Sur American eyes $26 million

Sur American Gold (SUR-V) has tabled plans to raise up to $26 million via a non-brokered private placement of 20 million units at $1.30 apiece.

Each unit includes one share and half a warrant, with a whole warrant good for one share at $1.75 per share for one year; the exercise price increases to $2.25 per share in the second year. The shares are subject to a four-month hold period. Meridian Capital will receive a 10% finders fee payable in cash and warrants.

A portion of the proceeds will be used to develop 50-100-tonne-per-day trial bulk metallurgical testing operations at both the Comval gold and T’Boli gold-silver projects in the Philippines.

So far at Comval, Sur has sampled 5.4 tonnes of material from the Amy vein, with the weighted average grade ringing in at 285.8 grams. The 15-km Comval gold zone is home to more than 70 gold-bearing vein systems.

Sur recently turned up two new vein structures, Tarale 55 and 56 at the Tarale zone of the Batoto stockwork deposit. Outcrop sampling at Tarale 55 returned up to 10.9 grams gold over 0.7 metre. Tarale 56, yet to be sampled, is more than a metre-wide vein containing pyrite, chalcopyrite and fine free gold in small cavities. Tarale 55 lies about 1.5 km south of the recently discovered Jennifer vein (51 grams gold).

Meanwhile, Sur is in the midst of extending a recently discovered tunnel cutting through the stockwork deposit by 30 metres to cut the high-grade, 1-metre-wide St. John vein. A random sample from the first 8 metres of development runs 113 grams gold.

At T’Boli, Sur is focussing its efforts on exploring the project’s existing vein system and developing adits along the major veins to provide bulk samples for metallurgical testing. The development work will also provide drill sites to enable testing of the weins, which remain open at depth and along strike.

T’Boli is home to an inferred resource of 2.4 million tonnes grading 5.5 grams gold and 21 grams silver. The resource is contained in seven high-grade, steeply dipping epithermal quartz veins.

Exploration will also target the nearby 1-km-long Lam Asam alteration system where limited channel sampling of adits returned up to 33.9 grams gold and 1,954 grams silver. Sixteen rock samples from another area returned an average of 35 grams gold and 1,324 grams silver.