Southern Silver Exploration Corp. (SSV:TSX-V) (“the Company”) reported today that it has intersected bonanza-grade silver, lead and zinc mineralization in assays from a newly discovered polymetallic structure identified under gravel cover and outboard of the previously known and historically mined ore bodies at the Cerro Las Minitas project in Durango, Mexico.
The Company said that drill hole 11CLM-008 intersected a 1.8 metre interval averaging 1400g/t Ag, 19.7% Pb and 14.5% Zn within a 3.3 metre interval averaging 818g/t Ag, 12.9% Pb and 10.9% Zn which forms part of a 10.9 metre interval averaging 268g/t Ag, 4.5% Pb and 3.8% Zn. Assay results are reported as down hole intervals.
The drill hole was the first test of a new discovery within an IP geophysical target located under gravel cover approximately 250 metres to the west of the contact with the central intrusive body. The geophysical signature is open for up to 400 metres strike. A second deeper geophysical anomaly occurs to the west of the current hole and is a target for upcoming drilling on the property.
The Company has now completed ten holes for a total of 2,900 metres in phase one of the project. Assays are pending from portions of 11CLM-008 and two other drill holes (11CLM-007 and 11CLM-010) and will be released upon receipt. Drill hole 11CLM-009 drilled short of the intended target and was repositioned to site 11CLM-010.
The positive results to date have lead to the expansion of the project into a second phase program of 25 to 30 diamond drill holes totaling 10,000 metres which will begin in early July. This new drilling will be funded by a placement announced on June 20, 2011 and will target specific occurrences located within the area of historic mining and several additional targets derived from the recently completed surface IP geophysical program over portions of the property including extensions of this newly discovered high-grade zone in 11CLM-008. Surface work on several regional targets continues.
Figure 1: Plan view of the area of historic mining at the Cerro Las Minitas Project showing the distribution of current, historic and planned drill holes. Gravel covered geophysical targets, outlined in red, highlight the exploration potential of the project.
Table 1: Summary of Select Composited Assays from the Cerro Las Minitas Project
About the Cerro Las Minitas property
The Cerro Las Minitas property comprises 17 concessions which total 10,980 hectares and an approximate 25 kilometre lineal strike length. The property is located about 70 kilometres to the northeast of the city of Durango in Durango State, Mexico, and is accessed easily by road.
Mining has been conducted on the property since colonial times and has identified several types of silver-, lead- and zinc-enriched massive-sulphide pipes, veins and carbonatereplacement deposits (CRDs), as well as mineralized skarns at the margins of a large intrusive body. The Santa Eulalia replacement deposit (45Mt of 310g/t Ag, 7.1% Zn and 8.2% Pb) and the skarn deposit of San Martin (60Mt of 118g/t silver, 0.9% copper and 3.9% zinc) are examples of two major Mexican mines occurring in similar geological environments(1)
Limited historical drilling on the project by Noranda (not independently verified by Southern Silver) returned numerous intervals of higher grade silver and base metals, including: a 11.45 metre interval (down hole) grading 123g/t silver, 1.55% lead and 7.79% zinc from drill hole NGV-00-02 and a 1.41 metre interval (down hole) grading 529g/t silver, 6.99% lead and 1.27% zinc from drill hole NGV-00-06.
The mineralized zones at Cerro Las Minitas have been exploited to depths of 300 metres and over widths of 60 metres.
About Southern Silver Exploration Corp.
Southern Silver Exploration Corp. is a 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 areas of exploration, development, corporate finance and public company administration.
The Company’s growth strategy is to acquire, explore and develop high-quality properties in progressive jurisdictions within North America. Its current projects include the silver-leadzinc Cerro Las Mintas project and the copper-gold-silver Minas de Ameca in Mexico, the porphyry copper-molybdenum Dragoon project in Arizona and the gold-silver Oro project 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) Southern Silver advises that tonnage and grade of adjacent properties or those used for comparative purposes may not reflect the ultimate potential of the Cerro Las Minitas project
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