St. Augustine Gold and Copper Comments on Recent Philippine's News Articles
June 08 2012 - 07:18PM
Marketwired
St Augustine Gold & Copper Limited (TSX:SAU) ("St Augustine" or
the "Company") has taken note of recent Philippine news articles
commenting on its participation in the King-king project (the
"Project") and the Philippine mining industry, in particular an
article published in the June 7, 2012 edition of the Business
Mirror announcing Nationwide Development Corp.'s (NADECOR)
intention to drop the Company as a partner in the Project.
"This news article was published without St. Augustine's comment
and implies a legal position and intent that based on the current
information we have, is not reflective of the view of a majority of
NADECOR's shareholders," stated Andrew J. Russell, CEO. "It is
unfortunate that St. Augustine and the expedited development of the
Project is being dragged into what we understand is an internal
NADECOR dispute. However, we have noted the potential investment by
the family of Sen. Manuel Villar Jr. in the Project and welcome the
vote of confidence this indicates in the Project. We look forward
to continuing to work with NADECOR on the swift achievement of key
Project milestones and to fruitful discussions with the Villar
family on their forthcoming investment in the Project."
As described in the May 14, 2012 press release, there are
internal issues within NADECOR's own board of directors and
shareholders. We understand these issues have since escalated
including shareholders and directors of NADECOR bringing legal
action against certain persons acting as directors or officers of
NADECOR. As well, questions are being raised, amongst other
matters, about the legality of the election of the members of the
board of directors of NADECOR and their actions in relation to
agreements which set out the framework in which the Company
participates in the Project.
St. Augustine' management has stepped up communications with
NADECOR to clarify the situation and have received assurances from
key NADECOR directors and shareholders in this respect. Further
work and discussions are ongoing with an aim to ensure any
potential adverse impact on the Company and the Project is
mitigated or avoided and the Company's interests are safeguarded.
As a precaution, St. Augustine management in conjunction with legal
counsel have implemented an action plan, which could involve
exercise of specific legal remedies available to the Company should
the above issues not be conclusively and satisfactorily resolved in
the short term.
ABOUT THE KING-KING PROJECT
King-king is one of the largest undeveloped copper-gold deposits
in the world. As released in the October 2010 Technical Report and
the updated resource released August 15, 2011, Measured and
Indicated mineral resource is 962.3 million tonnes at 0.254% total
copper, 0.062% soluble copper, and 0.334 g/t gold. Inferred mineral
resource is an additional 188.8 million tonnes at 0.215% total
copper, 0.048% soluble copper, and 0.265 g/t gold. The Measured and
Indicated mineral resource consists of 5.4 billion pounds of
contained copper and 10.3 million troy ounces of contained
gold.
The King-king deposit is a gold rich copper-gold porphyry
deposit located in the southeast of the Philippine Island of
Mindanao, 35km east of Davao City and 13 km from the coast. The
project is listed as one of the top priority projects by the
Philippine Mines and Geosciences Bureau. The project has a low
strip ratio and is in advanced stage with 95,651 meters of drilling
composed of 291 core and reverse circulation holes, including 6,052
meters of new drilling composed of 14 core holes (and 1 RC) in
2011. King-king has entered into the feasibility stage of
development (social, environmental and engineering phases).
NATIONAL INSTRUMENT 43-101 COMPLIANCE
Mr. James J. Moore, P.E., St. Augustine Gold and Copper Limited,
a qualified person under NI 43-101, has reviewed the resource
contents of this news release.
A NI 43-101 compliant technical report entitled "King-king
Copper-Gold Project Mindanao, Philippines" dated October 12, 2010,
and prepared by Michael G. Hester, FAusiMM of Independent Mining
Consultants, Inc., Donald F. Earnest, P.G., of Resource Evaluation,
Inc. and John G. Aronson of AATA International, Inc. has been filed
by the Company on www.sedar.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This announcement includes certain "forward-looking statements"
within the meaning of Canadian securities legislation. All
statements, other than statements of historical fact, included
herein, without limitation, the use of net proceeds are
forward-looking statements. Forward-looking statements involve
various risks and uncertainties and are based on certain factors
and assumptions. 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 Company's expectations include uncertainties
related to fluctuations in gold, copper and other commodity prices
and currency exchange rates; uncertainties relating to
interpretation of drill results and the geology, continuity and
grade of mineral deposits; uncertainties relating to the completion
of a bankable feasibility study; uncertainty of estimates of
capital and operating costs, recovery rates production estimates
and estimated economic return; the need for cooperation of
government agencies in the development of the Company's mineral
projects; the need to obtain additional financing to develop the
Company's mineral projects; the possibility of delay in development
programs or in construction projects and uncertainty of meeting
anticipated program milestones for the Company's mineral projects;
and other risks and uncertainties disclosed under the heading "Risk
Factors" in the Annual Information Form dated March 21, 2012, and
filed with Canadian securities regulatory authorities on the SEDAR
website at www.sedar.com.
Contacts: St. Augustine Gold and Copper Ltd. Kristi Harvie
Manager Investor and Corporate Affairs
509-343-3193kharvie@sagcmining.com CHF Investor Relations Jeremy
Hill Associate Account Manager (416) 868-1079 ext.
238jeremy@chfir.com CHF Investor Relations Jeanny So Director of
Operations (416) 868-1079 ext. 225jeanny@chfir.com
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