Ottawa, ON - San Anton Resource Corporation (SNN:TSX) is pleased to announce that a new mineral resource estimate has been prepared by Golder Associates Pty. Ltd. (“Golder”) based on infill drilling on the Cerro del Gallo deposit during 2006. Cerro del Gallo is located on the San Anton property which is 51 per cent owned by San Anton Resource Corporation and 49 per cent by Goldcorp Inc., and is located in the state of Guanajuato, Mexico. The new resource is based on 57,592m of drilling in 232 holes compared to 24,635m of drilling in 110 holes which formed the basis for the previous estimate. The 2006 infill drilling program was largely designed to better define the gold rich portion of the Cerro del Gallo deposit and to move a large portion of the Inferred Resources up into the Measured and Indicated categories prior to initiating a Pre-Feasibility StudyThe 2006 drilling program was successful in significantly upgrading the quality of the resource with Measured and Indicated resources increasing by 44 per cent and now accounting for 74 per cent of total resources. New estimates were prepared assuming bulk mining and two potential processing scenarios, conventional flotation-leach using a 0.3 g/t gold equivalent (“AuEq”) cutoff grade, and conventional carbon-in-leach using a 0.4 g/t gold only cut-off grade.Gregory Bowes, President & CEO of San Anton stated that “we now have a high quality, robust resource estimate that will enable us to undertake preliminary pit designs and scoping studies to evaluate potential development scenarios. While the total tonnage and contained ounces declined slightly as drilling indicated limited depth potential to the southeast, the deposit is still open in a number of directions. We are adding a third rig in order to step out much more aggressively in 2007 to determine the total size of the system as well as to accelerate exploration of regional targets.”The new mineral resource totals 10.19 million ounces of gold equivalent at a 0.3 g/t AuEq cutoff which consists of 4 million ounces of gold, 171 million ounces of silver and 448,000 tonnes of copper. At a 0.4 g/t Au only cutoff grade, the resource totals 3.4 million ounces of gold equivalent of which 95 per cent is in the Measured and Indicated categories. Cerro del Gallo Mineral Resources (0.3g/t AuEq Cut-off grade)
Category Tonnes (M) Au g/t Ag g/t Cu% AuEq g/t AuEq Moz
Measured 63 0.74 13 0.08 1.14 2.31
Indicated 260 0.22 13 0.11 0.69 5.76
M&I 323 0.32 13 0.10 0.78 8.08
Inferred 112 0.19 10 0.10 0.59 2.11
(0.4g/t Gold only cut-off grade)
Category Tonnes (M) Au g/t Ag g/t Cu% AuEq g/t AuEq Moz
Measured 61 0.75 13 0.08 1.15 2.26
Indicated 28 0.63 11 0.09 1.02 0.92
M&I 89 0.71 12 0.08 1.11 3.18
Inferred 6 0.55 9 0.09 0.91 0.17
Notes to Accompany Mineral Resource Estimate: 1. Block model with grade estimate prepared by Golder Associates Pty. Ltd., Brisbane Office, Queensland, Australia.2. The mineral resource estimate is based on 232 drill holes to an average depth of 248 meters for a total of 57,592 meters of drilling. All drill holes have been completed since December, 2004 of which 40 holes totaling 18,335 meters are HQ diamond core and 192 holes totaling 39,257 are reverse circulation face sampled holes. Most of the resource is within 300 meters of the land surface and has been drilled on a nominal 50x50 meter spacing.3. Gold assays by 30 gram fire assay with AAS finish (and gravimetric check on all samples containing >1g/t Au), silver and copper assays by multi-acid digestion with AAS or ICP finish; all assays undertaken by SGS Laboratories, Toronto, Canada.4. In-situ bulk density ranges from 2.64 to 2.67 t/m3.5. A geological block model with block sizes of 25m X 25m X 12m was constructed. A bulk mining scenario has been assumed.6. Au, Ag and Cu grades were estimated by parent block ordinary kriging within constrained geological domains.7. High grade cuts were applied for each geological domain ranging from 1.0 to 4.0g/t Au, 60 to 120g/t Ag and 0.3 to 0.9% Cu. 8. QA/QC checks on sampling and assaying quality are satisfactory.9. Au equivalence (“AuEq”) has been calculated as AuEq = Au + (Ag/60) + (Cu X 2.3). This formula is consistent with all previous mineral resource estimates to provide a basis for comparison. It assumes 100 per cent metallurgical and smelter recoveries.10. The reported mineral resource estimate has been rounded to appropriate significant figures. Golder is updating the NI 43-101 Technical Report previously prepared on the San Anton Property and the new report will be filed on Sedar within 30 days (www.sedar.com). The Qualified Person as defined by NI 43-101 responsible for preparation of the Report is Mr. Robert Stewart MAusIMM, a full-time employee of Golder. Mr. Stewart is independent of San Anton and is responsible for all technical data reported in this news release.
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For further information please contact: Gregory Bowes, President & CEO / Tel: (613) 729-9006 Kevin Keough, Vice President Corporate Development / Tel: (613) 729-9006 The Toronto Stock Exchange has neither approved nor disapproved the contents of this press release. This News Release includes certain "forward-looking statements". All statements other than statements of historical fact included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of San Anton are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the expectations of San Anton are detailed from time to time in the filings made by San Anton with securities regulators. |
