South American Silver reports silver/indium resource for Malku Kohta

Although South American Silver (SAC-T) is pleased with 50.2 million-oz. of silver for its first resource estimate from its Malku Kohta silver-indium property in Bolivia, the company is already thinking ahead to a resource update planned for this summer.

That’s because the resource doesn’t include drilling from the majority of the high-grade portion of the Limosna zone, nor from the new Sucre zone, said company president Ralph Fitch in a statement.

“It’s also good to remember that this resource is based on drilling within only 3.5 km of the 15-km strike that the company holds,” Fitch said.

So far, South American has drilled 22,000 metres; half of those results were used in the initial resource estimate.

The company plans to release results from 4,000 metres of drilling as soon as final assay results are received.

Indicated resources are 48.5 million tonnes grading 32 grams silver per tonne and 5.9 grams indium per tonne for 50.2 million oz. silver and 288,000 kg of indium. A cutoff of 10 grams silver per tonne was used.

Under the inferred category are 99.6 million tonnes grading 23 grams silver per tonne and 4.9 grams indium per tonne containing 74.7 million oz. silver and 487,000 kg of indium.

The company has already tested the metallurgical recovery rates, finding a 62.9%-96.9% recovery rate for silver and 61%-77% recovery for indium.

South American shares rose 2 in Toronto today to 53 each on a trading volume of 621,000 shares.