Sur American Gold Corporation

Sur American Gold Corporation

March 15, 2005 14:50 ET

Sur American Unveils its Strategic Plan for Comval Gold Project


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: SUR AMERICAN GOLD CORPORATION

TSX VENTURE SYMBOL: SUR

MARCH 15, 2005 - 14:50 ET

Sur American Unveils its Strategic Plan for Comval
Gold Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 15, 2005) - SUR
AMERICAN GOLD CORPORATION (TSX VENTURE:SUR) today unveiled its 2005-2007
strategic plan for its Comval Gold Project in the Compostela Valley
Province, Philippines.

SUR is also pleased to report that a high level Philippine Government
Mining Delegation at the recent Toronto PDAC Mining Congress declared
that "the Philippines is now open for business."

The Delegation outlined the Philippine mining taxation and laws and
incentives which are aimed at making the Philippines "one of the most
attractive places in the world to conduct exploration and mining." The
Philippines according to the UN ranks third in the world for copper and
gold potential and also has large undeveloped nickel resources.

COMVAL GOLD PROJECT

According to SUR President and CEO Mr. J. Rennie Blair MSc; F.Aus.IMM
"Subject to all approvals we plan to commence limited commercial
production by January 2006 and thereafter, based on resources to be
defined by drilling to progressively expand the operation to its
ultimate potential."

As previously advised the Company has set as a priority during 2005-2006
to outline a National Policy 43-101 compliant large gold resource at its
Batoto gold project.

SUR recently announced plans for a two stage drilling program totaling
approximately 12,000 metres within an area of about 500 metres by 500
metres. The objective is to establish a large potentially bulk mineable
gold resource. Subject to approvals and completion of infrastructure
currently underway, including core shed, drill pads and water sources,
drilling is expected to commence about mid year.

Mr. Blair says that Batoto is a very large porphyry-type gold and
copper-gold system which covers an area of not less than 10 sq km. Gold
mineralization is hosted by countless gold-rich veins, veinlets and
microveinlets sometimes containing grades in excess of 100g/t gold.

"Based on extensive exploration work to date SUR believes that if mined
together as a single operation these veins and veinlets may constitute a
potential world class bulk mineable gold deposit.

"The depth potential of Batoto has also been proven with the long Clark
exploration crosscut which is about 50 metres below the surface and has
encountered continuous gold mineralization from the tunnel entrance
(portal) to the current face-a distance of more than 120 metres grading
about 2g/t gold. The last 56 metres has been within a higher grade zone
averaging close to 3g/t gold and the face is still in good
mineralization," he says.

Additional geophysics is planned during mid to late 2005 to further
outline the recently discovered major (copper-gold?) geophysical anomaly
some 1500 metres to the SW of the initial drilling area.

Drilling to further outline the full extent of the Batoto gold system
including the copper-gold potential of Batoto is expected to follow the
initial 12,000 metre program.

PLANNED FEASIBILITY STUDY 2005-2006

The results from the initial 12,000 metre program and on going
metallurgical test program will be used in a further feasibility study
expected to commence during the fourth quarter 2005 and is expected to
be completed in 2006.

SUR's Bulk Metallurgical Testing program, a key part of its exploration
and evaluation program has already established that the Batoto
mineralization is amenable to conventional CIP gold processing with high
and fast recoveries (mid 90's) with low reagent consumptions.

This work strongly indicates that metallurgical processing costs at
Batoto should be low by world standards. Other major positive factors
enjoyed by the Batoto deposit are that it has little to no overburden
(waste rock) and is extremely well located with respect to roads, power
and water. A skilled local labour force is also available.

COMVAL COPPER-GOLD T'BOLI GOLD/SILVER PROJECTS

Strategic corporate plans for the Company's Comval copper/gold/silver
and T'boli gold/silver projects will be released in the near future.

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 very 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


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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Sur American Gold Corporation
    Alicia Nicholson
    Director
    (604) 601-8270
    (604) 904-8957 (FAX)
    suramerican@telus.net
    or
    Renmark Financial Communications
    Neil Murray-Lyon
    (514) 939-3989
    or
    Renmark Financial Communications
    Tina Cameron
    (514) 939-3989
    The TSX Venture Exchange has neither approved nor disapproved the
    contents of this news release.