Southern Silver Exploration reported today that it has signed an earn-in agreement with Freeport-McMoRan Exploration Corporation (FMEC), for the Company’s Dragoon Porphyry Project located approximately 100 kilometres southwest of Tucson, Arizona.
Under the terms of the agreement, FMEC has the exclusive right and option to acquire a 70% ownership interest in the Dragoon project by spending US$3 million on the property by December 31, 2012 which includes drilling one hole of approximately 300 metres on or before December 31, 2010. FMEC will assume all annual property maintenance requirements with the State and Federal authorities as well as assuming all payments pertaining to the underlying option agreement (see NR-14-07).
The Dragoon property is a contiguous block of 1,280 ha comprising 68 unpatented mining claims and four State leases that contain areas of exposed Cu-Mo mineralization, Laramide-age monzogranite porphyry and geothitic “leached capping” which occur in the eastern part of the property. A larger down-dropped block of porphyry related rocks underlie the gravel-covered western and northwestern portion of the property.
Drilling in these areas by Kennecott, Noranda and US Borax has identified hematite-quartz-sericite-altered intrusive rocks, low-grade chalcopyrite and chalcocite mineralization and further hematite leached capping. The presence of the “leached capping” is significant as it may overlie supergene-enriched copper mineralization at depth in the relatively under-explored gravel covered portions of the property.
CEO Lawrence Page Q. C. said “We are very fortunate to have partnered with a Company which has the financial ability and technical expertise to explore the Dragoon property with an initial drill hole of approximately 300 metres as part of the $3 million earn in. Initial targeting of a potential enriched zone beneath the hematitic leached capping is a significant step in determining the full potential of this widespread Laramide porphyry Cu-Mo system.”
FMEC’s parent company, Freeport-McMoRan Copper & Gold Inc. (FCX), is the world’s largest publicly-traded copper company.
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.
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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”
Lawrence Page, President , Southern Silver Exploration Corp.
For further information visit www.southernsilverexploration.com or please contact Jay Oness at
1-888-456-1112 / 604-684-9384 or by email at corpdev@mnxltd.com.
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.