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South American Silver Corp. (TSX:SAC) reported the release of its unaudited interim consolidated financial statements for the three and nine months ended September 30, 2011 and the related management’s discussion and analysis of financial position and results of operations.
As quoted in the press release:
As at September 30, 2011, the Company had working capital of U.S. $28.6 million, including cash and cash equivalents of U.S. $28.6 million. With these funds in place, the Company is in a very strong financial position to accelerate the advancement of its Malku Khota project toward feasibility, and its Escalones project to the resource definition stage. Further details including the full financial statements and information on each of the Company’s projects, including the resource estimate at Malku Khota, are available on the Company’s website at www.soamsilver.com and on SEDAR at www.sedar.com.
Malku Khota
Earlier in 2011, the Company announced results from an updated Preliminary Economic Assessment (“PEA”) for the Malku Khota silver-indium-gallium project. Results of the PEA more than doubled estimated mine production levels from the 2009 PEA to 13.2 million ounces of silver per year for the first 5 years of production, at a cash cost of U.S. $2.94 per ounce net of by-product credits at “base case” 3 year average metal prices, putting it in the lower quartile of producer costs. Additionally it more than doubled indium production to 80 tonnes of indium per year and reported the first projected production figures for gallium at 15 tonnes per year.Escalones
At the Escalones project, the Company completed an initial exploration program in early 2011 including follow-up geochemical sampling, geophysical interpretation, and re-logging and re-sampling of previously drilled core holes in connection with the planned issuance of an initial copper-gold-silver resource at this large scale, high potential porphyry project in Q4-2011. Also in Q4, a ZTEM deep penetrating geophysical survey is being carried out to assist in mapping and targeting of the porphyry related mineralization. A substantial drill program designed to extend zones of known mineralization and test additional geologic and geophysical targets is planned to start late in the year based on drill rig availability. A total of U.S. $88,000 was incurred at the Escalones project in the third quarter on the exploration program.
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