Southern Silver Exploration Corp. (TSX.V: SSV) (“Southern Silver”) reported today assay results from initial drilling on its 12,000 metre 2018 core drilling program on the Cerro Las Minitas project, Durango State, Mexico which included a thick interval of strongly silver-enriched sulphide mineralization in drill hole 18CLM-110.
Highlights for drill hole 18CLM-110 include:
- an 18.9m down hole interval (15.1m est. True Thickness) averaging 260g/t Ag, 0.18% Cu, 0.9% Pb and 0.1% Zn (317g/t AgEq; 8.9% ZnEq) including a higher grade 5.5m interval (4.4m est. TT) averaging 598g/t Ag, 0.4% Cu, 2.1% Pb and 0.1% Zn (720g/t AgEq; 20.3% ZnEq).
The drill hole intersected an up dip projection of the Skarn Front deposit which will complement the current block model and establishes continuity between previously reported mineralized intervals in hole 13CLM-066 (9.3 metres averaging 9.4g/t Ag, 0.13% Cu and 13% Zn – 487g/t AgEq; 13.8% ZnEq; see NR-10-13, July 16, 2013) and hole 15CLM-081 (16.8 metres averaging 136g/t Ag, 0.5% Cu, 0.3% Pb and 4.5% Zn – 361g/t AgEq; 10.2% ZnEq; see NR-14-15, December 1, 2015). Furthermore, the mineralization in CLM-110 is more strongly silver enriched than the previously reported holes from this part of the deposit, reflecting a broad metal zonation within the Skarn Front which is only partially resolved.
Drilling also successfully tested extensions of mineralization in the Las Victorias zone returning heavily disseminated to semi-massive sulphide intervals in drill holes:
- 18CLM-107 with 0.9 metres (0.6m Est. TT) averaging 79g/t Ag, 0.4g/t Au, 1.2% Cu, 0.1% Pb and 14.1% Zn (733g/t AgEq; 20.7% ZnEq), and
- 18CLM-109 with 2.7 metres (2.0m Est. TT) averaging 88g/t Ag, 0.3g/t Au, 0.2% Cu, 1.1% Pb, 2.6% Zn (257g/t AgEq, 7.3% ZnEq)
This recent drilling continues to extend mineralization for over 100 metres laterally to the southeast in the Las Victorias zone which remains open down-plunge for further drill testing.
Figure 1: Drill hole locations, Area of the Cerro, Cerro Las Minitas project
Exploration has now started in the North Skarn area where drilling is targeting shallow offsets of mineralization in the historic Santo Nino mine and deeper testing up dip and laterally of previously reported high grade mineralization in drill holes 15CLM-023A (8.4m down hole of 143g/t Ag, 0.26% Cu, 1.2% Pb and 6.2% Zn – 437g/t Ag Eq; 12.3% ZnEq; see NR-12-15, October 29, 2015) and 11CLM-006 (3.7m down hole of 184g/t Ag, 1.95% Cu, 0.3% Pb, 18.4% Zn – 1056g/t AgEq; 29.8% ZnEq; see NR-06-11, June 13, 2011) as well as several historic holes drilled by Noranda from the early 2000’s.
Drill hole 18CLM-111 was completed to a depth of 654 metres and drill hole 18CLM-112 is in progress. Assays are pending.
Cerro Las Minitas Project
Approximately 4,500 metres of drilling has been completed of an anticipated 12,000 core hole 2018 exploration program. Drilling continues with one drill focused on systematic resource expansion in the Area of the Cerro which contains the existing Mineral Resource Estimate and the second drill rig focused on new Ag-Au epithermal vein targets in the recently staked CLM West claim group. The company continues refining CLM West drill targets through surface sampling and VLF-EM surveys over specific target areas.
The Cerro Las Minitas project as of January 8th, 2018 contains an estimated Indicated Resource, at a 175g/t AgEq cut-off, of 33.6Mozs silver and 319Mlbs of lead and 813Mlbs zinc (116.1Mozs AgEq; 1.69Blbs ZnEq) and an estimated Inferred Resource of 20.7Mozs silver, 131Mlbs lead and 870Mlbs zinc (92.7Mozs AgEq; 1.35Blbs ZnEq).(1)
Pre-development studies on the project continue with further refinement of the metallurgical characterization of the mineralized zones initially reported in May 2018 and preliminary mine design and engineering studies.
Table 1: Select Summary Assays from 2018 Exploration on Cerro Las Minitas
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.
Drilling continues at CLM West with one drill rig. Two holes totalling 734 metres tested beneath vein exposures in the northern Creston Del Oro claim but did not intersect significant veins at depth. Elevated As and Sb were noted in some select intervals but no significant precious metal values were returned.
Drilling is now focused on several gravel covered targets areas identified through geochemical float sampling and surface geophysics where two additional holes have been completed for a total of 629 metres. Assays are pending.
The Cerro Las Minitas project operates on a joint venture basis by Southern Silver at a 40% interest and Electrum Global Holdings LP at a 60% interest. Southern Silver is operator of the project. Since formation of the Joint Venture in September, 2017, the partners have approved over US$3.5 Million in exploration on the project.
About Southern Silver Exploration Corp.
Southern Silver Exploration Corp. is a precious metals exploration and development company with a focus on the discovery of economic 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 mineral deposits such as Penasquito, San Martin, Naica, Los Gatos 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 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 Oro property consists of patented land, State leases and BLM located mineral claims which cover a highly prospective quartz-sericite-pyrite alteration zone, interpreted to overlie an unexposed porphyry centre and distal sediment-hosted, oxide-gold target.
- The 2018 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 The models identified at a 175g/t AgEq cut-off, an indicated resource of 10,135,000 tonnes averaging 102g/t Ag, 0.1g/t Au, 1.4% Pb, 3.6% Zn and 0.15% Cu and a cumulative inferred resource of 8,685,000 tonnes averaging 74g/t Ag, 0.04g/t Au, 0.7% Pb, 4.5% Zn and 0.15% Cu. Mineral Resource cut-offs are estimated using an average long-term price of $16/oz silver, $1,200/oz gold, $2.75/lb Cu, $1.00/lb lead and $1.10/lb zinc and metal recoveries of 82% silver, 86% lead 80% copper 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, 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.