South American Silver Corp. announced an update on drilling progress at the Escalones copper-gold porphyry project in Chile. The company now has 3 diamond drills on the site and the first two holes have been completed.

Results have been received for part of the first hole of this program. Hole 36 was drilled in the western part of the Meseta into porphyry style mineralization. Below the glacial moraine the hole continued in partially leached bedrock with enhanced gold values.

This is underlain by a mixed zone including both primary and secondary copper sulphides and copper oxides. The best 2 metres average 3.04% copper with 0.13 g/t gold. The better secondary enrichment averaged as follows: 0.99% copper with 0.15 g/t gold and 2 g/t silver over 27 metres including 2.23% copper with 0.14 g/t gold and 1.4 g/t silver over 6 metres.

This intercept continues for a total of 124 metres and averages 0.51% copper with 0.13 g/t gold and 1.1 g/t of silver which equates to a copper equivalent (CuEq(i)) of 0.62%. The entire mineralized interval to 358 metres averages 0.5% CuEq. Escalones drill program: Three diamond drills are now on-site as part of a substantial exploration program for the 2013 season, with the expectation that 10,000 metres will be drilled prior to the southern winter.

At least six holes will be drilled in the Meseta area with a view to expanding the resource around ES 36 and the majority of the remainder will be drilled on the east side of the Meseta into the skarn mineralization with a view to expanding the resource to the East.