Southern Silver Exploration Corp. (TSX.V:SSV) (“Southern Silver”) reported today assay results from the Fall 2016 core drilling on the Cerro Las Minitas project, Durango State, Mexico which identified a thick interval of semi-massive and massive sulphide mineralization in drill hole 16CLM-091. Highlights from 16CLM-091 include:
- a 15.1m down hole interval (14.8m est. True Thickness) averaging 39.4g/t Ag, 0.1% Pb and 10.2% Zn (410.7g/t AgEq; 11.6% ZnEq) including a higher grade 4.8m interval (4.7m est. TT) averaging 38.7g/t Ag, 0.12% Cu, 0.1% Pb and 23.2% Zn (877g/t AgEq; 24.8% ZnEq)
Mineralization in drill hole 16CLM-091 occurs in skarn near the margin of the Central Intrusion within the Blind Shoulder target and appears to confirm the flattening of the mineralized zone in this part of the deposit. Significantly, the mineralization in 16CLM-091 contains some of the highest grade zinc intercepts drilled on the project to date by Southern Silver.
The mineralization is open both down-dip to the southwest and along strike to the north and northwest and represents a 150 metre step-out from previously reported mineralization in hole 13CLM-066 (9.3 metres averaging 9.4g/t Ag, 0.13% Cu and 13% Zn; see NR-10-13, July 16, 2013), a 85 metre step-out from hole 15CLM-081 (16.8 metres averaging 136g/t Ag, 0.5% Cu, 0.3% Pb and 4.5% Zn; see NR-14-15, December 1, 2015) and a 250 metre step-out from hole 16CLM-088 (30.4 metres averaging 107g/t Ag, 0.4% Cu, 1.1% Pb, and 2.3% Zn; see NR-14-16, June 13, 2016). The above intervals are quoted as down hole thickness.
“The recent set of drill results has yielded further improvement in potential size, quality and scope of the Cerro Las Minitas project,” said Lawrence Page, Southern Silver’s President. “Our focus will remain to establish this rapidly evolving district into one of the most significant economic polymetallic discoveries in our industry.”
As of December 31, 2016, approximately 1,300 metres of the planned 10,000 metre US$2 million drilling program had been completed consisting of two drill holes and the extension of an earlier hole. Drilling tested both the Blind Shoulder target with hole CLM-091 and the Mina La Bocona target with hole 16CLM-090 and extension of hole 13CLM-037. Hole CLM-090 returned anomalous values of silver and base metals (see Table 1).
Drilling on the Blind Shoulder during 2017 will continue to target a 600 metre x 400 metre area which will test the lateral extension of mineralization identified in holes CLM-091, CLM-088, CLM-081 and CLM-066. Continued delineation of this target area remains a high priority which with continued success, would have a significant positive impact on the cumulative mineral resources of the project.
A second drill has been mobilized to the property for the commencement of the 2017 program which will allow continued exploration of the project on an expedited basis.
Table 1: Select Composites from Fall 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 (>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.
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 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 93 drill holes for 37,255 metres have been completed on the Cerro Las Minitas project with exploration expenditures of approximately US$8.6 million spent through to the end of 2016.
Figure 1: Plan Map showing the distribution of Fall 2016 Drill Holes at Cerro Las Minitas
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 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.