Sur American Gold Corporation

Sur American Gold Corporation

November 16, 2006 08:30 ET

Sur American Gold Receives Environmental Compliance Certificate for Batoto Gold Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 16, 2006) - Sur American Gold Corporation (TSX VENTURE:SUR) is very pleased to advise that it has received an Environmental Compliance Certificate (ECC) for its Batoto Gold Project, Compostela Valley Province, Philippines.

The granting of the ECC is the result of an intensive two year program consisting of community consultation, which resulted in the granting of a FPIC (Free and Prior Informed Consent) for mineral exploration and development from the local Indigenous Community, an internal feasibility study for a 50t/d high grade mining and processing operation and an Environmental Impact Statement (EIS).

Significantly the FPIC also covers the entire 9000 ha Comval area including:

- Batoto/Tarale Gold deposits,

- Tagpura/Kalamatan Porphyry Copper-Gold deposits,

- Panag gold area, including the Magangit "Collapse" structure,

- Suriganonon gold/base metal project immediately north of Batoto,and

- New geophysical targets recently discovered including the Cadan (SW Batoto) anomaly

The ECC therefore opens up the possibility of fast tracking any other operation into production should the current exploration programs succeed in identifying further economic deposits.

The source of the plant feed would be the numerous high grade veins which occur in the East Batoto/Tarale Zones which would be extracted by underground mining methods.

Upon completion of these reports and field inspections by the Environmental Management Board (EMB), all documents were forwarded to the Department of Energy and Natural Resources (DENR) for approval which was recently signed by the DENR Secretary Angelo. T. Reyes.

The receipt of the ECC is a clear demonstration that the Philippine mining industry is open for business and that the Philippine Government is following through on its promise to promote mining investment.

Even though the proposed plant and operation is small scale in nature at this time, the ECC has opened the door for the possibility of a subsequently larger gold processing operation which will be subject to Environmental Impact Assessment (EIA) requirements.

The granting of the ECC is, in the Company's case, a mandatory requirement for the granting of a more secure mineral tenure in the form of a MPSA (Mineral Processing Sharing Agreement) which is now in the process of approval.

The Company is now undertaking further engineering studies and plans to conduct additional exploration drilling prior to commissioning plant and site construction. The land for the plant and tailings site has, however been purchased.

Mr. Rennie Blair, Company President and CEO added that "we are very excited by the granting of this ECC which is not only a major step for Sur American Gold Corporation but also confirms that by working closely with the local community and with the relevant Philippine Government Departments, mining operations in the Philippines, whether big or small can be created for the benefit of both the Philippine people, Sur American Gold Corporation and its Philippine affiliates".

This news release was prepared by Mr. Blair 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 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

  • Sur American Gold Corporation
    Alicia Nicholson
    (604) 904-8956
    Paradox Public Relations
    Eric Leboeuf
    Toll Free: 1-866-460-0408 (in Canada) or (514) 341-0408
    Paradox Public Relations
    Carl Desjardins
    Toll Free: 1-866-460-0408 (in Canada) or (514) 341-0408