Southern Silver Exploration Corp. (“Southern Silver”) (SSV: TSX.V) reported today that Phase II drilling on the Cerro Las Minitas project has started with one hole completed to date. The newly expanded, second phase of drilling anticipates a +30 core hole program totalling 10,000 metres. Drilling will target specific occurrences located within the area of historic mining and several additional targets derived from the recently completed surface IP geophysical program including extensions of a newly discovered high-grade zone in 11CLM-008 which intersected a 1.8 metre interval averaging 1400g/t Ag, 19.7% Pb and 14.5% Zn within a 3.3 metre intervalaveraging 818g/t Ag, 12.9% Pb and 10.9% Zn.
Southern Silver also notes that potentially significant polymetallic mineralization has been identified in the recently completed hole 11CLM-011, which targeted a 50 metre lateral offset to the north of the bonanza-grade mineralization identified in drill hole 11CLM-008. Logging and sampling of the hole is in progress. Drilling will continue to test the lateral and down dip extensions of the high-grade mineralization.
Phase I drilling on the property by Southern Silver tested other widely-spaced targets, each of which with the potential to develop significant high-grade mineral inventories. These will be tested in the latter part of the current program. Surface work on other regional targets continues.
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 carbonate-replacement 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.
Financing Update
The TSX Venture Exchange has granted Southern Silver a two week extension until August 29, 2011 of the deadline to file the final documentation of its previously announced non-brokered private placement. The first tranche of the private placement issuing 14,151,706 units at a price of $0.17 per unit for gross proceeds of $2,405,790 closed on July 20, 2011.
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.
Southern Silver’s growth strategy is to acquire, explore and develop high-quality properties in progressive jurisdictions within North America. Its current projects include the silver-lead-zinc 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.
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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”
Lawrence Page, Q.C.
President, Southern Silver Exploration Corp.
For further information, please visit Southern Silver’s website at southernsilverexploration.com or contact Liana Shahinian at 1.888.456.1112 or by email at liana@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.
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 Southern Silver’s projects, and the availability of financing for Southern Silver’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.