South American Silver Announces Multi-Billion Pound Copper Resource in Chile

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South American Silver (TSX: SAC) announced a 2.8 billion pound copper Inferred resource estimate (at a 0.3% copper equivalent cutoff) grading 0.55% copper, 68.25 ppm molybdenum, 0.06 g/t gold, and 1.66 g/t silver at a 0.64% copper equivalent at its Escalones project in Chile.  At a 0.1% copper equivalent resource increased to over 4.5 billion pounds of copper.  The Escalones project includes 70 square kilometers and is in the same mining district as the El Teniente deposit, the world’s largest underground copper mine.

The resource estimate was based on 30 diamond drill holes totaling 12,666 meters and 43 channel and road cuts totaling more than 2,100 meters.  The company also completed a ZTEM and aeromagnetic survey potentially indicating areas of additional sulfide mineralization to be tested.  South American Silver plans to mobilize two drill rigs in a 7,000 meter drill program to begin in April of 2012.