South American Silver

South American Silver (TSX: SAC) is advancing the largest silver-indium resource in the current metal cycle. The Malku Khota project resource covers only 3.5 km of a 15 km prospective land position in Bolivia. The project at an early stage has robust economics. Higher grade mineralization to be processed early in the mine life is contained in the exposed ridgeline, suggesting a low strip ratio, aiding rapid repayment of capital. The resource is a silver-indium-gold low-sulfide deposit that appears amenable to a low-cost acid heap leach operation. Catalysts for price appreciation include:

• Increase and upgrade of identified resource
• Higher silver, indium and gold prices
• Expansion potential along trend

Malku Khota has good potential for having lower costs for development and operation relative to other projects. The potential to recover indium significantly reduces the cost of producing silver. We also are of the opinion that South American Silver has good potential, as with other mining companies, to develop and potentially operate a mine in Bolivia. We are initiating coverage of South American Silver with a price target of $2.00 per share, a Buy rating, and a High risk assessment.

South American Silver Corporation’s (TSX: SAC) Malku Khota Project in Bolivia may be the largest low-cost silver discovery in the current metal cycle. South American Silver’s concession extends over the most prospective 15 kilometers (km) of a 60 km mineralized trend. South American Silver has recently established an initial 144 million ounce Indicated silver resource and an additional 177 million ounces in the Inferred category.