South American Silver (TSE:SAC) stock shot up 17% in morning trading today on the Toronto Stock Exchange to $1.62 a share after the company announced the findings from its NI 43-101-qualified resource estimate of the company's Escalones copper-gold-silver project in central Chile.
The project's inferred resource is 420 million tonnes of mineralized material containing 3.8 billion lbs of copper, 56.9 million lbs of molybdenum, 610,000 ozs of gold and 16.8 million ozs of silver using a 0.2% Cu Equivalent cut-off grade which represents approximately a $2.50/lb copper price.
"This is a copper-equivalent(1) content of 4.5 billion lbs of copper grading 0.49% based on approximate 3-year average metal prices of $3.00/lb copper, $1,200/oz gold, $22/oz silver and $16/lb molybdenum," stated the company in a news release.
"The deposit remains open to expansion laterally and down dip with 90% of this first resource hosted in copper, gold and silver replacement-style mineralization, and one drill hole testing porphyry-style mineralization."
South American Silver is a mineral exploration company with a silver-indium-gallium project in Bolivia, as well as the Escalones copper-gold project in Chile.