South American Silver Announces Intersection of New Lead-Zinc-Silver ...

Tag : zinc
South American Silver Announces Intersection of NewLead-Zinc-Silver SEDEX Mineralization at Malku Khota

Released : Thursday, August 28, 2008 1:09 PM
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 28, 2008) - SouthAmerican Silver Corp. ("SASC" or the "Company")(TSX:SAC) is pleasedto announce the results from the next 12 holes from the Malku KhotaProject, Bolivia. All diamond drill holes are from the SouthLimosna and Wara Wara Zones.
Several significant drill intercepts of SEDEX style (sedimentaryexhalative deposit), lead-zinc-silver mineralization have beenobtained in the south Limosna Zone. Assays include three one and ahalf metre intervals of between six and seven percent lead withadditional zinc and silver in drill hole LMD040. The intervalsincluding these assays are shown below.




Ralph Fitch, President of the Company stated "these excitingresults strongly suggest that in addition to the expandingsilver-indium resource, this large SEDEX system is zoned and thatthese new results are part of a new body of lead-zinc-silver-indiummineralization that surface samples suggest extends for severalkilometres to the south. SEDEX ore bodies can be very large such asthe well known Broken Hill and Mt. Isa mines in Australia, the RedDog mine in Alaska and the Sullivan mine in British Columbia. MalkuKhota mineralization now shows indications of extending over atleast 7 km giving it significant size potential."
The majority of mineralization the Company has drilled to date hasbeen high silver with low to modest lead-zinc. These holes in SouthLimosna indicate that the mineralization is zoning intolead-zinc-silver-indium as we move to the south. Importantly,earlier surface chip sampling of the host sandstone to the south ofLMD040 includes results such as 32 metres averaging 0.5% lead, 600metres to the south and a second line of chip samples 3.8 km to thesouth of LMD040 that averaged 0.1% lead over 16 metres, stronglysuggesting that the lead-zinc-silver-indium mineralizationcontinues for a significant distance to the south.
The most southerly fan of holes is shown below. Both holes weredrilled from the same pad with LMD040 at a steeper angle such thatit intersected the stratabound mineralization at greater depth.






The true width of these intersections is difficult to estimate dueto the low angle between the bedding of the sandstone and the drillhole. The Company estimates, however, that true widths areapproximately 20% of downhole widths in the case of LMD040 and 70%in the case of LMD039. This translates to the bands of higher gradelead mineralization having a width of 2 to 8 metres withindications that grade and thickness are increasing with depth andto the south.
The stronger lead-zinc silver mineralization extends approximately300 metres to the north of LMD039-040 and is open to the south.LMD041 is approximately 300 metres north of LMD039-040, andLMD042-043 are located approximately 100 metres north ofLMD039-040.






















A total of 80 holes have now been completed for a total of 27,158metres. With this press release, results from a total of 70 holeshave been released. Mineralized areas now defined include CentralLimosna, South Limosna, Wara Wara and Sucre.
Only approximately 11,000 metres of the 25,000 metres of drillingcompleted at the time were included in the previously reportedindicated and inferred resource due to the non-availability ofassay results. The reported initial indicated resource is50,200,000 ounces of silver and 288,000 Kg of indium and additionalinferred resource of 74,700,000 ounces of silver and 487,000 Kg ofindium (Press Release PR08-07, May 13, 2008).
An NI 43-101 compliant updated resource is planned to be completedby the end of September, 2008 and this information will be used aspart of a scoping study which is planned to be completed by the endof December, 2008.
The Company is also continuing with metallurgical testing at theSGS Laboratory in Ontario. The ongoing tests will optimize therecovery of silver and gold by conventional leaching and continueto optimize the acid plus salt leach for silver, indium and otherextracted metals. The tests will for the first time includeextracting the metals from the leach solutions into saleableproducts.
A map showing the locations of holes can be found on the Companywebsite at www.soamsilver.com.
Geochemical analysis of the Malku Khota drill core was carried outby ALS Chemex. The samples were prepared in their Oruro, Bolivialaboratory and analyzed in their ISO 9001 2000 laboratory in Lima,Peru. Silver and lead were analyzed by the ICP MS61 method using afour acid digestion. Silver values greater than 100 gpt and leadand zinc values greater than one percent were reanalyzed by AA62method using a four acid digestion. Silver assays greater than1,500 gpt were analyzed by the 30g FA-GRAV method. Gallium andindium were assayed by ICP MS61. Ralph Fitch, President of theCompany is the Qualified Person for this project and has reviewedthe content of this press release.
Certain statements in this press release constitute"forward-looking statements". Forward-looking statements mayinclude words such as "plans," "intends," "anticipates," "should,""estimates," "expects," "believes," "indicates," "targeting,""suggests," "potential," "interpretation" and similar expressions.These forward-looking statements include, but are not limited to,information concerning the interpretation of drill results,statements regarding estimated mineral resources and the potentialfor delineation of additional resources based on additional drillresults from the Malku Khota Project. Forward-looking statementsexpress, as at the date of this press release, the Company's plans,estimates, forecasts, projections, expectations, or beliefs as tofuture events or results. Forward-looking statements are based oncertain assumptions, including the key assumptions and parameterson which such estimates are based, involve risks and uncertaintiesand there can be no assurance that such statements will prove to beaccurate. Therefore, actual results and future events could differmaterially from those anticipated in such statements. Factors thatcould cause results or events to differ materially from currentexpectations expressed or implied by the forward-lookingstatements, include, but are not limited to, possible variations inmineral resources, grade or recovery rates; changes in projectparameters as plans continue to be refined; failure of equipment orprocesses to operate as anticipated; political, regulatory andother risks of the mining industry; and other risks more fullydescribed in the Company's Annual Information Form filed andpublicly available on SEDAR at www.sedar.com. Readers are cautionednot to place undue reliance on the forward-looking statementscontained in this press release. Subject to applicable laws, theCompany assumes no obligation to update or revise anyforward-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 byCanadian regulations (under National Instrument 43-101 Standards ofDisclosure for Mineral Projects). Investors are cautioned not toassume that any part or all of the mineral deposits in thesecategories will be converted into reserves. In addition, 'inferredresources' have a great amount of uncertainty as to theirexistence, and economic and legal feasibility. It cannot be assumedthat an inferred resource will be upgraded to a higher category.Under Canadian rules, estimates of inferred resources may not formthe basis of feasibility or pre-feasibility studies, or economicstudies except for Preliminary Assessment as defined under NI43-101. Investors are cautioned not to assume that part or all ofan inferred resource exists, or is economically or legallymineable.
SASC is a mineral exploration company that acquires, explores anddevelops mineral properties, primarily silver, gold and copper inSouth America. The Company presently holds interests in threeproperties: the flagship Malku Khota silver-indium-gold and theLaurani gold-silver properties in Bolivia and the Escalonescopper-gold-molybdenum property in Chile.
Please see the South American Silver Corp.'s website,www.soamsilver.com, for maps and sections.
Contact:
Richard Doran
South American Silver Corp.
Executive Vice President, Investor Relations
(303) 584-0606
(303) 758-2063 (FAX)
Email: rdoran@soamsilver.com
Website: www.soamsilver.com
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