Sur American Gold Corporation

Sur American Gold Corporation

August 22, 2005 10:00 ET

Sur American Gold Corporation: 146 Metre Bulk Channel Sample Through Fresh Quartz Diorite Porphyry Returns 3.17g/t Gold and 47.3g/t Silver

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 22, 2005) - SUR AMERICAN GOLD CORPORATION (TSX VENTURE:SUR) is pleased to announce the results of a 50 tonne confirmatory bulk sample taken over an interval of 146 metres in fresh, intensely veined quartz diorite porphyry in the Santa Fe area of the Batoto gold-silver-copper porphyry project within the Comval Area, Compostela Valley Province, Philippines.

Length Tonnes Gold Silver Copper Gold
(m) Collected (g/t) (g/t) (%) Recovery
146 49.59 3.17 47.3 0.10 90.9

The bulk sample was obtained from fresh quartz diorite containing a well developed system of quartz veining throughout the sampled interval. Copper and gold/silver mineralization occurs within the veins and the host diorite also contains disseminations of pyrite and occasional chalcopyrite throughout.

Sampling was carried out in the walls of Batoto Creek which cuts through the Santa Fe area of the Batoto project. The sampling method entailed initially cutting a horizontal channel 15 cm wide and taking a total of 36 individual four metre long samples and one 2 metre sample which are currently awaiting analysis. A second specialist channel sampling team then collected approximately 340kg of rock from every metre along the channel for a total of 49.56 tonnes.

Sampling beyond this interval was not possible due to lack of outcrop. Two intervals totaling about 30 metres were also not sampled for the same reason and therefore the total interval from start to finish was about 176 metres.

The bulk sample was then trucked to the JBMM CIP Plant at Monkayo, Compostela Valley and recently treated and analysed for gold, silver and copper through all stages of the treatment process. Gold bullion of 131grams of 99.99% gold was recovered with a further 12grams remaining in the clay pots used in the refining process.

Mr Rennie Blair, SUR President and CEO said that "this new area will now be known as the West Batoto Zone and the original Batoto area to the east will be called the East Batoto Zone. Both zones are believed by the Company to be part of the same porphyry system and contiguous with one another".

In July, for check purposes, Mr Blair personally collected a 2m channel sample from the same general area and had it assayed in Vancouver at the IPL Laboratories (IPL), a 9002 ISO Certified Laboratory. This sample returned 8.0 g/t gold, 86.5g/t silver and 0.68% copper.

The current known surface extent of the combined West and East zones is at least 5km in a WNW-ESE direction and 1.7km in a NNE-SSW direction.

The latest results follow an earlier, smaller 11.21 tonne bulk sample over a similar interval which returned 3.9 g/t gold, 34.4g/t silver and 0.19% copper as shown below in the accompanying table.

The results were considered by the Company to be high for a gold/silver-copper porphyry system and in order to thoroughly check and confirm these results a completely new and much larger bulk sample was collected as reported in the table above.

Length Tonnes Gold Silver Copper Gold
(m) Collected (g/t) (g/t) (%) Recovery
146 11.21 3.9 34.4 0.19 90

The results have therefore confirmed the existence of high grade porphyry style gold-silver-copper mineralization over a minimum length of 146 metres which is open in all directions. In addition the mineralization appears to have excellent metallurgical characteristics.

The metallurgical recovery system at the JBMM Plant is optimized towards pure gold mineralization and not towards gold mineralization with significant silver and copper contents and therefore further metallurgical testwork will therefore be required to estimate likely recoveries for all three metals. Nevertheless the recovery of gold in the JB plant is still considered high by world industry standards.

Therefore as part of the Company's on-going metallurgical test program a further 300kg of representative mineralized material from this area has already been collected for advanced metallurgical testwork at Lakefield Laboratories in Ontario, Canada.


The mostly quartz diorite porphyry in the West Zone is characterized by disseminated sulphides, mainly pyrite with minor chalcopyrite with accessory epidote, chlorite and magnetite. In addition to the quartz diorite, small andesitic intrusions also occur and these are also cut by swarms of quartz veins.

Based on an extensive geological mapping program by the Company's exploration team covering more than 50km, the porphyry system is in the process of being mapped and sampled using good outcrop that occurs in the numerous stream channels that cut through the project as well as outcrops of the oxidized porphyry at the higher elevations. The various alteration zones that accompany the copper-gold porphyry system will also be mapped during the coming months.

The top +/-100 metres of the porphyry is usually highly oxidized but still contains widespread remnant quartz veins and iron oxides that appear to be former pyrite and chalcopyrite. Little work has been done at this time to ascertain the grades within this oxidized cap so the Company is currently driving two tunnels into the zone from the original old Santa Fe logging road where the West Zone was first discovered.

A bulk sample was recently collected from the south tunnel and this assayed 1.24g/t gold and 34g/t silver. No results have yet been received from the north tunnel.

Despite the highly encouraging results from the West Zone the main Company focus remains the delineation of a large gold resource in the East Zone where a two stage 12,000 metre drilling program is underway. The East Zone is dominated by gold bearing quartz veins, veinlets and microveinlets and differs from the West Zone by the absence of widespread disseminated pyrite and chalcopyrite in both the veins and host quartz diorite.

According to Mr Blair "we are extremely encouraged by the two bulk samples that were taken over the wide interval and with weighted average grades of 3.3g/t gold, 45g/t silver and 0.12% copper we believe we have discovered a major gold-silver-copper rich zone within the Batoto porphyry deposit. He adds however, that considerable geological work, including geophysics, mapping, sampling and drilling needs to be done before the overall geometry of the mineralization is established in any detail".

"We are also very encouraged by the tremendous level of community interest, assistance and co-operation in all aspects of our work at Comval".

All sampling is personally undertaken by experienced technical personnel who each have more than 15 years experience in correct sampling practices. Sampling practices are personally approved by Mr Rennie Blair Msc, FAusIMM, President of Sur American Gold Corporation who is a qualified person as defined by National Policy 43-101. The latest assaying was performed at the JBMM Laboratory at Monkayo, Compostela Valley Province using the 30g fire assay method and at IPL also using the same method for gold and ICP for other elements.

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, with working capital of $3.5 million and trades on the TSX Venture Exchange (Canada) with trading symbol SUR-V.

On behalf of the board of directors

Alicia Nicholson, Director

The TSX Venture Exchange has neither approved nor disapproved the contents of this news release

Contact Information