New High-Grade Silver-Gold-Indium Vein System At Malku Khota
VANCOUVER, BC - South American Silver Corp. reported the discovery of a potentially significant new high grade silver-gold-indium vein system at Malku Khota that may join the highly mineralized Wara Wara and Sucre Zones in Bolivia. The importance of this new discovery is that the area between these two zones was previously classified as unmineralized material due to a lack of drilling in the area and is now shown to include a well mineralized silver-gold-indium vein system. The vein system consists of many sub-parallel veins, the largest of which that has been drilled to date, is the "Sucre Vein". The most recent drill hole, WWD040, includes a significant 26 metre wide interval of high grade silver mineralization in the Sucre Vein which averaged 125.2 g/t silver and 14.8 g/t indium. The vein intercept starts at 218 metres down-hole and is approximately true width. This vein extends to the surface where it can be seen in outcrop.
Company drill programs in 2007 and 2008 focused on the four kilometre long zone of strata-bound disseminated silver-indium mineralization within the host sandstone that trends NNW-SSE in the northern portion of the property position. This prior drilling was included in the NI 43-101-qualified independent resource estimate issued in October 2008 that defined 145 million ounces of silver in the indicated category and 178 million ounces in the inferred category, plus 845 tonnes of indium in the indicated category and 968 tonnes of indium in the inferred category. This estimate does not include the results from 16 holes drilled subsequent to the preparation of the resource estimate. Malku Khota is recognized as one of the world's largest, undeveloped silver resources.
Ralph Fitch, President and CEO, stated, "This new high-grade vein system discovery has the potential to substantially increase the mineable ounces as previously estimated in the positive Preliminary Economic Assessment ("PEA") last year. It may also indicate the potential for one large, combined Wara Wara-Sucre open pit. WWD040 is the seventh hole to validate this new zone that extends for approximately one kilometre east-west, as seen at surface, connecting the two previously delineated resource areas. These initial results for this new zone are very encouraging and more drilling is planned between the Wara Wara and Sucre Zones to add this high-grade vein system mineralization into a resource category."
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