Sydney - Monday - May 9: (RWE Australian Business News) - SMC...

Sydney - Monday - May 9: (RWE Australian Business News) - SMC
Gold Ltd (SMO) reports a 274 per cent increase in the Cinabrio (Chile)
copper resource.
SMC has confirmed the existence of three new blocks in the
Cinabrio property.
In March 2005 SMC completed the drilling program at Cinabrio,
Chile.
The Rights Issue prospectus issued in December 2004 identified
the potential for 7 blocks.
This recent drilling program has now identified 4 of the 7
blocks [and it is anticipated that further drilling planned for 2006
will further define the Cinabrio area].
Using the experience from mining operations, previous drilling
data, data from a recently completed detailed surface mapping program
and the new drilling data, SMC has completed a thorough review of
resource calculations at Cinabrio.
As a result, the company announces that the copper equivalent
tonnes (tonnes Cu) have increased from 28,231 tonnes Cu to 105,552
tonnes Cu.
This substantial increase in resource further extends the mine
life of SMC's Chile operations and comes at a time when SMC is
completing the final stages of the expansion and upgrade of the
Punitaqui process plant to 1,500 tonnes per day.
SMC is currently exploiting Block 1 at Cinabrio at the rate of
1,000 tonnes per day.
Currently, the Cinabrio mine is being electrified to facilitate
the full mechanisation of the mine.
Two electric/hydraulic jumbos plus ancillary equipment are in
transit from SMC’s Australian operation at Charters Towers where mining
has now ceased.
The company is confident that production from Cinabrio, once
fully mechanised, will improve to 1,300 tonnes per day to satisfy the
bulk of the expanded plant capacity.
The company's mineral resources in Chile are in no way involved
in the warranty claim leading to the granting of an interim order by the
Queensland Supreme Court prohibiting the sale of 17 million shares in
SMC owned by the vendor.
SMC remains focussed, secure and committed to operations in
Punitaqui.