 metres, including a higher grade interval from 78-127 metres (49 metres) grading 1.3% copper, 0.40g/t gold and 2.41g/t silver.

- A potentially major discovery has been made in Tagpura #3 drill hole where, as previously reported, porphyry copper mineralization was observed deeper in the hole. Assays have now confirmed these observations. Copper grades steadily increase throughout the entire 466.8m depth of the hole which stopped in strong copper mineralization. Machine capacity prevented deeper drilling and accordingly the Company is now sourcing a larger capacity rig capable of drilling up to 1000m holes.

- Similar mineralization has also been observed in Tagpura #4, 5 and 6 drill holes, all of which were drilled to depths of about 450m metres.

- Drilling completed to date has only covered less than 10% of the 6sq km Tagpura geophysical anomaly which appears, at this stage of the exploration program to be consistently mineralized.

- Work is underway at the Kalamatan copper-gold porphyry system 5 km north of Tagpura with resampling of the major tunnels which were developed more than 25 years ago. Initial results suggest consistently significantly higher gold values which will be reported soon as further results come to hand.

- Drill performance at Tagpura has been excellent and has exceeded budgets in both performance and significantly lower costs.

- The Company website www.surgold.com has been updated to include further maps and plans of the Tagpura project



DRILLING RESULTS OF TAGPURA #1 DRILL HOLE RECEIVED TO DATE

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Drill Declination Azimuth From To Intercept Cu Au Ag
Hole (degrees) (degrees) (m) (%) (g/t) (g/t)
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TGD#1 -60 310 1.4 210 208.6 0.45 0.17 0.73
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including 61 149 88 0.92 0.34 1.73
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Including 78 127 49 1.30 0.40 2.41
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TGD#2 -60 310 2 353 351 0.17 N/A N/A
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Including 170 304 134 0.25 N/A N/A
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Including 232 304 72 0.28 N/A N/A
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TGD#3 -60 310 1.5 468.3 466.8 0.18 N/A N/A
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including 203 468.3 265.3 0.23 N/A N/A
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including 359 468.3 109.3 0.32 N/A N/A
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Including 417 468.3 51.3 0.42 N/A N/A
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All sample preparation is undertaken at the Intertek Laboratory in Surigao, Northern Mindanao. Intertek is a 9002 Certified Laboratory. Pulverized 200 gram sub samples are sent to Genalysis Laboratories in Perth, Western Australia for analysis using the FA 50/SAAS method (fire assay with atomic absorption finish) for gold, and conventional wet chemical methods for copper. Channel samples are sent to Intertek's analytical facilities in Jakarta, Indonesia.

Mr. Ian Cooper, BSc. (University of London), A.R.S.M (Associate of the Royal School of Mines), F.G.S (Fellow of the Geological Society of London), M.Aus.I.M.M, Exploration Manager-Philippines for SUR said that: "we are extremely pleased with these early results and the overall progress of the Tagpura exploration program. Clearly our challenge in 2007 is to locate even higher grade areas within the very large 2km by 3km Tagpura porphyry system"

He added that "geophysics and now drilling has confirmed that the system extends from the surface to considerable depths and we appear to be looking at a very large system of typical porphyry copper mineralization. As stated earlier the available data certainly indicates that the Tagpura copper-gold-molybdenum system is considerably larger than indicated by the historic published information".

"Because Tagpura is only one of several major targets we already have in this area, we are understandably very excited about the potential of this project", Mr. Cooper said.

This news release was prepared 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 is a well financed junior exploration Company focusing on gold/silver and copper projects in the Philippines and Colombia. The Company 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.

Contact Information

  • Sur American Gold Corporation
    J. Rennie Blair
    President
    (604) 904-8956
    Email: suramerican@telus.net
    Website: www.surgold.com
    or
    Paradox Public Relations
    Eric Leboeuf
    Toll Free: 1-866-460-0408 (in Canada) or (514) 341-0408
    or
    Paradox Public Relations
    Carl Desjardins
    Toll Free: 1-866-460-0408 (in Canada) or (514) 341-0408
    Email: infoparadox@qc.aira.com