South American Gold Updates the GB Mining Claim Group and Lucky Boy Silver Prospect
RICHMOND, Ind.--(BUSINESS WIRE)-- South American Gold Corp. (OTC QB: SAGD) is pleased to provide an update on its GB and Lucky Boy Silver projects.
The Company established a revised strategy in late 2011 to build a portfolio of mining projects and prospects, to include an expanded focus on North America. Project acquisition criteria included projects located in historic mining districts that company believes offer potential for commercial production. We acquired three prospects in 2012 and so far an additional two projects in 2013. We aim to add value through exploration and where deemed beneficial, sales, leasing or joint-venturing projects to reduce capital requirements. Junior mining exploration companies face significant financing challenges in the current market. Subject to such constraints, we aim to continue building and advancing our project portfolio.
We are pleased to update investors on the GB and Lucky Boy projects, and status of our activities in Colombia. We have acquired in less than five months into 2013 two new projects through lease and memorandum of understanding the New Light and Kelly projects. We will update activities and plans on these projects as we complete our first stage review, as well as the Baltimore project and activities in southeastern Europe. We expect this second update prior to the end of June.
GB Mining Prospect Update
South American Gold is pleased to provide an update to on-going exploration work being conducted at the GB-2 unpatented mining claims covering approximately 200 acres in Yavapai County, Arizona. Field geologist recently completed site work with further work planned for the summer months. Included in this work was consideration of expanding the Company's land position in the area.
The prime exploration targets are the identified breccia pipes on the project for which sampling is projected to be completed during our Phase I activities. The recent field work program had an objective to determine the presence of gold and silver values at surface, plan follow-up sampling including of specific breccias pipes, preparation of logistics and determine permitting required for the balance of the Phase I activities. These objectives were accomplished during the recent field work. The sampling program included taking ten pound surface samples spaced fifty feet apart over a two hundred foot width, two inches deep, over an estimated one to five foot width per sampling area. This sampling effort returned an average of .06 ounces of gold/ton and .40 ounces/ton of silver, and this effort is planned to be expanded to cover more territory of the surface to identify future drill targets in addition to the identified breccias pipes. We have not estimated the tonnage potential of this area as our prime targets remain the breccias pipes at depth. This zone, contained altered intrusive rocks, extending uphill over a visible distance of 400-600 feet. These results are considered positive indicators of the potential for higher grades at the intersection with the breccia pipes at depth, and the consistency of the presence of gold values in the zone area surveyed. Samples were assayed at Chris Christopherson Inc, an umpire assayer based in Kellog, Idaho.
This sampling program revealed the two hundred foot dike-like altered northeasterly-trending zone which evidently may be a feeder zone of the hematitetic red-brown Breccia pipe #6 observed but as of yet unsampled. Further sampling is required to determine conclusively the significance of this potential feeder zone.
Further sampling is planned for the summer work season, additional mapping work, and preparation of more advanced exploration determining initial drill targets. This work will also include a preliminary consideration of exploration permit requirements which may include the preparation and filing of a Plan of Operation (POO) with the B.L.M. including possible road construction.
Our next site visit will specifically target completing the breccia pipe sampling program.
Lucky Boy Silver Prospect
The Company staked five unpatented mining claims as part of the Lucky Boy Silver prospect, adjacent to and including part of the patented original Lucky Boy Silver mine. The Company was unable to secure controlling interest in the adjacent patented ground comprising the Lucky Boy Silver mine and the portal entrance to underground workings. In reviewing our project portfolio we determined absent control of the nearby patented ground, the holding costs did not justify holding the existing five unpatented mining claims and therefore we will drop these claims. We will continue to look for additional projects in the vicinity but will not maintain those which do not subsequently meet our acquisition and portfolio criteria.
We continue to monitor developments in mining laws and regulations in Colombia and periodically consider project proposals presented to us. We do not foresee any immediate acquisitions in Colombia due the lack of a revised, clear and meaningful mining law concerning concessions, exploration and development. We maintain our database of exploration information developed as a result of our activities in the Narino province, and keep a small representative office in Antioquia, Colombia.
About South American Gold (OTC BB: SAGD):
The Company's objective is building a pipeline of mining projects, to explore and develop commercially viable mineral deposits in North and South America, in southeastern Europe. The Company focuses principally on historic mining districts areas that are home to established gold or silver deposits, including highly prospective districts with exploration potential, and or medium term production potential.
David Kugelman, Atlantic Capital Partners
Web Site: www.sagoldcorp.com
This release contains forward-looking statements that are based on beliefs of South American Gold Corp. management and reflect South American Gold Corp.'s current expectations as contemplated under section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities and Exchange Act of 1934, as amended. When we use in this release, the words "estimate," "project," "believe," "anticipate," "intend," "expect," "plan," "predict," "may," "should," "will," "can," the negative of these words, or such other variations thereon, or comparable terminology, are all intended to identify forward looking statements. Such statements reflect the current views of South American Gold Corp. with respect to future events based on currently available information and are subject to numerous assumptions, risks and uncertainties, including but not limited to, risks and uncertainties pertaining to development of mining properties, changes in economic conditions and other risks, uncertainties and factors, which may cause the actual results, performance, or achievement expressed or implied by such forward looking statements to differ materially from the forward looking statements. The information contained in this press release is historical in nature, has not been updated, and is current only to the date shown in this press release. This information may no longer be accurate and therefore you should not rely on the information contained in this press release. To the extent permitted by law, South American Gold Corp. and its employees, agents and consultants exclude all liability for any loss or damage arising from the use of, or reliance on, any such information, whether or not caused by any negligent act or omission. This press release incorporates by reference the Company's filings with the SEC including 10k, 10Q, 8K reports and other filings. Investors are encouraged to review all filings. We caution that initial samples results reported may not be indicative of higher grades at depth.
KEYWORDS: United States North America South America Colombia Arizona Indiana Washington
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