Southern Silver Exploration Corp. (TSX.V: SSV) (“Southern Silver”) reported today that recent surface sampling targeting precious-metal enriched epithermal vein systems on its newly staked CLM West claim group (Creston del Oro, Biznagas and Los Lenchos claims) has identified several new drill targets for RC drill testing in Q2 2018.
Recent sampling on the four square kilometre T3 Target area returned elevated precious metal and pathfinder values in multiple float samples including two distinct clusters of strongly anomalous silver values (up to 317g/t Ag), gold values (up to 0.64g/t Au), antimony values (up to 9920ppm Sb) and a +1000 metre trend of strongly elevated mercury (up to 37.3ppm Hg). Further sampling to the northwest and southeast of the T3 area currently is underway to determine the lateral extent of the anomalies. The T3 area represents a previously unrecognized target area that sits several kilometres to the northeast of, and parallel to, the already established mineralized trend transecting the CLM West claim group (see Figure 2).
Figure 1: Distribution of Surface Float Sampling in the T3 Target Area
Surface exploration in the CLM West claim package is targeting high-grade epithermal silver-gold quartz vein systems within Tertiary volcanic stratigraphy which are found in a geologically similar environment to the vein system at the Avino Mine located approximately 10 km to the NW of the northern claim boundary of the CLM West claim group and at Hecla’s San Sebastian mine located approximately 40km to the east of the target area.
Southern Silver also reported that community consultations and agreements are completed and Environmental permitting/reporting is in progress and nearing completion.
CLM West Sampling Program Summary
Sampling has been conducted throughout the three claim groups over the last several months with collected samples consisting of mostly quartz and rhyolite float. Mapping in areas of exposure in the northern areas of the claims has identified multiple quartz veins and silicified zones up to 15 metres thick.
Over 2400 rock chip and float samples have been collected in the CLM West claims to date and identify a +12 kilometre long northwest-southeast-trending corridor of anomalous precious-metal and pathfinder values that display a distinct zoning pattern consistent with modelled vertical and lateral zonation within a large epithermal vein system. Multiple distinct clusters and trends are seen in the metal distribution which will form the basis for drill targeting in the gravel covered areas.
Figure 2: Surface Sampling on the CLM West Claim Group
Table 1: Select Results from Float Sampling in the T3 Target Area
Cerro Las Minitas Project
Recent exploration on the company’s flagship Cerro Las Minitas property, Durango Mexico has been funded by Electrum Global Holdings L.P. (“Electrum”), which has now earned a 60% indirect interest in the property through a US$5.0M earn-in on the property, with Southern Silver acting as operator of on-going joint venture operations.
The Cerro Las Minitas project as of January 8th , 2018 contains an estimated Inferred Resource, at a 175g/t AgEq cut-off, of 33.6Mozs silver and 319Mlbs of lead and 813Mlbs zinc(116.1Mozs AgEq) and an estimated Indicated Resource of 20.7Mozs silver, 131Mlbs lead and 870Mlbs zinc (92.7Mozs AgEq).(1)
A total of 108 drill holes for 49,600 metres have now been completed on the Cerro Las Minitas project with exploration expenditures of approximately US$15.1 million with an exploration cost of $0.07 per AgEq ounce.
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, 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, 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 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 weighting. 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”
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.