South American Silver Corp.
TSX : SAC

South American Silver Corp.

January 16, 2008 14:48 ET

South American Silver Corp. Reports First Gold Intersection at Wara Wara and Silver Enrichment at Limosna Ridge, Malku Khota, Bolivia

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 16, 2008) - South American Silver Corp. ("SASC" or the "Company") (TSX:SAC) is pleased to announce the results of ten diamond drill holes from its Malku Khota project located in west central Bolivia: seven from the Limosna anomaly (holes LMD011-017) and three from the Wara Wara anomaly (holes WWD08-010).

Results have been received from the first two drill holes drilled from the top of the Limosna ridge, designed to test for silver enrichment seen in the Pique Pobre tunnel.



--------------------------------------------------------------------------
Drill Hole Description From To Length Silver Gallium Indium
m gpt gpt gpt
--------------------------------------------------------------------------
LMD016 2.0 202.0 200.0 99.2 1.5 3.2
--------------------------------------------------------------------------
including 60.5 111.2 50.7 220.1 1.3 3.9
--------------------------------------------------------------------------
Highest assays 62.0 65.0 3.0 734.5 1.5 1.4
--------------------------------------------------------------------------

--------------------------------------------------------------------------
LMD017 0.0 145.0 145.0 61.8 2.8 7.3
--------------------------------------------------------------------------
including 0.0 70.2 70.2 102.7 2.0 3.2
--------------------------------------------------------------------------
including 43.8 65.5 21.7 142.4 2.2 3.6
--------------------------------------------------------------------------
Highest assay 63 64 1 631.0 2.1 4.1
--------------------------------------------------------------------------

Results have also been received for the first two holes drilled into the
cross-cutting gold vein system in the Wara Wara area.


--------------------------------------------------------------------------
Drill Description From To Length Gold Silver Copper Gallium Indium
Hole m gpt gpt gpt gpt gpt
--------------------------------------------------------------------------

--------------------------------------------------------------------------
WWD009 86.2 156.0 69.8 0.29 18.1 192.5 5.1 1.9
--------------------------------------------------------------------------
including 104.5 106.5 2.0 4.68 66.5 500.1 7.2 10.9
--------------------------------------------------------------------------
and 289.0 347.0 58.0 0.13 37.9 994.0 6.7 7.0
--------------------------------------------------------------------------
including 328.0 347.0 19.0 0.21 76.9 1,956.0 6.2 11.5
--------------------------------------------------------------------------

--------------------------------------------------------------------------
WWD010 121.0 152.0 31.0 0.27 23.5 309.8 3.7 2.9
--------------------------------------------------------------------------
including 135.0 140.0 5.0 0.91 54.9 598.1 4.5 6.9
--------------------------------------------------------------------------
and 152.0 208.0 56.0 0.17 12.3 170.7 6.1 1.1
--------------------------------------------------------------------------
and 329.5 346.0 16.6 0.39 121.2 5,989.1 5.4 11.9
--------------------------------------------------------------------------
including 338.1 342.0 3.9 1.28 420.1 16,850.9 5.6 39.0
--------------------------------------------------------------------------
and 413.8 429.0 15.3 0.07 115.8 865.8 3.7 8.0
--------------------------------------------------------------------------
and 470.5 480.0 9.5 0.01 40.1 156.9 5.7 1.4
--------------------------------------------------------------------------


Ralph Fitch, President of the Company stated "The results reported in this press release are very encouraging. First, the holes drilled from the top of Limosna ridge (LMD016 and LMD017) indicate that the higher grade (enriched) silver mineralization seen in the old Spanish Pique Pobre tunnel one hundred metres to the south, extends up to the surface and into other parts of the ridge. These well mineralized holes are also important in that they drill into the ridge itself which rises approximately 150 metres above the plain, whereas all prior drilling has been angled down from the base of the hill drilling into the rock below the ridge. I am also very encouraged by our first holes into the Wara Wara gold vein system in which we have intersected useful gold grades together with silver and indium mineralization, all of which have shown good recoveries by leaching. Importantly, this area of cross-cutting gold veins extends the area in which we expected to find potentially ore-grade mineralization."

The following tables list presently available drill intercepts by area, using an approximate 10 gpt silver cut-off.

Information in Central Wara Wara now includes 7 drill holes and the surface sampling, which together define an open ended block approximately 700 metres long by up to 150 metres wide and up to 350 metres deep. The cross-cutting gold mineralization is associated with copper mineralization which is shown in the table at the end of the press release. New holes are denoted with an asterisk. The holes are listed in the following table from north to south.



---------------------------------------------------------------------------
Drill Hole Description Length Gold Silver Gallium Indium
m gpt gpt gpt gpt
---------------------------------------------------------------------------
WWD001 102.6 less than 0.01 50.6 7.2 3.9
---------------------------------------------------------------------------
including 5.2 less than 0.01 409.0 8.3 8.0
---------------------------------------------------------------------------
WWD007 200.6 less than 0.01 29.0 6.3 3.3
---------------------------------------------------------------------------
including 92.6 less than 0.01 42.3 5.8 5.0
---------------------------------------------------------------------------
including 16.3 less than 0.01 109.9 7.3 6.4
---------------------------------------------------------------------------
WWD008(i) 70.0 0.01 36.7 5.7 3.9
---------------------------------------------------------------------------
and 53.0 less than 0.01 28.1 5.3 0.7
---------------------------------------------------------------------------
WWD002 106.0 less than 0.01 33.0 5.8 1.9
---------------------------------------------------------------------------
includes 10.1 less than 0.01 117.8 5.3 2.4
---------------------------------------------------------------------------
WWD009(i) 69.8 0.29 18.1 5.1 1.9
---------------------------------------------------------------------------
and 58.0 0.13 37.9 6.7 7.0
---------------------------------------------------------------------------
WWD010(i) 31.0 0.27 23.5 3.7 2.9
---------------------------------------------------------------------------
and 56.0 0.17 12.3 6.1 1.1
---------------------------------------------------------------------------
and 16.6 0.39 121.2 5.4 11.9
---------------------------------------------------------------------------


In Central Limosna, approximately 1,200 metres to the south, the Company now has 10 holes defining a block approximately 550 metres long by up to 120 metres wide and to a depth of up to 400 metres. New holes are denoted with an asterisk. The holes are listed in the following table from north to south.



--------------------------------------------------------------------------
Drill Hole Description Length Silver Gallium Indium
m gpt gpt gpt
--------------------------------------------------------------------------
LMD004 136.0 37.1 2.6 1.9
--------------------------------------------------------------------------
LMD010 172.5 30.0 2.4 2.7
--------------------------------------------------------------------------
LMD011(i) 28 23.2 3.0 1.4
--------------------------------------------------------------------------
and 11.4 50.3 2.8 0.7
--------------------------------------------------------------------------
and 6.0 48.2 3.1 1.7
--------------------------------------------------------------------------
LMD005 202.9 42.1 2.9 2.9
--------------------------------------------------------------------------
LMD003 130.0 76.4 2.7 3.4
--------------------------------------------------------------------------
LMD016(i) Top of ridge 200.0 99.2 1.5 3.2
--------------------------------------------------------------------------
LMD017(i) Top of ridge 145.0 61.8 2.8 7.3
--------------------------------------------------------------------------
LMD006 230.0 72.5 3.6 7.4
--------------------------------------------------------------------------
LMD007 351.0 28.0 3.6 11.0
--------------------------------------------------------------------------
LMD013(i) 116.7 36.6 3.2 29.3
--------------------------------------------------------------------------
LMD002 124.5 23.1 3.2 15.9
--------------------------------------------------------------------------
LMD012(i) 83.0 17.8 3.0 8.0
--------------------------------------------------------------------------


It is noteworthy that the mineralization in the Central Limosna block changes from north to south. In the north the mineralization is characterized by moderate silver and indium with increasing zinc and lead mineralization below approximately 300 metres below the surface. In the central part of the block the mineralization includes high silver and moderate indium values and in the south changes to modest silver and high indium values with increasing zinc and lead mineralization below 300 metres. LMD016 and LMD017 indicate that the higher silver grades seen in the central area in LMD003, LMD005 and LMD006 extend up to the surface. Lead-zinc values are shown in the table at the end of the press release.

At the southern end of Limosna starting, approximately 200 metres south of LMD012, another zone of mineralization is developing, presently defined by five holes. This block is approximately 400 metres N-S and extends to a depth of up to 300 metres. New holes are denoted with an asterisk. The holes are listed in the following table from north to south.



---------------------------------------------------------
Drill Hole Length Silver Gallium Indium
m gpt gpt gpt
---------------------------------------------------------
LMD014(i) 85.5 30.5 1.9 6.9
---------------------------------------------------------
LMD001 73 38.2 2.6 17.6
---------------------------------------------------------
LMD008 100.3 29.7 2.6 9.1
---------------------------------------------------------
LMD009 42.5 33.6 2.6 13.1
---------------------------------------------------------
LMD015(i) 218.1 32.8 2.3 5.3
---------------------------------------------------------


South Limosna is characterized by a well defined zone of modest grade silver with good indium grades and the highest lead grades on the property. Stratabound bands of lead mineralization are becoming more strongly developed in the southern part of Limosna with the highest grade intercept being 1.9 metres of 5.6% lead. Lead-zinc values are shown in the table at the end of the press release.

The following table shows the detailed results from each of the new holes:



---------------------------------------------------------------------------
Drill Hole From To Length Gold Silver
m gpt gpt
---------------------------------------------------------------------------
Wara Wara
---------------------------------------------------------------------------
WWD008 19.0 89.0 70.0 0.01 36.7
---------------------------------------------------------------------------
including 19.0 76.3 57.3 0.01 40.3
---------------------------------------------------------------------------
including 25.6 28.0 2.4 0.01 357.5
---------------------------------------------------------------------------
and 106.5 140.4 33.9 less than 0.01 18.8
---------------------------------------------------------------------------
including 117.3 118.0 0.7 less than 0.01 111.0
---------------------------------------------------------------------------
and 176.0 229.0 53.0 less than 0.01 28.1
---------------------------------------------------------------------------
and 469.6 487.5 17.9 0.05 3.0
---------------------------------------------------------------------------
and 501.0 509.0 8.0 0.02 12.0
---------------------------------------------------------------------------

---------------------------------------------------------------------------
WWD009 85.6 156.0 70.4 0.29 17.9
---------------------------------------------------------------------------
including 104.5 106.5 2.0 4.68 66.5
---------------------------------------------------------------------------
and 289.0 347.0 58.0 0.13 37.9
---------------------------------------------------------------------------
including 328.0 347.0 19.0 0.21 76.9
---------------------------------------------------------------------------

---------------------------------------------------------------------------
WWD010 121.0 152.0 31.0 0.27 23.5
---------------------------------------------------------------------------
including 135.0 140.0 5.0 0.91 54.9
---------------------------------------------------------------------------
and 152.0 208.0 56.0 0.17 12.3
---------------------------------------------------------------------------
and 329.5 346.0 16.6 0.39 121.2
---------------------------------------------------------------------------
including 338.1 342.0 3.9 1.28 420.1
---------------------------------------------------------------------------
and 413.8 429.0 15.3 0.07 115.8
---------------------------------------------------------------------------
and 470.5 480.0 9.5 0.01 40.1
---------------------------------------------------------------------------

---------------------------------------------------------------------------

---------------------------------------------------------------------------
Limosna
---------------------------------------------------------------------------
LMD011 186.00 214.0 28.0 less than 0.01 23.2
---------------------------------------------------------------------------
395.0 406.4 11.4 less than 0.01 50.3
---------------------------------------------------------------------------
416.0 422.0 6.0 less than 0.01 48.2
---------------------------------------------------------------------------

---------------------------------------------------------------------------
262.3 282.6 20.3 less than 0.01 7.7
---------------------------------------------------------------------------
262.3 323.0 60.7 less than 0.01 6.5
---------------------------------------------------------------------------

---------------------------------------------------------------------------
LMD012 50.0 133.0 83.0 less than 0.01 17.8
---------------------------------------------------------------------------

---------------------------------------------------------------------------
271.3 284.2 12.9 less than 0.01 8.5
---------------------------------------------------------------------------
362.0 421.3 59.3 less than 0.01 5.0
---------------------------------------------------------------------------

---------------------------------------------------------------------------
LMD013 35.3 152.0 116.7 less than 0.01 36.6
---------------------------------------------------------------------------
including 91.8 138.0 46.2 less than 0.01 55.4
---------------------------------------------------------------------------

---------------------------------------------------------------------------
and 279.7 288.5 8.8 less than 0.01 14.2
---------------------------------------------------------------------------

---------------------------------------------------------------------------
and 328.1 376.0 47.9 less than 0.01 18.9
---------------------------------------------------------------------------
including 328.1 332.4 4.3 less than 0.01 96.8
---------------------------------------------------------------------------

---------------------------------------------------------------------------
LMD014 56.0 141.5 85.5 less than 0.01 30.5
---------------------------------------------------------------------------
including 81.5 83.5 2.0 less than 0.01 79.3
---------------------------------------------------------------------------

---------------------------------------------------------------------------
LMD015 43.9 262.0 218.1 less than 0.01 32.8
---------------------------------------------------------------------------

---------------------------------------------------------------------------
including 78.0 137.0 59.0 less than 0.01 56.3
---------------------------------------------------------------------------
including 187.9 189.8 1.9 less than 0.01 185.0
---------------------------------------------------------------------------

---------------------------------------------------------------------------
LMD016 2.0 202.0 200.0 less than 0.01 99.2
---------------------------------------------------------------------------
including 60.5 111.2 50.7 less than 0.01 220.1
---------------------------------------------------------------------------
including 62.0 65.0 3.0 less than 0.01 734.5
---------------------------------------------------------------------------
also 2.0 18.0 16.0 less than 0.01 78.5
---------------------------------------------------------------------------
including 5.2 10.0 4.8 less than 0.01 70.1
---------------------------------------------------------------------------

---------------------------------------------------------------------------
LMD017 0.0 145.0 145.0 less than 0.01 61.8
---------------------------------------------------------------------------
including 0.0 70.2 70.2 less than 0.01 102.7
---------------------------------------------------------------------------
including 43.8 65.5 21.7 less than 0.01 142.4
---------------------------------------------------------------------------
including 130.8 145.0 14.2 less than 0.01 31.2
---------------------------------------------------------------------------

---------------------------------------------------------------------------


---------------------------------------------------------------------------
Drill Hole Cu Pb Zn Gallium Indium
gpt gpt gpt gpt gpt
---------------------------------------------------------------------------
Wara Wara
---------------------------------------------------------------------------
WWD008 376.5 280 35 5.7 3.9
---------------------------------------------------------------------------
including 382.7 271 19 5.4 4.1
---------------------------------------------------------------------------
including 3,058.4 652 76 9.5 12.4
---------------------------------------------------------------------------
and 563.4 322 46 7.4 4.4
---------------------------------------------------------------------------
including 149.0 187 18 6.2 3.9
---------------------------------------------------------------------------
and 236.3 98 30 5.3 0.7
---------------------------------------------------------------------------
and 183.5 144 47 3.7 0.5
---------------------------------------------------------------------------
and 82.1 51 32 3.7 0.3
---------------------------------------------------------------------------

---------------------------------------------------------------------------
WWD009 191.3 538 18 5.1 1.9
---------------------------------------------------------------------------
including 500.1 1,699 95 7.2 10.9
---------------------------------------------------------------------------
and 994.0 384 149 6.7 7.0
---------------------------------------------------------------------------
including 1,956.0 543 407 6.2 11.5
---------------------------------------------------------------------------

---------------------------------------------------------------------------
WWD010 309.8 529 17 3.7 2.9
---------------------------------------------------------------------------
including 598.1 1,139 28 4.5 6.9
---------------------------------------------------------------------------
and 170.7 207 8 6.1 1.1
---------------------------------------------------------------------------
and 5,989 389 189 5.4 11.9
---------------------------------------------------------------------------
including 1.68% 661 709 5.6 39.0
---------------------------------------------------------------------------
and 865.8 335 94 3.7 8.0
---------------------------------------------------------------------------
and 156.9 176 83 5.7 1.4
---------------------------------------------------------------------------

---------------------------------------------------------------------------

---------------------------------------------------------------------------
Limosna
---------------------------------------------------------------------------
LMD011 42.2 305 359 3.0 1.4
---------------------------------------------------------------------------
104.9 668 749 2.8 0.7
---------------------------------------------------------------------------
98.4 999 1,629 3.1 1.7
---------------------------------------------------------------------------

---------------------------------------------------------------------------
59.3 1,279 4,957 3.6 7.8
---------------------------------------------------------------------------
45.0 1,089 2,592 3.7 6.5
---------------------------------------------------------------------------

---------------------------------------------------------------------------
LMD012 87.7 1,147 205 3.0 8.0
---------------------------------------------------------------------------

---------------------------------------------------------------------------
39.6 3,337 1,216 3.4 0.7
---------------------------------------------------------------------------
14.7 783 3,096 3.4 1.2
---------------------------------------------------------------------------

---------------------------------------------------------------------------
LMD013 45.7 1,341 434 3.2 29.3
---------------------------------------------------------------------------
including 56.6 1,272 447 3.3 57.9
---------------------------------------------------------------------------

---------------------------------------------------------------------------
and 232.6 2,608 7,239 4.0 9.1
---------------------------------------------------------------------------

---------------------------------------------------------------------------
and 38.0 3,073 3,126 3.1 2.2
---------------------------------------------------------------------------
including 138.5 5,342 2,367 3.5 7.9
---------------------------------------------------------------------------

---------------------------------------------------------------------------
LMD014 27.3 1,249 260 1.9 6.9
---------------------------------------------------------------------------
including 52.6 1.04% 787 2.2 26.8
---------------------------------------------------------------------------

---------------------------------------------------------------------------
LMD015 18.8 1,227 174 2.3 5.3
---------------------------------------------------------------------------

---------------------------------------------------------------------------
including 37.4 387 102 2.0 5.0
---------------------------------------------------------------------------
including 34.8 5.6% 1,800 1.9 12.5
---------------------------------------------------------------------------

---------------------------------------------------------------------------
LMD016 141.8 1,915 265 1.5 3.2
---------------------------------------------------------------------------
including 223.5 1,370 239 1.3 3.9
---------------------------------------------------------------------------
including 156.5 1,415 210 1.5 1.4
---------------------------------------------------------------------------
also 360.6 10,951 772 1.7 2.0
---------------------------------------------------------------------------
including 501.1 21,599 848 1.6 1.8
---------------------------------------------------------------------------

---------------------------------------------------------------------------
LMD017 229.4 1,432 225 2.8 7.3
---------------------------------------------------------------------------
including 418.9 1,736 292 2.0 3.2
---------------------------------------------------------------------------
including 512.7 1,129 204 2.2 3.6
---------------------------------------------------------------------------
including 31.8 511 169 3.5 40.9
---------------------------------------------------------------------------

---------------------------------------------------------------------------

Cu= copper, Pb= lead, Zn= zinc

Approximate true widths can be obtained by multiplying the intersection
lengths by the following factors (note the grades do not change):

LMD: 12, 13, 14, 15, and 17 multiply by: approximately one half
LMD: 16: This hole was drilled down dip from the top of the ridge to assess
the grade from the top of the ridge to the plain, 150 metres below the
ridge line. The hole cut the strata at approximately 20 degrees and
the near-horizontal enrichment at approximately 50 degrees.
LMD: 11 multiply by: approximately one third
WW: 9 multiply by: approximately one half
WW: 8, 10 multiply by: approximately one third to one half.


The Company has completed 11,238 metres of drilling in 36 drill holes at Malku Khota since the inception of the project. The Company is also initiating contracting independent consultants to complete a 43-101 resource based on drilling to date.

Geochemical analysis of the Malku Khota drill core was carried out by ALS Chemex. The samples were prepared in their Oruro, Bolivia laboratory and analyzed in their ISO 9001 2000 laboratory in Lima, Peru. Silver and lead were analyzed by the ICP MS61 method using a four acid digestion. Silver values greater than 100 gpt were reanalyzed by AA62 method using a four acid digestion. Silver assays greater than 1,500 gpt were analyzed by the 30g FA-GRAV method. Gallium and indium were assayed by ICP MS61. Ralph Fitch, President of the Company is the Qualified Person for this project and has reviewed the content of this press release.

Please see the South American Silver Corp.'s website, www.soamsilver.com, for maps and sections.

Certain statements contained herein constitute "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," "targeting," "suggests," "potential," "interpretation" and similar expressions. Information concerning the interpretation of drill results also may be considered forward-looking statements, 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 are based on current expectations and entail various risks and uncertainties. Actual results may materially differ from expectations, if known and unknown risks or uncertainties affect our business, or if our estimates or assumptions prove inaccurate. SASC assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason.

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