Southern Silver Exploration Corp. (“Southern Silver”; SSV-TSX.V) has received notice from Freeport-McMoRan Exploration Corporation (“FMEC”) that its affiliate has acquired an interest in mineral rights (“El Sol Concession”) within the area of interest under the Earn-In Agreement between Southern Silver and FMEC and has offered to include its interest in the El Sol Concession under the Earn-In Agreement. Southern Silver has accepted the offer and FMEC’s interest in the 63 hectare El Sol Concession will be incorporated within the agreement, whereby FMEC holds an option to earn a 70% indirect interest in the project by making staged purchase payments and funding exploration and development expenditures of $25 million on the project over a ten year period. FMEC’s interest in the El Sol Concession is an option to acquire a 100% interest for cumulative payments of $2 million, payable over a three year period. To the extent paid by FMEC, these will be counted as a credit towards its earn-in of the Cerro Las Minitas project.
The El Sol Concession, pictorially described below, is situated contiguous to the northwest boundary of the Cerro Las Minitas project and covers the northwestern projection of the Blind Zone deposit where drilling by Southern Silver identified multiple distinct mineralized structures with a 820 metre cumulative strike-length, with depth projections of up to 300 metres below surface. As previously reported by Southern Silver in news release NR-10-13 dated July 16, 2013, drilling under the direction of FMEC, tested both lateral and vertical offsets to known mineralized zones at the South Skarn, Blind Zone and El Sol targets as well as several geophysical and geochemical targets throughout the Project and was successful in both confirming the distribution of high-grade mineralization in the Blind zone and identifying significant extensions of mineralization at each of El Sol and South Skarn targets. Highlights from this earlier program included:
- a 9.2 metre interval averaging 401g/t silver, 8.5% lead and 5.1% zinc (777g/t AgEq) from the top of drill hole 13 CLM-066;
- a 55.2 metre interval averaging 41g/t silver, 0.7% lead and 5.3% zinc (202g/t AgEq) intersected at over 500 metres below surface in hole 13 CLM-066; and
- a 13.9 metre interval averaging 135g/t silver, 2.4% lead and 1.3% zinc (250g/t AgEq) including a 2.4 metre interval averaging 545g/t silver, 10.3% lead and 3.8% zinc (942 g/t AgEq) intersected at 220 metres below surface in hole 13 CLM-068.
FMEC has advised that, according to Oremex Silver Inc., the optionor of the El Sol Concession, the El Sol Concession is in the early stage of exploration with no indicated resource in a highly prospective district, the high grade silver- lead- zinc system in which it lies has showings that have had small production in the past, and strong IP geophysics by Oremex demonstrate buried intrusive and sulfide mineralization that indicate excellent drill targets.
I.P. results from the El Sol Concession will be incorporated into data compilation and interpretation from the recently completed first exploration program on the Cerro Las Minitas Project toward potential follow-up drilling in one or more of the target areas.
About Southern Silver Exploration Corp.
Southern Silver Exploration Corp. is a precious and base metal exploration and development 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 either directly or through joint venture relationships high-quality mineral properties in progressive jurisdictions within North America including Southern Silver’s silver-lead-zinc Cerro Las Minitas project located in Durango, Mexico. Freeport-McMoRan Exploration Corporation currently holds an option to earn a 70% indirect interest in the project by making staged purchase payments and funding exploration and development expenditures of $25 million on the project over a ten year period.
Desert Star Resources Ltd. has the option to earn up to a 70% interest in the gold-silver-copper Oro project in New Mexico by making cash payments to underlying optionors, issuing one million shares, completing a preliminary economic assessment and incurring exploration expenditures of $6 million on the property over a period of 66 months. Southern Silver is currently advancing the porphyry copper-molybdenum Dragoon project in Arizona and the Minas de Ameca silver, lead-zinc project in Jalisco, 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, Q.C.
President & Director, 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.