Sur American Gold Corporation: Drilling Underway at 7km Long Tagpura Copper-Gold Projectadmin
Thursday, August 17th 2006
Sur American Gold Corporation (TSX VENTURE: SUR) is very pleased to advise that drilling at its 7km long Tagpura copper-gold project in Compostela Valley, Eastern Mindanao, Philippines is underway with the initial hole now at a down hole depth of 241 metres and projected to be drilled to 300 metres.
In preparation for the drilling program now underway and proceeding well the Company is conducting a bench mapping program within the former Tagpura open cut.
Initial results are highly encouraging and include 40 metres grading 1.62% copper, 0.85g/t gold and 4.1g/t silver some 60-150 metres vertically above where the initial hole is being drilled.
Little or no surface leaching exists at Tagpura and the Company believes that surface trench results are more likely to be indicative of the nature of the subsurface mineralization than in the Clark Zone of East Batoto where the Company recently drilled 6 holes.
NEW WEBSITE AND CORPORATE LOGO
The Company has also created a completely new website providing maps and details of its principal Philippine and Colombian gold and copper-gold projects and new exploration targets.
Readers are highly encouraged to visit the site at www.surgold.com. The new corporate Logo represents the gold rich mountains of Mindanao, Philippines with the red curved interior “S” representing “SUR”. Copper is known as the “red metal”.
TAGPURA COPPER-GOLD SYSTEM
The Tagpura copper gold system comprises three known copper gold deposits viz Tagpura, Ma-angob and Kalamatan spanning a strike length of approximately 7km. The first two deposits are predominantly skarn-related massive sulphide copper-gold deposits. Kalamatan however is a typical Philippine porphyry copper-gold deposit.
The full extent of the three deposits was never determined and the Company is optimistic that it can significantly add to the existing size of the various deposits and discover new large zones.
In addition to the three known deposits at least three further large targets were identified by historical exploration, mainly by geophysical surveys conducted in the 1970′s. Details of the results of this work are provided in the Company’s new website.
Apart from the principal goal of creating National Policy 43-101 compliant resources and to significantly expand known resources the Company will be systematically testing for gold mineralization around the copper-gold zones where it has noted the presence of wide intervals (e.g. 65 metres @1.5g/t gold) of gold mineralization in surface trenches in both quartz veined stockworks and in large iron rich skarn bodies.
The Company also envisages a major drilling effort of several 10′s of thousands of metres is during the next 2-3 years in order to accurately define the extent of the Tapura copper-gold system.
All sample preparation is undertaken at the Intertek Ltd Laboratory in Surigao, Northern Mindanao. Intertek is a 9002 Certified Laboratory. Pulverized 200 gram core samples are then sent to 9002 Certified Laboratory of Genalysis in Perth, Western Australia for analysis for copper, gold and silver. Gold is analysed by the FA 50/SAAS method (fire assay with atomic absorption finish) and copper and silver are analysed by conventional wet chemical methods. Surface trench samples are sent to Intertek’s analytical laboratory in Jakarta, Indonesia.
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 operations in the Philippines and in Colombia and trades on the TSX Venture Exchange (Canada) with trading symbol SUR-V.
On behalf of the board of directors
Rennie Blair, President
The TSX Venture Exchange has neither approved nor disapproved the contents of this news release.
Contacts: Sur American Gold Corporation Rennie Blair President (604) 904-8956 (604) 904-8957 (FAX) firstname.lastname@example.org