South American Silver Corp.
TSX : SAC

South American Silver Corp.

September 10, 2007 08:30 ET

South American Silver Corp. Reports Results From Latest Series of Metallurgical Tests at the Malku Khota Silver Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 10, 2007) - South American Silver Corp. ("SASC") (TSX:SAC) is pleased to announce the results of the latest series of metallurgical tests designed to test the leachability of six samples selected from each of the mineralized areas at the Malku Khota project located in west central Bolivia.

The results were encouraging with an average silver recovery of 83% after 72 hours of leaching.



---------------------------------------------------------------------------
% Silver % Gold
Drill Hole Metallurgical Extraction Extraction Grade (calc),g/t
Sample -------------------------------------------------
24h 48h 72h 24h 48h 72h Gold Silver
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Limosna
Lmd001 MET1 89 89 90.4 34 34 34.1 0.06 47.8
Limosna
Lmd003 MET2 86 88 87.5 50 51 51.0 0.04 124
Limosna
Lmd005 MET3 61 64 64.3 51 52 51.7 0.02 28.0
Malku-Khota
Mkd001 MET4 84 87 92.2 49 49 49.9 0.04 73.2
Warra Warra
Wwd001 MET5 80 86 85.3 51 51 51.0 0.04 136
Warra Warra
Wwd001 MET6 77 77 77.3 52 52 52.1 0.04 35.1
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Average 79.5 81.8 82.8 47.8 48.2 48.3
---------------------------------------------------------------------------


Gold recovery from very low grades was 48%. The presence of gold in every sample is positive since drill core analysis had not detected gold, probably due to the small size (30g) of the sample that is analyzed when analyzing drill-core, relative to the one kg or larger samples used for metallurgical tests. This issue is called "nugget" effect which means that a small nugget of gold may not be included in a small sample but is very likely to be included in a larger sample. To further test for "nugget" effect the Company also carried out gravity separation tests on the same six samples. The results indicate that gold can be concentrated by gravity and that in one case (sample MET2), the calculated grade from the gravity concentrate was significantly higher than the original assay for gold (0.34 g/t versus 0.04 g/t of gold), confirming a nugget effect for this sample. As expected, silver was not significantly concentrated due to gravity and the good agreement between calculated and original assay for silver indicates that there is no equivalent nugget effect for silver.



Summary of Gravity Separation Results

---------------------------------------------------------------------------
Gravity Concentrate Grade (calc) Original Assay
from Gravity
Concentrate
--------------------------------------------------------------------
Sample %Wt of
original Assay, % Assay, Assay,
sample g/t Recovery g/t g/t
--------------------------------------------------------------------
% Au Ag Au Ag Au Ag Au Ag
---------------------------------------------------------------------------
---------------------------------------------------------------------------
MET1 1.275 5.32 99.9 77.5 2.8 0.09 45.4 0.10 40.2
---------------------------------------------------------------------------
MET2 1.37 23.1 374 94.1 4.4 0.34 117 0.04 112
---------------------------------------------------------------------------
less
than
MET3 1.458 0.44 26.5 24.6 1.6 0.03 23.4 0.02 20.5
---------------------------------------------------------------------------
less
than
MET4 1.650 0.02 366 1.6 8.4 0.02 72.0 0.02 70.3
---------------------------------------------------------------------------
less
than
MET5 0.21 0.62 2,755 6.2 4.5 0.02 132 0.02 129
---------------------------------------------------------------------------
less
than
MET6 1.71 0.32 94.5 21.5 6.3 0.03 25.6 0.02 25.8
---------------------------------------------------------------------------


The test work was conducted by the Metallurgical Operations Group, SGS Minerals Services, Lakefield, Ontario ("SGS"). The Company's metallurgical program is being supervised by Dr. David Dreisinger, Professor and Chair holder of the Industrial Research Chair in Hydrometallurgy at the University of British Columbia. Ralph Fitch, President of the Company is the Qualified Person for this project.

Further metallurgical work is underway at SGS including a test to determine the leachability and recovery of indium and gallium in an acid solution containing salt. The added advantage of this leach process is its potential to also leach silver and base metals. The results of this work will be presented together with flotation and grinding tests once all tests have been completed.

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 metallurgical test results also may be considered forward-looking statements, as such information constitutes a prediction of what metals might actually be recovered 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.

The SASC web site, www.soamsilver.com, provides a visual representation of the current drilling at the Malku Khota project.

Contact Information