Sur American Gold Corporation

Sur American Gold Corporation

October 06, 2005 11:37 ET

Sur American Gold Corporation: Further Success and Exploration Update-Comval Gold-Silver-Copper Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 6, 2005) - SUR AMERICAN GOLD CORPORATION (TSX VENTURE:SUR) is pleased to provide an update on its on going exploration program at its COMVAL GOLD-SILVER-COPPER PROJECT, Compostela Valley Province, Mindanao, Philippines.


The Company's exploration team continues to significantly expand the size of the Batoto Project by the discovery of further high grade gold mineralization in Kopiat Creek some 1000 metres north-northeast of Batoto Creek in the West Batoto Zone (where the Company recently obtained the results of a bulk sample taken over 146 metres which graded 3.17g/t gold, 48g/t silver and 0.10% copper).

The two new initial channel samples of 40 metres and 24 metres respectively were taken approximately 500 metres apart. The gold mineralization in both areas appears to be open in all directions and accordingly channel sampling is being expanded with the objective to delineate the overall extent of the mineralization down the creek.

The entire 1,500 metre long creek is hydrothermally altered but most of the gold mineralization appears to occur in the lower (eastern) 1000 metre section in which macro and micro quartz veining and propylitic/silica alteration is ubiquitous. This 1000 metre interval covers a vertical interval of nearly 350 metres. The initial results are shown below:

Upper Kopiat Creek Area: 40 metres grading 3.54g/t gold (including 12 metres grading 7.92g/t gold).

Lower Kopiat Creek Area: 24 metres grading 1.3g/t gold (including 8 metres grading 2.17g/t gold).

In addition to the above results the Company has recently completed rehabilitation and sampling of a 143 metre long tunnel into the Batoto Hill called the Sabena Tunnel about 200 metres west of the Clark Tunnel and 500 metres west southwest of the initial drilling area. The Sabena Tunnel was developed by another company in the early 1980's.

Initial results of the first 8 metres have been received and these returned 8 metres grading 1.96g/t gold (including 2 metres grading 3.03g/t gold).

As previously reported the Clark Tunnel returned nearly 2g/t over its entire 123 metre length with every 2-4 metre channel sample mineralized to a significant extent.


Drilling of the initial "Community Information, Education and In-House Training" Drill Program is now well underway and the Company is pleased to report that the drill performance is meeting expectations. As previously advised, the Company is adopting a "community managed-contractor supervised" approach to its drilling program.

Following his short familiarization period with the project the Company's new VP Exploration Mr. Nigel Maund BSc (Hons), MSc, DIC, M.IMM is now personally logging all the drill core.

The core will be sampled and prepared for analysis according to normal industry standards and 250g of representative pulverized core will be sent by airfreight from the Philippines to International Plasma Laboratories (IPL) of Vancouver, BC, Canada for gold, silver and copper analysis. IPL is an ISO 9002 certified laboratory as required by Canadian National Policy 43-101.

Initial results are expected in November, 2005.

The initial drilling program at Batoto consists of 40 holes and 12,000 metres and will drill test a 1km by 1km portion in the eastern sector of the large Batoto gold-silver-copper porphyry system. Initial holes are spaced approximately 100 metres apart. The length of the drill holes is expected to vary from about 150 metres to more than 400 metres. The recent successful channel sampling results strongly indicate that drilling is likely to extend well beyond this initial area.


Nigel Maund, who has mapped more than 200 gold deposits around the world, has completed his initial review of the East Batoto Zone. In his field appraisal he has positively identified epithermal characteristics such as: collomorphic banded veins, boiling zone textures, including carbonate replacement and also certain epithermal related minerals. Accordingly, he believes that much the gold mineralization may have been deposited at, or near, the epithermal-mesothermal transition zone, within large shear zones.

Mr. Maund believes these zones enclose extensive hydrothermal alteration envelopes of quartz - sericite - pyrite - clay alteration and associated structurally controlled stockwork quartz - gold veining. He also adds that "this is highly significant as it helps explain the apparent widespread nature of the gold mineralization and higher than normal gold grades".

Mr. Maund's review confirms that the system is also porphyry related but that any mesothermal copper-gold mineralization in the East Batoto Zone is likely to exist at an as yet undetermined deeper level.

Further assessment of the West Batoto Zone where significant copper grades are known to exist at the surface is required before any early conclusions can be made in this area.


The large induced polarization/resisitivity geophysical program being undertaken over the West Batoto Zone has now completed 49 line km and is about 50% complete. Following the completion of this program and the subsequent magnetic survey and a complete review of the modeled results planning of further drill sites will be undertaken. The geophysical program is being undertaken under the supervision of Elliot Geophysics International Ltd headed by Dr. Peter Elliot MSc. PhD. M.AusIMM.

This news release was prepared by Mr. Rennie Blair MSc, F.AusIMM, and 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. All sampling practices are under the direct supervision of Mr. Maund. The assay results outlined above were undertaken at the JBMM Laboratory at Monkayo, Compostela Valley Province.

Sur American Gold Corporation is a well financed junior exploration Company and 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.

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