Bermuda-registered South American Gold and Copper Company Ltd. reports its development mining activities at its Pimenton gold mine are progressing well.

The Toronto-listed company, with mining and exploration interests in Chile and Peru, owns a 50.01 stake in the Pimenton mine, said Bloomberg Business News.

First year production is expected to average 70 tons per day with gold production estimated at 10,630 ounces for the first year of operations.

The company anticipates first year direct mining and milling expenses will be $1.7 million while total expenses for the year will be about $3.4 million.

Cost per ounce of gold is projected to be $319.50.