SOUTH AMERICAN SILVER CORP.
The Company trades on the Toronto Stock Exchange under the symbol SAC and on the US OTC market as SOHAF.
South American Silver Corp. is a growth focused mineral exploration company creating value through the exploration and development of the Malku Khota Silver-Indium project in Bolivia, one of the world's largest undeveloped Silver and Indium deposits, and the large-scale Escalones Copper-Gold project in Chile. The Company's approach to business combines the team's track record of world-class discoveries and successful project development and integrates a focus on strong community relations and corporate social responsibility. Management has over 100 years of combined experience in the global exploration and mining industry with much of that focused in Bolivia, Chile, Peru and Argentina.
South American Silver’s most advanced project is the Malku Khota Silver-Indium project located in Bolivia. Malku Khota is one of the world’s largest underdeveloped silver and indium resources with an NI 43-101-qualified Indicated resource of 144.6 million ozs silver and 845,000 kgs indium (151 million tonnes grading 29.7 g/t silver and 5.6 g/t indium) and an Inferred resource of 177.8 million ozs silver and 968,000 kgs indium (230 million tonnes grading 24.0 g/t silver and 4.2 g/t indium). A Preliminary Economic Assessment Study ("PEA”) was prepared by Pincock Allen & Holt Inc. ("PAH”) in March 2009 which showed robust economics for a bulk mineable heap leach operation. The project is road accessible and commercial power is within 15 kilometres of site.
Silver and indium mineralization at Malku Khota begins at surface and remains open to further expansion laterally and at depth. Recent drilling has identified a new higher-grade zone which may result in an expanded near-surface resource. In late February, the Company announced the discovery of a potentially significant new high-grade silver-gold-indium vein system at Malku Khota that may join the highly mineralized, sediment hosted Wara Wara and Sucre Zones. This new discovery is in an area that was previously classified as unmineralized due to a lack of drilling in the area. The new zone of higher grade mineralization falls between the two previously identified zones at Wara Wara and Limosna and includes a well-mineralized silver-gold-indium vein system. The vein system consists of a number of sub-parallel veins and structures up that can exceed 100 metres in width. The most recent drill hole, WWD040, includes a significant 26 metre wide interval of high-grade silver mineralization in the Sucre Vein which has averaged 125.2 grams per tone (g/t) silver and 14.8 g/t indium. Drilling is ongoing on the project with periodic releases anticipated as results become available.
Metallurgical work is in on-going to refine the leach characteristics and physical properties of the currently defined mineralized zones. Test work is focused on the leach recovery responses at various grades and crush sizes to determine optimal approaches to processing for the deposit. Based on the size of the current resource and the presence of higher grade mineralized zones, additional engineering is looking at range of optimal mining and processing rates. These studies along with an updated resource will be incorporated into an updated economic assessment by the end of 2010.
As part of the Company’s on-going community relations approach to Malku Khota, SASC’s two full-time Community Relations personnel maintain regular contact with each of the surrounding local communities. Signed agreements of cooperation with each of the communities are in place and the Company will look for ways to facilitate economic development through the various stages of development for the project.
Malku Khota NI 43-101 Preliminary Economic Assessment
|Indicated Resource Silver ||145 million oz |
|Inferred Resources Silver ||178 million 0z |
|Indicated Resource Indium ||845,000 kg |
|Inferred Resources Silver ||968,000 kg |
|Silver Recovery ||80% |
|Indium Recovery ||70% |
|Pre-Tax Net Cash Flow ||US$ 1,233 million |
|Initial CAPEX ||US$ 104.7 million |
|Cash Cost (net of credits) ||US$ 3.75 /oz silver |
|Pre-Tax IRR ||50.7 % |
|First Ten Years Silver Grade ||38.6 g/t |
|First Ten Years Indium Grade ||8.1 g/t |
|Years To Payback From Start Of Production ||1.4 years |
|Average Annual Production-Silver ||4.25 million oz |
|Average Annual Production-Indium ||27,999 kg |
|Mine Rate ||20,000 tpd |
|Mine Life ||36 Years |
The Escalones copper-gold-molybdenum porphyry and skarn prospect in central Chile is located approximately 100 km south-east of Santiago by road. The property is 35 kilometres east of El Teniente, the world’s largest underground copper mine, and shows high grades at surface at over >1% copper with significant gold, silver and molybdenum credits. Exploration has focused on a large, 4 square kilometre area of alteration, and shallow drilling has intersected zones of 75 to 100 metres grading over 1% and a single deeper hole intercepted 176 metres of porphyry mineralization grading 0.6% copper. These grades and significant widths of mineralization indicate the presence of a strong mineralizing system at Escalones.
At Escalones the Company is presently completing geological modeling to incorporate all new information and is considering initiating a new exploration program at this high potential copper-gold porphyry project. The Company intends to advance the property to the resource definition stage either through further exploration on its own or with a partner.
COMPANY WEB SITE
Issued and outstanding: December 16, 2010
97.8 common shares
114.8 fully diluted
SOUTH AMERICAN SILVER CORP. FILINGS & PUBLIC DOCUMENTS with SEDAR