Southern Silver Exploration Corp. (TSX.V:SSV) (“Southern Silver”) reported today assay results from the first two holes (CLM-087/-088) from 2016 core drilling on the Cerro Las Minitas project, Durango State, Mexico which identified a new thick interval of continuous polymetallic semi-massive and massive sulphide mineralization in drill hole 15CLM-088. Highlights from drill hole CLM-088 include:
- a 30.4m down hole interval (29.5m est. True Thickness) averaging 107.4g/t Ag, 0.40% Cu, 1.1% Pb and 2.3% Zn (275g/t AgEq) including a higher grade 7.3m interval (7.1m est. TT) averaging 190g/t Ag, 0.37% Cu, 3.4% Pb and 5.5% Zn (552g/t AgEq)
Mineralization in drill hole 16CLM-088 occurs in skarn on the margin of the Central Intrusion. Significantly, the intercept in 16CLM-088 is one of the thickest intervals of continuous high-grade mineralization identified on the property to date. The mineralization is open both down dip, to the west, and along strike to the north and northwest and represents an aggressive (~200 metre) step out from the previously modelled Blind and El Sol deposits and specifically drill hole 15CLM-081 (16.8m down hole interval 136g/t Ag, 0.5% Cu, 0.3% Pb and 4.5% Zn or 361g/t AgEq; see NR-14-15, December 1, 2015).
The company also reports elevated values of Ag, Au, As and Sb in multiple mineralized intervals ranging from 5 to 12 metres thick in hydrothermal, quartz-cemented breccias in the upper portions of both holes CLM-087 and CLM-088. The breccias which are spatially associated with monzonite/dacite dykes represent a potential epithermal-styled target with a strong “pathfinder” signature in the upper parts of the mineralizing system with potentially stronger precious-metal potential at depth. Further drilling is required to test both of these new targets more thoroughly.
Management is very pleased with the results received to date from the 2016 exploration program. Approximately 3100 metres of drilling have been completed in three drill holes testing the extensions of the Blind and El Sol deposits and drilling is currently underway in a 400 metre extension of hole CLM-001 which will test a lateral offset of the Mina La Bocona target. Drilling at Mina La Bocona in 2015 returned thick high-grade zones of mineralization that were not included in the recently release 2016 Mineral Resource Estimate including a 3.9m est TT of 13.5g/t Au, 37g/t Ag, 2.2% Pb and 1.7% Zn (1093g/t AgEq) and an 8.2m est. TT of 0.5g/t Au, 150g/t Ag, 3.7% Pb and 0.7% Zn (325g/t AgEq) in drill hole 15CLM-078 (see NR-10-15, October 1, 2015). Further drilling on the project will focus on the delineation and definition of the Bocona mineralization and further extensions of the Blind and El Sol deposits.
Table 1: Select Composites from 2016 Drilling on the Cerro Las Minitas Property
Analyzed by FA/AA for gold and ICP-AES by ALS Laboratories, North Vancouver, BC. Silver (>100ppm), copper, lead and zinc (>1%) overlimits assayed by ore grade ICP analysis, High silver overlimits (>1500g/t Ag) and gold overlimits (>10g/t Au) re-assayed with FA-Grav. High Pb overlimits (>20%) assayed by titration. AgEq was calculated using the approximate 2 year trailing average metal prices of: US$18.2/oz silver, US$1240/oz gold, US$2.8/lbs copper and US$0.9/lbs lead and US$0.9/lbs zinc. AgEq calculations did not account for relative metallurgical recoveries of the metals. Ore-grade composites calculated using a 80g/t AgEq cut-off and <20% internal dilution, except where noted; anomalous intercepts calculated using a 10g/t AgEq cut-off.
Cerro Las Minitas Project
Exploration on the company’s flagship Cerro Las Minitas property, Durango Mexico 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 option earn-in on the property, with Southern Silver acting 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 Resource of 10.8Mozs silver, 189Mlbs lead and 207Mlbs zinc (36.5Mozs AgEq).(1)
A total of 87 drill holes for 32,719 metres have now been completed on the Cerro Las Minitas project with exploration expenditures of approximately US$7.5 million spent through to the end of 2015.
The 2016 Exploration program is underway with a drill program focused on targets based on the 2015 drill results which continued to extend the projections of high-grade silver-polymetallic mineralization at both the Blind - El Sol deposits and the recent discovery at the Mina La Bocona zone.
Figure 1: Plan Map showing the distribution of 2016 Drill Holes at Cerro Las Minitas
Figure 2: Longitudinal Section of the El Sol Zone showing the intercepts of drill holes 16CLM-087, -088 and -089 projected to a vertical plane.
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 Pitarilla. 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 Resources 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. 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 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.