Southern Silver’s growth strategy is to focus on the development of quality assets, in significant mineralized trends, close to infrastructure. Recent work on the company’s flagship Cerro Las Minitas project outlined a preliminary economic assessment with an after tax NPV5% of US$349M and IRR of 17.9%. For additional details, see news release dated August 29th, 2022 and click here for the full report. Combined with a low market capitalization, and low operating costs, this provides an excellent opportunity for future corporate growth and an increase in shareholder value.

Southern Silver continues to advance their flagship Cerro Las Minitas silver-lead-zinc property located in Durango State, Mexico. At over 340 square kilometers in size, the project features a large land position within the prolific Faja de Plata (Belt of Silver) of northern Mexico, with historic production and resources of over three billion ounces of silver and additional potential for future “world class” discoveries.

On August 29th, 2022, the company released a Preliminary Resource Assessment on the Cerro Las Minitas Project. Summary details are as follows (all figures in US$ unless noted):

Robust Project Economics - Base Case: after-tax NPV5% of $349M (C$450M) and IRR of 17.9% (using Ag- $21.95/oz, Cu – $3.78/lb, Pb – $0.94/lb and Zn - $1.33/lb);

Excellent Silver and Zinc Price Leverage - Base-case +15%: after-tax NPV5% of $561M (C$730M) and IRR of 24.4% (Ag- $25.24/oz, Cu – $4.35/lb, Pb – $1.08/lb and Zn - $1.53/lb);

Large-Scale Underground Mining Operation with a 15-year mine life with an annual average plant feed of 14.2 Mozs AgEq (inc. 5.8 Mozs Ag) at an AISC of $13.27/oz AgEq sold;

High-Revenue Project: Base Case gross revenues total US$3.7B with silver representing 42% of revenues, zinc representing 39% of revenues. The project has an Initial CapEx of $341M and an NPV-to-CapEx ratio of 1.0X;

Well Located Project in a mining friendly jurisdiction with excellent infrastructure in southeast Durango state, Mexico; and

Further Exploration Upside: Drilling through to August 2022 has confirmed mineralized extensions to the Mina La Bocona and Skarn Front deposits that have not been incorporated into the current Resource Model. Other deposits remain open laterally and to depth and remain to be explored

The study was based on a resource estimate, announced October 17th, 2021, of 42.1Moz Ag, 358Mlbs Pb and 895Mlbs Zn (137Moz AgEq; 2.3Blbs ZnEq) Indicated and 73.6Moz Ag, 500Mlbs Pb and and 1.0Blbs Zn (198Moz AgEq or 3.3Blbs ZnEq) Inferred(1) Click here for the full report.

The Company also continues to advance the Oro property, New Mexico, USA. This 100% owned 2,237 hectare, gold, silver, copper, lead and zinc property features a classic porphyry zonation over a 6 square kilometer area within the highly prospective Laramide Porphyry belt of the southern USA. Southern Silver is actively seeking a partner to finance further exploration on this property.

Southern Silver Exploration Corp.: A low risk junior exploration and development company with substantial upside potential is emerging as one of the premier Ag-Pb-Zn companies in Mexico.

  1. The current Resource Estimate was prepared by Garth Kirkham, P.Geo., of Kirkham Geosystems Ltd. All mineral resources have been estimated in accordance with Canadian Institute of Mining and Metallurgy and Petroleum (“CIM”) definitions, as required under National Instrument 43-101 (“NI43-101”). Mineral resources were constrained using continuous mining units demonstrating reasonable prospects of eventual economic extraction. Silver Equivalents were calculated from the interpolated block values using relative recoveries and prices between the component metals and silver to determine a final AgEq value. The same methodology was used to calculate the ZnEq value. Silver Equivalents and NSR$/t values were calculated using average long-term prices of $20/oz. silver, $1,650/oz. gold, $3.25/lb. copper, $1.0/lb. lead and $1.20/lb. zinc. Metal recoveries, payables and deductions are reported in the news release dated october 27th, 2021.  All prices are stated in $USD. Mineral resources are not mineral reserves until they have demonstrated economic viability. Mineral resource estimates do not account for a resource’s mineability, selectivity, mining loss, or dilution. An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration. All figures are rounded to reflect the relative accuracy of the estimate and therefore numbers may not appear to add precisely.
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