Southern Silver Exploration Corp. (the “Company”) reported today that it plans to issue up to 15 million common shares in a non-brokered unit private placement at a price of C$0.10 per unit to raise C$1,500,000. Each unit will consist of one common share and one share purchase warrant, with each warrant exercisable to purchase one additional common share at an exercise price of C$0.20 per share for a period of two years.
The proceeds from the private placement will be used to fund planned drill programs on the Company’s mineral exploration projects in New Mexico and Mexico as well as for working capital. Finder’s fees may be payable. The private placement and finder’s fees are subject to regulatory approval.
Initial drilling will commence on the Company’s Oro claims, located in the heart of the Eureka District in southern New Mexico. The New Mexico Bureau of Mines estimates production from the Eureka district between 1880 and 1961 at 2.9 million pounds of lead, 1.7 million pounds of zinc, 0.5 million pounds of copper, 0.45 million ounces of silver, and 5,000 ounces of gold in oxide ore, mined from shallow workings above the water table. Reported grades are attractive, in the range of 20 oz/ton Ag, 4% combined Zn and Pb, and up to 0.04 oz/ton Au. Smaller amounts of high-grade mineralization are reported to assay up to 5.5% Cu and 840 oz/ton Ag.
The drilling program is fully permitted and bonded and will test four separate gold-rich, vein/replacement targets in this historic Laramide-age polymetallic district with geological similarities to highly productive CRD camps at Santa Eulalia (~37MM tons of 15%Pb+Zn, 367g/t Ag) in Mexico and Bisbee (7800 Mlbs Cu, 2.8 Mozs Au, 102 Mozs Ag, 324 Mlbs Zn) in Arizona. The first phase program is estimated to cost US$420,000. A second phase program is planned contingent on first phase results.
Subsequent to the completion of permitting of drill targets on the Company’s Minas de Ameca project in Jalisco State, Mexico, the Company plans drill programs on the San Luis and Alta Vista areas of the project.
Previous drilling by Southern Silver tested the San Luis vein system to depths of over 400 metres and up to 800 metres in strike length and defined mineralized intervals with greater than 1g/t Au and 1% Cu which 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. This next phase of work will test deeper extensions of previously reported higher grade drill intercepts which included 3.5m averaging 5.07g/t Au and 4.32% Cu and 2.5m averaging 3.44g/t Au and 2.29% Cu. The first phase program is estimated to cost US$370,000.
The Company’s Dragoon property in Arizona is optioned to Freeport-McMoRan Exploration Corporation which has the right to earn a 70% interest in the property by incurring expenditures of US$3 million over three years with an initial drill hole to be drilled to an approximate depth of 300 metres in the 2010 exploration season to test for the presence of a porphyry system.
Rob Macdonald (P.Geo.), is the Qualified Person responsible for reviewing the technical results reported in this release.
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 the silver/zinc/lead Pinabete project in Mexico, the Dragoon Porphyry project in Arizona and the Oro project in New Mexico.
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.
This News Release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Southern Silver Exploration Corp. relies upon litigation protection for forward looking statements.