South American Silver Plummets

[Meetzos]

I don't deal in paper stocks or claim to know much, but this doesn't sound good for share holders.

http://www.zerohedge.com/news/south-...argest-silver-

South American Silver Plummets As Bolivia Announces It Will Nationalize One Of World's Largest Silver Deposits
Submitted by Tyler Durden on 07/09/2012

Anyone long silver miner South American Silver Corp today is not happy, because while the precious metal responsible for the company top and bottom line has risen significantly, it is our old nationalizing friend, Bolivian President Evo Morales (who last year caused substantial moves higher in silver with threats to nationalize various silver mines in his resource rich if everything else poor country) who has stolen the spotlight, with his latest announcement that he is on his way to nationalize SAC.TO's Malku Khota property, which the company describes as "one of the world's largest undeveloped silver, indium and gallium deposits" and which El Pais adds "is considered one of the largest undeveloped silver deposits, with reserves estimated at 230 million ounces, and at least 2,000 tons of indium, gallium and gold as well." Of course, while this is good news for the actual precious metals as it means much more supply is coming offline, it is very bad for mining and extraction companies such as South American Silver, which stand to lose one after another property to a repeat of last year's wave of nationalization. Indeed, at last check SAC.TO was down 27% today alone and plunging.

snip

[southfork]

Well if the government gets involved you can be sure production will drop in half, so a bullish for silver.

[Goldhedge]

SAC.TO ticker and SOHAF in US


You have to wonder why all the interest in silver these days...

[phideaux]

I sold all my South and Central America mining stocks in 2010, just for this reason.

Stick to Canada, Australia and the US. JMHO DYODD GLTA

Hell, even China is "safer" than a Latin American banana republic.

Missed this one:http://www.goldismoney2.com/showthre...eap-gold-stock

[917601]

Unfortunately,having worked and lived in many SA countries(even those considered the pearls of SA),this is rather common.My memory is trashed full of stories of co-workers returning to find their 40 block "investment" apartment confiscated by the government,or returning after rotation (another country,touted by many to be a retirement paradise) to their own single apartment and find it broke into and trashed out by local police because their visa said American, or their part time business which was profitable was not "registered" correctly,or their 90 day visa was not re-newed in a timely fashion or........or how about your diesel KIA being confiscated at port,lost,because your importing agent forgot to tell you about the $15,000 tax on it?....it goes on,so,for those thinking it is the place to be (for drug legalization,or melt-down get away,etc....)think again and do your self a favor,live there for at least a year before making the stupid move.

[fat panther]

As many others have said, just rent like a tourist. Then, you're viewed as an asset (contributor to the economy), but not "assess-able". FWIW

[Triunfar]

NEWS RELEASE: 12-11

Two employees freed, South American Silver in discussion with Bolivian government and indigenous authorities

Link Here

9 July 2012 - Vancouver, British Columbia - South American Silver Corp. (TSX: SAC, US OTC: SOHAF) today welcomed the confirmation that two of its Bolivian employees, Agustin Cardenas and Fernando Fernandez, and a local policeman have been set free. These are the last people to be freed following a series aggressive acts by a local faction supported by groups from outside the Malku Khota project area.

"Our primary concern has always been the safe return of the hostages to their families and South American Silver will ensure they receive the proper medical attention they deserve," said Greg Johnson, President and CEO of South American Silver.

On Sunday the Bolivian Labor Minister, Daniel Santalla, signed an agreement to secure the release of the final three detained individuals with the indigenous opponents to the project. As part of this agreement the opponents were seeking cancellation of the mining concession, however, the government minister acknowledged that this could be difficult due to the original decree giving South American Silver the rights to the project.

Also on Sunday, President Evo Morales and the Government Minister Carlos Romero agreed that a "prior consultation" among all indigenous communities in the project area would be needed to proceed to determine the direction of the project based on the consensus view of all communities.

At this time there has been no change in the status of the project concession. The Company is continuing to work with the government at all levels and with the local communities to agree on an approach to development that is inclusive of all communities in the project area and allows development of the Malku Khota project to its fullest potential.

As noted in earlier updates, Bolivian government authorities have previously stated that there will be a period of constitutionally mandated consultation with local indigenous communities before the project enters the extraction phase.

On May 28 the Mining Minister Mario Virreyra signed an accord with 43 out of 46 indigenous communities in the project area specifying that the state will not reverse the mining concession and stating that the company should continue exploration activities and that Bolivian authorities should provide increased police security in the region.

The vast majority of the indigenous groups in the project area have formally demonstrated their support for the project and understand the social and economic benefits to their communities that the development of a world class, modern mine at Malku Khota will bring and which will create with thousands of well-paying local jobs.

By contrast, the artisanal mining that has been centered near one of three villages in opposition to the project would provide little economic benefit to the 43 other indigenous communities in the project area and has been cited by the Bolivian Mines Minister as causing local environmental damage.

South American Silver has worked closely with the local indigenous communities over the past several years providing significant direct employment on project related jobs, as well as jointly developing programs with the communities to facilitate job training, education, agricultural enhancement and water management for long-term sustainable development.

[Someone_else]

... El Pais adds "is considered one of the largest undeveloped silver deposits, with reserves estimated at 230 million ounces, and at least 2,000 tons of indium, gallium and gold as well."

So 230 million ounces is what, about four months of world production? I don't know, is 900 million ounces per year still the accepted number?

The indium and gold sounds pretty valuable, but don't know what gallium is worth. Is gallium still used in electronics? Or did it die off with the advent of MOS technology?

I think any company mining in South America should expect the possibility that their investments will be stolen at a moment's notice. Getting insurance might make a lot of sense (eg, Lloyds of London).