Southern Silver Exploration Corp. (SSV.V) reported today that a second phase 1,500 metre diamond drill program has commenced at the Company’s Oro Project in New Mexico, USA. Multiple drill targets are planned to test several deposit types, including bulk-tonnage intrusion-related gold, polymetallic replacement (CRD)/skarn deposits, and copper-gold porphyries. The drilling is planned within a +2km long mineralized corridor located in the historic Au-Ag Eureka Mining District near the town of Lordsburg.
The initial 2011 hole, ORO11-006, has been collared in a prospective area located between two anomalous holes drilled by the Company last year. The hole has an anticipated depth of approximately 600 metres and the Company plans to conduct down hole IP geophysics upon completion of the coring phase in an effort to generate new targets.
Company President Lawrence Page Q.C. said “This is the first round of drilling since the claim package, consisting of Federal land, State land, and privately owned land has been consolidated into a comprehensive claim package. First phase drilling identified numerous targets on land which was not open for our exploration and which we now intend to explore in this phase of drilling to extend many areas of mineralization encountered in previous drill holes which were terminated at the claim boundaries.”
Southern Silver recently added 40 additional claims at the Oro Project in order to cover several airborne magnetic geophysical anomalies that are often coincident with mapped alteration assemblages suggesting the potential for a much larger mineralizing system on the property. Field examination included the collection of additional geochemical samples and magnetic susceptibility readings at various surface locations and from the Company’s 2010 drill core. These readings enabled a more detailed interpretation of the airborne magnetics that when combined with the additional geochemical data allowed drill sites to be chosen for two of the three primary exploration targets: a deeply buried but large porphyry copper-gold target and a shallower, disseminated gold target.
About the Oro Property
The Oro Project comprises a contiguous block of Federal, State and Private land totaling 17.2 sq km in the historic Eureka Mining District in southwest New Mexico.
The New Mexico Bureau of Mines estimates production from the Eureka district 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 from 1880 to 1961. Reported grades are attractive, ranging to 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(1).
Southern Silver’s work on the property has identified strong surface alteration, and distinct geochemical zoning in rock and bio-geochemical samples in three distinct target areas. Anomalous gold and base-metals often occur in association with thick intervals (+10 metres) of silicification, pyritic sulphides, and variable skarn alteration and hornfels in two of the five Phase I core holes.
Historic data in conjunction with Southern Silver’s work to date suggest good potential for bulk-tonnage, intrusion-related gold mineralization with copper-gold porphyry potential at depth and possible polymetallic replacement/skarn deposits along several prominent structures on the Oro property.
Southern Silver has the right to earn a 100% interest in the property by making payments totaling $300,000 to private vendors by December 2012.
About Southern Silver Exploration Corp.
Southern Silver Exploration Corp. is an emerging precious/base metal exploration company and a member of the Manex Resource Group, a private company comprised of an exceptional multi-disciplinary team of professionals, with specific expertise in all the areas of exploration, development and public company administration.
The Company’s growth strategy is to acquire, explore and develop high-quality properties in progressive jurisdictions within North America. Current projects include the silver-lead-zinc Cerro Las Mintas, copper-gold-silver Minas de Ameca, the porphyry copper-molybdenum project Dragoon in Arizona, and the gold-silver project Oro in New Mexico.
Robert Macdonald (P.Geo) is a Qualified Person as defined by National Instrument 43-101 and has reviewed and approved the technical contents of this release.
(1) Data is from historical State of New Mexico files. Southern Silver has not attempted to verify this data, but has no reason to believe that these results are not representative historical production from this area.
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. These statements are based on a number of assumptions, including, but not limited to, assumptions regarding general economic conditions, interest rates, commodity markets, regulatory and governmental approvals for the company’s projects, and the availability of financing for the company’s development projects on reasonable terms. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, the timing and receipt of government and regulatory approvals, and continued availability of capital and financing and general economic, market or business conditions. Southern Silver Exploration Corp. does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by applicable law.