San Anton Announces Cerro Del Gallo Mineral Resource Update ; Significant Increase in Tonnage and Contained Metal
TORONTO, ONTARIO–(Marketwire – June 17, 2008) – San Anton Resource Corporation (TSX:SNN) is pleased to announce an updated mineral resource estimate, including a significant increase in tonnes and contained metal for the Cerro del Gallo copper-gold- silver deposit at San Anton, Guanajuato State, central Mexico. The updated mineral resource estimate now contains 1.1 billion pounds of copper, 3.9 million ounces of gold, and 163 million ounces of silver in the Measured and Indicated Mineral Resources.
Highlights of the Cerro del Gallo mineral resource update include:
– 43% increase in the Measured and Indicated Mineral Resources tonnes to 461 Mt
– 28% increase in the Measured and Indicated Resources contained metal to 1,087 Mlbs Cu, 3.9 Moz Au, and 163 Moz Ag
– In addition to the Measured and Indicated Resources, there are 166 Mt of Inferred Resources containing 356 Mlbs Cu, 0.6 Moz Au, and 39 Moz Ag
The updated mineral resource estimate is based on 350 drill holes for a total of 94,403 metres completed since December 2004. This new data represents a significant increase in information since the last mineral resource estimate announced on 13 March 2007, which was based on a total of 57,592 metres and 232 holes. New information acquired during the last 18 months has assisted in improving the geological interpretation of the deposit which in turn has lead to a refinement of the 3-D model for mineral resource estimation.
John Cook, President & CEO, said that “The updated mineral resource reflects an increased level of geological understanding and confidence, and will provide a strong basis for the current and future studies and represents another step forward in the evaluation of the Cerro del Gallo copper-gold-silver deposit.”
The Cerro del Gallo deposit was modelled as three broader geological domains based on the primary rock types and alteration, which was further sub-divided based on the predominant metal occurrence. The domains were defined from the drilling and surface mapping as shown in Figure 1 (Cerro del Gallo Geology and Mineral Resource Extent available at http://www.sanantonresourcecorp.com/en/ San_Anton_27/Property_Maps_867.html). The central intrusive domain is based on surface mapping and drill hole logging. The gold domain is a gold-rich zone based on gold grades greater than a nominal 0.2 g/tAu that predominantly occurs within the hydrothermally altered ash-flow tuff sequence peripheral to the major intrusives, but also in part transects the major intrusives. The copper domain forms an outer copper-silver-rich zone also within the altered ash-flow tuff sequence and was based on gold equivalent grades nominally greater than 0.3 g/tAuEq. The mineralization appears to be constrained within the altered tuff sequence, with some apparent structural controls on the limits of the alteration. All major constraining faults were modelled to the north, south and west of the deposit, and a constraining shale contact along the eastern side of the deposit. The outer limit of the alteration domain appears to have been defined by these major constraining faults and or drilling, except in the south-eastern and north-western areas.
Mineral Resource Estimate
The significant amount of new drilling from both infill and step- out drill holes has allowed for the significant increase in the size and confidence of the mineral resource with an increase in the higher confidence Measured and Indicated Mineral Resources of 43% in tonnes and 28% in contained metal to now contain 1,087 Mlbs Cu, 3.9 Moz Au, and 163 Moz Ag. The Inferred Mineral Resources have increased by 48% in tonnes and 14% in contained metal to now contain 356 Mlbs Cu, 0.6 Moz Au, and 39 Moz Ag.
The majority of the Inferred Mineral Resources occur in the outer copper domain, and remain open to the north-west, south-east, and at depth. The mineral resource has only been reported for material above the 1,800 mRL, which is considered to be the maximum depth with reasonable prospects of eventual economic extraction with the prevailing metal prices.
The classification of the mineral resource estimate, reported with a 0.2g/t Au cut-off grade in the gold domain and 0.07% Cu cut- off grade in the copper and intrusive domains, is shown in Table 1. The classification of the mineral resource by geological domain is shown in Table 2.
____________________________________Table 1 ________________________Cerro del Gallo Mineral Resource ——————————————————————– — Resource Category____ Tonnes____ Au____Ag____ Cu____ Au____ Ag______Cu ____________________millions____g/t__ g/ t______%____Moz____Moz____Mlbs ——————————————————————– — Measured________________ 225__ 0.35____13__ 0.11____2.5____ 91____ 541 ——————————————————————– — Indicated________________236__ 0.19____10__ 0.11____1.4____ 72____ 546 ——————————————————————– — Measured + Indicated____ 461__ 0.27____11__ 0.11____3.9____163__ 1,087 ——————————————————————– — Inferred________________ 166__ 0.11____ 7__ 0.10____0.6____ 39____ 356 ——————————————————————– — Notes to Accompany Mineral Resource Estimate: 1.__Geological block model prepared by San Anton Resource Corporation. 2.__Grade estimate undertaken by Golder Associates Pty Ltd. 3.__The mineral resource estimate is based on 350 drill holes to an average ____depth of 270 metres for a total of 94,403 metres of drilling. All drill ____holes have been completed since December 2004 of which 74 holes ____totalling 35,782 metres are HQ/NQ diamond core and 276 holes totalling ____58,620 metres are reverse circulation face sampled holes.__Most of the ____resource is within 300 metres of the land surface, and has been drilled ____on a nominal 50 x 50 metre spacing. 4.__Gold assays by 30 gram fire assay with AAS finish (and gravimetric ____check on all samples containing__greater than1g/t Au), silver and ____copper assays by multi-acid digestion with AAS finish; all assays ____undertaken by SGS Laboratories Toronto Canada. 5.__In-situ bulk density of 2.65 t/m3 based on 895 samples. 6.__A geological block model with block sizes of 25m x 25m x 12m was ____constructed. Large scale bulk mining and flotation process route has ____been assumed. 7.__Au, Ag and Cu grades were estimated by parent block ordinary kriging ____with an overall external hard boundary and internal soft boundaries ____between geological domains except for the gold domain which was ____constrained for Au only. 8.__High grade cuts were applied for each geological domain ranging from ____1.0 to 4.0g/t Au, 70 to 100g/t Ag and 0.5 to 1.0% Cu. 9.__QA/QC checks on sampling and assaying quality are satisfactory. 10. Cut-off grades used for reporting takes into account the type of ____deposit, style of mineralisation, favourable geometry, location of ____infrastructure, prevailing metal prices, and similar mining projects in ____Mexico and Australia. 11. The reported mineral resource estimate has been rounded to appropriate ____significant figures. ____________________________________Table 2 ____________Cerro del Gallo Mineral Resource Geological Domains ——————————————————————– — Resource Category____ Tonnes____ Au____Ag____ Cu____ Au____ Ag______Cu ____________________millions____g/t__ g/ t______%____Moz____Moz____Mlbs ——————————————————————– — Intrusive Domain ——————————————————————– — Measured__________________25__ 0.14____12__ 0.10____0.1______9______53 ——————————————————————– — Indicated________________ 23__ 0.14____12__ 0.09____0.1______9______45 ——————————————————————– — Measured + Indicated______48__ 0.14____12__ 0.09____0.2____ 18______97 ——————————————————————– — Inferred__________________ 3__ 0.15____10__ 0.08____0.0______1______ 6 ——————————————————————– — Gold Domain ——————————————————————– — Measured________________ 129__ 0.54____12__ 0.09____2.2____ 50____ 250 ——————————————————————– — Indicated________________ 80__ 0.38____ 8__ 0.08____1.0____ 21____ 140 ——————————————————————– — Measured + Indicated____ 209__ 0.48____11__ 0.08____3.2____ 71____ 391 ——————————————————————– — Inferred__________________20__ 0.30____ 7__ 0.09____0.2______4______37 ——————————————————————– — Copper Domain ——————————————————————– — Measured__________________71__ 0.08____14__ 0.15____0.2____ 32____ 237 ——————————————————————– — Indicated________________133__ 0.08____10__ 0.12____0.3____ 43____ 361 ——————————————————————– — Measured + Indicated____ 205__ 0.08____11__ 0.13____0.5____ 74____ 599 ——————————————————————– — Inferred________________ 144__ 0.08____ 7__ 0.10____0.4____ 34____ 313 ——————————————————————– —
Rob Stewart MAusIMM, Manager Development and a Qualified Person under National Instrument 43-101, has reviewed and approved the technical information in this release. San Anton Resource Corporation will file an updated NI 43-101 technical report on SEDAR (www.sedar.com) within 45 days.
About San Anton Resource Corporation
San Anton Resource Corporation is an exploration and development company that is listed on the Toronto Stock Exchange and is totally focused on the mining friendly jurisdiction of Mexico. The Company’s principal asset is a 58% interest in the San Anton Property (Goldcorp 42%), which hosts the near-surface Cerro del Gallo copper-gold-silver deposit. The Property is located in a historic gold-silver mining district and has only recently been subjected to modern exploration techniques. This work quickly identified several targets and has led to the delineation of a NI 43- 101 Mineral Resource of 1.4 billion pounds of copper, 4.5 million ounces of gold, and 200 million ounces of silver. The deposit remains open in several directions. A US $10M program is underway to complete initial engineering and metallurgical studies, to continue expanding the Cerro del Gallo resource, and to drill nearby targets.
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.
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