South American Silver Corp. ("SASC”) is a growth focused mineral exploration company creating value through the exploration and development of the 100% owned, near-surface, Gold Springs gold-silver project in mining friendly Nevada and Utah in the USA; the advancement of the large scale Escalones copper-gold project in Chile, and realization of just compensation from Bolivia for the expropriation of the Company’s significant silver-indium discovery, Malku Khota.
The Company's approach to business combines the team's track record of world-class discoveries and successful project development and integrates a focus on strong Community Relations and Corporate Social Responsibility.
Management has extensive experience in the global exploration and mining industry with much of that focused in the USA, Chile, Mexico, Bolivia, Peru and Argentina. The Company trades on the Toronto Stock Exchange under the symbol SAC and SAC.B and on the US OTCQX market as SOHAF.
Note, following the closing of the plan of arrangement, the new SAC and SAC.B shares are expected to start trading on the TSX on December 24, 2013.
To The Shareholders:
These are exciting times for the Company. With the completion of the Plan of Arrangement, the Company now has an important gold project at Gold Springs in Nevada/Utah with potential for further significant resource expansion through continued drilling. The exploration focus of the Company going forward will be the exploration and development of the Gold Springs Project. The Company is in a strong financial position and has a strong exploration team to meaningfully move the project forward.
The Escalones copper-gold porphyry in Chile will be advanced through further analysis of existing data and core and continuation of environmental and permitting activities while we are on the lookout for the right partner. The Company believes this property has the potential to add significantly to share value.
The Company is moving forward with determination seeking recovery of fair market value for the expropriation by Bolivia of its significant discovery, the Malku Khota silver-indium deposit, through the international arbitration process. To allow shareholders to more clearly invest in either the Company’s ongoing exploration/development programs (SAC) or the arbitration with Bolivia, the Company created a Class B share (SAC.B) to which 85% of the net-cash received from any award or settlement will be distributed.
The Company will keep a "steady eye” on the arbitration process with Bolivia regarding the expropriation of the Malku Khota silver-indium deposit. Substantive advances in the process are expected in 2014 with a major step forward being the expected submittal of the Company’s Statement of Claim to the Arbitration Tribunal. Following this there is a long process in which each party can review and disagree with material submitted and submit further clarifying information. At the end of the process there is a formal hearing in front of the three arbitrators who decide on the level of compensation. Any actual cash award would not be expected for some time and not in 2014.
The Company also has the opportunity to seek out mineral properties that would benefit from the "acid chloride leach” technology that it developed for its Malku Khota silver-indium project. This patented technology was successful in extracting multiple metals from mixed ores including precious and base metals, plus indium and gallium. All metals are extracted into a single leach fluid greatly simplifying the process.
In the first Quarter of 2014 the Company plans to update the inferred resource at Gold Springs. Fifty-five drill holes have been completed since the last update in early 2013 which should both allow for an increase in the size of the resource and the classification of a portion of the resource as "indicated” rather than "inferred”. More detailed plans for the 2014 drill program will be established in January prior to the start of drilling in early April. 2014 may also be the year that we pull the trigger on a PEA (Preliminary Economic Assessment) at Gold Springs since the mineralization starts at surface and has positive early metallurgical results. This suggests that it is likely heap leachable. This type of operation can have low operating costs and low capex, potentially making Gold Springs an excellent development opportunity in the near term.
At Escalones drilling in 2013 as well as metallurgical testing clearly showed that the project is moving along the "knowledge curve” in a very positive way. The resource was updated, expanding the earlier resource estimate by nearly 50% with a significant portion of the resource moving to the "indicated category”. Also tantalizing results from diamond drill hole ES-43 ([email protected]
g/t gold) suggest there may be potential for a gold-only skarn above the copper-gold skarn at the project. Existing core will be tested for this possibility in 2014. Metallurgical testing confirmed good copper-gold extractions and the potential to produce good grade, clean concentrates.
The Company is now well positioned to create shareholder value with a strong exploration team, sufficient capital and a highly prospective gold property at Gold Springs.
I look forward to your continued support.