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SOHAF should bus in all the people from those 43 villages that will benefit from this mine and let them tell their President that they want this mine to re-open. Nationalize? Probably, then a JV will be formed like the oil and gas leases. Bolivia wants more money from their natural resources, which I don't blame them so long as they use the money for the people and not like the political structures of the past. Right now there is $235.00 of ore per share in the ground and there is more exploration still to be made on this ore body, which I believe is the largest ore body on this planet today. So there is a lot at stake here. Will Morales blink! Let us hope so. IMO
garrox
???
Sure.
http://www.myspace.com/canadiandrones
I understand the cultural attache is working on organizing a tour as we speak...
How that will help anything ?
Pass me another brewskie, eh ?
http://www.ratebeer.com/beer/flying-monkeys-smash-bomb-atomic-ipa/123892/
Time to mobilize the Canadian Drones?
futr
"Canada expressed concerns with the Bolivian government's actions in a statement issued late on Wednesday, warning that Bolivia's action would send a negative signal to Canadian and all foreign investors."
Nothing like a "stern warning" from Canada to... not matter ?
Might be interesting to see what else is going on "behind the scenes" in terms of the global political implications... given "It is the second time in less than a month that Morales has moved to seize control of a foreign-operated mining project."
Seems that's happening, today: "On Thursday in La Paz, Canadian officials will meet with representatives of the Bolivian government and the company involved. Senior Canadian officials in Ottawa will also meet with Bolivia's ambassador to Canada at the same time to discuss the matter, the Canadian government said."
Perhaps at some point... we'll figure out a method that will have us not enabling and rewarding rather than excluding sociopaths from participation in markets and politics ?
I'm not going to hold my breathe waiting for it.
Clearly looking like it was money down a rat hole, here...
Lots of questions left to ask...
Seems clear enough with even a cursory look at the links that they are saying that Morales incited the violence by a small minority he's "done a deal with" to use their violence as a pretext in justifying his intended theft... so, basically, he's the one who is responsible for killing and holding others hostage???
Left wing materialism clearly is a mental disease... that has hard core leftists arriving basically right where western bankers are... only by a different path that has them following along in a different pattern and form of dissociative behavior. Same thing, in the end... whether its Evo Morales or Jamie Dimon justifying their organization and leadership in perpetrating its various frauds and thefts from others.
Thieves are thieves... and it's not worth putting too much effort into caring how they decide to rationalize theft as a good.
Did SOHAF's "customers" just backdoor SOHAF... intending to do the same deal in Bolivia... only without SOHAF ? Might be some risks there that will be worth paying even closer attention to than just the routine and expected antics of yet another left wing whack job in South America... who is busy proving that, yes, he's both an clueless idiot and a thug...
I agree that a project in Chile isn't nearly the same sort of risk as one in Bolivia, where you can see that totally insane people run things...
Agree, again, that "cash in hand" isn't all that much of a risk, either... and now probably isn't all that bad a time to have a pile of cash available...
SOHAF without the Bolivian risk exposure... might be worth quite a lot more than SOHAF with it...
Will be interesting to see how it plays out in the markets tomorrow...
Hard to say, at this point, what Morales expects the outcome of his current inputs to be... or what it will require in terms of larger costs being realized by Bolivia. Might be interesting to look in on the shares of the others one of the articles mentioned... to see how badly they're being mauled, and how much risk versus the share price percentage their Bolivian "holdings" represent ?
Bolivia welching on their deals... clearly makes the value of their word, or any deals ever done with Bolivia, worthless...
Clearly is the case that Bolivian investments are overpriced... even given that "cheap" development costs aren't worth the risks in having thieves enabled in stealing the value generated by investments...
I really don't understand why everyone is bailing on SOHAF. The copper/gold mine in Chile still gives this company an ore book value of $2.75. This is backed by Vantage Securities DD. I believe Morales will allow SOHAF to continue with the mine as a JV concession. But this also brings fresh memories of Las Christinas mine in Venezuela. Crystallex lost everything to a Russian mining company. I also believe that the locals still want this company to run the mine. IMO
garrox
Trading today roughly for the value of cash per share in hand...
Maybe there are significantly better uses for that $38 million than to apply it in employing/feeding Bolivians ?
Geopolitical risk is real.
Bankers aren't the only thieves out there.
This reminds me of my investment in the world's largest copper deposit located in the Congo back in the early 90's-
This is why its imperative to diversify when investing in the third world.My African Oil investments are more than making up for this setback.
And this is the company's reward for building schools,hospitals,and training local people to operate modern mining machinery!
futr
ps I'd love to have a mano/mano with Morales-
A couple links:
http://www.reuters.com/article/2012/07/11/us-southamericansilver-bolivia-idUSBRE86A18Z20120711?feedType=RSS
http://finance.yahoo.com/news/south-american-silver-responds-strongly-065600859.html
http://community.nasdaq.com/News/2012-07/south-american-silver-corp-may-lose-bolivia-mining-concession-lost-third-of-value-and-hit-yr-lows-tuesday.aspx?storyid=154829
8 July 2012 - Vancouver, British Columbia - South American Silver Corp. (TSX: SAC, US OTC: SOHAF) today provided a further update on recent events in Bolivia since the update on July 4th.
Bolivian government authorities continue in their efforts to restore peace and order to the Malku Khota region in the face of acts of aggression being perpetrated against law-abiding local indigenous communities, police, the company's employees and its local contractors.
Four of the detainees taken by the faction, which represents only three of the 46 indigenous communities, have been freed during a government security action (three drill contractors and a Bolivian government prosecutor). The two Bolivian employees of the company and a policeman continue to be held.
One project opponent died during one of these security actions. While the exact cause of the death is still under investigation, it is believed to have been as a result of the individual mishandling dynamite.
The leadership representing five of the six indigenous groups (known as Allyus) of the Malku Khota project area have travelled to the capital city of La Paz where they made a strong public condemnation of the criminal actions and aggression against their communities and other law-abiding Bolivians by the local faction along with people from outside the region.
Bolivian government authorities have previously stated that there will be a period of constitutionally mandated consultation with local indigenous communities before the project enters the extraction phase.
"South American Silver reaffirms its cooperation with Bolivian authorities and its strong support for the indigenous people of the Malku Khota communities in their continuing efforts to bring a timely and peaceful resolution to this situation," said Greg Johnson, CEO of South American Silver. "The company looks forward to a constructive dialogue with regional and national governments along with the local indigenous authorities after this situation is resolved in order to agree on an approach to development that is inclusive of all communities in the project area."
The company has temporarily ceased all field activities while government-led talks proceed to seek a peaceful resolution.
South American Silver has worked closely with the local indigenous communities over the past several years providing significant direct employment on project related jobs, as well as jointly developing programs with the communities to facilitate job training, education, agricultural enhancement and water management for long-term sustainable development.
The vast majority of the local indigenous communities living in the project area have signed multiple resolutions of support for the project and understand the potential social and economic benefits to their communities through the development of a world class, modern mine at Malku Khota.
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 a focus on community relations and sustainable development. 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
-30-
Contacts:
Candice Pederson Robert Gill
Media Contact Investor Relations
NATIONAL Public Relations South American Silver Corp.
604-691-7394 604-681-6926 or 1-855-681-6926 Toll Free
futr
May 2012 Presentation-
http://www.soamsilver.com/upload/corp-presentation/SAC_May_Presentation_2012.pdf
futr
ps Initiated a position here over the past week-
End Users are financing the mine-
Great Idea!
Doubloon, the well respected moderator of the Research Pit says:
South American Silver Announces $16 Million Financing With Asian Based High Technology Manufacturers and Investors
04/16/2012 @ 9:57AM
MarketWire Canada
South American Silver Announces $16 Million Financing With Asian Based High Technology Manufacturers and Investors
South American Silver Corp. (TSX:SAC)(PINKSHEETS:SOHAF) today announced that it
proposes to issue approximately 10 million units of the Company, on a committed
private placement basis, at a price of $1.60 per Unit (the "Offering"), which
represents a 6% premium to the 5 day volume weighted average trading price of
the Company's common shares at the time the Toronto Stock Exchange (the "TSX")
accepted notice of the transaction. Each Unit consists of one common share of
the Company and one-half of one common share purchase warrant of the Company.
Each whole warrant will be exercisable to purchase one common share of the
Company for a period of 24 months from issuance at a price of $2.00.
The Offering is a strategic investment by a number of Asian based high
technology investors, materials manufacturers, and indium/gallium end users from
Taiwan, Hong Kong, Japan and Korea. The gross proceeds of the Offering will be
approximately $16 million and would go toward the advancement of the Company's
Malku Khota silver-indium-gallium project in Bolivia and Escalones copper-gold
project in Chile and for general corporate purposes.
Greg Johnson, President & CEO of South American Silver Corp, stated, "This
investment is an important step in facilitating the rapid advancement of one of
the world's largest silver, indium and gallium projects. These Asian high
technology manufacturers and investors see outstanding value and potential in
the Company's projects, in particular, the large concentrations of the
strategically important metals, indium and gallium, which are critical for their
manufacturing of flat panel displays, LED lighting and thin film solar panels,
among other applications. An estimated 60-70% of the world's current indium
mining and smelting production supply is in mainland China. The Malku Khota
project is anticipated to become an important new, long life, low cost, Western
source of these metals. "
Mr. Johnson added, "There have been a number of new Asian investments in
Bolivia, a country with vast mineral potential, and this complements the
recently announced heads of state agreements between the government of Bolivia
with China and South Korea to develop other high technology metals projects.
With Malku Khota targeted to produce 10% or more of the global indium and
gallium supply, the Company may review possible indium/gallium off-take or
streaming-type opportunities as a source of project financing after completion
of Pre-feasibility studies on the project."
Completion of the Offering will close upon receipt of regulatory approvals and
is anticipated to be on or about 20 April 2012. The securities to be issued
pursuant to the Offering will be subject to a four-month restricted resale
period from the closing date. The Company shall be entitled to accelerate the
exercise period of the Warrants, in the event that the common shares of the
Company trade on the TSX at a price not less than $2.50 for a period of 10
consecutive trading days, to an exercise period ending at least 30 days from the
date notice of such acceleration is provided to the Warrant holders.
About the Malku Khota Silver-Indium-Gallium Project
South American Silver's most advanced project is the Malku Khota
silver-indium-gallium project located in the world-class silver and indium
mining district of central Bolivia. 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, 80 tonnes of indium and 15 tonnes of
gallium 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. In
addition, exploration activities are underway on a planned 20,000 meter drill
program that 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.
Due to the bulk mineable and heap leachable nature of the deposit, there remains
potential to continue to expand production levels beyond the 13.2 million ounces
of silver per year level through further optimization of the resource and
increases in overall mine throughput. An updated NI 43-101 Economic Assessment
based on the work over the past year for Malku Khota is targeted for release in
Q2-2012, with feasibility activities 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. A 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.
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.
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. 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
Yup, as Brien stated:
Brien Lundin was paid to promote this company but I still think it has great promise nonetheless. Easy 20 bagger from here if they ever make it to production phase
Look for a bid/ask using SAC.TO
This bid/ask is given in Canadian Dollars, same Company though.
JB
Great Info- Thanks-
Funny how we both seem to find similar opportunities!
futr
Hey futrcash,
I just searched for this board. Received an email from Brien Lundin's Gold Newsletter yesterday. He is recommending SOHAF. Here's part of the email and the link to his write-up:
I've attached a special report -- one of our periodic Mining Share Focus newsletters -- that gives full details on one of my top picks.
We produce these reports every now and then as part of an advertising program for companies that are already on our Gold Newsletter list of recommended stocks. The idea is to get their stories out to a wider group of investors.
In the past, we've done these reports for companies like Kirkland Lake Gold (KGI.TO; C$13.28), NovaGold (NG; $6.53), Northern Dynasty (NDM.TO; C$5.92) and Silvercorp (SVM; $6.54) when they were mere penny stocks.
So we obviously choose the companies featured in Mining Share Focus very carefully.
The opportunity presented in the current edition is South American Silver (SAC.TO; C$1.59). And it's perhaps the most explosive silver stock you could buy today.
Why? Because it boasts one of the largest undeveloped silver deposits you'll find anywhere...and a strange market anomaly means you could get this deposit virtually for free.
But I don't want to steal the thunder of our exclusive special report on this remarkable company. View it for yourself right here:
http://jeffersoncompanies.com/marketing/files/MiningShareFocus.pdf
JB
tried to buy this...no bid or ask...but it's moving. wtf.
New Corporate Presentation-
http://www.soamsilver.com/upload/corp-presentation/SAC_Dec_20_2011_Presentation.pdf
futr
I flipped here...Made a few bucks. Satisfactory experience. As a rule, I don't comment on stocks I'm not invested in, other than to say. I'd invest here again. Stinky_pinky.
met the new COO they hired...he is a mover and a shaker with a laundry list of experience in the industry...bought more...
Cheers
Did you find any value here? S_P
South American Silver Clarifies Private Ownership and Status of the Malku Khota Project
VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 15, 2011) - South American Silver Corp. (TSX:SAC)(PINK SHEETS:SOHAF) 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
I don't think so with silver the way it is.
Bot @ 2.18 will average down if needed.
VANCOUVER, BRITISH COLUMBIA--(Marketwire - 11/18/10) - South American Silver Corp. (TSX:SAC - News)(PINK SHEETS:SOHAF - News) -
President's Message
This past quarter has been a remarkable period for South American Silver. The Company moves into the end of the year in a very strong financial position, having recently announced a proposed financing of up to $32 million, which will provide funding to advance the Malku Khota, silver-indium project into feasibility, while also accelerating the advancement of the Escalones, copper-gold project in Chile.
In addition, our initiatives to broaden market awareness of the tremendous investment value opportunity in the Company have proved fruitful resulting in a significant increase in both trade volumes and share price since the last quarter. Investors looking to gain exposure to rising metal prices have looked to early stage development companies like South American Silver, which offers one of the highest values of silver leverage at $50 of silver value per dollar of investment.
On October 7, 2010, the Company announced new 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 this year's current drill program has 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 in Q1-2011. The drill campaign has 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. For the remainder of 2010 an addition drill rig is being added to the project for a total of 3 drills to maximize the number of holes for the resource update targeted for the end of 2010. Additional results will be released as assays become available over coming months.
To date, only about 30% of the known prospective mineralized host stratigraphy at Malku Khota has been drill tested. Beginning 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.
More detailed engineering studies are underway for the balance of 2010 and 2011 to further refine metallurgical recoveries and define the potential location of mine facilities, infrastructure required to support operations and a plan for project implementation utilizing local resources as much as possible. This information will be the basis for a number of optimization studies that will be applied to a range of operating scenarios combining different production rates and leaching processes to be incorporated in an updated economic assessment study planned for the first quarter of 2011.
On November 8, 2010, the Company announced that it proposes to issue approximately 24 million common shares of the Company, on a committed private placement at a price of Cdn. $1.16 per share, for gross proceeds of approximately Cdn. $27.8 million, with an option to expand the offering up to 27.5 million common shares or approximately Cdn. $32 million. The Company anticipates accepting the fully expanded offering due to very strong investor demand. Completion of the financing is subject to receipt of regulatory approvals and is anticipated to occur on or about December 3, 2010. The largest component of the proposed offering is a strategic investment by Zamin Precious Minerals Limited, which has agreed to purchase a minimum of 18.3 million common shares under this offering which would represent approximately 19.9% of the Company's issued shares following closing of the Company. 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.
Approach to business
South American Silver Corp.'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. 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. Signed agreements of cooperation with these communities are in place and 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 November 2010, the prices of silver and gold have both moved to new highs for the year at $29.00/oz silver and over $1,400/oz gold, with the strong demand for commodities in general and continued weakening of the US dollar. Silver has continued to outperform gold in 2010 up 60% year to date vs. about 27% for gold. Favourable market conditions for hard assets have provided an excellent backdrop for strength in the silver and gold equities which have tended to outperform the metal prices on a percentage basis. With its excellent fundamentals and attractive valuation level relative to peers, South American Silver has continued to outperform both the metals and the silver and gold equity indexes for the greater part of 2010.
The fundamentals for both silver and gold appear strongly supportive for continued 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. 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. Total global silver supply peaked in 2005 and has been flat to falling since. With 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 briefly to $50/oz in 1980.
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 $1000/kg. November 2010 indium prices have continued to rise from the lows of 2008-2009 and are currently around $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%. 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. A UN study published earlier this year highlighted indium 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.
Like in the case of the rare-earth metals used in high-technology applications that have been in the news recently due to concerns over their availability, 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. This past quarter, 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 recently announcing a new IPO for an indium market tracker. 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 as high as $4.00/lb for copper and $1.17/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.
Precious metals equities have responded well with the move into the seasonally bullish fall/winter season for precious metals. Equity prices of many exploration and development-stage companies have significantly outperformed 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 very attractive investment valuations, however, at approximately 0.40/oz on an enterprise value per ounce valuation relative to its silver exploration and development stage peers that average over $1.50/oz and particularly relative to the other greater than 200 million ounce deposits that average over $2.50/oz.
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 two of the world's largest primary silver producers. 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 by Moody's and Fitch rating services earlier this year, and a July, 2010 Mining Journal special edition on Bolivia has highlighted efforts by the current administration to attract new private investment for mining in Bolivia by providing a favourable regulatory framework, improving infrastructure including new road and rail corridors and hydro-electric power generation to facilitate economic development, and inviting industry input into proposed mining law changes.
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 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 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 kilometres of site.
The Company continues to have good relations with the surrounding communities. As part of the Company's ongoing community relations approach to Malku Khota, 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 project implementation.
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.
Drilling this year has primarily focused on confirmation and in-fill drilling within the Limosna, Wara Wara and Sucre zones, with a focus to increase the density of drilling in the areas that fall within the pit model. This drilling will go toward the preparation of an updated resource estimate by the end of this year. 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.
More detailed engineering studies are underway for the balance of 2010 and 2011 that will help further refine metallurgical recoveries anticipated by representative mineralized zones throughout the deposit and define the potential location of mine facilities, infrastructure required to support the operation and a plan for project implementation utilizing local resources as much as possible. This information will be the basis for a number of optimization studies that will be applied to a range of operating scenarios combining different production rates and leaching processes to be incorporated in the updated Preliminary Economic Assessment planned for the first quarter of 2011.
During the nine months ended September 30, 2010, expenditures at the Malku Khota project totaled approximately $2.4 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 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 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 the Escalones project, the Company has completed initial geological modeling and is developing an exploration plan that would include geophysics and drilling that could lead to the development of an initial copper-gold-silver resource at this large scale, high potential porphyry project in 2011. Based on drill rig availability the Company would look to begin drilling on the project in Q1 2011. A total of $233,105 was incurred at the Escalones project during the nine-month period, 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 at the end of 2010 and an updated Preliminary Economic Assessment at the Malku Khota silver-indium project in Q1-2011. This program includes 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 resource expansion program in addition to infill work designed to convert inferred resources to measured and indicated resources and eventually into reserves.
At the Escalones copper-gold project, the Company has completed initial geological modeling and is developing an exploration plan that based on drill rig availability would include geophysics and drilling in Q1-2011 that could lead to the development of an initial copper-gold-silver resource at this large scale, high potential porphyry project 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% 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, the effect of capital market conditions and the receipt of necessary regulatory approvals in a timely fashion or at all; 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 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 November 15, 2010.
Contact:
Contacts:South American Silver Corp.Greg JohnsonPresident & CEO604-681-6926South American Silver Corp.Kristina KnoppInvestor Relations604-681-6926South American Silver Corp.Richard DoranVice President & Corporate Secretary303-584-0606www.soamsilver.com
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.
Contact:
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
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