Southern Silver Exploration Corp. (“Southern Silver”) reports on continuing exploration programs on both of the Company’s projects; the Ag-Pb-Zn, Cerro Las Minitas project, Mexico and the Au-Ag-Cu project, Oro Stockpond, New Mexico.
Corporate Update
Southern Silver owns a 70% indirect interest in the Cerro las Minitas Property and, as operator, has been expending funds provided by Electrum Global Holdings L.P. (“Electrum”) since May 2015 for exploration on the Property. To date, Electrum has provided US$3,050,000 which was utilized by Southern Silver on exploration programs which targeted both the known zones of mineralization and new discoveries with the goal of developing a large silver-polymetallic resource on the Property.
Electrum has earned a 30% indirect interest in the Property and has until May 14, 2019 to advance the balance of US$1,950,000 to earn a total 60% indirect interest in the Property. Electrum has advised Southern Silver that it will accelerate the remaining provision of funding to reach a total of US$5,000,000 to increase its indirect interest in the Property to 60%.
President Lawrence Page Q. C. stated “Since Southern Silver joined forces with Electrum in Q4 2015, Electrum has consistently demonstrated its willingness to provide funds and expertise on a timely basis to allow the completion of an initial Resource and to continue exploration to test the extent of the large property while the Resource at the Cerro is expanded and developed. Southern Silver is well funded to continue its programs and we look forward to continuance of a long and fruitful relationship in the development of the Property after earn-in and establishment of a joint venture for the exploitation of the Resource”
Cerro Las Minitas Project
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 since 2011.
The next phase of exploration on Cerro Las Mintas will comprise up to 10,000 metres of drilling and focus primarily on:
- the further delineation of depth extensions of the Blind and El Sol deposits;
- the delineation of an initial mineral resource estimate at the Mina La Bocona target located approximately 1.2 kilometres to the east of the Blind-El Sol-Santo Nino deposits; and
- drill testing targets identified through the current surface exploration program outboard of the main target area.
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)
Drilling in 2016 identified a 30.4m thick interval of continuous polymetallic semi-massive and massive sulphide mineralization averaging 107.4g/t Ag, 0.40% Cu, 1.1% Pb and 2.3% Zn (275g/t AgEq) in drill hole 16CLM-088 (see NR-14-16; June 13, 2016) which forms part of a new, previously unrecognized, deep extension of the Blind and El Sol deposits. Geological modelling of this target has outlined a 450 metre by 450 metre area for testing which, if successful, could significantly expand the Mineral Resources of the project.
Surface soil and rock sampling on the 13,700 hectare largely gravel-covered portions of the property continues through the fourth quarter. 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. Follow-up drilling is anticipated as new targets are developed and refined. Gravel-covered areas are extensive at the Cerro Las Minitas property, with little or no drilling and occur on trend with Avino’s gold and silver mine and Hecla’s San Sebastian gold and silver mine located respectively to the east and west of the Property.
Oro Project
Southern Silver has completed a 1,223 metre drill program at the Stockpond gold target on the Oro project, New Mexico. The program comprised nine reverse circulation holes which tested an area within and around a previously outlined 500 metre x 500 metre gold-in-soil anomaly and mineralized outcrop exposure where rock-chip samples returned up to 4.8g/t Au.
Visual results from the drill program have been encouraging with most holes intersecting multiple thick (+10 metres) beds of strongly silicified and hematite-rich sediments, which are visually similar to surface rock chips containing anomalous concentrations of gold. The drilling tested an area approximately 450m by 450m, which encompasses and expands the area defined by anomalous gold in a small outcrop and the surrounding soil survey. Samples have been submitted for analyses and assays are pending.
The Oro property consists of patented land, State leases and BLM located mineral claims and 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.
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”
Lawrence Page, Q.C.
President & Director, Southern Silver Exploration Corp.
For further information, please visit Southern Silver’s website at southernsilverexploration.com or contact us at 604.641.2759 or by email at ir@mnxltd.com.
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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.