Ottawa, ON - San Anton Resource Corporation (SNN:TSX) (“San Anton”) is pleased to announce initial results from preliminary pit optimizations and metallurgical test work on the Cerro del Gallo deposit which is located on the San Anton property in the state of Guanajuato, Mexico. The property is 51 per cent owned by the Company and 49 per cent owned by Goldcorp. Golder Associates Pty. Ltd. (“Golder”) of Brisbane, Australia was commissioned to complete preliminary pit optimization studies subsequent to the completion of their NI 43-101 Report and resource estimate dated April 17, 2007. Metallurgical testwork was carried out by SGS Lakefield Oretest in Perth, Australia. The preliminary pit optimization and metallurgical work will assist management in its ongoing evaluation of the Cerro del Gallo deposit and in planning future programs.Based on a gold price of US $600/oz, silver price of US $10.80/oz and a copper price of US $3.00/lb, resources within the pit were estimated at 260.6Mt grading 1.02g/t gold equivalent1, or 8.5 million ounces of gold equivalent1 (see Table 1). The conceptual strip ratio is 0.57 and 89 per cent of resources within the pit shell are classified as Measured and Indicated. At a US $500/oz gold price, US $9/oz silver price and a US $1.50/lb copper price, resources within the pit were estimated at 124.5Mt grading 1.02g/t gold equivalent2, or 4.1 million ounces of gold equivalent2 (see Table 2). The conceptual strip ratio is 0.44 and 97 per cent of resources within the pit shell are classified as Measured and Indicated.Gregory Bowes, President & CEO stated that “We are very encouraged by the fact the optimized pits already contain a significant resource that has a very favorable strip ratio and is located in an area with well established infrastructure. Importantly, the deposit remains open laterally and at depth. However, a decision on initiating a pre-feasibility study will not be made until early next year when the results from additional expansion drilling and metallurgical testing are available. He added that “While metallurgical testing is an ongoing process, no issues have been identified which present a major concern.”Pit Optimization ResultsGolder carried out a series of open pit optimization studies using Whittle Four-X software (Tables 1 & 2) based on a 15Mtpa flotation circuit and representative costs for operations of a similar size and nature including mining costs of US$0.85/t, processing and general and administrative costs of US$6.70/t, plus post-concentrator costs. Preliminary metallurgical recoveries (see below) were assumed at 85 per cent for copper and 80 per cent for gold and silver. First pass slope angles of 45 degrees and a mining recovery factor of 95 per cent were assumed, and no allowance was made for mining dilution other than that incorporated in the geological model.Table 1Cerro del Gallo Deposit - Resources Contained within Optimized Pit Shell (Based on Au US$600/oz, Ag US$10.80/oz, Cu US$3.00/lb)
Category Tonnes (M) Au g/t Ag g/t Cu% AuEq g/t AuEq Moz
Measured 59 0.74 13 0.08 1.27 2.4
Indicated 173 0.25 15 0.12 0.96 5.3
Inferred 28 0.21 14 0.12 0.90 0.8
Total 261 0.36 14 0.11 1.02 8.5
Note: 1 - Gold equivalence (“AuEq”) has been calculated based on a US $600/oz gold price, US $10.8/oz silver price and US $3.00/lb copper price and assumes metallurgical recoveries of 80% for both gold and silver, and 85% for copper. The gold equivalent grades were calculated using the following formula: AuEq = Au + (Ag / 55.56) + (Cu x 3.64). Table 2Cerro del Gallo Deposit - Resources Contained within Optimized Pit Shell (Based on Au US$500/oz, Ag US$9/oz, Cu US$1.5/lb)
Category Tonnes (M) Au g/t Ag g/t Cu% AuEq g/t AuEq Moz
Measured 54 0.76 14 0.08 1.18 2.0
Indicated 67 0.29 18 0.13 0.90 2.0
Inferred 4 0.22 17 0.12 0.78 0.1
Total 125 0.49 16 0.11 1.02 4.1
Note: 2 - Gold equivalence (“AuEq”) has been calculated based on a US $500/oz gold price, US $9/oz silver price and US $1.50/lb copper price and assumes metallurgical recoveries of 80% for both gold and silver, and 85% for copper. The gold equivalent grades were calculated using the following formula: AuEq = Au + (Ag / 55.56) + (Cu x 2.19). Expansion DrillingThe Cerro del Gallo resource has been defined by 57,600m of drilling in 232 holes within an area that is almost one kilometer in diameter. Relatively little drilling has taken place outside of this area and a 36 hole, 11,700m step out drilling program is currently underway to test the mineral potential around the deposit and at depth (see Figure 1). This program is expected to be completed in October/November of this year. The Company is also planning an extensive exploration program to determine if other deposits exist within the 10km2 alteration halo that surrounds Cerro del Gallo.MetallurgyMetallurgical testing to date has focused on the investigation of comminution, rougher flotation and cyanide leaching flow sheet options utilizing material from the gold/silver zone. Metallurgical testing was carried out by SGS Lakefield Oretest in Perth Australia. A second phase of testing is currently underway at SGS utilizing copper zone material to evaluate both flow sheet options and comminution and flotation parameters to determine if pay metal recoveries can be improved and a saleable copper concentrate produced. This work is expected to be completed in October, 2007.For the purposes of the pit optimization study, it was assumed that an optimized grind-flotation flow sheet would result in copper recoveries approaching 85 per cent and silver and gold recoveries of 80 per cent. These assumed values were established from indicative results from metallurgical testing completed to date, which included 42 bulk flotation tests producing a rougher concentrate, as well as the reported results of comparable operations.The Qualified Person as defined by NI 43-101 (“QP”) responsible for the pit optimization study is Mr. Hernan Retamal, who was an employee of Golder at the time of the study. Rob Stewart, Vice President, Development of the Company and QP has reviewed and approved the content of this press release.Go to PDF version of the press release for a complete for a map of the "Cerro del Gallo Location Plan - Proposed Drilling Program."
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For further information please contact: Gregory Bowes, President & CEO / Tel: (613) 729-9006 Christian Del Valle, Manager 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. |