Southern Silver Exploration Corp. (TSX.V:SSV) (“Southern Silver”) reported today that it has intersected the down-dip projection of two mineralized zones in the newly identified Las Victorias target located southeast of the known mineral deposits on the Cerro Las Minitas project, Durango State, Mexico. The mineral intercepts from drill hole 17CLM-105 are significant since:
- they confirm the extension of the Blind Zone and Skarn Front deposits to the southeast of their previously drilled extents; and
- they open a 500 metre strike-length of new target area for further drill testing.
Highlights from hole 17CLM-105 include:
- a 10.9m down hole interval (6.8m est. True Thickness) averaging 194g/t Ag, 0.8 g/t Au, 4.4% Pb and 2.0% Zn (480g/t AgEq; 13.6% ZnEq) starting at 356.9m downhole, including a higher grade 3.3m interval (2.0m est. TT) averaging 551g/t Ag, 0.8g/t Au, 11.9% Pb and 4.7% Zn (1208g/t AgEq; 34.1% ZnEq); and
- a 13.3m down hole interval (13.0m est. TT) averaging 105g/t Ag, 0.1% Cu, 0.5% Pb and 0.4% Zn (153g/t AgEq; 4.3% ZnEq) starting at 507.6m down hole, including a higher grade 2.5m interval (2.5m est. TT) averaging 318g/t Ag, 0.4% Cu, 1.4% Pb and 0.8% Zn (444g/t AgEq; 12.5% ZnEq).
The upper mineralized intercept in drill hole 17CLM-105 intersected approximately 4 metres of semi-massive to massive sulphide within a broader sulphide interval that correlates well with previously reported mineralization, approximately 125 metres up-dip, in hole CLM-101 (12.5m est. TT averaging154g/t Ag, 2.0g/t Au, 3.2% Pb and 3.9% Zn - 558g/t AgEq; 15.7% ZnEq). These two intercepts are believed to form part of a new southeast extension of the Blind Zone Deposit.
Similarly, the lower intercept in hole CLM-105 intersected mineralization that offset previously reported intervals from drill hole 11CLM-025 (10.8m down hole of 182g/t Ag, 0.5% Cu, 1.6% Pb and 6.4% Zn) and 17CLM-101 (9.2m est. TT averaging 220g/t Ag, 0.3% Cu, 3.6% Pb and 5.4% Zn - 574g/t AgEq; 16.2% ZnEq) all of which are localized along the leading edge of the skarn surrounding the Central Intrusion (Skarn Front zone).
Figure 1: Plan Map showing the distribution of Drill Holes at Cerro Las Minitas for the 2017 core drilling program
Results from hole 17CLM-105 confirm the identification of relatively shallow, precious-metal-enriched mineralized intervals in two separate zones which remain open and largely untested for over 500 metres laterally to the southeast and for up to a 500m down-dip projection (see Figure 2).
Approximately 13,400 metres in 18 drill holes have now been completed in the planned US$2 million 2017 exploration program. Drilling is nearly completed on the final drill hole, 17CLM-106; the results from which will be released upon the receipt of final assays.
President Lawrence Page, Q. C. stated that “our exploration team has excelled in advancing the Cerro Las Minitas project this year through the discovery and delineation of an additional deposit which is open for further exploratory and definition drilling. We are very keen to soon receive a current Resource Report which will be accretive to the March 2016 Report and will incorporate data from the +13,000 metres of additional drilling completed in 2017”
Work on the Cerro Las Minitas project through the Fall 2017 will include an independent update of the 2016 Mineral Resource Estimate, additional metallurgical studies and further advancement and development of the exploration targets on the Biznagas and Los Lenchos claims.
Figure 2: Vertical Longitudinal Section of the Skarn Front Mineralization and the New Target area in the North Skarn zone
Table 1 Significant mineralized intercepts from the Las Victorias Target area
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 has financed a broad range of exploration activities and has earned a 60% interest in the project through a US$5.0M earn-in on the property, with Southern Silver acting as operator.
The Cerro Las Minitas project as of March 21st, 2016 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 107 drill holes for 49,430 metres have now been completed on the Cerro Las Minitas project with exploration expenditures of approximately US$10.8 million.
Table 2: Select Composites from 2016-17 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 (>20%) and Zn (>30%) overlimits assayed by titration. AgEq and ZnEq were calculated using average metal prices of: US$18.2/oz silver, US$1240/oz gold, US$2.8/lbs copper and US$0.91/lbs lead and US$0.94/lbs zinc. AgEq and ZnEq 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.
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, along with our partner, Electrum Global Holdings LP, 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 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.
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.