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I wanted to post some updates regarding the takeover bid on HDG;
Takeover; http://www.soamsilver.com/December-2-2013-news-release.asp
A new (but former) CEO has been appointed: http://www.soamsilver.com/December-2-2013-news-release.asp
And here an analysis on the takeover and how the 'MergCo' will look like; http://www.caesarsreport.com/reports/high-desert-gold-we-accept-the-south-american-silver-offer/
Who else is following this company?
Bolivian Burglary?
South American’s Greg Johnson on the Malku Khota Expropriation Threat
By Kevin Michael Grace
The mining industry is preoccupied by three letters: CSR. They stand for corporate social responsibility, the idea that miners must care as much about local people as they do about their quarterly reports and share price. Greg Johnson, President/CEO of South American Silver Corp TSX:SAC, believes he has committed his company to CSR in Bolivia and that his commitment was recognized and appreciated by its indigenous people. To no avail, it would seem. After anti-mining protests escalated to near-terrorism, President Evo Morales announced July 10 he would revoke SAC‘s massive Malku Khota silver-indium-gallium project.
Malku Khota, located in Potosí Department, is quite a prize, even for Bolivia, a world leader in mineral production since the 16th century. According to a May 2011 NI 43-101 estimate, it contains indicated resources of 230.3 million ounces silver, 1,481 tonnes indium and 1,082 tonnes gallium. Inferred resources are 140 million ounces silver, 95 tonnes indium and 1,001 tonnes gallium.
Read more about South American Silver and their Bolivian play: http://resourceclips.com/2012/08/01/bolivian-burglary/
South American Silver shares slump on Bolivia mine rules
TORONTO | Wed Jul 11, 2012 7:10pm EDT
TORONTO (Reuters) - Shares of South American Silver Corp (SAC.TO) fell almost 25 percent on Wednesday, a day after Bolivia's leftist president said he would revoke the company's concession for its Malku Khota project due to violent protests over the mining property.
http://www.reuters.com/article/2012/07/11/us-southamericansilver-bolivia-idUSBRE86A18Z20120711?feedType=RSS&feedName=globalMarketsNews&rpc=43
Bolivia to consider nationalizing embattled silver project
Sun Jul 8, 2012 11:08pm EDT
* Protesters oppose Canadian firm's concession
* Morales says hasn't made a final decision
http://www.reuters.com/article/2012/07/09/bolivia-southamerican-silver-idUSL2E8I90EZ20120709?feedType=RSS&feedName=financialsSector&rpc=43
LA PAZ, July 8 (Reuters) - Bolivia will consider nationalizing Canadian miner South American Silver Corp's silver property, President Evo Morales said on Sunday, following violent indigenous protests against the mining project.
Leftist Morales, who last month took control of global commodities giant Glencore's tin and zinc mine in the Andean country, said he hadn't taken a final decision on whether to revoke the Canadian miner's concession.
"Nationalization is our obligation, I already raised the issue of nationalizing (the Malku Khota project) last year, and I told (local residents) to reach an agreement, because when they want we're going to nationalize," Morales told a farmers' gathering.
Exploration work, in which South American Silver plans to invest some $50 million, is expected to end within three years. The company describes it as "one of the world's largest undeveloped silver, indium and gallium deposits."
A Bolivian man died and at least four others were hurt as protesters occupied the property, local media reported on Friday. An increase in social unrest and anti-government protests are testing Morales, the country's first leader of indigenous descent.
Mining is also coming under fire in neighboring Chile and Peru, where many citizens feel they haven't profited from a metals-led economic boom.
HOSTAGES RELEASED
Bolivian peasant farmers over the weekend released five local South American Silver workers, who had been held to demand the company leave.
Three of the hostages were freed on Saturday in a police operation and the other two were released on Sunday afternoon, sources said. A police officer held hostage since Thursday was also freed.
"There are no more hostages in Malku Khota, the last liberations happened due to negotiations," deputy interior minister Jorge Perez told state television.
The Erbol radio network said the engineers freed on Sunday were "accused of spying and violating traditions or customs of the (local) peoples during an indigenous hearing." They were ordered to complete "a community punishment" of making 1,000 adobe bricks in under 30 days, the network said.
Great day for SAC shareholders...engineering assessment of bolivia silver mine in Q2. Its nice to see the indium interest dominating investors financing decisions.
South American Silver Advances Escalones and Malku Khota Projects
2 hours 46 minutes ago - Marketwire via Comtex
http://finance.yahoo.com/news/South-American-Silver-iw-706891898.html?x=0
South American Silver Corp. (TSX: SAC)(PINKSHEETS: SOHAF) is progressing the exploration and development programs that are now underway at both the Escalones copper-gold and Malku Khota silver-indium projects with 27,000 meters of combined drilling planned at both projects along with engineering and metallurgical test work.
Highlights:
-- Escalones copper-gold project NI 43-101 technical report now filed on newly defined Inferred Resource of 420 million tonnes of mineralized material containing 3.8 billion lbs of copper, 56.9 million lbs of molybdenum, 610,000 ozs of gold and 16.8 million ozs of silver using a 0.2% Cu Equivalent cut-off grade (see December 19th, 2011 News Release). The detailed NI 43-101 Technical Report is now available on SEDAR and on the Company's website at http://www.soamsilver.com.
-- Escalones drilling currently underway for Phase II exploration program with approximately 7,000 meters of drilling planned into Q2-2012.
-- Escalones resource update targeted for mid-2012 with Preliminary Economic Assessment Q4-2012.
-- Malku Khota exploration program underway to support a planned 20,000 meters of in-fill and expansion drilling.
-- Malku Khota Pre-feasibility level engineering work in progress focused on optimization and production level expansion opportunities with an updated Economic Assessment study targeted for release Q2-2012. Feasibility activities are scheduled to begin in the second half of 2012.
Escalones Copper-Gold Project
The Escalones copper-gold project is located in the world-class central Chilean mining district which includes the nearby El Teniente deposit - the world's largest underground copper mine. The project is accessible by road and is approximately 100 kilometers south-east of Santiago. South American Silver has just filed a detailed NI 43-101 technical report for the Escalones resource estimate in February 2012.
The newly defined Inferred Resource of 420 million tonnes of mineralized material contains 3.8 billion lbs of copper, 56.9 million lbs of molybdenum, 610,000 ozs of gold and 16.8 million ozs of silver at a grade of 0.41% copper, 0.05 g/t gold, 1.24 g/t silver and 61 ppm molybdenum using a 0.2% Cu Equivalent cut-off grade (see December 19th, 2011 News Release). This is a copper-equivalent content of 4.5 billion lbs of copper grading 0.49% based on approximate 3-year average metal prices as of December 2011.
The Escalones deposit remains open to expansion laterally and down dip with 90% of the current resource hosted in copper, gold and silver replacement-style mineralization, and one drill hole testing porphyry-style mineralization. Initial interpretation of a ZTEM and aeromagnetic survey shows several large areas of untested conductivity anomalies which may represent areas of potential additional sulfide mineralization related to both replacement style and porphyry mineralization. 2D and 3D modeling and interpretation of these geophysical targets is in progress.
A Phase II exploration program is underway with two core drills currently working on the site. Work will focus on understanding the scale of the system by testing both porphyry and replacement-style mineralized zones. Step out drilling will focus on known mineralized areas and test new targets based on the recently completed aerial ZTEM and magnetic surveys. The planned program will include 7,000 meters of drilling to complete a resource update in mid-2012. Initial engineering work including metallurgical testwork is planned to determine recovery of copper, gold, silver and molybdenum and concentrate characteristics for a Preliminary Economic Assessment study targeted for Q4-2012.
Updates on Escalones will be provided as drill results and geophysical interpretations are completed.
Malku Khota Silver-Indium-Gallium Project
South American Silver's more advanced project is the Malku Khota silver-indium-gallium project located in the world-class silver mining district of central Bolivia, approximately 200 kilometers north of Potosi. Malku Khota is one of the world's largest silver, indium and gallium resources with a NI 43-101-qualified Indicated Resource of 255 million tonnes of mineralized material containing 230.3 million ozs of silver, 1,481 tonnes of indium and 1,082 tonnes of gallium at a grade of 28.7 g/t silver, 5.8 g/t indium and 4.3 g/t gallium (43.8 g/t silver equivalent), and an additional Inferred Resource of 230 million tonnes containing 140 million ozs of silver, 935 tonnes of indium, and 1,001 tonnes of gallium at a grade of 18.9 g/t silver, 4.1 g/t indium and 4.3 g/t gallium (33.0 g/t silver equivalent). An updated Preliminary Economic Assessment study in May 2011 showed robust economics for a bulk-mineable heap leach operation with the potential to be one of the largest new silver, indium and gallium producing mines in development with over 13.2 million ounces of silver production annually over the first 5 years. The project is road-accessible, with commercial scale natural gas and electricity nearby.
Pre-feasibility level engineering and metallurgical process work is underway to further optimize the project production levels and process flowsheet. These studies have looked at increasing overall scale and potentially including a milling scenario for higher grade material that leaches better when milled. An updated NI 43-101 qualified Economic Assessment study based on the work over the past year for Malku Khota is targeted for release in Q2-2012. In addition, exploration activities are underway to support a planned 20,000 meter drill program. With the typical conclusion of the rainy season in February, drill roads and drill pads are being developed with drilling planned to start on the project in March. This drill program will include infill drilling to convert inferred resources to measured and indicated resources and eventually into reserves and to test further resource expansion at depth and between the two known deposits. To date, only about 30% of the known prospective mineralized host stratigraphy at Malku Khota has been drill tested. The 2012 drill program will also include drilling to test several additional high-priority, near surface targets based on surface sampling and geophysics.
Due to the bulk mineable and heap leachable nature of the deposit, there remains excellent potential to continue to expand production levels beyond the 13.2 million ounces of silver per year level in the 2011 Economic Assessment study through further optimization of the resource and increases in overall mine throughput. Current optimization studies are targeting expansion of annual silver production toward 18 to 20 million ounces per year as part of the updated Economic Assessment and would make Malku Khota one of the largest producing silver mines in the world.
Over the past year South American Silver has significantly broadened its community relations activities and the Company has entered into Impact and Benefit-type agreements with local indigenous communities to facilitate local economic and business development through the various stages of project implementation. The project contributes significantly to the local economy and it is estimated that the construction phase would likely create as many as 1,000 new jobs in the region with over 400 full time workers directly employed during mine operations. Feasibility and baseline environmental work is planned to begin in the second half of 2012. The Company anticipates continuing to build on its community relations initiatives to support the feasibility and permitting stages in 2012 and 2013.
About South American Silver Corp.
South American Silver Corp. is a growth focused mineral exploration company creating value through the exploration and development of the Malku Khota (100%) project in Bolivia, one of the world's largest undeveloped silver-indium-gallium deposits, and the large-scale Escalones (100%) copper-gold project in Chile. The Company's approach to business combines the team's track record of discovery and advancement of large projects, key operational and process expertise, and effective community relations to increase shareholder value. Management has extensive experience in the global exploration and mining industry with much of that focused in Bolivia, Chile, Peru and Argentina. The Company's shares are listed on the Toronto Stock Exchange under the symbol "SAC" and on the US OTC market as "SOHAF". Additional information related to South American Silver Corp. is available at www.soamsilver.com and on SEDAR at http://www.sedar.com.
Forward-looking statements
Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as "plans", "intends", "anticipates", "should", "estimates", "expects", "believes", "indicates", "suggests", "targeted", "scheduled", "will" and "may" and similar expressions. This release contains forward-looking statements. These forward-looking statements are based on current expectations and various estimates, factors and assumptions and involve known and unknown risks, uncertainties and other factors. Information concerning mineral resource estimates and the interpretation of ZTEM and aeromagnetic surveys results may also be considered as a forward-looking statement; as such information constitutes a prediction of what mineralization might be found to be present if and when a project is actually developed.
It is important to note that: Readers are cautioned not to place undue reliance on these statements as the Company's actual results, performance or achievements may differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements if known or unknown risks, uncertainties or other factors affect the Company's business, or if the Company's estimates or assumptions prove inaccurate. Therefore, the Company cannot provide any assurance that forward-looking statements will materialize. Factors that could cause results or events to differ materially from current expectations expressed or implied by the forward-looking statements, include, but are not limited to, possible variations in mineral resources, grade, metal prices; availability of sufficient financing to fund further required work in a timely manner and on acceptable terms; changes in project parameters as plans continue to be refined; availability of equipment; failure of equipment or processes to operate as anticipated; local community support, and political, regulatory, environmental and other risks of the mining industry and other risks more fully described in the Company's annual information form filed and publicly available on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward looking statements, there may be other factors that cause results to be materially different from those planned, estimated, forecasted, projected or expected. Readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. Subject to applicable laws, the Company assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason.
The material assumptions that were applied in making the forward looking statements in this release or referenced in this release include, but are not limited to: statements regarding estimated mineral resources and the potential for delineation of additional resources through further exploration at the Escalones and Malku Khota projects; the accuracy of current interpretation of drill and other exploration results; and execution of the Company's existing plans or exploration programs for its properties, either of which may change due to changes in the views of the Company or if new information arises which makes it prudent to change such plans or programs.
Subject to applicable laws, the Company assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason. Unless otherwise indicated, forward-looking statements in this release describe the Company's expectations as of February 27, 2012.
This press release uses the terms 'measured resources', 'indicated resources' and 'inferred resources' which are terms recognized and required by Canadian regulations (under National Instrument 43-101 Standards of Disclosure for Mineral Projects), however, these terms are not defined terms under SEC Industry Guide 7 and normally are not permitted to be used in reports and registration statements filed with the United States Securities and Exchange Commission. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will be converted into reserves. In addition, 'inferred resources' have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that an inferred resource will be upgraded to a higher category. Under Canadian rules, estimates of inferred resources may not form the basis of feasibility or pre-feasibility studies, or economic studies except for preliminary economic assessment as defined under NI 43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.
Contacts:
South American Silver Corp.
Investor Relations
604.681.6926 or Toll Free: 1.855.681.6926
http://www.soamsilver.com
SOURCE: South American Silver Corp.
http://www.soamsilver.com
South American Silver (TSX:SAC) Featured in February Issue of The Gold Newsletter - Video Summary Posted on www.InvestmentPitch.com
Press Release: InvestmentPitch – 2 hours 9 minutes ago
http://finance.yahoo.com/news/South-American-Silver-TSX-SAC-thomsonreuters-529500536.html?x=0
South American Silver Announces 4 Billion Pound Copper Discovery in Chile
TSX Symbol: SAC
US OTC: SOHAF
NEWS RELEASE: 11-12
South American Silver Announces 4 Billion Pound Copper Discovery in Chile
19 December 2011, Vancouver, British Columbia-South American Silver Corp. (TSX:SAC, US OTC: SOHAF) announces the first independent NI 43-101-qualified resource estimate for the Company's 100%-controlled Escalones copper-gold-silver project in central Chile.
Highlights:
· Newly defined Inferred Resource of 420 million tonnes of mineralized material containing 3.8 billion lbs of copper, 56.9 million lbs of molybdenum, 610,000 ozs of gold and 16.8 million ozs of silver using a 0.2% Cu Equivalent1 cut-off grade which represents approximately a $2.50/lb copper price (see table 1 below).
· This is a copper-equivalent1 content of 4.5 billion lbs of copper grading 0.49% based on approximate 3-year average metal prices of $3.00/lb copper, $1,200/oz gold, $22/oz silver and $16/lb molybdenum.
· The deposit remains open to expansion laterally and down dip with 90% of this first resource hosted in copper, gold and silver replacement-style mineralization, and one drill hole testing porphyry-style mineralization.
· The 70 square kilometer Escalones project is located in the world-class central Chilean mining district which includes the nearby El Teniente deposit, which is the world's largest underground copper mine.
· A ZTEM and aeromagnetic survey potentially indicating areas of additional sulfide mineralization has been completed for the property and is being interpreted.
· Two drills are currently being mobilized to the project for a Phase-II program with approximately 7,000 meters of drilling anticipated to begin in January and to complete in April.
"Escalones is the second major resource developed by South American Silver since the Company's IPO in 2007, and was originally discovered by Ralph Fitch, Executive Chairman, and Felipe Malbran, Vice President of Exploration. This resource estimate gives shareholders and other investors a tangible way to begin to value this outstanding second project in the Company's portfolio. With 4.5 billion pounds of copper equivalent metal, this resource is already larger and higher-grade than many much better known copper-gold projects in North and South America. To put this new discovery in context, the resource here is already approximately equivalent in value, size and scale to South American Silver's more advanced Malku Khota silver-indium project, effectively doubling the Company's in-ground resources," commented Greg Johnson, President and CEO.
"With the scale of this first resource, along with the excellent infrastructure at Escalones and its similarity to the nearby giant porphyry system at El Teniente, we believe that the Escalones project will begin to attract market attention. Our team is committed to adding significant new value for shareholders in coming months as we demonstrate potential for further resource expansion at Escalones and advance Malku Khota to the Pre-Feasibility level."
Table 1. Escalones Inferred Resource Tonnes and Grade
Cu_Eq (%)
Tonnes
Copper
Molybdenum
Gold
Silver
Copper Eq
Cut-off
Millions
%
ppm
g/t
g/t
%
0.1 %
636.2
0.33
57.40
0.04
1.06
0.39
0.2 %
420.6
0.41
61.39
0.05
1.24
0.49
0.3 %
232.7
0.55
68.25
0.06
1.66
0.64
Inferred Resource Total Contained Metal
Cu_Eq (%)
Copper
Molybdenum
Gold
Silver
Copper Eq
Cut-off
M lbs
M lbs
Ozs
M ozs
M lbs
0.1 %
4,567
80.4
754,000
21.7
5,453
0.2 %
3,835
56.9
610,000
16.8
4,503
0.3 %
2,842
35.0
435,000
12.4
3,292
1) Copper Equivalent (Cu Eq %) calculations reflect gross metal content using approximate 3 year average metals prices as of December 2011 of $3.00/lb copper (cu), $1200/oz gold (Au), $22/oz silver (Ag), and $16/lb molybdenum (Mo) and have not been adjusted for metallurgical recoveries. An economic cut-off grade of 0.2% copper equivalent represents a metal price of approximately $2.50/lb copper. Contained metal values may vary from calculated values due to rounding.
The Escalones mineral resource estimate is based on 30 diamond drill holes (12,666 meters) and 43 channel and road cuts (>2,100 meters) with >10,934 assay values collected through 2011. The resource estimate is categorized as inferred as defined by the Canadian Institute of Mining guidelines for resource reporting. Mineral resources do not demonstrate economic viability, and there is no certainty that these mineral resources will be converted into minable reserves once economic considerations are applied.
Assay values were verified against drill logs and assay certificates. Drill hole collar locations and downhole surveys were checked and verified. The mineral resource was estimated using 1.0-meter composites of the assay values, with zero grade inserted into intervals that were not sampled.
A geological model was constructed of the Cu-Au-Ag-Mo mineralized zone. This model was used to constrain the composite values chosen for interpolation and the ore blocks reported in the mineral resource. A block model was constructed using 10-meter by 20-meter by 5-meter blocks in the x, y and z directions respectively. Grades for copper, gold, silver and molybdenum were interpolated into the blocks by the inverse distance squared method using a minimum of two and maximum of 12 composites to generate block grades.
The inferred mineral resource estimate has been prepared in compliance with the standards of NI 43-101 by Dr. A. Armitage, PGeol, and J. Campbell, BSc, PGeo, of GeoVector Management Inc. GeoVector is an Ottawa, Ontario based consulting firm specializing in resource estimation, project assessment and project management. Dr. Armitage acted as the qualified person, as defined in NI 43-101, and is independent of the Company and has reviewed the technical information in this release. A NI 43-101 report will be finalized and filed on SEDAR within 45 days of the date of this news release.
2012 Escalones Exploration program
A phase II exploration program is now underway following work completed earlier in 2011 that included re-opening access roads and the project camp, relogging and sampling of historic drill holes, re-interpretation of an induced polarization (IP) survey and other geophysics along with trench sampling across surface exposures of geophysical anomalies and zones of visible copper mineralization. The 2012 Escalones exploration program will include up to 7,000 meters of follow-up drilling, including both step-out testing of the known mineralized zones and testing new targets based on geochemistry and geophysics.
The Escalones property lies within the well-known central Chilean porphyry copper belt that runs north-south through Chile in the central Andes Mountains. The property is located approximately 100 kilometers southeast of Santiago and 35 kilometers due east of El Teniente, the world's largest underground copper mine. The project has excellent infrastructure including road access and a gas pipeline that crosses the 70 square kilometer property.
The Escalones project hosts a four-square-kilometer area of hydrothermal alteration with coincident geophysical anomalies that has demonstrated significant grades of copper, gold and silver in replacement-style "skarn" mineralization hosted in limestones and in porphyry style mineralization. Mineralization remains open to further expansion laterally and at depth and the extensive scale of the replacement-style mineralization near surface indicates that it may be related to a significant copper porphyry deposit.
South American Silver has recently completed a property wide ZTEM deep penetrating, airborne geophysical program along with detailed aeromagnetics to assist in mapping and targeting of replacement style and porphyry style mineralization. Interpretation of these surveys is underway. Two drills are being mobilized to the project with drilling anticipated to begin in January with the objective to extend zones of known mineralization and test additional geologic and geophysical targets. The Company will report results over coming months from the upcoming drill program as they are received and interpreted.
Results of surface sampling and drilling at Escalones were reported in News Release 11-11 on December 6th, 2011, highlighting the significant grades and widths for copper, gold, and silver on the project. A grade-thickness figure along with a complete list of summary drill results for the project is available on the South American Silver website at www.soamsilver.com
About South American Silver Corp.
South American Silver Corp. is a growth focused mineral exploration company creating value through the exploration and development of the 100% owned Malku Khota silver-indium-gallium project in Bolivia, one of the world's largest undeveloped silver-indium-gallium deposits, and the large-scale 100%-controlled Escalones copper-gold project in Chile. The Company's approach to business combines the team's track record of discovery and advancement of large projects, key operational and process expertise, and effective community relations to increase shareholder value. Management has extensive experience in the global exploration and mining industry with much of that focused in Bolivia, Chile, Peru and Argentina. The Company's shares are listed on the Toronto Stock Exchange under the symbol "SAC" and on the US OTC market as "SOHAF". Additional information related to South American Silver Corp. is available at www.soamsilver.com and on SEDAR at www.sedar.com
South American Silver Corp. Contact:
Phone: 604.681.6926
Toll Free: 1.855.681.6926 www.soamsilver.com
futr
SAC CEO Video Interview
SAC CEO Greg Johnson was interviewed at the San Francisco Hard Asset Conference by Al Korelin. Greg talks about the upcoming PFS for Malku Khota and new projects in Chile.
Watch Interview Here
South American Silver Reports Surface Sampling and Drill Results from Escalones Copper-Gold-Silver Project and Initiates Phase II Exploration Program Table 1. Selected Escalones Alto Road Cut Channel Sampling (1) Copper Equivalent (Cu Eq%) calculations reflect gross metal content ---------------------------------------------------------------------------- See table 1 above for Copper Equivalent calculations. True widths have not ---------------------------------------------------------------------------- ----------------------------------------------------------------------------
5 hours 19 minutes ago - Marketwire via Comtex
http://finance.yahoo.com/news/South-American-Silver-Reports-iw-3225085801.html?x=0
South American Silver Corp. (TSX: SAC)(PINKSHEETS: SOHAF) South American Silver Corp. is pleased to announce the start of a Phase-II exploration program at the Company's 100%-controlled Escalones copper-gold-silver project in central Chile following the completion of Phase I program earlier in the year. The exploration program will include up to 7,000 meters of initial drilling, including both step-out testing of the known mineralized zones and testing new targets based on geochemistry and geophysics including the potential to define a large porphyry copper-gold deposit. The Company anticipates reporting the first independent NI 43-101-compliant resource estimate defined by the first 30 historic and recent drill holes in the project by the end of 2011.
The Escalones property lies within the well-known central Chilean porphyry copper belt that runs north-south through Chile in the central Andes Mountains. The property is located approximately 100 km southeast of Santiago and 35 kilometers due east of El Teniente, the world's largest underground copper mine. The project has excellent infrastructure including road access and a gas pipeline that crosses the 70 square kilometer property.
The Escalones project hosts a four-square-kilometer area of hydrothermal alteration with coincident geophysical anomalies that has demonstrated significant grades of copper, gold and silver in replacement-style "skarn" mineralization hosted in limestones and in porphyry related mineralization. Road cuts across surface exposures of this mineralization includes 116 meters of 1.4% copper, 0.57 g/t gold and 21 ppm molybdenum (1.83% copper equivalent1) and drill intersections including 75 to 100 meters wide zones grading over 1% copper (See Tables 1 to 3 below).
To date, only limited drill testing has been completed on the property with mineralization open to further expansion laterally and at depth. The extensive scale of the replacement-style mineralization near surface indicates that it may be related to a significant copper porphyry deposit at depth. A single step-out drill hole to test a potential porphyry target under glacial till cover intersected 293 meters of continuous porphyry style mineralization grading 0.36% copper with 0.1 g/t gold (0.42% copper equivalent1) and included an intersection of 91 meters grading 0.5% copper with 0.1 g/t gold (0.57% copper eq. see Table 4 below).
Greg Johnson, President and CEO of South American Silver commented, "The team at South American Silver is very excited to be advancing the Escalones project in the world-class central Chilean copper porphyry belt to the resource definition stage. Though earlier stage than our more advanced Malku Khota silver-indium project, we believe that the grades and significant widths of copper, gold and silver reported at Escalones indicate the presence of a strong mineralizing system that will add significant additional value for our shareholders. The location and scale of the Escalones project with its proximity and similarity to the geologic environment at El Teniente, the world's largest underground copper mine, suggest the potential for a major copper-gold-silver deposit. We look forward to reporting the first resource estimate for Escalones later this month based on the surface channel sampling and 30 holes drilled to date. We are equally excited about the upcoming phase II drill campaign and the expansion potential of the project that is open in all directions."
The first phase of work at Escalones by South American Silver included re-opening access roads and the project camp, relogging and sampling of historic drill holes, re-interpretation of IP (induced polarization) and other geophysics and trench sampling across surface exposures of geophysical anomalies and zones of visible copper mineralization. The verification of previous data and addition of new sampling enables the Company to complete a first independent NI 43-101-qualified resource estimate for the known zones of mineralization by the end of 2011.
Based on this information, South American Silver has now initiated a Phase-II exploration program, which includes a property wide ZTEM deep penetrating, airborne geophysical survey to assist in mapping and targeting of replacement style and porphyry-related mineralization and a substantial drill program designed to extend zones of known mineralization and test additional geologic and geophysical targets. The initial drill program will commence in December with mobilization of the first drill to site with a second to follow in January.
The Escalones deposit was discovered in the late 1990's by members of the current executive team at South American Silver, including Ralph Fitch, Executive Chairman, and Felipe Malbran, Vice President of Exploration, with the first modern surface sampling and drilling. The exposed mineralization at Escalones occurs in limestones and interbedded shales that have been intruded by andesite and dacite porphyry bodies which are key ore hosts at El Teniente. Copper mineralization occurs primarily as chalcopyrite, as well as copper oxides near surface. The hydrothermal alteration exposed at surface includes intense zones of quartz-sericite, potassic, and calc-silicate alteration assemblages.
The area of surface mineralization is separated into two known zones of sulphide, garnet, and magnetite-bearing replacement, called "Escalones Alto" and "Escalones Bajo." Escalones Bajo occurs at an elevation of approximately 3,400 m, while Escalones Alto occurs 1.5 kilometers to the east at an elevation of approximately 4,000 m. Connecting the two areas is a relatively flat plateau called the Meseta. Mineralization at Escalones Alto and Bajo can be traced on surface for 1.6 kilometers and 1 kilometer, respectively.
Surface sampling at both areas returned significant values for copper, gold, silver and gallium, as highlighted by selected one-meter channel sampling results:
----------------------------------------------------------------------------
Copper
Sample Distance Copper Molybdenum Gold Silver Gallium Eq(1)
----------------------------------------------------------------------------
Number (meters) (%) (ppm) (g/t) (g/t) (g/t) (%)
----------------------------------------------------------------------------
111251-111311 116 1.40 21 0.57 8 37.7 1.83
----------------------------------------------------------------------------
Including 64 2.22 21 0.83 12 58.9 2.85
----------------------------------------------------------------------------
Including 18 3.06 19 2.57 25 128.5 4.84
----------------------------------------------------------------------------
using approximate 3 year average metals prices of $3.00/lb copper (cu),
$1200/oz gold (Au), $22/oz silver (Ag), and $35/kg molybdenum (Mo) and have
not been adjusted for metallurgical recoveries. True widths have not been
determined for the above surface channel samples but are believed to be
representative of the mineralized zone at surface in this zone.
----------------------------------------------------------------------------
Table 2. Selected Escalones Bajo Road Cut Channel Sampling
Sample Distance Copper Molybdenum Gold Copper Eq
----------------------------------------------------------------------------
Number (meters) (%) (ppm) (g/t) (%)
----------------------------------------------------------------------------
14943-14950 170 0.51 32 0.02 0.54
----------------------------------------------------------------------------
Including 60 1.22 41 0.01 1.25
----------------------------------------------------------------------------
been determined for the above channel samples but are believed to be
representative of the mineralization at surface in this zone.
Nearly all of the previous drilling on the property targeted the replacement-style mineralization in the Escalones Alto zone, as highlighted in Table 3. This data will form the basis for the first NI 43-101 resource estimate at the project, which will be completed by the end of the year. As part of the 2011 Phase 1 program South American Silver reassayed some sections of drill holes that had previously only been analyzed for copper and molybdenum.
Table 3. Selected Drill Data, Escalones Project
From To Length Copper Molybdenum Gold Silver Copper Eq
----------------------------------------------------------------------------
(meters) (meters) (meters) (%) (ppm) (g/t) (g/t) (%)
----------------------------------------------------------------------------
ES-1
----------------------------------------------------------------------------
0.5 377.59 377 0.63 65 0.06 2 0.72
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0.5 77 76.5 1.32 15 0.13 4 1.45
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Including 27 72 45 1.75 14 0.15 5 1.90
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162.9 187 24.1 1.02 66 0.06 4 1.13
----------------------------------------------------------------------------
ES-5
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6 209 203 0.81 36 0.08 3 0.90
----------------------------------------------------------------------------
6 119 113 1.09 23 0.09 3 1.19
----------------------------------------------------------------------------
including 6 45.8 39.8 1.88 42 0.14 5 2.04
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96.4 119 22.6 1.65 17 0.18 5 1.82
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ES-7
----------------------------------------------------------------------------
11.1 137 125.9 0.77 49 0.15 5 0.93
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including 14.9 74.5 59.6 1.00 45 0.19 6 1.20
----------------------------------------------------------------------------
154 217 63 0.66 152 0.07 2 0.80
----------------------------------------------------------------------------
including 165 173 8 1.13 491 0.15 3 1.51
----------------------------------------------------------------------------
192 212.2 20.2 0.98 150 0.08 3 1.14
----------------------------------------------------------------------------
287 314 27 0.46 35 0.06 2 0.53
----------------------------------------------------------------------------
354 435 81 0.61 90 0.06 2 0.71
----------------------------------------------------------------------------
378 396 18 0.93 108 0.10 3 1.08
----------------------------------------------------------------------------
445 469 24 0.68 92 0.05 1 0.77
----------------------------------------------------------------------------
484 514 30 0.42 72 0.03 1 0.49
----------------------------------------------------------------------------
ES-10
----------------------------------------------------------------------------
34 177 143 0.56 52 0.09 3 0.67
----------------------------------------------------------------------------
37 54 17 0.80 17 0.13 6 0.95
----------------------------------------------------------------------------
117 131 14 1.03 60 0.22 4 1.23
----------------------------------------------------------------------------
ES-16
----------------------------------------------------------------------------
263 399 136 0.76 22 0.07 3 0.85
----------------------------------------------------------------------------
including 263.0 333 70 1.00 20 0.07 5 1.10
----------------------------------------------------------------------------
See table 1 above for Copper Equivalent calculations. True widths have not
been determined for the above intercepts but the holes are believed to be
representative of mineralization through the replacement-style
mineralization horizons.
Hole ES-25 was the first hole to specifically target porphyry style mineralization. ES-25 is located in the Meseta zone, more than 160 m west of the nearest drill hole that intersected replacement-style mineralization in Escalones Alto, and almost a kilometer east of the mineralization exposed in road cuts at Escalones Bajo, which remain to be drill tested.
-----------------------------------------------------------------------
-----
Table 4. ES-25 (porphyry-style mineralization)
From To Length Copper Molybdenum Gold Silver Copper Eq
----------------------------------------------------------------------------
(meters) (meters) (meters) (%) (ppm) (g/t) (g/t) (%)
----------------------------------------------------------------------------
65 358 293 0.36 12 0.09 - 0.42
----------------------------------------------------------------------------
including 197.0 288 91 0.50 12 0.10 - 0.57
----------------------------------------------------------------------------
See table 1 above for Copper Equivalent calculations. True widths have not
been determined for the above intercepts but the holes are believed to be
representative of mineralization porphyry style mineralization zone.
See the grade-thickness figure 1 below for a summary of all channel samples and drill results to date for the project. A complete list of summary drill results will be available on the South American Silver website at www.soamsilver.com.
The Escalones hydrothermal alteration zone encompasses a 4 square kilometer IP (induced polarization) and SP (self potential) geophysical anomaly. The geophysical results have been an important tool for exploration at Escalones, as anomalous values correspond to areas of hydrothermal alteration mapped at surface, and therefore, can be used to project altered zones beneath areas of cover and limited outcrops. In addition, the results showed that highly anomalous geophysical values are spatially related to copper sulphide mineralization, suggesting that the additional anomalies that have not yet been drill tested may represent areas of high sulphide concentrations containing copper, gold and silver. The results of the airborne ZTEM survey are pending and will be combined with the IP and SP geophysical surveys to prioritize the next phase of drilling designed to both expand known zones of mineralization and test new targets.
Samples were analyzed by Acme Laboratory and ALS Chemex located in Santiago, Chile. Silver and gold were analyzed using fire assay and the AA (Atomic Absorption) method while copper was analyzed by AA. Geochemical analysis of samples in 2011 including Gallium were analyzed by ALS Chemex using the ICP MS61 method with a four-acid digestion. Felipe Malbran, Executive Vice President of Exploration for the Company, is the Qualified Person for the project. He has reviewed the content of this press release.
Results from the phase II drill program will be reported as final assays are received and interpreted over the next several months. The first independent NI 43-101-qualified resource estimate for Escalones is being finalized and anticipated to be completed before the end of 2011.
About South American Silver Corp.
South American Silver Corp. is a growth focused mineral exploration company creating value through the exploration and development of the 100% owned Malku Khota silver-indium-gallium project in Bolivia, one of the world's largest undeveloped silver-indium-gallium deposits, and the large-scale 100%-controlled Escalones copper-gold project in Chile. The Company's approach to business combines the team's track record of discovery and advancement of large projects, key operational and process expertise, and effective community relations to increase shareholder value. Management has extensive experience in the global exploration and mining industry with much of that focused in Bolivia, Chile, Peru and Argentina. The Company's shares are listed on the Toronto Stock Exchange under the symbol "SAC" and on the US OTC market as "SOHAF". Additional information related to South American Silver Corp. is available at www.soamsilver.com and on SEDAR at www.sedar.com.
Forward-looking statements
Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as "plans", "intends", "anticipates", "should", "estimates", "expects", "believes", "indicates", "suggests" and similar expressions. This release contains forward-looking statements. These forward-looking statements are based on current expectations and various estimates, factors and assumptions and involve known and unknown risks, uncertainties and other factors. Information concerning mineral resource estimates and the interpretation of drill results may also be considered as a forward-looking statement; as such information constitutes a prediction of what mineralization might be found to be present if and when a project is actually developed.
It is important to note that:
Readers are cautioned not to place undue reliance on these statements as the Company's actual results, performance or achievements may differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements if known or unknown risks, uncertainties or other factors affect the Company's business, or if the Company's estimates or assumptions prove inaccurate. Therefore, the Company cannot provide any assurance that forward-looking statements will materialize. Factors that could cause results or events to differ materially from current expectations expressed or implied by the forward-looking statements, include, but are not limited to, possible variations in mineral resources, grade or recovery rates, metal prices, operating or capital costs; availability of sufficient financing to fund planned or further required work in a timely manner and on acceptable terms; changes in project parameters as plans continue to be refined; failure of equipment or processes to operate as anticipated; and political, regulatory, environmental and other risks of the mining industry.
The material assumptions that were applied in making the forward looking statements in this release or referenced in this release include, but are not limited to: statements regarding estimated mineral resources and the potential for delineation of additional resources through further exploration at the Malku Khota project, as well as statements regarding estimated net present value, internal rate of return, annual production, costs, prices and by product value; the accuracy of current interpretation of drill and other exploration results; and execution of the Company's existing plans or exploration programs for each of its properties, either of which may change due to changes in the views of the Company or if new information arises which makes it prudent to change such plans or programs.
Subject to applicable laws, the Company assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason. Unless otherwise indicated, forward-looking statements in this release describe the Company's expectations as of December 5, 2011.
To view the image associated with this press release, please visit the following link:
Contacts:
South American Silver Corp.
604.681.6926 or Toll Free: 1.855.681.6926
http://www.soamsilver.com
SOURCE: South American Silver Corp.
http://www.soamsilver.com
The silver market and South American Silver have wrung me out to dry. I have no idea what SAC will do from here.
Intuitively it should go up; governments worldwide are increasing their debts beyond the bounds ever imagined.
It was easy for me to enter this stock at 40 cents and determining that it would rise. Now we seem to be in a funk, so I cannot answer your question, other than eventually it will go up.
Although the Dow was up 490 points yesterday, I do not see this as a long trend. Any severe drop in markets will pull all stocks down. Good stocks like South American Silver can easily be pulled down, as people rush out the door to protect profits or selling to cover other short positions.
My holding in SAC is only 10% of its former position, as I have been into energy stocks lately.
Sorry for the nebulous reply,
sumi
PS: My biggest personal investment has been the time spent in expanding my gardens, as I can readily eat food and not stocks. Both are equally important to me.
Where do you see PPS going here?
South American Silver Files Third Quarter 2011 Financial Statements and MD&A and Project Update
Press Release: South American Silver Corp. – 1 hour 41 minutes ago
http://finance.yahoo.com/news/South-American-Silver-Files-iw-4055732166.html?x=0&l=1
VANCOUVER, BRITISH COLUMBIA--(Marketwire -11/10/11)- South American Silver Corp. (TSX: SAC.TO - News)(PINK SHEETS: SOHAF) reports the release of its unaudited interim consolidated financial statements for the three and nine months ended September 30, 2011 and the related management's discussion and analysis of financial position and results of operations ("MD&A").
The Company is also pleased to provide an update on the Malku Khota silver-indium-gallium project in Bolivia and the Escalones copper-silver-gold project in Chile. As at September 30, 2011, the Company had working capital of U.S. $28.6 million, including cash and cash equivalents of U.S. $28.6 million. With these funds in place, the Company is in a very strong financial position to accelerate the advancement of its Malku Khota project toward feasibility, and its Escalones project to the resource definition stage. Further details including the full financial statements and information on each of the Company's projects, including the resource estimate at Malku Khota, are available on the Company's website at www.soamsilver.com and on SEDAR at www.sedar.com.
President's Message
This past quarter has been a period of increased volatility in the global markets with concerns about the European debt crisis and the US economy. Trading volumes have been seasonally low contributing to this volatility in the North American markets. However, South American Silver has continued to move forward with our project development plan at both our Malku Khota silver-indium-gallium project and the Escalones copper-silver-gold project in Bolivia and Chile, respectively.
At the Malku Khota silver-indium-gallium project, engineering activities are in progress to refine the metallurgical characteristics of the deposit to a pre-feasibility level, and optimization studies are underway to further increase estimated production levels. Camp construction plans to support expanded project development activities at Malku Khota are currently in progress to support a significant drill campaign of in-fill and expansion work.
Earlier in 2011, the Company announced results from an updated Preliminary Economic Assessment ("PEA") for the Malku Khota silver-indium-gallium project. Results of the PEA more than doubled estimated mine production levels from the 2009 PEA to 13.2 million ounces of silver per year for the first 5 years of production, at a cash cost of U.S. $2.94 per ounce net of by-product credits at "base case" 3 year average metal prices, putting it in the lower quartile of producer costs. Additionally it more than doubled indium production to 80 tonnes of indium per year and reported the first projected production figures for gallium at 15 tonnes per year. With further resource optimization there remains excellent potential to extend the mine life beyond 15 years.
The report showed robust economic results with Pre-tax NPV of U.S. $704 million and IRR of 37.7% at conservative "base case" metal prices of U.S. $18.00/oz silver, and U.S. $500/kg indium at a 5% discount rate. At the "middle price case" of U.S. $25.00/oz silver the NPV at 5% increases to U.S. $1.536 billion with an IRR of 64.3%, and at current prices of U.S. $35/oz silver, the NPV at 5% increases to U.S. $2.571 billion. On a cash flow basis, the first 5 years increased to average U.S. $185 million per year at the base case, to U.S. $287 million per year at the middle case and to U.S. $430 million per year for the recent price case.
In addition to the updated PEA, the Company announced an updated resource estimate for the Malku Khota project expanding Measured and Indicated resources by 60% to 230 million ounces of silver with an additional Inferred resource of 140 million ounces of silver. In addition to the increased silver content, the updated resource estimate also included a Measured and Indicated resource of 1,481 tonnes of indium and 1,082 tonnes of gallium, plus 935 tonnes of indium and 1,001 tonnes of gallium in the Inferred category.
Also during the third quarter the Company commenced work on an initial resource estimate at the Escalones copper-silver-gold project based on the exploration program undertaken earlier in the year and all historic work to date on the project. In addition a program of re-logging and re-sampling of previously drilled holes along with re-interpretation of IP and SP geophysics was completed for the development of additional drill targets in the next phase of work. Preparations are also underway to complete a deep penetrating ZTEM geophysical survey in November on the project designed to assist in mapping and targeting of the porphyry related mineralization. Final preparations are being made for a drill program to expand resource on the project in Q4-2011.
Approach to business
South American Silver Corp.'s growth strategy has been to identify mineral properties that have significant scale potential to develop large resources in well established mining districts of Bolivia and Chile. Management looks to leverage its exploration and development expertise to bring additional resources and value to shareholders and to reduce development risk and expense through its focus on community relations and corporate social responsibility. The Company will continue to look for additional opportunities that can bring value to South American Silver's shareholders through its approach to business. Responsible mining and community collaboration are a key part of South American Silver's business strategy on its projects, where the Company is committed to upholding high environmental and social standards while focusing on delivering the financial growth its shareholders expect.
As part of the Company's ongoing community relations approach to Malku Khota, community relations personnel are working closely with the surrounding local communities. The Company will look to facilitate local and regional economic development through the various stages of project development.
As part of the Company's ongoing community relations approach to Malku Khota, community relations personnel are working closely with the surrounding local communities. The Company will look to facilitate local and regional economic development through the various stages of project development.
Current market and economic conditions
Though the precious metals markets have experienced noteworthy volatility through late summer and into the fall along with the general markets, recent prices have shown good relative strength and support for silver in the U.S. $35/oz range. Silver saw highs to the mid-U.S. $40/oz level in August and September with a correction to below U.S. $30/oz just one month later but has traded back into the mid-U.S. $30/oz range entering November (more than 70% higher compared to October 2010). Gold has seen its own swings in price surging to record highs of nearly U.S. $1900/oz in September (a nearly 125% increase from its 1980 nominal high of U.S. $850/oz) then briefly correcting to just below U.S. $1600/oz, before recovering to an average price of nearly U.S. $1750/oz in October. On an inflation-adjusted basis, silver still remains well below its highs of U.S. $140/oz in real terms as does gold with its high from 1980 estimated at U.S. $2350/oz in 2011 dollars.
Since mid 2010, silver has nearly doubled in value, outperforming gold, which has increased by about 40% over the same period. The current gold to silver price ratio of 50:1 remains well below its historic highs of 15-20:1 but is now well off of its 2010 lows in the 60-80:1 range.
The fundamentals for both silver and gold appear strongly supportive for continued higher prices as Governments continue to combat economic concerns with stimulus strategies to encourage economic growth and increase their sovereign debt. Increasingly, investors are returning to hard assets as a store of value and hedge against inflation and currency devaluation resulting in increased investment demand is being seen for both silver and gold in all forms, including Exchange Traded Funds (ETF's), new physical metal investment trusts, bars and coins.
For silver specifically, its hybrid nature as both a precious and industrial metal shows in the significant increases last year in both investment and industrial demand growth up 40% and 21% respectively. Industrial demand for silver is closely tied to global economic growth particularly in developing countries with applications ranging from biomedical to high technology. Silver appears to have resumed the multi-year trend prior to the recent global economic crisis of increasing overall industrial demand and has been accompanied by strong increases in investor demand.
With total demand rising 18% in 2010 and total supply growth including mining, secondary silver sources and government sales only up 8%, demand growth considerably outstripped supply. Mining production only rose a total of 2.5% with by-product silver production from both gold and copper mining falling in 2010 even with rising silver prices. Total by-product production of silver from base metal mining is anticipated to decline in coming years demonstrating that by-product silver production is largely price inelastic. With anticipated continued growth in industrial use coupled with strong investment demand, the fundamentals appear to remain positive for higher silver prices going forward. With one of the largest development stage silver resources, strong fundamentals and attractive valuation level relative to peers, South American Silver substantially outperformed both the metals and the silver and gold equity indexes over the past 18 months.
The indium and gallium market has shown tremendous strength in 2011 as well, surging from trough pricing during the global economic slowdown of around U.S. $500/kg to the U.S. $750-U.S. $1000/kg over the past several months. Recent developments in the indium and gallium markets continue to present compelling supply/demand dynamics for these high technology metals.
The main usages for indium and gallium are in flat panel displays and touch screens, high efficiency solar panels and high-efficiency, long life LED lighting. Global indium and gallium consumption is anticipated to continue to grow significantly in these rapidly expanding market sectors. In total, global indium use has grown approximately ten times since 1990.
With one of the largest NI 43-101 qualified resources of primary indium and gallium, South American Silver is attracting additional investor interest due to its large exposure to this rapidly growing high technology driven market.
Base metals have also seen significant volatility in their prices over the past several months with copper falling from its highs of nearly U.S. $4.50/lb in July and August toward the U.S. $3.00/lb level in October with a recent rebound back to U.S. $3.50/lb in early November. Similarly zinc has fallen from U.S. $1.00/lb toward U.S. $0.80/lb and has rebounded in early November back toward U.S. $0.90/lb. Recent price fluctuations in base metals appear to have been driven largely by short term economic concerns and general market volatility. Long term growth in demand for copper and zinc is likely to continue to be driven largely by growth in developing economies particularly in Asia where per capita consumption levels remain well below that of more developed nations.
With the volatility in the general markets and in commodities, equities in the sector have also seen significant swings in valuation over the past 6 months. Silver equities have been particularly so with the move of the silver price toward its highs of U.S. $50/oz last spring, the correction toward U.S. $30/oz and recent rebound toward U.S. $35/oz today. Most silver equities saw consolidation from their spring highs and many small cap and growth stage companies are below their 200-day moving averages, a level that has often acted as a significant support level in the on-going bull market. The larger cap producers have seen a significant rebound from their lows on the back of strong earnings and the most of the indices with these larger companies are now back above their 200 day moving averages suggesting that investment capital is beginning to flow back into the sector. Traditionally late fall and winter are the strongest seasonalities for the precious metals sector and it appears that we may be moving into stronger markets toward the end of the year. South American Silver remains at a very attractive investment valuation levels compared to many of its silver exploration and development stage peers and appears to have established a solid base of support at current levels.
Property review
Malku Khota
South American Silver's most advanced project is the Malku Khota silver-indium-gallium project located in the world-class silver mining district of central Bolivia, approximately 200 kilometres north of Potosi. Malku Khota is one of the world's large silver, indium and gallium resources. The updated PEA in early 2011 showed robust economics for a bulk-mineable heap leach operation with the potential to be one of the largest new silver, indium and gallium producing mines in development. The project is road-accessible, with power available within 15 kilometres of site.
The Company has recently expanded the community relations team under the direction of the Vice President of Operations and Social Responsibility. The Company anticipates continuing to build on its community relations team to support bringing the project into feasibility and permitting stages in 2012. With the acceleration of activities at the project, the community relations activities have also increased and discussions are underway with the surrounding communities to look at ways to facilitate local economic and business development through the various stages of project implementation. The recent update to the PEA estimated that the construction phase would facilitate the creation of approximately 1,000 new jobs in the region with over 400 employees needed during operations. For the remainder of 2011 Pre-feasibility activities will be the focus of work on the project.
Disseminated silver and indium mineralization at Malku Khota begins at the surface and remains open to further expansion laterally and at depth in a regionally extensive sandstone unit which continues for over 15 kilometres on the property. To date, only about 30% of the known prospective mineralized host stratigraphy at Malku Khota has been drill tested. As part of the pre-feasibility activities, the Company will look to undertake a significant resource expansion program in addition to infill work designed to convert inferred resources to measured and indicated resources and eventually into reserves. That future program will include drilling to test several additional high-priority, near surface targets based on surface sampling and geophysics, along with greater step out drilling laterally and to depth from the known mineralization.
South American Silver continues to refine the metallurgical characteristics of the deposit through ongoing process-related test work for the pre-feasibility study to optimize the leach recovery of the silver, indium, gallium and associated lead, zinc and copper mineralization in both heap leach and milling options.
Due to the large scale, near surface, bulk mineable nature of the deposit there remains excellent potential to continue to expand production levels beyond the 13 million ounces of silver per year level through further optimization of the resource and increases in overall mine throughput. Optimization studies to look at further production level increases will be included as part of the Pre-Feasibility level studies.
During the 3rd quarter ended September 30, 2011, expenditures at the Malku Khota project totaled approximately U.S. $0.9 million. Work focused on metallurgical testing, environmental baseline data collection, community meetings and various engineering optimization studies.
Escalones
The Escalones copper-silver-gold porphyry related project is located approximately 100 kilometres south-east of Santiago by road in central Chile. The property is 35 kilometres east of El Teniente, one of the world's largest underground copper mines and shows high grades at surface at over 1% copper with significant silver, gold 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% copper 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 the Escalones project, the Company completed an initial exploration program in early 2011 including follow-up geochemical sampling, geophysical interpretation, and re-logging and re-sampling of previously drilled core holes in connection with the planned issuance of an initial copper-gold-silver resource at this large scale, high potential porphyry project in Q4-2011. Also in Q4, a ZTEM deep penetrating geophysical survey is being carried out to assist in mapping and targeting of the porphyry related mineralization. A substantial drill program designed to extend zones of known mineralization and test additional geologic and geophysical targets is planned to start late in the year based on drill rig availability. A total of U.S. $88,000 was incurred at the Escalones project in the third quarter on the exploration program.
Looking Forward
With the completion of the updated resource and Preliminary Economic Assessment at the Malku Khota project in Q1-2011, the Company has moved fully into Pre-Feasibility level work which began mid-year. The next phase of the program will include further engineering and optimization studies, in-fill confirmatory drilling to confirm the predictability of the geologic model at the Limosna, Wara Wara and Sucre Zones and to move resources into reserves with the completion of a pre-feasibility level study on the project. The Company plans to complete additional resource expansion drilling designed to test expansion along trend and down dip and potentially continue to expand the project resources which remain open in all directions. The Company has budgeted approximately U.S. $16.7 million toward exploration and development work at Malku Khota during the pre-feasibility phase.
At the Escalones project, the Company has completed an initial exploration program that included follow-up geochemical sampling, and geophysical interpretation in connection with the planned issuance of an initial copper-gold-silver resource at this large scale, high potential porphyry project in Q4-2011. Planning is underway for a substantial drill program designed to extend zones of known mineralization and test additional geologic and geophysical targets is planned for later in the year based on drill rig availability.
In the months ahead, we are committed to reporting on a number of important project milestones which we believe will broaden shareholder value as we advance each of our South American projects through the next stages of development. I would like to thank all of our shareholders for their continued support, and to also thank our dedicated employees and management team for their hard work, which has helped position South American Silver as a leading development stage precious metals company.
Greg S. Johnson
President & CEO
About South American Silver Corp.
South American Silver Corp. is a growth focused mineral exploration company creating value through the exploration and development of the 100% owned Malku Khota silver-indium-gallium project in Bolivia, one of the world's largest undeveloped silver-indium-gallium deposits, and the large-scale 100%-controlled Escalones copper-gold project in Chile. The Company's approach to business combines the team's track record of discovery and advancement of large projects, key operational and process expertise, and effective community relations to increase shareholder value. Management has extensive experience in the global exploration and mining industry with much of that focused in Bolivia, Chile, Peru and Argentina. The Company's shares are listed on the Toronto Stock Exchange under the symbol "SAC" and on the US OTC market as "SOHAF". Additional information related to South American Silver Corp. is available at www.soamsilver.com and on SEDAR at www.sedar.com
Forward-looking statements
Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as "plans", "intends", "anticipates", "should", "estimates", "expects", "believes", "indicates", "suggests" and similar expressions. This MD&A contains forward-looking statements. These forward-looking statements are based on current expectations and various estimates, factors and assumptions and involve known and unknown risks, uncertainties and other factors. Information concerning mineral resource estimates and the interpretation of drill results may also be considered as a forward-looking statement; as such information constitutes a prediction of what mineralization might be found to be present if and when a project is actually developed.
It is important to note that:
Readers are cautioned not to place undue reliance on these statements as the Company's actual results, performance or achievements may differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements if known or unknown risks, uncertainties or other factors affect the Company's business, or if the Company's estimates or assumptions prove inaccurate. Therefore, the Company cannot provide any assurance that forward-looking statements will materialize. Factors that could cause results or events to differ materially from current expectations expressed or implied by the forward-looking statements, include, but are not limited to, possible variations in mineral resources, grade or recovery rates, silver or indium prices, operating or capital costs; availability of sufficient financing to fund planned or further required work in a timely manner and on acceptable terms; changes in project parameters as plans continue to be refined; failure of equipment or processes to operate as anticipated; and political, regulatory, environmental and other risks of the mining industry.
The material assumptions that were applied in making the forward looking statements in this release or referenced in this release include, but are not limited to: statements regarding estimated mineral resources and the potential for delineation of additional resources through further exploration at the Malku Khota project, as well as statements regarding estimated net present value, internal rate of return, annual production, costs, prices and by product value; the accuracy of current interpretation of drill and other exploration results; and execution of the Company's existing plans or exploration programs for each of its properties, either of which may change due to changes in the views of the Company or if new information arises which makes it prudent to change such plans or programs.
Subject to applicable laws, the Company assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason. Unless otherwise indicated, forward-looking statements in this release describe the Company's expectations as of November 10, 2011.
.
.
Contact:.
.
South American Silver Corp.
604.681.6926 or Toll Free: 1.855.681.6926
www.soamsilver.com
heres a little video that will show what stage this one is in and what the silver is worth in the ground http://www.facebook.com/l.php?u=http%3A%2F%2Fnetworkedblogs.com%2FnlxKN&h=DAQAv2mGLAQDeqgaLtYY6Aq8V-DgKLxecSBtLixU8GsecHA
What are your expectations for this one?
>Reentered SAC today after reviewing my notes, particularly that section that pertained to indium.
Took good profits a while back and should have limited my sale to that amount which would have allowed me to own free shares.
I'm still leery about Bolivia, so selling is always an immediate possibility.
sumi
South American Silver Files First Quarter 2011 Financial Statements and MD&A and Restated Annual 2010 Financial Statements and Related MD&ASouth American Silver Corp SAC 6/13/2011 7:50:10PM
VANCOUVER, BRITISH COLUMBIA, Jun 13, 2011 (MARKETWIRE via COMTEX News Network) --
South American Silver Corp. (TSX: SAC)(PINK SHEETS: SOHAF) reports that it has released its unaudited interim consolidated financial statements for the three months ended March 31, 2011 and the related management's discussion and analysis of financial position and results of operations ("MD&A").
As at March 31, 2011, the Company had working capital of U.S.$34.2 million, including cash and cash equivalents of U.S.$34.6 million. The Company is in a very strong financial position with 18-24 months of funding in place to advance the Malku Khota silver-indium project into feasibility and to advance the Escalones copper-gold project to the resource definition stage.
Copies of the unaudited financial statements and related MD&A can be found on SEDAR at www.sedar.com.
The Company also announces that it has filed on SEDAR restated audited consolidated financial statements for the year ended December 31, 2010 and the related MD&A. The Company has restated its cash flow statement in respect of the treatment of unrealized foreign exchange gains on its cash and cash equivalents held in Canadian funds. The unrealized gains had previously been included in the net loss for the year within operating activities and included in cash inflows. This amount has now been reclassified out of operating activities and presented separately. The reclassification has no impact on cash and cash equivalents at the end of the year. The MD&A has been amended to report the revised cash inflows.
About South American Silver Corp.
South American Silver Corp. is a growth focused mineral exploration company creating value through the exploration and development of the 100% owned Malku Khota Silver-Indium project in Bolivia, one of the world's largest undeveloped silver and indium deposits, and the 100% owned large-scale Escalones Copper-Gold project in Chile. The Company's approach to business combines the team's track record of discovery and advancement of large projects, key operational and process expertise and effective community relations to increase shareholder value. Management has extensive experience in the global exploration and mining industry with much of that focused in Bolivia, Chile, Peru and Argentina. The Company's shares are listed on the Toronto Stock Exchange under the symbol "SAC" and on the US OTC market as "SOHAF." Additional information related to South American Silver Corp. is available at www.soamsilver.com and on SEDAR at www.sedar.com.
Forward-looking Statements
Certain statements contained herein constitute "forward-looking statements". Forward-looking statements express, as at the date of this press release, the Company's plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results. Forward-looking statements are based on certain assumptions, including the key assumptions and parameters on which such estimates are based, involve risks and uncertainties and there can be no assurance that such statements will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements. Factors that could cause results or events to differ materially from current expectations expressed or implied by the forward-looking statements include, but are not limited to, the risks related to the development of the Company's properties and other risks more fully described in the Company's Annual Information Form filed and publicly available on SEDAR at www.sedar.com. Readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. Subject to applicable laws, the Company assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason.
Contacts: South American Silver Corp. William Filtness Chief Financial Officer (604) 684-0693 (604) 684-0642 (FAX)
SOURCE: South American Silver Corp.
Copyright 2011 Marketwire, Inc., All rights reserved.
South American Silver Corp. (TSX: SAC) Face the Analyst - Interview
http://www.investmentpitch.com/media/963/South_American_Silver_Corp._TSX:_SAC_Face_the_Analyst_-_Interview/
South American Silver Provides Update on Malku Khota Silver-Indium Project
4 May 2011, Vancouver, British Columbia—South American Silver Corp. (TSX:SAC, US OTC: SOHAF) today provided an update on the situation in Bolivia and the Malku Khota silver-indium project. Over recent days media coverage has reported that Bolivian officials were making changes to legislation from 1985, which among other things had allowed for the privatization during the 1990’s of the operatorship of certain specific mines owned and operated by COMIBOL (the Bolivian State Mining Corporation), but that now are under operating agreements directly or indirectly with COMIBOL.
Bolivian government officials have confirmed that these changes are primarily focused on the COMIBOL owned mines and private investments in mining will continue to be respected. Specifically, South American Silver has been assured by government officials that its 100% owned Malku Khota project will not be impacted by these proposed changes for government owned mines. The Company confirms that the Malku Khota project is a private investment and that there has never been COMIBOL involvement in the project. The Company also confirms that its concessions covering over 50 square kilometers are in good standing.
Recently, the Bolivian press reported that the Bolivian Vice Minister of Mining emphasized the government’s wishes to attract foreign investments in mining and respect legal security and private investment. In that same article, the Vice Minister further stated that the Bolivian government intends to support the development activities at South American Silver’s Malku Khota project this year as one of the largest new mining projects in the country.
Greg Johnson, President and CEO of South American Silver, stated “With the completion of the recent positive Preliminary Economic Assessment study on the Malku Khota project the Company is moving into Pre-Feasibility study activities for the remainder of 2011 and into Feasibility in 2012. We appreciate the support from the Bolivian government for the development of the Malku Khota project. The project has the potential to become one of the largest new primary silver producing mines in the world and would also be one of the largest producers of the high-technology metals, indium and gallium. At conservative base-case metal price assumptions of $18/oz silver, cash flows, project valuations and rates of returns have all strengthened considerably over previous studies, highlighting the value of this long life asset. The successful development and operation of the project will provide significant economic benefits to the local region and to Bolivia as a whole.”
About South American Silver Corp.
South American Silver Corp. is a growth focused mineral exploration company creating value through the exploration and development of the 100% owned Malku Khota silver-indium project in Bolivia, one of the world’s largest undeveloped silver and indium deposits, and the 100% controlled large-scale Escalones copper-gold project in Chile. The Company’s approach to business combines the team’s track record of discovery and advancement of large projects, key operational and process expertise and effective community relations to increase shareholder value. Management has extensive experience in the global exploration and mining industry with much of that focused in Bolivia, Chile, Peru and Argentina. The Company’s shares are listed on the Toronto Stock Exchange under the symbol “SAC” and on the US OTC market as “SOHAF.” Additional information related to South American Silver Corp. is available at www.soamsilver.com and on SEDAR at www.sedar.com
South American Silver Corp. Contact:
Phone: 604.681.6926
Toll Free: 1.855.681.6926
www.soamsilver.com
What is Indium?
A big part of the Malku Khota project is the Indium that is there, and a lot of people don't understand what it is. CEO Greg Johnson did a video explaining what Indium is and what it's used for.
Good vid, imo
Watch here
SAC CEO Greg Johnson gave a video update from the NYC Conference, updating the Malku Khota project.
Watch here: http://www.youtube.com/user/EvenKeelMedia#p/a/u/0/R4pqVa0j7tE
GOOD NEWS!Bolivian Miners Stop Nationalization Plans
Link...
http://online.wsj.com/article/SB10001424052748703703304576297780463939672.html?mod=googlenews_wsj
By MARTIN AROSTEGUI
SANTA CRUZ, Bolivia—Opposition from Bolivia's independently organized miners stopped President Evo Morales from implementing plans to boost state control over the country's mines Sunday, according to leading officials who were advocating takeovers of the country's vast mineral wealth.
Mr. Morales has generally used May 1 labor day festivities to highlight his socialist agenda of reverting the country's energy and mineral resources to state ownership. On previous labor days, he announced nationalizations of Bolivia's strategic hydrocarbon reserves and the electric power grid, with mass rallies and military displays.
This year, however, anticipated takeovers of the mining sector failed to materialize. Public calls by a group of state miners to nationalize several mines operated by private multinationals went ignored by Mr. Morales, who only pledged to alter certain free market laws.
Vice President Alvaro Garcia Linera pointed to serious differences within Bolivia's estimated 100,000 mine workers for the turnaround. "Unfortunately, eight other syndicates of miners have petitioned against it," Mr. Garcia told state miners at a rally in which Mr. Morales spoke only briefly.
Mr. Garcia called on government workers to try to convince their private sector colleagues about the need to nationalize.
Mining officials had suggested two weeks earlier that they intended to increase the state's role in tin and silver mines belonging to Switzerland's Glencore and Canada's Panamerican.
But last week, the Federated Syndicate of Bolivian Mine Workers, which represents miners employed in the private sector, threatened to strike. "We are not going to permit the state to take control of those mines", said union leader Cesar Lugo.
This government back-down is the latest indication of Mr. Morales's declining ability to mobilize public support for his economic agenda even among the poorest sectors of society, who strongly supported him in two elections.
Last Jan. 1, he was forced to reverse a decision to eliminate popular fuel subsidies after poor Indian slum dwellers threatened to march on his presidential palace. And last week he had to compromise with unions demanding wage hikes above the 10% proposed by his government.
Mr. Morales's administration has also been tainted by cases of corruption, including the U.S. arrest of a police general accused of running an international drug-smuggling organization.
Analysts worry the president's efforts to fund his ballooning bureaucracy, which has grown by 70%, according to some estimates, could lead to more corruption and runaway inflation.
"The government is an inept administrator," said Sergio Vacarreza Salazar, leader of a growing movement of independent mining cooperatives that is looking to foreign sources for investment.
"We want to form our own ventures with private investors to develop our mines. The government just does not have the money or access to technology," he added, following a deal signed last week between his independent workers' cooperative and a U.S.-based miner, Franklin Mining, to develop a gold mine.
Link...
http://online.wsj.com/article/SB10001424052748703703304576297780463939672.html?mod=googlenews_wsj
South American Silver Clarifies Private Ownership and Status of the Malku Khota Project
Press Release Source: South American Silver Corp. On Friday April 15, 2011, 9:25 am EDT
http://finance.yahoo.com/news/South-American-Silver-iw-326444506.html?x=0&.v=1
VANCOUVER, BRITISH COLUMBIA--(Marketwire - 04/15/11) - South American Silver Corp. (TSX:SAC - News)(PINK SHEETS:SOHAF - News) clarifies recent media coverage regarding the potential for the Government of Bolivia to "recover" operatorship control of certain State owned mines. On Thursday April 14th, the Minister of Mining and Metallurgy, through the Government's official Information Agency (ABI #238272) stated that Bolivia is evaluating greater operatorship in four specific mines, which are all 100% owned by COMIBOL (the Bolivian State Mining Corporation) and that are currently under lease agreements from COMIBOL as part of a privatization process in the mid-1990's.
Reuters also reported that the Minister of Mining and Metallurgy stated that the Bolivian Government is not looking at any mining projects that have been private investments from the start and without involvement of COMIBOL, such as San Cristobal, 100% owned by Japan's Sumitomo Corp.
South American Silver's 100% owned Malku Khota project has also been a private investment since its discovery by the Company in 2003 and has never had any COMIBOL involvement in the project. The Company confirms that its concessions covering over 50 square kilometers are in good standing with the government.
Additionally, on Wednesday April 13th the Bolivian paper Pagina Siete reported that the Vice Minister of Mining highlighted that the Bolivian government wishes to attract foreign investments in mining and respects legal security and private investment. He further stated that the government intends to support the development activities at Malku Khota this year as one of the largest new mining projects in the country. The mining industry is the second most important segment of the Bolivian economy with zinc and silver exports bringing over $1.57 billion into the country last year.
Greg Johnson, President and CEO of South American Silver, stated "Based on our regular discussions with the Bolivian government we believe that they want to encourage foreign private investment in mining and that they specifically support the development of the Malku Khota project. The development and operation of the project will provide significant economic benefits to the local region and to Bolivia as a whole with approximately 1,000 new jobs created in the region during the construction phase and over 400 employees during operations. The Malku Khota project has the potential to become one of the largest new primary silver producing mines in the world and would also be one of the largest producers of the high-technology metals, indium and gallium. At base case metal price assumptions, cash flows, project valuations, and rates of returns have all strengthened considerably over previous studies, highlighting the value of this long life asset. We are excited about the significant opportunities to further optimize and enhance the economics of the Malku Khota project as we move into Pre-Feasibility in 2011 and Feasibility in 2012."
About South American Silver Corp.
South American Silver Corp. is a growth focused mineral exploration company creating value through the exploration and development of the 100% owned Malku Khota silver-indium project in Bolivia, one of the world's largest undeveloped silver and indium deposits, and the 100% controlled large-scale Escalones copper- gold project in Chile. The Company's approach to business combines the team's track record of discovery and advancement of large projects, key operational and process expertise and effective community relations to increase shareholder value. Management has extensive experience in the global exploration and mining industry with much of that focused in Bolivia, Chile, Peru and Argentina. The Company's shares are listed on the Toronto Stock Exchange under the symbol "SAC" and on the US OTC market as "SOHAF." Additional information related to South American Silver Corp. is available at www.soamsilver.com and on SEDAR at www.sedar.com
Forward-looking statements
This press release contains forward-looking statements based on current expectations and assumptions and which involve known and unknown risks, uncertainties and other factors. Readers are cautioned not to place undue reliance on these statements as actual events, results and achievements may differ materially from any future events, results or achievements expressed or implied by such forward-looking statements if known or unknown risks, uncertainties or other factors occur or assumptions prove inaccurate. Therefore, the Company cannot provide any assurance that forward- looking statements will materialize. Factors that could cause results or events to differ materially from current expectations expressed or implied by the forward-looking statements, include, but are not limited to, possible variations in mineral resources, grade or recovery rates, silver or indium prices or operating or capital costs; availability of sufficient financing to fund planned or further required work in a timely manner and on acceptable terms; changes in project parameters as plans continue to be refined; failure of equipment or processes to operate as anticipated; ongoing positive community support and successful completion of stakeholder discussions; and political, regulatory, environmental and other risks of the mining industry, including the accuracy of reported government statements regarding government policyor changes to government policy from reported statements. The material assumptions that were applied in making the forward looking statements in this release include, but are not limited to, the accuracy of reported government statements and the execution of the Company's existing plans for Malku Khota which may change due to changes in the views of the Company or if new information arises which makes it prudent to change such plans. Subject to applicable laws, the Company assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason. Unless otherwise indicated, forward-looking statements in this release describe the Company's expectations as of April 15, 2011.
Contact:
Contacts:South American Silver Corp.604.681.6926 or Toll Free: 1.855.681.6926www.soamsilver.com
South American Silver Corp.: Updated Malku Khota Study Doubles Production Levels and 1st 5 Year Cashflow Estimates
Press Release Source: South American Silver Corp. On Thursday March 31, 2011, 8:36 am
VANCOUVER, BRITISH COLUMBIA--(Marketwire - 03/31/11) - South American Silver Corp. (TSX:SAC - News)(PINK SHEETS:SOHAF - News) is pleased to report positive results from an updated Preliminary Economic Assessment (the "PEA" or "Assessment") including an updated resource estimate for its 100% owned Malku Khota silver-indium project. A detailed NI 43-101 technical report will be filed within 45 days on SEDAR at www.sedar.com.
Highlights
--Updated Malku Khota economic assessment study doubles mine throughput to 40,000 tonnes per day (tpd) for a 15 year mine life with excellent potential for extension through additional drilling.
--Annual silver production for the first 5 years of 13.2 million ounces at a cash cost of $2.94 per ounce net of by-product credits at "base case" metal prices putting it in the lower quartile of producer costs.
--Annual production 80 tonnes per year of indium and 15 tonnes of gallium.
--Pre-tax NPV at a 5% discount rate of $704 million and IRR of 37.7% at "base case" metal prices of $18.00/oz silver, and $500/kg indium, increasing to a NPV5% of $1.536 billion and IRR to 64.3% at "middle price case" of $25.00/oz silver, and to a NPV5% of $2.571 billion at the "recent price case" of $35/oz silver.
--Cash flows for the first 5 years increase to average $185 million per year at the base case, to $287 million per year at the middle case and to $430 million per year for the recent price case.
--Updated resource estimate expands Measured and Indicated resources 60% to 230 million ounces of silver with an additional Inferred resource of 140 million ounces of silver.
--2010 drill program successfully confirms the geologic model with over 80% of the life-of-mine silver resources classified as the Measured and Indicated category in the pit model.
--During the construction phase approximately 1,000 new jobs would be created in the region with over 400 employees likely during operations.
--Budget of $16 million approved for 2011 with Pre-Feasibility activities beginning in Q2.
The remainder:
http://finance.yahoo.com/news/South-American-Silver-Corp-iw-3175473906.html?x=0&.v=1
South American Silver Year End Financial Results and Project Update
Press Release Source: South American Silver Corp. On Monday March 21, 2011, 9:30 am EDT
http://finance.yahoo.com/news/South-American-Silver-Year-iw-2345708115.html?x=0&.v=1
VANCOUVER, BRITISH COLUMBIA--(Marketwire - 03/21/11) - South American Silver Corp. (TSX:SAC - News)(PINK SHEETS:SOHAF - News) reports the release of its audited financial statements for the year ended December 31, 2010 and the related management's discussion and analysis and results of operations. The Company is also pleased to provide an update on the Malku Khota silver-indium project in Bolivia and the Escalones copper-gold project in Chile. The Company began 2011 in a very strong financial position with 18-24 months of funding in place to advance the Malku Khota silver-indium project into feasibility and to advance the Escalones copper-gold project to the resource definition stage. Further details including the full financial statements and information on each of the Company's projects, including the resource estimate at Malku Khota, are available on the Company's website at www.soamsilver.com and on SEDAR at www.sedar.com.
Presidents Message
The year 2010 proved to be a remarkable year of transition for South American Silver. Since joining the Company as President and CEO in April of 2010 and raising project funding, substantial progress has been made on the Malku Khota silver-indium project in Bolivia. In addition, we are preparing to launch a new exploration program at our promising Escalones copper-gold project in Chile. A key focus for 2010 was also to broaden market awareness of the exceptional investment value opportunity in South American Silver. I am pleased to report that the focused efforts of the Company resulted in South American Silver being one of the top performing silver equities in 2010. Even with this growth last year, South American Silver offers some of the best value and leverage to silver of any development stage silver company in the industry, with nearly 5 ounces of silver per share. The year ahead should be an exciting one as well, with the Malku Khota silver indium project beginning Pre-Feasibility work in Q2 and exploration activities commencing at the Escalones copper-gold project to complete a first resource on that property. In addition, we have a number of important milestones for the projects this year which we believe will increase shareholder value, and we will continue investor outreach activities to further broaden market awareness.
Description and approach to business
South American Silver Corp. is a growth focused mineral exploration company creating value through the exploration and development of the 100% owned Malku Khota silver-indium project in Bolivia, one of the world's largest undeveloped silver and indium deposits, and the 100% controlled large-scale Escalones copper-gold project in Chile. The Company's approach to business combines the team's track record of discovery and advancement of large projects, key operational and process expertise, and effective community relations to increase shareholder value. 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. The Company's shares are listed on the Toronto Stock Exchange under the symbol "SAC" and on the US OTC market as "SOHAF".
South American Silver Corp.'s growth strategy has been to identify mineral properties that have significant scale potential to develop large resources in well established mining districts of Bolivia and Chile. Management looks to leverage its exploration and development expertise to bring additional resources and value to shareholders and to reduce development risk and expense through its focus on community relations and corporate social responsibility. The Company will continue to look for additional opportunities that can bring value to South American Silver's shareholders through its approach to business. Responsible mining and community collaboration are a key part of South American Silver's business strategy on its projects, where the Company is committed to upholding high environmental and social standards while focusing on delivering the financial growth its shareholders expect.
As part of the Company's ongoing community relations approach to Malku Khota, community relations personnel are working closely with the surrounding local communities. The Company will look to facilitate local and regional economic development through the various stages of development of the project.
Current market and economic conditions
As of March 2011, the prices of silver and gold have continued to show tremendous strength, having recovered from a brief correction starting in early December. Silver recently reached over $35.00/oz, its highest price in more than two decades and gold has been as high as $1,440/oz, surpassing its December 2010 high of $1425/oz and well above its 1980 high of $850/oz. Strong demand for commodities and the weakening of the US dollar remain contributing factors to continuing strength in metals prices. Since March 2010, silver has more than doubled in value, outperforming gold which has increased by about 26% over the same period. The current gold to silver price ratio of 40:1 remains well above its historic lows of 15-20:1 but is now well off of its highs last year in the 60-80:1 level.
The fundamentals for both silver and gold appear strongly supportive for continued higher prices. Governments continue to combat economic concerns with stimulus strategies to encourage economic growth and increase their sovereign debt. Increasingly, investors are returning to hard assets as a store of value, and a hedge against inflation and currency devaluation resulting in increased investment demand being seen for both silver and gold in all forms, including Exchange Traded Funds (ETF's), new physical metal investment trusts, bars and coins.
For silver specifically, the increased use in industrial applications ranging from biomedical to high technology is notable as it has become an increasingly larger percentage of the total annual demand. Up until the recent global economic crisis, industrial demand for silver had risen consistently on an annual basis over the 6 year period starting from 2002. That trend appears to have resumed with increased industrial demand in 2010. Total global silver supply peaked in 2005 and has been flat to falling since. With an anticipated rebound in industrial demand, coupled with continued strong investment demand, the fundamentals remain positive for higher silver prices. Compellingly, silver is one of the only major metals to have not yet reached its previous all time highs from the early 1980's when it traded in the mid-$30/oz level and to $50/oz in 1980. With one of the largest development stage silver resources, strong fundamentals and attractive valuation level relative to peers, South American Silver substantially outperformed both the metals and the silver and gold equity indexes for the greater part of 2010, continuing into 2011.
Recent developments in the indium market also continue to present compelling supply/demand dynamics for the high technology metal. Over the past 5 years indium prices have ranged between $400/kg to over $1,000/kg, with two of the past 5 years at over $1,000/kg. November 2010 indium prices have continued to rise from the lows of 2008-2009 and are currently around $550-600/kg reflecting the recent improving global economic conditions.
Because of the unique optical and electrical properties of indium and its rapidly growing use in flat panel displays, touch screens, smart phones, high efficiency solar panels and high-efficiency, long life LED lighting, global indium consumption is anticipated to continue to grow significantly. Over the past 5 years, the largest segment of the indium market for LCD panels has grown four times, solar panel growth utilizing either high silver or high indium technology has increased ten times, and the high efficiency, long life LED lighting market has seen compound annual growth rates of over 32%. According to a recent Roskill report on the global industry markets and outlook for indium, consumption of indium for flat panel display (FPD) applications is expected to grow at a rate of 17%/year, from 395 tonnes/year in 2009 to 752 tonnes/year in 2013, while solar applications could increase at nearly 40%/year. In total, global indium use has grown approximately ten times since 1990.
Historically indium has been supplied primarily as a by-product of zinc metal refining, with few primary producers. At current growth rates, it is estimated that by-product indium production may soon fall short of demand based on zinc production growth rates of only 1-3% per year and indium growth rates estimated at 15-20% per year. Recent studies by both the UN and the U.S. Department of Energy have highlighted indium, along with a number of rare earth metals, as a key specialty high-technology metal potentially at risk of shortages due to rapidly increasing growth, low recycling rates and low primary production. A recent study published in New Scientist Magazine by Yale University researchers, supports this conclusion showing that based on total reserves vs. current consumption indium is one of the most scarce of the strategic metals at just 5-10 years total supply without factoring in continued rapid consumption growth.
China is the largest producer and consumer of indium and has imposed export quotas and restrictive tariffs on indium exports. As a response, both Japan and Korea, as the second and third largest users of the metal, have begun creating strategic stockpiles of indium to ensure security of their supply needs. In late 2010, Chinese interests announced taking a 50% stake in a development stage primary indium project outside of China, committing the funding to bring the project to production.
Investor interest in indium has also been increasing, with SMG Indium announcing the creation of a new IPO for an indium market tracker in 2010. This future US listed investment has been designed to stockpile raw indium metal and track the price of indium, much like the recently introduced silver and gold ETF's, which have significantly expanded investor exposure and demand for both metals in recent years. With one of the largest NI 43-101 qualified resources of primary indium, South American Silver is attracting additional investor interest due to its large exposure to this rapidly growing market for indium.
Copper and zinc have also rebounded significantly from their lows of 2008 at less than $1.50/lb and $0.50/lb respectively to trade recently above $4.50/lb for copper and $1.15/lb for zinc. Demand for copper and zinc is being driven largely by growth in Asia and particularly China and India where industrialization remains a long-term supporting factor for basic materials. With South American Silver anticipating a first resource estimate on its Chilean based copper-gold project in 2011, investors are well positioned to benefit from this long term metal cycle in base metals.
Precious metals equities have responded well to the move up in precious metals with many showing greater percentage gains than the underlying metals. Particularly, many of the exploration and development-stage companies have shown stronger relative performance compared with the larger producers demonstrating increased demand by investors for growth potential. On a year to date basis, South American Silver Corp. has significantly outperformed the key gold and silver equity indexes such as the broad Toronto Gold Index and the U.S. Amex Gold Miners Index. South American Silver remains at a very attractive investment valuation level compared to its silver exploration and development stage peers.
Resource based economies have continued to benefit from the rebound in metal prices over the past year, particularly those in emerging markets like South America. With mining representing one of the largest elements of the Bolivian economy, Bolivia has continued to have one of the fastest growing GDP's in all of the Americas. Bolivia has seen 3 major new silver mines come into production in the past 4 years, including Pan America Silver, Coeur D'Alene, and Sumitomo Mines. This has helped push Bolivia to the 5th largest global silver producing country in the past couple of years. The large amount of trade activity with Brazil has been particularly positive as well. These improving economic and business conditions have resulted in bond upgrades for Bolivia by Moody's and Fitch rating services in 2010.
Recent developments
Late last year, the Company announced exploration drilling results for the Malku Khota project (PR 10-13). Results were reported on thirteen additional drill holes out of an approximate 11,500 metre on-going drill campaign. The primary objective of the 2010 drill program had been confirmatory drilling to demonstrate the predictability of the geologic model especially within the modeled pit boundaries in preparation for the updated Preliminary Economic Assessment at the end of Q1-2011. The drill campaign primarily focused on in-fill drilling within the pit model with some deeper holes designed to increase the amount of drill information lower in the pit models. These deeper holes have confirmed the broadly mineralized horizon remains open to depth. An additional drill rig was added to the project for a total of 3 drills to maximize the number of holes for the resource.
To date, only about 30% of the known prospective mineralized host stratigraphy at Malku Khota has been drill tested. In 2011, the Company will look to undertake a significant resource expansion program in addition to infill work designed to convert inferred resources to measured and indicated resources and eventually into reserves. That future program will include drilling to test several additional high-priority, near surface targets based on surface sampling and geophysics, along with greater step out drilling laterally and to depth from the known mineralization.
Highlights of the recent drilling in the central portion of the Limosna deposit at Malku Khota have shown that the higher grade mineralization seen at surface continues deeper and broadens out. This new mineralization is toward the lowest levels modeled for the 2009 Preliminary Economic Assessment ("PEA") completed by Pincock, Allan and Holt. The results from holes LMD048 and LMD050 demonstrate two of the best intercepts to date on the project in terms of width and grade with respective down-hole grade-thickness values of over 21,500 gram-meters (g-m) silver equivalent and greater than 13,500 g-m silver. LMD048 intercepted 286 meters at 62.4 g/t silver with 2.7 g/t indium and 3.2 g/t gallium, with a high-grade zone of 31 meters grading 260 g/t silver. LMD050 intercepted 243 meters grading 43.1 g/t silver with 1.4 g/t indium and 3.6 g/t gallium, with high grade zone of 19 meters grading 258.5 g/t silver.
Additionally, the Company has continued metallurgical and process-related test work to further refine the leach recovery characteristics for silver and indium and associated gold, copper, lead, zinc and gallium mineralization. The test work to date indicates the amenability of heap leaching and/or milling of the mineralized material at Malku Khota.
Engineering studies are being completed in Q1-2011 using an updated 3D geologic model, metallurgical and process studies, and refined plans for mine facilities, operations infrastructure, and project implementation utilizing local resources as much as possible. This information will be the basis for a substantive update of the 2009 PEA and will look at a number of optimization approaches to be incorporated in an updated economic assessment study planned for the end of the first quarter of 2011.
On November 30, 2010, the Company announced the sale of 27.5 million common shares of the Company, by way of private placement at a price of Cdn. $1.16 per share, for gross proceeds of approximately Cdn. $31.9 million. The largest component of the offering was a strategic investment by Zamin Precious Minerals Limited, which purchased 18.9 million common shares under this offering representing approximately 19.7% of the Company's issued shares following the closing of the financing. The Zamin mining group is a key regional player in the South American resource industry with major projects in Brazil, Uruguay, Bolivia, and Chile. South American Silver looks forward to working with this key strategic investor to continue to advance the Company's Malku Khota and Escalones assets.
[b[Property review
Malku Khota
South American Silver's most advanced project is the Malku Khota silver-indium project located in the world-class silver mining district of central Bolivia, approximately 200 kilometers north of Potosi. Malku Khota is one of the world's large silver and indium resources with an NI 43-101-qualified indicated resource of 144.6 million ozs of silver and 845 tonnes of indium and an additional inferred resource of 177.8 million ozs of silver and 968 tonnes of indium. The PEA prepared by Pincock Allen & Holt Inc. in 2009 showed robust economics for a bulk-mineable heap leach operation with the potential to be one of the largest new silver and indium producing mines in development. The project is road-accessible, with power available within 15 kilometers of site.
The Company has a history of engagement with the communities surrounding the Malku Khota project. The Company has recently added a new coordinator of Community Relations in addition to three full-time Community Relations personnel on the project. In addition the Company anticipates continuing to build on its community relations team to support bringing the project to feasibility and permitting in 2012. With the acceleration of activities at the project, the community relations activities have also increased and discussions are underway with the surrounding communities to look at ways to facilitate local economic and business development through the various stages of project implementation. Field work to support the Pre-Feasibility studies on the project is anticipated to start in Q2 with the conclusion of these community discussions.
Disseminated silver and indium mineralization at Malku Khota begins at the surface and remains open to further expansion laterally and at depth in a regionally extensive sandstone unit which continues for over 15 kilometers on the property. Drilling in 2010 was primarily focused on confirmation and in-fill drilling, with a focus to increase the density of drilling in the areas that fall within the pit model. This drilling, which concluded at the end of December 2010, will be integrated into an updated resource estimate by the end of Q1, 2011.
Since completion of the PEA in March 2009, South American Silver has continued to refine the metallurgical characteristics of the deposit through ongoing process-related test work to refine the leach recovery characteristics of the silver, indium and associated lead, zinc, copper and gallium mineralization in both heap leach and milling options. The test work to date indicates the amenability of heap leaching and/or milling of the mineralized material at Malku Khota applying the same type of process as used in copper oxide SX-EW heap leach mining or by the indium refineries that process by-product indium from zinc smelting. This updated information will be integrated into an updated Preliminary Economic Assessment at the end of Q1-2011.
During the year ended December 31, 2010, expenditures at the Malku Khota project totaled approximately $3.6 million. Work focused on drilling, metallurgical testing, environmental baseline data collection, community meetings and various engineering optimization studies.
Escalones
The Escalones copper-gold-silver porphyry related project is located approximately 100 kilometers south-east of Santiago by road in central Chile. The property (35 kilometers east of El Teniente, one of the world's largest underground copper mines) 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 meters grading over 1% and a single deeper hole intercepted 176 meters 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 the Escalones copper-gold project, the Company has completed initial geological modeling and will commence an exploration program by the end of Q1-2011 that would include follow-up geochemical sampling, and geophysics in connection with the planned issuance of an initial copper-gold-silver resource at this large scale, high potential porphyry project in 2011. A substantial drill program designed to extend zones of known mineralization and test additional geologic and geophysical targets is planned for later in the year based on drill rig availability. A total of $237,794 was incurred at the Escalones project during 2010 for geologic modeling work and a $150,000 option payment.
Looking Forward
The Company is continuing to focus on the work necessary for the completion of an updated resource and Preliminary Economic Assessment at the Malku Khota silver-indium project by the end of Q1-2011. This program included more detailed metallurgical and engineering studies, as well as in-fill confirmatory drilling at the Limosna, Wara Wara and Sucre Zones to confirm the predictability of the geologic model. Beginning in 2011 the Company will look to undertake a significant level of infill drill work designed to convert inferred resources to measured and indicated resources and eventually into reserves along with additional resource expansion drilling. Field work to support Pre-Feasibility level studies on the project is anticipated to start in Q2-2011. The Company has budgeted approximately $16.7 million toward exploration and development work at Malku Khota in 2011.
At the Escalones copper-gold project, the Company has completed initial geological modeling and will commence an exploration program by the end of Q1-2011 that would include follow-up geochemical sampling, and geophysics in connection with the planned issuance of an initial copper-gold-silver resource at this large scale, high potential porphyry project in 2011. A substantial drill program designed to extend zones of known mineralization and test additional geologic and geophysical targets is planned for later in the year based on drill rig availability. The Company has budgeted exploration expenditures of $3.2 million to be incurred at Escalones in 2011.
In the months ahead, we are committed to reporting on a number of important project milestones which we believe will broaden shareholder value as we advance each of our South American projects through the next stages of development. I would like to thank all of our shareholders for their continued support, and to also thank our dedicated employees and management team for their hard work, which has helped position South American Silver as a leading development stage precious metals company.
Greg S. Johnson, President & CEO
About South American Silver Corp.
South American Silver Corp. is a growth focused mineral exploration company creating value through the exploration and development of the 100% owned Malku Khota silver-indium project in Bolivia, one of the world's largest undeveloped silver and indium deposits, and the 100% controlled large-scale Escalones copper-gold project in Chile. The Company's approach to business combines the team's track record of discovery and advancement of large projects, key operational and process expertise and effective community relations to increase shareholder value. 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. The Company's shares are listed on the Toronto Stock Exchange under the symbol "SAC" and on the US OTC market as "SOHAF." Additional information related to South American Silver Corp. is available at www.soamsilver.com and on SEDAR at www.sedar.com.
Forward-looking statements
Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as "plans", "intends", "anticipates", "should", "estimates", "expects", "believes", "indicates", "suggests" and similar expressions. This MD&A contains forward-looking statements. These forward-looking statements are based on current expectations and various estimates, factors and assumptions and involve known and unknown risks, uncertainties and other factors. Information concerning mineral resource estimates and the interpretation of drill results may also be considered as a forward-looking statement; as such information constitutes a prediction of what mineralization might be found to be present if and when a project is actually developed.
Readers are cautioned not to place undue reliance on these statements as the Company's actual results, performance or achievements may differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements if known or unknown risks, uncertainties or other factors affect the Company's business, or if the Company's estimates or assumptions prove inaccurate. Therefore, the Company cannot provide any assurance that forward-looking statements will materialize. Factors that could cause results or events to differ materially from current expectations expressed or implied by the forward-looking statements, include, but are not limited to, possible variations in mineral resources, grade or recovery rates, silver or indium prices, operating or capital costs; availability of sufficient financing to fund planned or further required work in a timely manner and on acceptable terms; changes in project parameters as plans continue to be refined; failure of equipment or processes to operate as anticipated; ongoing positive community support and successful completion of stakeholder discussions; and political, regulatory, environmental and other risks of the mining industry. The material assumptions that were applied in making the forward looking statements in this release or referenced in this release include, but are not limited to: statements regarding estimated mineral resources and the potential for delineation of additional resources through further exploration at the Malku Khota project; the accuracy of current interpretation of drill and other exploration results; and execution of the Company's existing plans or exploration programs for each of its properties, either of which may change due to changes in the views of the Company or if new information arises which makes it prudent to change such plans or programs.
Subject to applicable laws, the Company assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason. Unless otherwise indicated, forward-looking statements in this release describe the Company's expectations as of January 12, 2011.
Contact:
Contacts:South American Silver Corp.Greg S. JohnsonPresident & CEO604.681.6926 or Toll Free: 1.855.681.6926www.soamsilver.com
South American Silver Provides Project Update
http://finance.yahoo.com/news/South-American-Silver-iw-253706952.html?x=0&.v=1
VANCOUVER, BRITISH COLUMBIA--(Marketwire - 01/12/11) - South American Silver Corp. (TSX:SAC - News)(PINK SHEETS:SOHAF - News) is pleased to provide an update on the Malku Khota silver-indium project in Bolivia and the Escalones copper-gold project in Chile. The Company moves into 2011 in a very strong financial position with 18-24 months of funding in place to advance the Malku Khota silver-indium project into feasibility and to advance the Escalones copper-gold project to the resource definition stage.
Malku Khota Silver Indium Project
South American Silver's most advanced project is the 100% owned Malku Khota Silver-Indium project located in the world-class silver mining district of central Bolivia, approximately 200 kilometres north of Potosi. Malku Khota is one of the world's large silver and indium resources with an NI 43-101-qualified indicated resource of 144.6 million ozs of silver and 845 tonnes of indium and an additional inferred resource of 177.8 million ozs of silver and 968 tonnes of indium. The Preliminary Economic Assessment (PEA) prepared by Pincock Allen & Holt Inc. in 2009 showed the potential for robust economics from a bulk-mineable heap leach operation with the potential to become one of the largest new silver and indium producing mines in development. The project is road-accessible, with power available within 15 kilometres of site.
Drilling and field activities on the Malku Khota project were completed in late December in preparation for an updated project resource and economic assessment. Resource modeling is currently underway and is now anticipated to be completed as part of the updated Preliminary Economic Assessment targeted for the end of Q1-2011. Engineering activities are in progress on a number of optimization studies looking at a range of operating scenarios that combine different production rates and leaching approaches to be incorporated in the updated Preliminary Economic Assessment.
With the advancement of the Malku Khota project and the increased level of the Company's activities, discussions have commenced with community leaders representing the local indigenous people regarding the involvement of those communities in the development process. During the scheduled project break period indigenous leaders requested that the Company not restart field activities until discussions could take place on community engagement. The government is assisting in these discussions and the Company is working closely with local community leaders. On January 11th, 2011 a meeting was held at Malku Khota with the Company and local community members, indigenous community leaders, representatives of regional government including mayors from the larger communities and a delegate of the Governor of Potosi, and a representative from the Minister of Mines. Based on that meeting the Company anticipates additional future meetings with representatives from the various stakeholder groups to further define the process of community engagement for the ongoing project work and to define ways to facilitate economic development in the region. Field work for the Pre- Feasibility program will start up following conclusion of these stakeholder discussions. The Company does not anticipate changes to its time line for completion of the updated PEA or the start of the Pre-Feasibility process in 2011 due to these stakeholder discussions. Current work is focused on the completion of the engineering studies for the updated PEA study.
South American Silver has a history of good relations with the surrounding local communities at Malku Khota which have seen notable economic activity as exploration has been carried out on the project over the past 3 years. As part of the Company's ongoing community relations approach at Malku Khota, two full-time Community Relations personnel have worked closely with each of the surrounding local communities to facilitate economic benefit and involvement through the various stages of project implementation while respecting the values and way of life of the local people. The Company plans to continue to build on its community relations programs as part of the advancement of the project toward feasibility.
The Company's 2010 field programs primarily focused on confirmation and in-fill drilling within the Limosna, Wara Wara and Sucre zones at Malku Khota, to increase the density of drilling and predictability of the geologic model in the areas that will be part of the updated pit models. Several deeper holes designed to increase drill definition lower in the pit models have confirmed the broadly mineralized horizon remains open to further expansion. Additional results are still pending and will be released as the results are compiled and quality checked.
To date, only about 30% of the known prospective mineralized host stratigraphy on the 50 square kilometer property at Malku Khota has been drill tested. Field activities and drilling to support the Pre-Feasibility study in late 2011 will focus on further infill work designed to convert in pit resources into reserves, and to undertake a resource expansion program to include drilling to test several additional near surface targets based on surface sampling and geophysics, along with greater step out drilling laterally and to depth from the known mineralization. The Company anticipates work to start with 3 to 4 drills with the possibility to increase that number as necessary based on the timing for the project.
Since completion of the PEA in March 2009, South American Silver has continued to refine the metallurgical characteristics of the deposit through ongoing process-related test work to refine the leach recovery characteristics of the silver, indium and associated lead, zinc, copper and gallium mineralization in both heap leach and milling options. The test work to date indicates the amenability of heap leaching and/or milling of the mineralized material at Malku Khota applying the same type of process as used in copper oxide SX-EW heap leach mining or by the indium refineries that process by-product indium from zinc smelting. These studies for project implementation will look to utilize local suppliers and contractors as much as possible.
Escalones Copper Gold Project
The Escalones copper-gold porphyry project is located approximately 100 kilometres south-east of Santiago by road in central Chile. The 100% controlled 69 square kilometer property is 35 kilometres east of El Teniente, one of the world's largest underground copper mines, and shows high grades at surface at over 1% copper with significant gold and silver 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% copper with a single deeper hole that intercepted 176 metres of porphyry mineralization grading 0.6% copper. These grades and significant widths of mineralization indicate the presence of a strong mineralizing copper porphyry system at Escalones that the Company believes has the potential to host a significant copper, gold and silver deposit.
The Company has completed its initial geological modeling and target definition and is developing an exploration plan to include additional surface sampling, mapping, deep sensing geophysics and diamond drilling to test the strength and scale of the mineralized system. Based on drill rig availability, the Company is targeting drilling to begin field work on the project in Q1-2011. With the completion of a drill program an initial copper-gold-silver resource at this large scale, high potential porphyry project would be targeted for completion in the second half of 2011.
About South American Silver Corp.
South American Silver Corp. is a growth focused mineral exploration company creating value through the exploration and development of the 100% owned Malku Khota silver-indium project in Bolivia, one of the world's largest undeveloped silver and indium deposits, and the 100% owned large-scale Escalones copper-gold project in Chile. The Company's approach to business combines the team's track record of discovery and advancement of large projects, key operational and process expertise and effective community relations to increase shareholder value. 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. The Company's shares are listed on the Toronto Stock Exchange under the symbol "SAC" and on the US OTC market as "SOHAF." Additional information related to South American Silver Corp. is available at www.soamsilver.com and on SEDAR at www.sedar.com.
Forward-looking statements
Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as "plans", "intends", "anticipates", "should", "estimates", "expects", "believes", "indicates", "suggests" and similar expressions. This MD&A contains forward-looking statements. These forward-looking statements are based on current expectations and various estimates, factors and assumptions and involve known and unknown risks, uncertainties and other factors. Information concerning mineral resource estimates and the interpretation of drill results may also be considered as a forward-looking statement; as such information constitutes a prediction of what mineralization might be found to be present if and when a project is actually developed. These forward-looking statements also include statements regarding the proposed financing including the timing and terms thereof.
Readers are cautioned not to place undue reliance on these statements as the Company's actual results, performance or achievements may differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements if known or unknown risks, uncertainties or other factors affect the Company's business, or if the Company's estimates or assumptions prove inaccurate. Therefore, the Company cannot provide any assurance that forward-looking statements will materialize. Factors that could cause results or events to differ materially from current expectations expressed or implied by the forward-looking statements, include, but are not limited to, possible variations in mineral resources, grade or recovery rates, silver or indium prices, operating or capital costs; availability of sufficient financing to fund planned or further required work in a timely manner and on acceptable terms; changes in project parameters as plans continue to be refined; failure of equipment or processes to operate as anticipated; ongoing positive community support; and political, regulatory, environmental and other risks of the mining industry. The material assumptions that were applied in making the forward looking statements in this MD&A or referenced in this MD&A include, but are not limited to: statements regarding estimated mineral resources and the potential for delineation of additional resources through further exploration at the Malku Khota project, as well as statements regarding estimated net present value, internal rate of return, total and annual production, costs, mineral grades, recovery rates, prices and by-product value; the accuracy of current interpretation of drill and other exploration results; and execution of the Company's existing plans or exploration programs for each of its properties, either of which may change due to changes in the views of the Company or if new information arises which makes it prudent to change such plans or programs.
Subject to applicable laws, the Company assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason. Unless otherwise indicated, forward-looking statements in this release describe the Company's expectations as of January 12, 2011.
Contacts:South American Silver Corp.Greg JohnsonPresident & CEO604.681.6926 or Toll Free: 1.855.681.6926South American Silver Corp.Kristina KnoppInvestor Relations604.681.6926 or Toll Free: 1.855.681.6926www.soamsilver.com
South American Silver Third Quarter President’s Message and Project Update
November 18, 2010
President’s Message
http://www.soamsilver.com/upload/SAC_Presidents_message_and_project_update.pdf
South American Silver Announces New Drill Results Extending Higher Grade Mineralization at the Malku Khota Silver Indium Project
Highlights include 286 meters grading 76 g/t and 243 meters grading 57 g/t silver equivalent(1)
7 October 2010
http://www.soamsilver.com/upload/news/2010/August_5_2010_SAC_Appoints_New_Management.pdf
South American Silver Corp. Announces Additions to Management Team and Acceleration of Activities at the Malku Khota Silver-Indium Project
August 5, 2010
http://www.soamsilver.com/upload/August_5_2010_SAC_Appoints_New_Management.pdf
RedChip Visibility Initiates Research Coverage on South American Silver
http://finance.yahoo.com/news/RedChip-Visibility-Initiates-pz-632565360.html?x=0&.v=1
Press Release Source: RedChip Companies Inc. On Tuesday June 29, 2010, 8:56 am EDT
ORLANDO, Fla., June 29, 2010 (GLOBE NEWSWIRE) -- RedChip Visibility, a division of RedChip Companies, Inc., has initiated coverage on South American Silver Corp. (TSX:SAC - News), an exploration stage mineral company engaged in the exploration and development of the 100% owned Malku Khota silver-indium project in Bolivia and the 100% owned Escalones copper-gold project in Chile.
To receive a complimentary copy of the RedChip Visibility Initial Research Report for SAC, please visit: http://www.redchip.com/about/aboutmain.asp?rid=259
To learn more about South American Silver Corp. visit: http://www.redchip.com/visibility/investor.asp?symbol=SAC.TO
About South American Silver Corp.
South American Silver Corp. is a growth focused mineral exploration company creating value through the exploration and development of the 100% owned Malku Khota Silver-Indium project in Bolivia, one of the world's largest undeveloped silver and indium deposits, and the 100% owned 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 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.
About RedChip Companies, Inc.
RedChip Companies is an international, small-cap research and financial public relations firm headquartered in Orlando, Florida; with affiliate offices in Beijing, China; Paris, France; and Seoul, Korea. RedChip delivers concrete, measurable results for its clients through its extensive national and international network of small-cap institutional and retail investors. RedChip has developed the most comprehensive platform of products and services for small-cap companies, including: RedChip Research(TM), Traditional Investor Relations, Digital Investor Relations, Institutional and Retail Conferences, RedChip Small-Cap TV(TM), Shareholder Intelligence, Social Media and Blogging Services, Webcasts, and RedChip Radio(TM). To learn more about RedChip's products and services please visit: http://www.redchip.com/visibility/productsandservices.asp.
"Discovering Tomorrow's Blue Chips Today"(TM)
The RedChip Companies, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=2761
Disclosure
None of the profiles issued by RedChip Companies, Inc., constitutes a recommendation for any investor to purchase or sell any particular security or that any security is suitable for any investor. Any investor should determine whether a particular security is suitable based on the investor's objectives, other securities holdings, financial situation needs, and tax status. South American Silver Corp. ("SAC") paid RedChip Visibility, a division of RedChip Companies, Inc., thirty thousand dollars for eleven months of RedChip Visibility Program services, which includes the preparation of the equity research reports. The equity research report(s) are prepared for informational purposes only and were paid for by the company portrayed in the report. Information contained in the equity research report(s) is obtained from sources believed to be reliable, but its accuracy and completeness are not guaranteed. These reports are not a recommendation of a solicitation to purchase or sell any security, nor do they constitute investment advice. RedChip Companies, Inc., is currently engaged by this company to provide investor awareness services. Investor awareness services and programs are designed to help small-cap companies communicate their investment characteristics. South American Silver Corp. agreed to pay RedChip Companies, Inc., a fee of thirty thousand dollars in cash for eleven months of these investor relations services and, subject to approval by the Toronto Stock Exchange, warrants to purchase up to two hundred thousand shares of common stock with an exercise price of eighty cents per share, exercisable for a period of twenty four months. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein.
Contact:
RedChip Companies Inc.1-800-RED-CHIP (733-2447, Ext. 106)research@redc
14 Emerging Growth Companies to Present at RedChip's July 2010 Midsummer Equities Conference
Press Release Source: RedChip Companies Inc. On Monday June 28, 2010, 12:51 pm EDT
http://finance.yahoo.com/news/14-Emerging-Growth-Companies-pz-561062487.html?x=0&.v=1
Ipressive Initial Results...
and everyone knows that Bolivia has historically had the most prolific Silver mines.
South American Silver Corp.'s First Quarter President's Message and Project Update
Press Release Source: South American Silver Corp.
On Thursday May 20, 2010, 12:42 pm EDT VANCOUVER, BRITISH COLUMBIA--(Marketwire - 05/20/10) - South American Silver Corp. (TSX:SAC - News)(PINK SHEETS:SOHAF - News)
http://finance.yahoo.com/news/South-American-Silver-Corps-iw-917904852.html?x=0&.v=1
President's Message
It is an exciting time at South American Silver Corp. at this point of rapid growth for the Company. Since the announcement of our new higher grade discovery at our Malku Khota Silver-Indium project in late February, and with my appointment as President and CEO, the Company has significantly outperformed both the silver and gold price and the key silver and gold equity indexes.
Part of our focus going forward will be to continue to broaden the market awareness of the exceptional value opportunity in the Company, with what is already one of the world's largest undeveloped silver and indium deposits, and the potential value at our Escalones Copper and Gold project in Chile. At over 5 ounces of silver per share and the current market valuation, South American Silver offers some of the best leverage to rising metal prices of any company in the sector.
Prior to joining South American Silver, I had closely tracked the progress of the Company as an initial investor in the 2007 IPO. I joined the Board of Directors of South American Silver in May of 2009 where I was able to gain greater familiarity with both the management team and the Company's two key exploration assets. What I saw in the Company was a dedicated team of professional explorationists with a track record of discoveries, and two major assets in their portfolio that were poised at the early stages of the development value curve. Assets at this early stage of the development cycle from initial resource definition through to feasibility stage have the potential to increase significantly in value with successful development. As one of the co-founders of NovaGold, where I was part of the team that grew NovaGold from a $10-million market capitalization to a nearly $2-billion company over a period of 12 years, I have had firsthand experience with the kind of systematic growth in shareholder value that can result from the right team, combined with the right assets, and a proactive campaign of communicating with the market.
Since joining South American Silver in late March, we have seen our trading volumes significantly increase along with increased interest in the Company. We have a number of important milestones for the projects this year which we believe will increase shareholder value, and we will continue our investor outreach activities to broaden market awareness.
Approach to Business
South American Silver's growth strategy has been to indentify mineral properties that have significant scale potential to develop large resources in well established mining districts of Bolivia and Chile. We will look to leverage our exploration and development expertise to bring additional resources and value to shareholders and to reduce development risk and expense through our focus on community relations and corporate social responsibility. The Company will also continue to look for opportunities in new projects that can bring value to our shareholders through our approach to business. Responsible mining and community collaboration are a key part of our business strategy on our projects. The Company is committed to upholding high environmental and social standards while focusing on delivering the financial growth its shareholders expect.
Community relations are an important part of doing business in any country and we believe that long-lasting social and economic benefits can flow to the communities in which South American Silver operates. In Bolivia, we have two full-time Community Relations personnel for the Malku Khota project, who maintain regular contact with each of the surrounding local communities to maintain open and transparent communication. The Company has signed agreements of cooperation with each of these communities and we will look for ways to facilitate economic development through the various stages of development for the project. As part of this approach, we engaged The BSR Group (Business for Social Responsibility) to help develop a pro-active Community Relations program that outlines a plan for engagement with all stake-holders during the transition from exploration through development and eventual production.
Current Market and Economic Conditions
In addition to the milestones ahead for the projects, we believe that the backdrop for higher metal prices remains very positive. During the past 12 months the price of silver and gold has continued to rise from its lows of 2008 with both metals up approximately 30% on a 12 month basis as of early May and moving toward their highs of late 2009 of over $19/oz and $1,200/oz respectively. Since 2005 the price of silver has had a 95% correlation to the gold price but with larger percentage swings both to the upside and during corrective periods. Prior to the 2008 markets the silver to gold ratio was an average of approximately 55:1 for many years, suggesting that silver may be undervalued relative to gold at the current level of 65:1, based on gold at $1,200/oz and silver at $18.50/oz. The fundamentals for both silver and gold appear supportive for higher prices based on global monetary factors, and especially in terms of investment demand both metals have seen over the past several years in all forms including Exchange Traded Funds (ETF's), bars and coins. For silver specifically the increased use in industrial applications ranging from biomedical to high technology is notable as it has become an increasingly larger percentage of the total annual demand.
Indium prices have ranged between $450/kg and $1,000/kg over the past 5 years with current prices around $650/kg. Given the dramatic increases in global indium consumption over the last two decades from 115 tonnes in 1990 to 600 tonnes in 2008 to an estimated 1,400 tonnes in 2010, a continued escalation in global indium consumption is anticipated with its use in LCD panels, solar technology and LED lighting.
Copper and zinc have also rebounded significantly from their lows of 2008 at less than $1.50/lb and $0.50/lb respectively to trade recently as high as $3.50/lb for copper and at over $1.00/lb for zinc. Demand for copper and zinc is being driven largely by growth in Asia and particularly China and India where industrialization remains a long-term supporting factor for basic materials.
Gold and silver related equities have rebounded as a result of the higher metals prices, particularly the larger producers, however the equity prices of many exploration and development-stage companies have remained volatile and generally low relative to historical levels. Recent catalysts for South American Silver have seen the Company significantly outperform the gold and silver equity indexes such as the broad Toronto Gold Index and the U.S. Amex Gold Miners Index on a 12 month basis.
Resource based economies have benefited from the rebound in metal prices over the past year, particularly those in emerging markets. The pronounced economic transformation that has been underway in Bolivia was recently highlighted in a report by Bloomberg on a presentation by Bolivian Finance Minister Luis Arce in New York last April 2010. In that report, economic figures show that Bolivia has had one of the fastest growing GDP's in all of the Americas since 2006 under the Morales administration. On many measures, from dramatically reduced inflation rates to double digit trade surpluses and robust internal growth, Bolivia's economy is one of the best it has seen in over 30 years. Reflecting these improvements, the country's credit rating was recently raised by Moody's Investors Service from B3 to B2 and Fitch Ratings from B- to B, now in line with Argentina, citing an easing of political tensions and accumulation of foreign-exchange reserves.
In the report by Bloomberg, Finance Minister Arce indicated that Bolivia may tap the international markets, and use a combination of debt, private investment and bonds, to help finance a $32 billion investment plan over the next seven years. That plan includes an ambitious infrastructure build out including new rail and road corridors and hydro-electric power generation to facilitate economic development.
Projects Update
Malku Khota Silver-Indium Project, Bolivia
South American Silver's most advanced project is the Malku Khota Silver-Indium project located in the world class silver mining district of central Bolivia. Malku Khota is one of the world's largest undeveloped 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. 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. A 4,000-metre drill program is underway focused on expansion drilling down dip and along the trend at the Limosna and Wara Wara deposits especially in areas of higher grade. Additionally, the Company has continued metallurgical test work to further refine the leach recovery characteristics for silver and indium and by-product gold, copper, lead and zinc, and plans to release a new resource estimate and updated economic assessment study for the project in 2010.
In late February, the discovery of a potentially significant new zone of high-grade silver-gold-indium veining was announced at Malku Khota that may join the highly mineralized, sediment hosted Wara Wara and Sucre Zones. The area between these two zones had been previously classified as unmineralized material due to a lack of drilling in the area. It is now shown to include a zone of higher grade silver-gold-indium mineralization consisting of many sub-parallel veins and structural zones that cross the main zone of sediment hosted mineralization that forms the bulk of the resources on the project.
As part of the Company's ongoing community relations approach to Malku Khota, we have 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.
Work to date has focused on drilling, metallurgical testing, environmental baseline data collection, community meetings and various engineering optimization studies.
Escalones Copper-Gold Project, Chile
The Escalones copper-gold project is located in the well established mining district of central Chile, approximately 100 km south-east of Santiago. The property is road accessible and occurs 35 kilometres east of El Teniente, the world's largest underground copper mine. Exploration has focused on a large, 4 square kilometer area of alteration where high grades occur at surface with over 1% copper grades and significant gold, silver and molybdenum credits. 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 available information on the project and to develop and refine priority drill targets.
Looking Forward
One of the Company's strategic objectives for 2010 is to focus on the completion of an updated resource estimate and Preliminary Economic Assessment at the Malku Khota silver-indium project. This will include more detailed metallurgical and engineering studies, as well as drilling at the Limosna and Wara Wara Sucre Zones to better define the higher grade areas and to expand on the resource. Drilling will also focus on the new "Sucre Vein System" where higher grade mineralization was recently reported.
At the Escalones copper-gold project, the Company will complete geological modeling and priority target definition and is considering initiating a new exploration program at this high potential copper-gold porphyry project later in 2010. The Company intends to advance the property to the resource definition stage either through further exploration on its own or with a partner.
This is an exciting time at South American Silver, and in the months ahead we look forward to reporting on a number of project milestones that we believe will create value for shareholders in the near term and for the longer term. I would like to thank all of our shareholders for their continued support, and also to thank our dedicated employees and management team for their work that has positioned the Company to become a leading growth focused precious metals company.
Greg S Johnson, President and CEO
About South American Silver Corp.
South American Silver Corp. is a growth focused mineral exploration company creating value through the exploration and development of the 100% owned Malku Khota Silver-Indium project in Bolivia, one of the world's largest undeveloped silver and indium deposits, and the 100% owned 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 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. The Company's shares are listed on the Toronto Stock Exchange under the symbol "SAC" and on the US OTC market as "SOHAF". Additional information related to South American Silver Corp. is available at http://www.soamsilver.com/ and on SEDAR at http://www.sedar.com/
Certain statements contained herein constitute "forward-looking statements". These forward-looking statements include, but are not limited to, statements regarding estimated mineral resources, milestones for 2010 and the company's and its properties' growth potential including shareholder value. Forward-looking statements express, as at the date of this press release, the Company's plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results. Forward-looking statements are based on certain assumptions, including the key assumptions and parameters on which such estimates are based, involve risks and uncertainties and there can be no assurance that such statements will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements. Factors that could cause results or events to differ materially from current expectations expressed or implied by the forward-looking statements, include, but are not limited to, possible variations in mineral resources, grade or recovery rates; availability of sufficient financing to fund planned or further required work in a timely manner and on acceptable terms; changes in project parameters as plans continue to be refined; failure of equipment or processes to operate as anticipated; political, regulatory, environmental and other risks of the mining industry; sustained favourable commodities prices; increased market awareness of the company; continued project development and other risks more fully described in the Company's Annual Information Form filed and publicly available on SEDAR at http://www.sedar.com/. There can be no assurance that the Company's properties will be commercialized. Readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. Subject to applicable laws, the Company assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason.
Contacts:
South American Silver Corp.Greg JohnsonPresident & CEO303-584-0606South American Silver Corp.Richard DoranExecutive Vice President303-584-0606http://www.soamsilver.com/
South American Silver Corp. Discovers New High-Grade Silver-Gold-Indium Vein System at Malku Khota in Bolivia
New High-Grade Vein System Shows Potential to Increase Earlier PEA Silver Resource Of 145-Mil. Oz. Indicated and 178-Mil. Oz. Inferred
Press Release Source: South American Silver Corp. On Thursday February 25, 2010, 12:48 pm EST
http://finance.yahoo.com/news/South-American-Silver-Corp-iw-2554160157.html?x=0&.v=3
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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.
PROJECTS
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 | ||||||||||||||||||||||||||||||||||
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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
http://www.soamsilver.com/index.asp
SHARE STRUCTURE
Issued and outstanding: December 16, 2010
97.8 common shares
8.4 options
8.6 warrants
114.8 fully diluted
CHARTS
SOUTH AMERICAN SILVER CORP. FILINGS & PUBLIC DOCUMENTS with SEDAR
http://www.sedar.com/DisplayProfile.do?lang=EN&issuerType=03&issuerNo=00024750
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