South American Silver Corp. Name Change to TriMetals Mining Inc. to Take Effect March 17, 2014 and Projects' Update
VANCOUVER, BRITISH COLUMBIA -- (Marketwired - Mar 13, 2014) - South American Silver Corp. (TSX:SAC) (TSX:SAC.B) (OTCQX:SOHAF) (the "Company") is pleased to announce that effective Monday March 17, 2014 the Company will be changing its name to TriMetals Mining Inc..As previously announced (see News Release NR 14-03, February 27, 2014), the Company believes that the new name, TriMetals Mining Inc., more accurately reflects the Company's expanded focus in terms of both metals and jurisdictions, particularly following the expropriation of South American Silver's Malku Khota silver-indium project in Bolivia in 2012 and the acquisition of High Desert Gold Corp. and its Gold Spring gold-silver project along the Nevada/Utah border in late 2013.
The name change will become effective on March 17, 2014. The Company will continue to be listed on the Toronto Stock Exchange and will trade under the new trading symbols "TMI" and "TMI.B" commencing on or about March 20, 2014. The new trading symbols on the US OTCQX are still pending and will be announced once they are known. Effective March 17, 2014, the Company's existing webpage www.soamsilver.com will redirect visitors to the Company's new webpage www.trimetalsmining.com.
Projects' Update
Gold Springs Gold-Silver Project, United States
With the completion of the Company's plan of arrangement at the end of 2013, the Company now owns the Gold Springs gold-silver project located along the Nevada/Utah border. The Company issued on February 26, 2014 (NR14-02) an updated resource estimate on the Gold Springs property based on the results of its 2013 drill program and which showed an increase in the number of gold equivalent ounces from both the Jumbo and Grey Eagle Targets and upgraded many of those ounces from the inferred category to the measured and indicated categories. The next step for the Company is to complete an internal economic study to help determine if it should proceed along the engineering/development curve or continue the exploration phase to further expand the resource. The Company is in a strong financial position and has a strong exploration and development team to meaningfully move the project forward.
Ralph Fitch, President and CEO, stated "The Gold Springs project clearly has significant upside resource potential based on the fact that we have only drilled portions of two of 18 similar outcropping gold targets and none of the buried geophysical targets and yet we were able to nearly double our current resource estimate with the last season's drilling as shown below."
| 2013 | 2014 | Difference | |||||||||||
| GOLD EQUIVALENT* (AuEq) | Additional Ounces discovered | ||||||||||||
| AuEq | AuEq | ||||||||||||
| Tonnes | Grade | Troy Ounces | Tonnes | Grade | Troy Ounces | Tonnes | Troy Ounces | ||||||
| (g/t) | (g/t) | ||||||||||||
| Measured plus Indicated ("M&I") | |||||||||||||
| 0 | 0.00 | 0 | 21,289,000 | 0.67 | 456,000 | 21,289,000 | 456,000 | ||||||
| Inferred | |||||||||||||
| 19,373,085 | 0.67 | 415,254 | 16,674,000 | 0.56 | 299,000 | -2,699,085 | -116,254 | ||||||
| GOLD (within resource shown above) | Additional Ounces discovered | ||||||||||||
| Gold | Gold | ||||||||||||
| Grade | Troy Ounces | Grade | Troy Ounces | Troy Ounces | |||||||||
| (g/t) | (g/t) | ||||||||||||
| Measured plus Indicated ("M&I") | |||||||||||||
| 0.00 | 0 | 0.50 | 339,000 | 339,000 | |||||||||
| Inferred | |||||||||||||
| 0.48 | 301,756 | 0.40 | 214,000 | -87,756 | |||||||||
| SILVER (within resource shown above) | Additional Ounces discovered | ||||||||||||
| Silver | Silver | ||||||||||||
| Grade | Troy Ounces | Grade | Troy Ounces | Troy Ounces | |||||||||
| (g/t) | (g/t) | ||||||||||||
| Measured plus Indicated ("M&I") | |||||||||||||
| 0.00 | 0 | 9.80 | 6,687,000 | 6,687,000 | |||||||||
| Inferred | |||||||||||||
| 10.40 | 6,476,149 | 9.10 | 4,857,000 | -1,619,149 | |||||||||
*AuEq was calculated using a 57.14 silver/gold ratio. Cut-off equals 0.2 g/t gold (similar to 0.3 g/t AuEq).
The Inferred resource is in addition to the measured and indicated resource.
Negative Inferred tonnes and ounces in the "Difference" column are because some Inferred ounces were converted to M&I ounces
Escalones Copper-Gold Porphyry Project, Chile
The Escalones copper-gold porphyry project in Chile, where the Company already has a large announced resource, will be advanced through further analysis of existing data and core and the continuation of environmental and permitting activities while the Company is on the lookout for the right partner to develop this giant project.
Permitting is proceeding on schedule and the Company expects to have permits in place for the November drill season at Escalones. The big upside potential at this property includes the very large, undrilled "magnetic body" which is interpreted to be a continuation of the copper-gold skarn drilled to date and the "conductivity anomaly" on the east side of the property which is interpreted as near surface oxide/secondary copper mineralization as seen in drill hole ES 35 (News Release NR 12-17, September 19, 2012). The Company believes this property has the potential to host a greatly expanded resource and that it will add significantly to share value.
Malku Khota, Bolivia - International Arbitration Claim
The Company is moving forward with determination seeking payment 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 or the arbitration with Bolivia, the Company created the Class B Shares the holders of which are entitled to 85% of the net-cash received from any award or settlement arising from the investment dispute with Bolivia.
The Company has an arbitration funding agreement in place to fund the pursuit of compensation from the Bolivian government for the Malku Khota project. In consideration for the funding, the Company has agreed to pay to the Fund a portion of any recoveries received pursuant to the arbitration proceedings or any settlement with Bolivia.
Substantive advances in the arbitration 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.
Qualified Persons for the Resource
The 2014 mineral resource estimates have been prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101) standards by Ms. Terre Lane, President of Lane and Associates. Ms. Lane is a "qualified person", as defined in NI 43-101, and is "independent" of the Company, as defined in NI 43-101. The 2013 inferred mineral resource estimates have been prepared in compliance with the standards of NI 43-101 by Dr. A. Armitage, PGeol, of GeoVector Management Inc. GeoVector is an Ottawa, Ontario based consulting firm specializing in resource estimation, project assessment and project management. Dr. Armitage acted as the qualified person for the 2013 resource estimate, as defined in NI 43-101, and is independent of the Company, as defined in NI 43-101.
About South American Silver Corp.
South American Silver Corp. is a growth focused mineral exploration company creating value through the exploration and development of the Gold Springs gold project along the Nevada-Utah border, the large scale Escalones copper-gold project in Chile, the pursuit of new opportunities and the realization of value from the expropriated Malku Khota silver project in Bolivia through the arbitration process. South American Silver Limited is a company incorporated in the Bermuda Islands, an overseas territory of the United Kingdom, which through its wholly owned Bahaman subsidiaries: Malku Khota Ltd, G.M. Campana Ltd. and Productora Limited., owns one hundred per cent of the outstanding shares of Compañía Minera Malku Khota S.A., a Bolivian company, holder of the Malku-Khota mining concessions until their nationalization by the Bolivian Government. The Company's approach to business combines the team's track record of discovery and advancement of large projects, key operational and process expertise, and a focus on community relations and sustainable development. Management has extensive experience in the global exploration and mining industry. Additional information related to South American Silver Corp. is available at www.soamsilver.com and on SEDAR at www.sedar.com.
Forward-looking statements
Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as "will", "next", "proceed", ""continue", "further", "expend", "forward", "potential", "expected", "believes", "creating", "realization" and "pursuing" and similar expressions. This News Release contains forward-looking statements. These forward-looking statements are based on current expectations and various estimates, factors and assumptions and involve known and unknown risks, uncertainties and other factors.
Readers are cautioned not to place undue reliance on these statements as the Company's actual results, performance or achievements may differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements if known or unknown risks, uncertainties or other factors affect the Company's business, or if the Company's estimates or assumptions prove inaccurate. Therefore, the Company cannot provide any assurance that forward-looking statements will materialize. Factors that could cause results or events to differ materially from current expectations expressed or implied by the forward-looking statements, include, but are not limited to, delays in the filing of the notice of alteration of articles to effect the name change and documentation required by the Toronto Stock Exchange, regulatory approvals for the name change, uncertainties associated with the arbitration proceeding against Bolivia, including the quantum of damages to be obtained and the realization or collection of the value of any award or settlement; and risks of the mineral exploration industry which may affect the advancement of the Escalones and Gold Springs projects, including possible variations in mineral resources or grade, metal prices, availability of sufficient financing to fund further required work in a timely manner and on acceptable terms, timely receipt of required permits, availability of equipment and qualified personnel, failure of equipment or processes to operate as anticipated, road access to the property, changes in project parameters as plans continue to be refined; and other risks more fully described in the Company's management information circular dated November 7, 2013 and Annual Information Form filed and publicly available on SEDAR at www.sedar.com. The assumptions made in developing the forward-looking statements include: the normal processing of filings by regulatory authorities; the ability of the Company to realize value from its investments in Bolivia; the arbitration proceeding along a timeline consistent with other international arbitrations, the Funder honoring its contractual commitments, the accuracy of current resource estimates and the interpretation of drill, metallurgical testing and other exploration results; the timely receipt of required permits for Escalones and Gold Springs projects; the continuing support for mining by local governments in Nevada, Utah and Chile, the availability of equipment and qualified personnel to advance the Escalones and Gold Springs projects; and the execution of the Company's existing plans and further exploration and development programs for Escalones and Gold Springs Projects, which may change due to changes in the views of the Company or if new information arises which makes it prudent to change such plans or programs.
Subject to applicable laws, the Company assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason. Unless otherwise indicated, forward-looking statements in this News Release describe the Company's expectations as of March 13, 2014.
Contact
South American Silver Corp.
Ralph Fitch, President & CEO
303.584.0606
rfitch@soamsilver.com
South American Silver Corp.
Matias Herrero, Chief Financial Officer
303.584.0606
mherrero@soamsilver.com
www.soamsilver.com
