Southern Silver Exploration Corp. (“Southern Silver”) reported today that Freeport-McMoRan Exploration Corporation (“FMEC”) has provided Southern Silver with $570,000, of which $290,000, including applicable taxes, was utilized to pay the May 18, 2014 option payment to the optionor of the Cerro Las Minitas mineral concessions (“CLM option”), with the balance of $280,000 utilized in ongoing exploration expenses on the property.
FMEC has been providing funding for, and directing, Southern Silver’s subsidiary, Minera Plata del Sur, S.A. de C.V., to explore the property since October 2012 and 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. Included in the gross interest is an option to acquire an initial 51% interest to be earned in the first three years of the agreement by expenditure of $5,000,000 - being $4,400,000 in exploration costs and $600,000 in option payments to Southern Silver.
To date, FMEC has, directly and indirectly, funded expenditures and payments of approximately $5,051,000 as follows:
- paid Southern Silver $100,000 in option payments;
- funded $2,088,000 towards the CLM option;
- funded exploration costs of $2,713,000 on the project; and
- funded $150,000 towards its acquisition of the Oremex property.
(Note: all references to money and $ refer to United States currency)
To date, $3,480,000 has been paid towards the CLM option from funds provided by Southern Silver and FMEC, towards a total purchase price of $4,640,000, with remaining payments of $580,000 on November 18, 2014 and $580,000 on March 18, 2015 (to be reduced to $116,000 if the optionor fails to deliver registered title to a specific non-core claim upon closing). All amounts stated include applicable taxes.
This phase of drilling is now finished. Three holes for approximately 2377 metres of new drilling were completed on the property which was designed to test at depth several previously identified copper anomalies on the project. These include an extension of drill hole CLM-073, which terminated in anomalous copper mineralization at 708 metres depth and deep testing of the intrusive and its southern margin (South Skarn target). Assays are pending.
Since execution of an earn-in agreement on the Cerro Las Minitas project in October 2012, Southern Silver’s Mexican subsidiary, Minera Plata del Sur, S.A. de C.V., has completed over 7,000 metres of diamond drilling, conducted soil and vegetation geochemistry surveys and a Reconnaissance IP (RIP) geophysical survey over the entire 15,125 hectare property. Additional lines of deep-penetrating IP geophysics and a Gravity survey were completed over the area of historic mining which has led to the development of several new targets on the property.
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.
Robert Macdonald (P.Geo) is a Qualified Person as defined by National Instrument 43-101 is responsible for the compilation and review of the technical content 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.