Toronto-listed South American Gold & Copper (SAGC) is raising US$4.1 million to expand exploration and development in South America.
It is doing so by means of a private placement of 3 million shares priced at $2 each.
The company expects to put its Pimenton gold project in production by May, 1995. The project, 113 km north of Santiago de Chile, features a mill which is expected to yield about 10,000 oz. gold annually at US$128 per oz. SAGC has also acquired two gold-copper prospects in central Chile. One of these, the Cateador, is being examined to determine whether a low-grade, bulk-tonnage deposit exists. Geophysical work is being conducted over a large geochemical soil anomaly, and drilling will begin before the new year.
Meanwhile, at the Peregrino project, ore has been mined to a depth of 30 metres along a 150-metre strike length. The deposit, which is underlain by a 7-km-long, 15-metre-wide structure (with oreshoots averaging 1.5-6 metres in width), supports a 545-tonne-per-month operation. Grades average 4-5 grams gold per tonne and 1.2-1.5% copper.
Drilling will be carried out on the remainder of the structure before the new year.
Next April, SAGC will begin exploring the Chachas gold-copper prospect 150 km north of Arequipa, Peru.
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