One hole enough to light up the board for South American Silver

One strong drill hole from South American Silvers (SAC-T) Malku Khota silver property in Bolivia was enough to lift the junior up the market.

Hole LMD006 was drilled into the center of its Limosna zone and intersected 219.8 metres, from a depth of 55 metres, grading 75.3 grams silver, including 37.6 metres grading 282.3 grams silver.

Previous holes drilled by South American Silvers former parent company General Minerals (GNM-T) were highlighted by:

• Hole LMD 004 – 70 metres grading 46.2 grams silver.
• Hole LMD 005 — 175.95 metres grading 46.24 grams silver.
• Hole LMD 003 — 115.5 metres grading 78.9 grams silver.
• Hole LMD 002 — 124.5 metres grading 17.5 grams silver.

The news sent the Vancouver-based company up over 17% or 11 to 74 on roughly 418,000 shares traded. The company has 47.7 million shares outstanding and has traded between a 52-week high of 85 and a low of 53.

Silver mineralization in the zone starts at the surface and is exposed on the large Limosna Ridge, the company says. It explained that the reason hole LMD006 starts at 55 metres and not at surface is because it was collared west of the mineralized zone to ensure it got a complete intercept of the zone from its western and eastern limits.

Drilling to date has been from the base of the Limosna Ridge — which rises roughly 150 metres above the plain.

When drilling the base is finished it will move the rig to the top of the ridge to test for higher grades and secondary, near-surface, silver mineralization.

In a release Ralph Fitch, president and chief executive of the company, said the results demonstrate both the continuity and grade of silver mineralization.

We are pleased to see the silver assays in the sixth drill hole in the Limosna Zone as being somewhat higher than the average grade from the previous drilling in the zone,” he said.

While hole LMD006 was drilled to 292.7 metres the report only includes results to 274.8 metres because of a delay in receiving results from the laboratory.

The company posits that results from the lone hole beat historical drilling because it was orientated to intersect both the north-north-west trending strata bound mineralization and the later north-dipping cross-cutting east-west veins associated with the later “intrusive hosted” gold system.

The intersect, South American Silver says, means there is a continuity of mineralization in the central portion of the Limosna Zone measuring roughly 450 metres by 120 metres by 250 metres deep.

The central Limosna area is part of the 1.4 km long Limosna zone which comprises roughly one third of the 448,000 square metre geochemical target defined to date.

While South American Silver controls 15 km of strike length of the prospective sandstone unit, most of the exploration has focused on just 4 km of that strike length.