VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb 27, 2013) - South American Silver Corp. (SAC.TO)(SOHAF) (the "Company") is pleased to announce an update on drilling progress at the Escalones copper-gold porphyry project in Chile. Although drilling was temporarily halted by lack of road access to the site due to the recently reported storm, drill samples from portions of holes 38, 39 and 41 were sent to the assay laboratory and analyses have been received. These drill holes continued to explore the western portion of the Meseta in areas that have not previously been included in the resource model. (see map: www.soamsilver.com/february-2013-news-release-escalones-image.asp.) The drill holes reported here continue to show a zone of copper enrichment below a partially leached zone that lies below the approximately 70 metre thick deposit of glacial moraine that was deposited on the Meseta.
Ralph Fitch, Executive Chairman of the Company, stated, "The drilling presently being carried out on the Meseta shows a near horizontal zone of leached material typically 50-100 metres thick that is generally gold rich, which is underlain by an irregular near horizontal zone of 20-120 metres thick of copper enrichment. This copper enrichment zone is the top portion of a long column of copper mineralization which in hole ES-38 is more than 450 metres thick. Results analyzed so far indicate that this style of copper-gold mineralization exists over an area measuring approximately 500 by 800 metres, sufficient to have a real impact on our previously reported resource of 3.8 billion pounds of copper and 610,000 oz of gold, which did not include the majority of this area."
The following table summarizes the results received to date for diamond drill holes ES 38, ES 39 and ES 41.
|Drill Hole||Comment||From||To||Length||Copper||Mo||Gold||Silver||CuEq |
|ES-41||Leached gold rich||78||198.8||120.8||0.26||28||0.17||0.85||0.39|
|Previously reported hole|
|ES-36||Leached gold rich||72.1||120.0||47.9||0.07||20.7||0.259||1.5||0.27|
|(The true width of these intercepts is not known; however, it is estimated to be between 80% and 100% of the widths listed).|
|*CuEq means copper equivalent - see end of the News Release.|
|**Mo means Molybdenum.|
Escalones Drill Program:
Three diamond drills are now on-site and had completed 4,000 metres of drilling before having to shut down in the wake of the recent storm damage to the access road. Road repairs are now in progress and it is now expected that drilling operations will be back to full production in early March.
The Escalones copper-gold project is approximately 100 km southeast of Santiago, Chile and 35 km east of El Teniente, the world''s largest underground copper mine. Escalones, as previously announced and supported by a NI 43-101 technical report, contains a 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 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% copper equivalent cut-off grade. (See December 19, 2011 News Release.) The detailed NI 43-101 Technical Report is available on SEDAR under the Company''s profile and on the Company''s website at www.soamsilver.com.
Sample Analysis and Copper Equivalent Grade: (CuEq*)
Samples were analyzed by Andes Analytical Assay Laboratory located in Santiago, Chile. Gold was analyzed using fire assay and the AA (Atomic Absorption) method while silver, copper, gallium, indium, molybdenum and 38 additional elements were analyzed by ICP AES HF43 method with a four-acid digestion. The copper equivalent has been calculated using the following prices: copper $3.50 /lb, gold $1,600/troy oz, silver $30.00/troy oz, molybdenum $11.00/lb. Values have not been adjusted for metallurgical recoveries.
The qualified person for this press release is Felipe Malbran, Executive VP of Exploration, South American Silver Corp., and he has reviewed and approved the content of this News Release.
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 large scale Escalones copper-gold project in Chile, the pursuit of new opportunities, and the realization of value from the Malku Khota project in Bolivia. South American Silver Limited is a company incorporated in the Bermuda Islands, an overseas territory of the United Kingdom, which through its wholly owned Bahaman subsidiaries: Malku Khota Ltd, G.M. Campana Ltd. and Productora Ltd., owns one hundred per cent of the outstanding shares of Compañía Minera Malku Khota S.A., a Bolivian company, holder of the Malku-Khota mining concessions until their nationalization by the Bolivian Government. 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. The Company''s shares are listed on the Toronto Stock Exchange under the symbol "SAC" and on the OTCQX as "SOHAF". Information related to South American Silver Corp. is available at www.soamsilver.com and on SEDAR at www.sedar.com.
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 "continue", "expected", "will", "can" "pursuit", "creating", "realization" 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. In addition,information concerning mineral resource estimates and the interpretation of exploration programs and 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 and economically mineable 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, delays in the reopening of the access road to Escalones; market conditions; the performance of the Common Shares or the Issuer; results of the Issuer''s exploration and development programs on its material properties; risks of the mineral exploration industry which may affect the Issuer and risks of the mineral exploration industry which may affect the advancement of the Escalones project, in each case, including possible variations in mineral resources or grade, metal prices, timely receipt of required permits, availability of equipment and qualified personnel, failure of equipment or processes to operate as anticipated and changes in project parameters as plans continue to be refined; the political and economic climate in Bolivia including the attitudes and actions of the Bolivian government related to foreign investment in Bolivia; the pursuit by the Bolivian government of indicated courses of action; the international arbitration process; and other risks more fully described in the Company''s Annual Information Form filed and publicly available on SEDAR at www.sedar.com. The assumptions made in developing the forward-looking statements include: the accuracy of current inferred resources and the interpretation of drill and other exploration results for Escalones; the timely receipt of required permits for Escalones; the availability of equipment and qualified personnel to advance the Escalones project and execution of the Company''s existing plans and further exploration and development programs for Escalones, which may change due to road access, changes in the views of the Company or if new information arises which makes it prudent to change such plans or programs; the ability of the Company to realize value from its investments in Bolivia and that statements made by Bolivian government officials reflect the government''s intentions. 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, 2013.
Cautionary note regarding resource estimates
The information in this press release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of U.S. securities laws. Unless otherwise indicated, all resource estimates included in this press release have been prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") and the Canadian Institute of Mining and Metallurgy Classification System. NI 43-101 is a rule developed by the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Canadian standards, including NI 43-101, differ significantly from the requirements of the United States Securities and Exchange Commission ("SEC"), and resource information contained herein may not be comparable to similar information disclosed by U.S. companies. In particular, and without limiting the generality of the foregoing, the term "resource" does not equate to the term "reserves". Investors should also understand that "inferred mineral resources" have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an "inferred mineral resource" will ever be upgraded to a higher category. The estimation of quantities of resources and reserves is complex, based on significant subjective assumptions and forward-looking information, including assumptions that arise from the evaluation of geological, geophysical, engineering and economic data for a given ore body. This data could change over time as a result of numerous factors, including new information gained from development activities, evolving production history and a reassessment of the viability of production under different economic conditions. Changes in data and/or assumptions could cause estimates to substantially change from period to period. No assurance can be given that the indicated level of mineral will be produced. Actual production could differ from expected production and an adverse change in mineral prices could make a resource uneconomic to mine. Variations could also occur in actual ore grades and recovery rates from estimates.