Sur American Gold Corporation
TSX VENTURE : SUR

Sur American Gold Corporation

January 18, 2007 09:16 ET

Sur American Gold Corporation Receives Further Strong Copper Assays From Tagpura Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 18, 2007) - SUR AMERICAN GOLD CORPORATION (TSX VENTURE:SUR) is pleased to advise that further assays from Tagpura #4 drill hole further confirm the presence of a major potentially economic porphyry system at its Tagpura project, Compostela Valley, Philippines.

RECENT HIGHLIGHTS

- Tagpura #4 (TGD#4), intersected consistent copper mineralization over its entire 456 metre length which averaged 0.22% copper and 600ppb gold, including a higher grade interval of 74 metres between 106-189 metres which averaged 0.52% copper and 1208ppb gold. The hole stopped in strong copper mineralization because of lack of machine capacity and will be deepened.

- This result follows receipt of strong porphyry copper type grades in Tagpura #3 (TGD#3) drill hole, which is located approximately 70 metres to the east of Tagpura #4 drill hole. Copper grades in TGD#3 steadily increase throughout the entire 466.8m depth of the hole which also stopped in strong copper mineralization and will be deepened.

- As previously reported, machine capacity prevented deeper drilling and accordingly the Company is now sourcing a larger capacity rig capable of drilling up to 1000m holes.

- 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. Based on geophysical evidence and drilling data to date the Tagpura porphyry system extends to depths of more than 500 metres from the surface.

- 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
Hole (degrees) (degrees) (m) (%) (g/t)
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TGD#1 -60 310 1.4 210 208.6 0.45 0.17
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including 61 149 88 0.92 0.34
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Including 78 127 49 1.30 0.40
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TGD#2 -60 310 2 353 351 0.17 N/A
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Including 170 304 134 0.25 N/A
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Including 232 304 72 0.28 N/A
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TGD#3 -60 310 1.5 468.3 466.8 0.18 N/A
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including 203 468.3 265.3 0.23 N/A
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including 359 468.3 109.3 0.32 N/A
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Including 417 468.3 51.3 0.42 N/A
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TGD#4 -60 310 1.3 456.2 454.9 0.22 0.06
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including 103 456.2 353.2 0.25 0.07
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Including 106 180 74 0.52 0.12
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and 423 456.2 33.2 0.31 0.08
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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 continue to be very upbeat with these early results and the overall progress of the Tagpura exploration program. Clearly our challenge in 2007 is to locate the higher grade zones within the very large 2km by 3km Tagpura porphyry system."

Tagpura is only one of several major porphyry copper-gold targets in this area.

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
    Rennie Blair
    (604) 904-8956
    (604) 904-8957 (FAX)
    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