Southern Silver Exploration Corp. (“Southern Silver” or the “Company”) reported today on the status of the Cerro Las Minitas property.
As recently reported, Freeport McMoRan Exploration Corporation (“FMEC”) relinquished its option to earn an indirect interest in the Cerro Las Minitas project after having spent $5.5 million on exploration and option payments to the underlying vendor. Company personnel have received geological data derived from 7000 metres of drilling in 13 core holes and have taken possession of the property in a recent visit to the project. The property is currently being mined by the underlying Optionor at the maximum rate of 50 tpd with mining being concentrated on the high grade silver, lead, zinc mineralization at the Blind zone and the El Sol zone. Both zones were discovered by the Company through drilling of 23,310 metres in 75 core holes between 2010 and 2014.
The Company has traced the Blind zone and El Sol mineralization at nominal 50 to 80 metre drill spacing for a cumulative 820 metres strike-length in a northwest-southeast direction and to depths of up to 550 metres in some drill holes. Small scale mining on both zones is being conducted through two recently constructed shafts and head frames constructed by the Optionor at his expense. The shafts are approximately 3m x 3m with poured concrete walls and have been designed to access high-grade silver-lead-zinc mineralization that was identified in drill hole CLM11-008 (10.9m averaging 268g/t Ag, 4.5%Pb and 3.8% Zn) and in drill hole CLM11-16 (4.5m averaging 192g/t Ag, 0.3% Cu, 5.3% Pb and 8.4% Zn). The shafts are located 200 metres apart and extend to over 100 metres in depth. Mineralized material is winched out of the shafts and is hand sorted before transport to a local mill facility for processing and sale. Mining has been ongoing for 4 to 5 months and the Company estimates that the Optionor has shipped up to 3,000 tonnes of mineralized material in that period. Please visit our website at southernsilverexploration.com for current photographs of operations.
The Optionor of the property recently advised the Company of his preference not to amend the terms of the purchase agreement reported by the Company (NR-05-15) and accordingly his mining rights will expire on May 18, 2015, at which time the Company will take possession of the property, including the shafts and mining infrastructure. Continuing option payments are $U.S.500,000 on November 18, 2014 and $U.S.100,000 on March 18, 2015 at which time the Company will own a 100% interest in the 18 mineral concessions, which will include the current mining operations on the core claims at the Cerro on the west side of the 13,641 hectare property. Significantly, there are no royalty burdens on the property.
President Lawrence Page Q.C. said, “Current production of high grade silver, lead and zinc mineralization utilizing two shafts driven to depths of over 100 metres, supports our view of the property as a potential development project. This initial small-scale infrastructure is a significant step in advancing the Cerro Las Minitas project that can be utilized by the Company at a later date to access mineralized horizons for sampling and evaluation in the preparation of more detailed assessments of the deposits. The Company is preparing to assume control of the property in May 2015.”
To the knowledge of the Company, mining operations are not being conducted on the basis of a feasibility study which may result in increased technical and economic risks associated with the operations.
Appointment of Director Spiering
The Company is pleased to announce the appointment of Eugene Spiering to the Board of Directors. Mr. Spiering is an exploration geologist with over 30 years of international experience in mineral exploration and senior level project management in the Western United States, South America, and Europe. As VP Exploration with Rio Narcea Gold Mines Ltd., he participated in every aspect of the mining industry from discovery through project development and production of the El Valle gold and Aguablanca nickel mines in Spain. He is presently VP Exploration for Quaterra Resources Inc. and Duncastle Gold Corp. Mr. Spiering is a registered member of Society of Mining, Metallurgy, & Exploration and a fellow member of Australasian Institute of Mining and Metallurgy.
Robert Macdonald (P.Geo) is a Qualified Person as defined by National Instrument 43-101 and responsible for the supervision and preparation of the technical information in this disclosure.
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.