Southern Silver Exploration Corp. reported today that 100 percent of the 4,230,000 common share purchase warrants ($0.30) with an October 31st, 2007 expiry have been exercised for gross proceeds totaling $1,269,000. Funds will be used to continue advancing the company’s projects in Mexico and Arizona and for working capital.
The company said its working capital position at the close of business on October 31st, 2007 was approximately $4.5 million.
Minas de Ameca Project
The company’s primary project, the Minas de Ameca prospect, encompasses a 322 sq. km claim package assembled in part through option agreements between Southern Silver and Fury Explorations Ltd. (TSX.V-FUR) and Soltoro Ltd. (TSX.V-SOL) together with the purchase from the Mexican Government of the El Magistral claim (see NR-10-06 and NR-01-07).
Recently reported results include a 1.91 metre interval grading 4.14g/t Au 11.7g/t Ag and 2.4% Cu within a 9.18 metre interval grading 1.14g/t Au, 7.7g/t Ag and 0.86% Cu from 07SL-08 and a 1.73 metre interval grading 5.92g/t Au, 2.6g/t Ag and 0.23% Cu from drill hole 07SL-11.
To date, a total of 3,962 metres of drilling has been completed in 18 drill holes over two phases of drilling. Fifteen drill holes have now tested an 800 metre strike length of the main San Luis vein structure and to depths of up to 200 metres.
The district is located along the western margin of the Sierra Madre Occidental terrane. Geological reconnaissance has identified several strongly mineralized, copper-rich breccias located at volcanic-intrusive contacts and numerous structurally controlled, quartz-hematite vein systems which occur along a 25 km long mineralized trend extending southeast through the project area. Historical workings consist of copper with gold rich deposits formed as tabular to pipe-like bodies within tourmaline rich intrusives.
Southern Silver currently has two projects in Arizona, the copper/silver Tombstone project in southeastern Arizona and the Dragoon Porphyry project located approximately 100 kilometres southwest of Tucson, Arizona.
Following an aggressive staking program, the Tombstone project has expanded from its original 200 hectare claim block by approximately 1,600 hectares providing a “district scale” target which encloses a discrete magnetic high located 1.8 km to the east of the original claims. A recently completed compilation of detailed mapping and airborne geophysical data has revealed evidence of a previously unrecognized and unexplored porphyry copper system with possible silver-rich satellite replacement bodies under shallow pediment cover. Only three drill holes have tested to depths beyond 150 metres on the original property with no drill holes known to exist in the newly added east pediment area.
The Dragoon property comprises 68 unpatented mining claims and four State leases that contain areas of exposed “leached cap” in the eastern part of the property and a larger down-dropped block of porphyry related rocks in the gravel-covered western portion of the property. The presence of the “leached cap” rocks is significant as they may overlie enriched copper mineralization at depth.
Previous exploration and limited drilling on the property by Kennecott, Noranda and US Borax has identified mineralized hematite-quartz-sericite altered Larimide-age intrusive rocks. Extensive porphyry-related copper and molybdenum geochemical anomalies occur throughout the property with several historic drill holes ended in mineralization.
Drill ready targets have been identified on both projects in preparation for an anticipated 3,500 metre drill program scheduled for late Fall 2007 at an estimated cost of $750,000.
Pinabete Project, Mexico
In addition to drilling at Minas de Ameca, Tombstone and Dragoon, two to three drill holes totaling approximately 800 metres will test the potential for Ag-Pb-Zn-rich replacement bodies and skarn mineralization at the Pinabete project, Chihuahua Mexico. Previous work on this target identified a large AMT geophysical anomaly and was tested with one drill hole by the previous owner. Drilling encountered altered and pyritized volcanic stratigraphy but failed to adequately test carbonate horizons along the margins of the felsic intrusive. The new drill program is planned to commence after completion of the Minas de Ameca work.
About Southern Silver Exploration Corp.
Southern Silver Exploration Corp. is focused on the exploration and development of quality assets, in significant mineralized trends, close to infrastructure. Its current projects include the copper/gold/silver Minas de Ameca project and silver/zinc/lead Pinabete project in Mexico and the Dragoon Porphyry project and copper/silver Tombstone project in Arizona.
Rob Macdonald, (P.Geo.), is the Qualified Person responsible for reviewing the technical results reported in this release.
On behalf of the Board of Directors
Lawrence Page, President, Southern Silver Exploration Corp.