Southern Silver Exploration Corp. reported today that it will amend the price of 6,500,000 share purchase warrants (the “Warrants”) from $0.60 to $0.10. The Company has received the written consent of all warrantholders to amend the exercise price of the Warrants.
The expiration date of the Warrants was recently extended (see NR0408 of December 10, 2008) and the Warrants are now exercisable until February 24, 2010, subject to an accelerated exercise period provision which will provide that, if the closing price of the Company’s shares is $0.135 or higher for 10 consecutive trading days (the “Premium Trading Days”), warrantholders will only have 30 calendar days, commencing 7 calendar days after the last Premium Trading Day, to exercise the Warrants. The Warrants will automatically expire if the warrantholders do not exercise them within this 30 day period. Funds received from the warrant exercise will be added to general working capital and utilized to defray exploration expenses on the Company’s mineral exploration properties.
Southern Silver Exploration Corp. reported today an exploration update and proposed 2009 exploration plans on the Company’s projects in Mexico, Arizona and New Mexico.
Minas de Ameca project, Jalisco
The Minas de Ameca Project comprises the Magistral-1, El Magistral and Quila concessions. The project covers 320 square kilometres and has a 25 kilometre strike length.
The Company reported that it completed 10 line-kilometres of detailed gradient IP geophysics over a 600 metre strike length of the San Luis vein system (Magistral I). The survey showed some correlation between chargeability anomalies and the thicker Cu- and Au-enriched drill hole intercepts. Several untested chargeability highs occur to the north of previously tested veins and may represent additional untested veins within the mineralizing system. Shallow drill testing of these targets is anticipated in the 2009 exploration season.
Drilling has now tested the vein system to depths of over 400 metres and up to 800 metres in strike length. Mineralized intervals with greater than 1g/t Au and 1% Cu range in thickness from 1 metre to +10 metres and comprise single and sheeted quartz veins within envelopes of strong argillic alteration with iron and copper sulphides. Previously released results include: a 1.07 metre interval averaging 7.51g/t Au, 74.6g/t Ag and 6.43% Cu in drill hole SL07-03, a 0.62 g/t Au, 8.70 g/t Ag and 0.47 % Cu over 26.42 metres in hole 07SL-05 and a 3.15 metre interval averaging 3.77g/t Au and 1.54% Cu from drill hole SL08-18.
Exploration continues at the Altavista and Texcalame prospects where surface and drill indicated copper and gold mineralization appears to be localized within sub-horizontal, manto-like bodies. Further mapping and sampling has been conducted around these occurrences to locate feeders to the surface mineralization and drill targets to be drilled in the 2009 exploration season.
The Company also reported that it has developed through sampling and data compilation, several prospective drill targets on the Oro property where the Company has patented and located mineral claims. Four core holes are planned to test a series of targets within gold- and silver-enriched, polymetallic CRD targets at Oro. Permitting is in process. It is planned that a diamond drill program will commence on these targets in the 2009 exploration season.
The Dragoon property comprises 68 unpatented mining claims and four State leases and contains 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 ending in mineralization.
Drilling testing of up to 1500 metres is anticipated in the Fall of 2009 which would target both the shallow mineral potential of the property as well as a potential high-grade enriched blanket of secondary copper mineralization at depth in the gravel covered areas of the property.
Drilling in 2008 was successful in identifying mineralization along two prominent east northeast-directed faults, which form a 1.6 kilometre wide structural corridor transecting the property. Priority follow-up targets include the intersection of these east-northeast-trending structures and favorable sedimentary rocks exposed on the eastern margin of the property in areas that previously returned strongly anomalous silver mineralization (>30g/t Ag) from surface sampling.
Pinabete Property Amendment Agreement
The Company also announced that it has entered into an amendment agreement with Anglo American Mexico S.A. de C.V. (“Anglo”) pursuant to which the Company’s option to acquire the Pinabete property is extended for a period of two years. In consideration for extending the option, the Company will issue up to an additional 100,000 common shares to Anglo. This amendment agreement is subject to acceptance by the TSX Venture Exchange.
Robert Macdonald, (P.Geo.), is the Qualified Person responsible for reviewing the technical results reported in this release on behalf of Southern Silver Exploration Corp.
On behalf of the Board of Directors
Lawrence Page, President
Southern Silver Exploration Corp.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.