3.8 Billion Pounds of Copper Discovery Announced by South American Silver

- December 19th, 2011

The first independent NI 43-101-qualified resource estimate for South American Silver Corp.’s (TSX:SAC,PINKSHEETS:SOHAF) 100%-controlled Escalones copper-gold-silver project in central Chile defined an Inferred Resource of 420 million tonnes of mineralized material containing 3.8 billion lbs of copper.

The first independent NI 43-101-qualified resource estimate for South American Silver Corp.’s (TSX:SAC,PINKSHEETS:SOHAF) 100%-controlled Escalones copper-gold-silver project in central Chile defined an Inferred Resource of 420 million tonnes of mineralized material containing 3.8 billion lbs of copper.

As qutoed in the press release:

Highlights:

  • Newly 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 using a 0.2% Cu Equivalent1 cut-off grade which represents approximately a $2.50/lb copper price (see table 1 below).
  • This is a copper-equivalent1 content of 4.5 billion lbs of copper grading 0.49% based on approximate 3-year average metal prices of $3.00/lb copper, $1,200/oz gold, $22/oz silver and $16/lb molybdenum.
  • The deposit remains open to expansion laterally and down dip with 90% of this first resource hosted in copper, gold and silver replacement-style mineralization, and one drill hole testing porphyry-style mineralization.
  • The 70 square kilometer Escalones project is located in the world-class central Chilean mining district which includes the nearby El Teniente deposit, which is the world’s largest underground copper mine.
  • A ZTEM and aeromagnetic survey potentially indicating areas of additional sulfide mineralization has been completed for the property and is being interpreted.
  • Two drills are currently being mobilized to the project for a Phase-II program with approximately 7,000 meters of drilling anticipated to begin in January and to complete in April.

South American Silver President and CEO, Greg Johnson, said:

“With the scale of this first resource, along with the excellent infrastructure at Escalones and its similarity to the nearby giant porphyry system at El Teniente, we believe that the Escalones project will begin to attract market attention. Our team is committed to adding significant new value for shareholders in coming months as we demonstrate potential for further resource expansion at Escalones and advance Malku Khota to the Pre-Feasibility level.”

Click here to read the South American Silver Corp. (TSX:SAC,PINKSHEETS:SOHAF) press releaseSee this press release on Marketwire
Click here to see the South American Silver Corp. (TSX:SAC,PINKSHEETS:SOHAF) profile.

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