Sur American Gold Corporation

Sur American Gold Corporation

March 23, 2005 10:12 ET

Sur Initiates Major Exploration Program to Follow Up Discovery of Multiple Wide High Grade Copper-Gold Zones Grading Up To 5.5% Copper and 2.5g/t Gold -Copper Eq. of 7.12%


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: SUR AMERICAN GOLD CORPORATION

TSX VENTURE SYMBOL: SUR

MARCH 23, 2005 - 10:12 ET

Sur Initiates Major Exploration Program to Follow Up
Discovery of Multiple Wide High Grade Copper-Gold
Zones Grading Up To 5.5% Copper and 2.5g/t Gold
-Copper Eq. of 7.12%

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 23, 2005) - SUR
AMERICAN GOLD CORPORATION (TSX VENTURE:SUR) is very pleased to announce
the creation of a new geological team dedicated to undertake an
aggressive exploration program including geophysics and drilling of the
7km long Tagpura copper-gold belt within its highly mineralized Comval
Project in the Compostela Valley Province, Philippines.

The major exploration initiative is the result of the discovery of
multiple high grade copper-gold zones at its Tagpura copper-gold deposit
which to date have returned wide intervals of high grade copper-gold
mineralization in massive sulphides as shown below:

Salvacion Zone:

A 60 metre wide channel sample returned 1.45% copper and 0.9g/t gold (a
copper equivalent of 2.03%) This included a 25 metre interval which
returned 2.77% copper and 1.39g/t gold (a copper equivalent of 3.67%).

Felina Zone:

A 13.5 metre channel sample returned 3.9% copper (reassayed at 4.4%
copper) and 2g/t gold and 10.3g/t silver (a copper equivalent of 5.1%)
This included a higher grade 8 metre interval which assayed 5.5% copper,
2.5g/t gold and 14.3g/t silver (a copper equivalent of 7.12%).

These zones are open along strike and at depth.

SUR already has active exploration programs within the Philippines at
the adjacent Comval Gold project (Batoto gold porphyry system) and at
its high grade T'boli gold-silver epithermal project in South Cotabato
Province.

BRIEF HISTORY & POTENTIAL OF THE TAGPURA COPPER-GOLD SYSTEM

The Tagpura copper-gold deposit comprises both gold-rich copper porphyry
mineralization and multiple high grade copper-gold lenses located within
a highly mineralized but significantly under explored 7km long belt of
copper and gold deposits associated with diorite porphyry intrusions
into limestones and volcanic rocks.

Tagpura occurs in the southern part of the belt and was, briefly a
former major open cut copper operation which processed approximately 10
million tonnes of mineralization before being forced to close in 1980
because of a variety of factors believed to be unrelated to the quality
of the deposit.

Historically little or no assaying was undertaken for gold and recent
work by SUR indicates that substantial amounts of gold mineralization
grading in excess of 1g/t gold were mined and dumped as waste during the
mining operation. With today's modern treatment methods this material in
and around the known copper deposits is now a large potentially economic
resource.

Whilst the porphyry copper potential of the belt has been known for more
than 30 years little or no serious work was directed towards delineating
the high-grade copper gold lenses which the Company believes may
constitute a major potentially economic resource in their own right.

There is a photo available on CCNMatthews' website at:
http://www2.ccnmatthews.com/database/fax/2000/323sur.pdf

Recent independent sampling by Independent Consulting Geologist Dr Peter
Christopher PhD, P.Eng over a 4.6 metre interval within this zone
returned 4.46% copper, 2.06g/t gold and 19.2g/t silver (a copper
equivalent grade of 5.8% copper).

Based on assays received to date the mineralization is "clean" and
contains no known significant concentrations of toxic metals that are
sometimes associated with copper deposits. All widths quoted are
believed to be true widths of the zones.

Salvacion and Felina are sub parallel zones of massive sulphides and are
separated by approx. 40 metres of low grade skarn and copper-gold
porphyry style mineralization. The zones trend NNE-SSW and several
further zones are also known to exist which represent a large upside to
the size of the deposit.

SUR, following a programmed extensive geophysical program scheduled to
be completed this year plans to aggressively delineate the extent of
these high grade copper-gold massive sulphide lenses by drilling to be
followed by an independent resource calculation and scoping study to
evaluate the potential for a high grade open/cut-underground
mining/conventional flotation operation. The new technology of bacterial
leaching of gold- copper concentrates will also be assessed at this time.

Based on a prior geophysical program and recent modern reprocessing of
that data as well as extensive geological mapping over the 7km long
strike length of the zone SUR feels that the potential for large
extensions of the known bodies both at depth and along strike and for
additional undiscovered high grade copper-gold zones and further
low-medium grade copper-gold porphyry mineralization is excellent.

SUMMARY

As a result of the successful exploration programs completed since
exploration commenced at its projects in June 2003 SUR now has
significant exposure to substantial gold, copper and silver
mineralization.

The Company recently announced a 12,000 metre two stage drilling program
at its "flagship" Batoto gold porphyry project and is in the process of
drill rig selection and dealing with contractual and site selection
aspects of the program.

Assaying of the copper values was undertaken at both IPL Laboratories in
Vancouver Canada using both wet chemical and ICP analytical methods and
at the JBMM Laboratory at Monkayo, Compostela Valley using wet chemical
methods. In addition Dr Christopher used ACME Laboratories in Vancouver.
Both ACME and IPL are 9002 accredited laboratories. The laboratories
gave comparable results. The gold assaying was undertaken by all the
laboratories using the standard 30g fire assay method.

This news release was prepared by Mr. Rennie Blair MSc; F.Aus.IMM,
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

J. Rennie Blair, M Sc, F.AusIMM

President

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Contact Information

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