Southern Silver Exploration Corp (SSV.V) reported today that optionee Freeport-McMoRan Exploration Corp. (FMEC) has commenced drilling at the Dragoon Project, located 90 kilometres southeast of Tucson, Az.
The current drill hole follows two previous deep holes on the project by FMEC which tested a gravel covered area of prospective stratigraphy along the main range-front fault at the base of the Dragoon Mountains. The current hole, DS-12-03, is located approximately 175 metres to the north of hole DS-11-02 and is expected to test to depths of about 1000 metres.
Previous drilling on the project intersected over 500 metres of variably altered and mineralized Paleozoic marbles and porphyritic Laramide intrusive in hole DS-11-02. Quartz veining and variable amounts of copper and molybdenum sulphides occur through much of the target interval which averaged 0.06% copper over 527 metres in the lower part of the drill hole.
Only four previous drill holes tested the property below 600 metres and the mineralizing system remains open below that depth. Southern Silver believes that these results, together with other historical data, suggest the presence of a large, deep-seated copper porphyry system disrupted by post-mineral faulting.
The Dragoon property is a contiguous block of 12.8 sq. km that consists of 68 unpatented mining claims and four State leases located in southeast Arizona. The property contains areas of exposed Copper-Molybdenum mineralization, Laramide-age porphyry and “leached capping” in the eastern part of the property.
Southern Silver has the right to earn a 100% interest in the property by the payment of $300,000 by August 2012 and FMEC has the right to earn a 70% interest in the property by spending $3 million in exploration and development expenses on the property by December 31, 2012.
Southern Silver also reported assay results from four core holes (1,697 meters) on its wholly owned Oro Copper/Gold property in southwest New Mexico. Two holes were drilled near the central, highly altered portion of the Oro property, and the third and fourth holes were drilled on the periphery of the 5km by 2.5km alteration zone. The Oro property is on strike with a belt of world-class porphyry copper deposits in southeast Arizona and southwest New Mexico.
Hole OR11-006 intersected 9.1m of 0.37% Cu within a 43m interval averaging 0.14% Cu. A second 50m interval averaging 0.1% Cu was intersected deeper in the hole. Strongly altered, multiphase intrusions and skarn were encountered throughout the entire hole, with the strongest copper values surrounding a zone of intense potassic alteration.
Hole OR11-007 was drilled 520m northwest of OR11-006 and encountered anomalous arsenic and gold, with a high value of 0.90 grams gold per tonne over 0.8m. The other two holes contain only anomalous metal values. All holes at depth encountered strongly altered intrusive rocks with anomalous metals, reflecting the large size of this mineral system.
Southern Silver is evaluating the results and soliciting advice from an expert in porphyry copper deposits. Down hole electrodes were placed in two holes, including OR11-006, to be utilized by a planned IP geophysical survey to further delineate drill targets.
Mapping and sampling peripheral to the main altered area at Oro has identified the Stockpond disseminated gold target, which was recently staked by Southern Silver. This new shallow gold target is defined by 14 samples, all of which returned anomalous gold assays from 0.062 to 4.8 g/t Au, from small silicified sandstone outcrops that protrude through gravel. Eight of the 14 samples contained more than 0.4 g/t Au. The outcrops are within an area measuring approximately 250m by 150m, and anomalous soil samples containing from 0.01 g/t to 0.12 g/t Au indicate that the mineralized area may be much larger beneath the shallow gravel cover. Permitting of this target is nearly complete pending bonding. An initial phase of trenching is anticipated on the project followed by drilling in 2012.
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.
Southern Silver has the right to earn a 100% interest in the property by payments totaling $225,000 to private vendors by December 2012.
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.
On behalf of the Board of Directors
Lawrence Page, President, Southern Silver Exploration Corp.
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