Southern Silver Exploration Corp. (TSX.V: SSV) (“Southern Silver”) reported today that final permits have been received and crews have mobilized for the next phase of a fully funded exploration program on the 100% controlled Oro project, New Mexico. The program includes a trenching program over some key target areas, followed by a 1200-metre reverse-circulation drill program scheduled to begin in mid-September on the Stockpond gold target. Eight to ten holes are planned for this phase of drilling, which will test the area within and around a previously outlined 500m x 500m gold-in-soil anomaly and mineralized outcrop exposure where rock-chip samples returned up to 4.8g/t Au. The dimension of the gold anomaly coupled with the sampled grades underscore the project’s potential for the discovery of a significant bulk-tonnage, intrusive-related, disseminated oxide-gold deposit.
The Oro property consists of Federal and State mineral claims surrounding private land owned by Southern Silver and totals 11.8 square kilometres in the historic Eureka mining district in Grant County, New Mexico. The property is located approximately 80 kilometres southwest of the Silver City porphyry copper district.
The property covers and surrounds a highly prospective quartz-sericite-pyrite alteration zone, interpreted to overlie an unexposed porphyry center. Classic porphyry system zonation is indicated by gold and copper mineralization associated with Laramide-age intrusions, flanked by lead-zinc skarn and carbonate-replacement mineralization, and distal sediment-hosted gold occurrences. The Stockpond target is interpreted as one of these gold occurrences distal to the main porphyry center, which is located 3 kilometres to the southwest (Figure 1).
Cerro Las Minitas Project Update
Southern Silver also reported that crews have mobilized and that soil sampling is underway as part of the next phase of work on the Cerro Las Minitas project, located in Durango, Mexico. The work will target new discoveries on the largely gravel-covered property. The sampling program will further evaluate targets developed during the Company’s detailed re-evaluation of airborne and ground geophysics, property-wide biogeochemical surveys, and soil and float sampling completed by Southern Silver over the last several years. Initial work has started with step-out soil lines to determine the potential strike-length of a 500 metre-long gold-in-soil anomaly in Target Area 1 (Figure 2), located about 4 km to the southwest of the Blind, El Sol and Santo Nino deposits. Follow-up drilling is anticipated as new targets are developed and refined.
Figure 1: Metal zoning at the Oro project
Gravel-covered areas are extensive at the Cerro Las Minitas property and remain highly prospective, with little or no drilling. The areas are on trend with Avino’s gold and silver mine to the west and Hecla’s San Sebastian gold and silver mine to the east; San Sabastian reopened in January, 2016.
Exploration on the company’s Cerro Las Minitas property is funded by Electrum Global Holdings L.P. (“Electrum”), which is financing a broad range of exploration activities to earn a 60% interest in the project through a US$5.0M earn-in option, with Southern Silver as operator.
The Cerro Las Minitas project contains an estimated Inferred Resource of 17.5Mozs silver and 237Mlbs of lead and 626Mlbs zinc (77.3Mozs AgEq), and an estimated Indicated Resourceof 10.8Mozs silver, 189Mlbs lead and 207Mlbs zinc (36.5Mozs AgEq).(1)
A total of 91 drill holes for 35,955 metres have now been completed on the Cerro Las Minitas project, with exploration expenditures of approximately US$8.35 million spent on the property to date.
Figure 2: Property wide targets for further evaluation on the Cerro Las Mintas Project
About Southern Silver Exploration Corp.
Southern Silver Exploration Corp. is a precious metal exploration and development company with a focus on the discovery of world-class mineral deposits in north-central Mexico and the southern USA. Our specific emphasis is the Cerro Las Minitas silver-lead-zinc project located in the heart of Mexico’s Faja de Plata, which hosts multiple world-class mineral deposits such as Penasquito, San Martin, Naica and Pitarrilla. We have assembled a team of highly experienced technical, operational and transactional professionals to support our exploration efforts in developing the Cerro Las Minitas project into a premier, high-grade, silver-lead-zinc mine. The Company engages in the acquisition, exploration and development either directly or through joint-venture relationships in mineral properties in major jurisdictions. Our property portfolio also includes the Oro porphyry copper-gold project located in southern New Mexico, USA.
- The 2016 Cerro Las Minitas Resource Estimate was prepared following CIM definitions for classification of Mineral Resources. Resources are constrained using mainly geological constraints and approximate 10g/t AgEq grade shells. The block models are comprised of an array of blocks measuring 10m x 2m x 10m, with grades for Au, Ag, Cu, Pb, Zn and AgEq values interpolated using ID2 weighting. The models identified at a 150g/t AgEq cut-off, an indicated resource of 3,724,000 tonnes averaging 90g/t Ag, 0.05g/t Au, 2.3% Pb, 2.5% Zn and 0.09% Cu and a cumulative inferred resource of 6,611,000 tonnes averaging 82g/t Ag, 0.17g/t Au, 1.6% Pb, 4.3% Zn and 0.2% Cu. Mineral Resource cut-offs are estimated using an average long-term price of $15/oz silver, $1,100/oz gold, $2.75/lb Cu, $0.90/lb lead and $0.90/lb zinc and metal recoveries of 82% silver, 86% lead and 80% zinc. AgEq calculations did not account for relative metallurgical recoveries of the metals. All prices are stated in $USD. Mineral Resources are conceptual in nature and as such do not have demonstrated economic viability.
The current Resource Estimate was prepared by Garth Kirkham, P.Geo. of Kirkham Geosciences Ltd. who is the Independent Qualified Person responsible for presentation and review of the Mineral Resource Estimate.
Robert Macdonald, MSc., P.Geo, is a Qualified Person as defined by National Instrument 43-101 and is responsible for the supervision of the exploration on the Cerro Las Minitas Project and for the 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. 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. Factors that could cause actual results to differ materially from those in forward looking statements include 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.