South American Silver Corp.
TSX : SAC

South American Silver Corp.

November 14, 2008 17:21 ET

South American Silver Corp. Files a Technical Report

Indicated Resource of 144,597,000 oz Silver and 845,000 kg of Indium and an Inferred Resource of 177,783,000 oz Silver and 968,000 kg of Indium at Malku Khota

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 14, 2008) - South American Silver Corp. ("SASC" or the "Company"), (TSX:SAC), is pleased to announce the filing today of a technical report under National Instrument 43-101 -- Standards of Disclosure for Mineral Projects ("NI 43-101") on the updated resource at its Malku Khota silver-indium property in Bolivia. The independent NI 43-101 compliant resource and technical report have been completed by the Consulting Group Pincock, Allen & Holt ("PAH"). This resource includes mineralization from the Limosna, Wara Wara and Sucre zones based on assay results available to the Company as of the end of August 2008, and is based on approximately 25,000 metres of drilling in 75 drill holes. The mineralization is still open ended to the north and south of all three zones and at depth and drilling is continuing. The full technical report is available under the Company's profile at www.sedar.com.

The highlights of the resource estimate are shown in the following tables:



Indicated Resource Estimate
------------------------------------------------------------------------
Cut off Silver Indium
(gpt Tonnes Grade Grade Silver Indium
Silver) (g/t) (g/t) Troy Ounces Kilograms
------------------------------------------------------------------------
10 151,355,000 29.71 5.58 144,597,000 845,000
20 80,698,000 43.15 6.75 111,966,000 544,000
30 45,116,000 57.90 7.75 83,989,000 350,000
40 28,505,000 71.54 8.50 65,567,000 242,000
50 18,904,000 85.33 9.15 51,861,000 173,000
60 13,534,000 97.52 9.80 42,432,000 133,000
------------------------------------------------------------------------


Inferred Resource Estimate
------------------------------------------------------------------------
Cut off Silver Indium
(gpt Tonnes Grade Grade Silver Indium
Silver) (g/t) (g/t) Troy Ounces Kilograms
------------------------------------------------------------------------
10 230,069,000 24.03 4.21 177,783,000 968,000
20 95,330,000 37.81 5.87 115,882,000 560,000
30 50,726,000 49.74 7.06 81,120,000 358,000
40 31,471,000 59.13 7.69 59,832,000 242,000
50 18,236,000 69.78 8.15 40,910,000 149,000
60 10,691,000 80.63 8.82 27,714,000 94,000
------------------------------------------------------------------------


Recent approximate prices, as displayed on websites such as mineralprices.com or nickelalloy.com, for the metals include silver at US$0.30 per gram (US$9.43 /oz) and indium at US$0.63 per gram (US$625.00 /kg)

Ralph Fitch, President of the Company stated "We are very pleased with the way the project is developing. This new resource starts to show the potential size of the project in the northern three and a half kilometres of our 15 kilometre land position. This resource contains the higher grade silver enrichment mineralization at Limosna and the Sucre zone, such that we now have important quantities of two and three ounce silver. Significantly the higher grades start at the surface with no cover at Limosna and would be the first ore to be mined in the large open pit operation that we envisage."

The resource was estimated using Ordinary Kriging on composited drill hole assays from 75 drill holes. Results were estimated into a block model developed using Surpac software. This resource estimate will be included in the ongoing Economic Assessment currently being carried out by PAH, all of which will be filed and included in an updated NI 43-101 technical report.

Barton Stone, C.P.G., Chief Geologist of Pincock, Allen & Holt is the Qualified Person for this resource estimate and has been assisted by Abani Samal, C.P.G., Geologist/Geostatistician, J. Ross Conner, Professional Geologist and Don Larson, Professional Engineer. All have reviewed the content of this press release.

Certain statements in this press release constitute "forward-looking statements". These forward-looking statements 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. Forward-looking statements express, as at the date of this press release, the Company's plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results. Forward-looking statements are based on certain assumptions, including the key assumptions and parameters on which such estimates are based, involve risks and uncertainties and there can be no assurance that such statements will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements. Factors that could cause results or events to differ materially from current expectations expressed or implied by the forward-looking statements, include, but are not limited to, possible variations in mineral resources, grade or recovery rates; changes in project parameters as plans continue to be refined; failure of equipment or processes to operate as anticipated; political, regulatory and other risks of the mining industry; and other risks more fully described in the Company's Annual Information Form filed and publicly available on SEDAR at www.sedar.com. Readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. Subject to applicable laws, the Company assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason.

This press release uses the terms 'indicated resources' and 'inferred resources' which are terms recognized and required by Canadian regulations (under National Instrument 43-101 Standards of Disclosure for Mineral Projects). Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will be converted into reserves. In addition, 'inferred resources' have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that an 'inferred resource' will be upgraded to a higher category. Under Canadian rules, estimates of 'inferred resources' may not form the basis of feasibility or pre-feasibility studies, or economic studies except for Preliminary Assessment as defined under 43-101. Investors are cautioned not to assume that part or all of an 'inferred resource' exists, or is economically or legally mineable.

SASC is a mineral exploration company that acquires, explores and develops mineral properties, primarily silver, gold and copper in South America. The Company presently holds interests in three properties: the flagship Malku Khota silver-indium-gold and the Laurani gold-silver properties in Bolivia and the Escalones copper-gold-molybdenum property in Chile.

Contact Information

  • South American Silver Corp.
    Richard Doran
    Executive Vice President, Investor Relations
    (303) 584-0606
    (303) 758-2063 (FAX)
    Email: rdoran@soamsilver.com