Southern Silver Exploration Corp. (the “Company” or “Southern Silver”) (TSX.V:SSV) reported today that drilling on the Cerro Las Minitas project, located in Durango State, Mexico, has extended the depth projection of high-grade silver-polymetallic mineralization in the Blind Zone deposit.
Blind Zone deposit
Assay results from two core holes which tested the Blind Zone deposit at depth returned:
- a 3.7 metre interval grading 159g/t silver, 1.5g/t gold 4.1% lead and 4.5% zinc (475g/t AgEq) from drill hole 12CLM-032, and
- a 2.6 metre interval averaging 160g/t silver, 3.7% lead and 2.9% zinc (377g/t AgEq) from drill hole 12CLM-062,
Both holes were drilled in the central part of the deposit beneath previously reported mineralization in drill holes 12CLM-019 (1.3m @ 126g/t Ag, 3.1%Pb and 3.6% Zn) and 12CLM-022 (1.4m @ 528g/t Ag, 10.5%Pb and 1.3% Zn). Drilling continues to extend the projection of the known high-grade mineralized structures to depth.
Twenty-nine drill holes totaling approximately 8,030 metres were completed on the project in 2011. An additional 7,510 metres in thirty-three drill holes have been completed to date in 2012. Assay results have been received from all outstanding holes.
Geological modeling of the Blind and El Sol deposit using a nominal 80g/t AgEq cut-off has identified multiple distinct mineralized structures with a 820 metre cumulative strike-length, with a depth projection of up to 300 metres below surface. Mineralization occurs in sub-vertical structures that demonstrate good continuity between drill holes. True thickness of the mineralized intervals are estimated at 60% to 70% of the down hole thicknesses.
The Company has scheduled additional core drilling in 2012, with the goal of completing a NI 43-101 compliant resource on these deposits by Q4 of 2012. This will be the initial milestone toward the Company’s goal of delineating a larger, multi-million tonne, high-grade, silver-enriched polymetallic resource on the project.
For a current drill-hole plan and a full table of drill results please visit the company’s website at www.southernsilverexploration.com.
Table 1: Summary of Select Composited Assays from the Cerro Las Minitas Project
Analyzed by FA-ES/AA for gold and ICP-MS by ALS Chemex, Vancouver BC; Silver overlimits (>100g/t Ag) re-assayed with FA-Grav. AgEq calculation uses values that approximate the three year trailing average of the contained metals: $23.3 silver, $1250 gold, $3.15 copper and $0.9 lead and $0.9 zinc. AgEq calculations did not account for relative metallurgical recoveries of the metals.
The Optionors of the Dragoon property have agreed to extend the final payment of US$300,000 which was due on August 28, 2012 to August 28, 2013. Upon payment of this amount, the Company will have earned a 100% interest in this property subject to a 2% net smelter return royalty. The Company may purchase this royalty from the Optionors at any time for the payment of US$500,000 per 0.5% increment.
Freeport McMoRan (FMEC) explored the property through drilling of 3 holes, totalling 3288.5 metres, to test for copper mineralization at depth. Assay results from the three holes suggest a strengthening of the mineralization toward the northeast with the best results from the previously reported drill hole DS-11-02 which encountered over 500 metres of variably altered and mineralized Paleozoic marbles and porphyritic Laramide intrusive. 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 (see NR-13-11).
FMEC has terminated the option agreement and delivered to the Company geological data which is currently being analyzed by the Company’s consultants with the intent to recommend further exploration work on the property.
Southern Silver also reported that permits have been received for drill testing of up to 14 holes on the Stockpond disseminated gold target located in the northeast quadrant of the Oro property. Previous drilling in the central and western part of the property returned thick intervals of alteration and anomalous gold and base-metal mineralization indicative of a large Cu-Au porphyry system.
Gold mineralization at the new Stockpond target is hosted by silicified sedimentary rocks which contain between 0.4g/t Au to 4.6g/t Au from chip and grab samples within an area measuring approximately 250m x 150m. The primary target in this area is a shallow sediment-hosted gold deposit with structurally controlled higher-grade gold mineralization in the underlying feeder zones.
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 and is on strike with a belt of world-class porphyry copper deposits in southeast Arizona and 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.
About Southern Silver Exploration Corp.
Southern Silver Exploration Corp. is a precious and 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-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-copper 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.
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.