Southern Silver Exploration Corp. (“Southern Silver”) reports today that Freeport-McMoRan Exploration Corporation (“FMEC”), optionee of an indirect interest in the project, has provided details of 2012 exploration and 2013 proposed drilling programs.
Current plans are for a 3000-5000 metre core hole program to commence in early April following the issuance of drill permits. An initial seven sites have been selected for drill testing within the area of the ‘Cerro’ (or hill) where most of the previous exploration and development work has been conducted on the project.
Initial drilling will target the South Skarn area and specifically an offset of drill hole 12CLM-055, which previously identified strongly anomalous gold mineralization over a 20 metre interval within a hematite breccia which averaged 0.8g/t gold and included a 4.3 metre interval averaging 2.8g/t gold and 28g/t silver. A second 4.3 metre interval averaging 1.4g/t gold, 89g/t silver and 1.8% copper was intersected further down hole in an interval of chlorite-garnet skarn (see news release NR-11-12 of May 17, 2012).
Additional planned holes include deep testing of the central intrusive, the depth extension of the Blind zone and Santo Nino mineralization and several other geochemical and geophysical targets. Other areas will be prioritized as the program proceeds. Drilling is targeting a deep seated porphyry/skarn mineral system similar to the historic San Martin deposit (60Mt of 118g/t silver, 0.9% copper and 3.9% zinc) located about 100 kilometres to the south of the Cerro Las Minitas project.
Since execution of an earn-in agreement on the project in October 2012, FMEC has completed a program of soil and vegetation geochemistry and geophysical surveys over the entire 15,125 hectare property. FMEC has completed three additional lines of deep-penetrating IP geophysics and a gravity survey over the area of the ‘Cerro’ that have confirmed both the lateral extent of anomalies identified in earlier work by Southern Silver and have significantly extended the projection of several of the existing targets to over 600 metres depth.
Detailed surveys by FMEC targeted the area of the ‘Cerro’ where Southern Silver had previously conducted geophysical work and 15,579 metres of diamond drilling in 62 core holes in 2011/12. This drilling outlined two new deposits on the property and verified several priority targets for additional drill testing including hole 12CLM-055. 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 depth projections of up to 300 metres below surface. Mineralization occurs in sub-vertical structures that demonstrate good continuity between drill holes.
A Reconnaissance IP survey (RIP) covering the remainder of the concessions has identified new, previously undetected targets in gravel covered areas for further surface exploration and potential drill testing.
Southern Silver has the right to earn a 100% interest in the Cerro Las Minitas property by paying the underlying optionor a residual US$2,000,000 together with applicable local taxes by November 18, 2013. FMEC has the right to earn up to a 70% indirect interest in the project by making staged purchase payments and funding exploration and development expenditures of $25 million on the project, including funding the remaining payments to the underlying optionor, over a ten year period.
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.
Southern Silver’s silver-lead-zinc Cerro Las Minitas project located in Durango, Mexico is currently under option to Freeport-McMoRan Exploration Corporation which can 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.
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.