Jul 1 2013
South American Gold is pleased to provide an update on our 2013 activities and objectives:
Project Acquisition
In the past eighteen months the company has acquired or signed agreements covering various mineral properties including the New Light Mine project, Baltimore Silver Mine, GB-2 mining claims and the Kelly Project interests (the latter under a Memorandum of Understanding).
- We are continuing activities to identify new potential acquisitions.
Project Evaluation and Exploration
We have ongoing evaluation and initial stage exploration activities to establish a prioritized path towards exploration, holding or disposing of mineral property interests.
- The New Light Mine project evaluation activities had been delayed due to weather conditions; summer activities are planned including consideration of expanding the land package.
- The Kelly group of mining claims we consider having the potential for small scale production. We are currently evaluating budgets and permitting requirements, and on one portion of the property whether previously granted SME exploration approval can be used for our activities. Surface sampling is planned for 2013, in addition to review of existing adits to determine the extent of safe and efficient access to complete a channel sampling program.
- The GB-2 claims are in a historic mining district with the presence of Breccia pipes. Our site geologic evaluations have confirmed our exploration plan to determine the extent and grade of possible extensions at depth, our primary targets for exploration. We are required to prepare a Plan of Operation (POO) for approval.
- The Baltimore Silver Mine project activities have resulted in sampling of existing tailings/dump material with results as expected, and the company has retained a local mining engineer to draw up applications for permits, establish budgets for rehabilitating tunnels for underground access and tunnel sampling. We consider the Baltimore a potential silver producer.
We are in the process of prioritizing our projects due to the positive results we have received at the Baltimore and GB-2 claims, taking into consideration permitting requirements. We will actively consider joint-ventures to further our projects. We are pleased with progress that has met expectations.
Corporate
The company is considering various financing alternatives in a challenging market, improving working capital position, and expanding market awareness in the second half of 2013. We are looking at business development in areas that hold potential for generating cash flow or increasing our assets to build positive shareholder leverage for the future.
We invite shareholders to carefully review our 8-K, 10-Q and 10-K reports, and welcome shareholder inquiries.