Southern Silver Exploration Corp. (TSX.V: SSV) (“Southern Silver”) reported today an expansion of the exploration program at the CLM West portion of its Cerro Las Minitas project in Durango, Mexico with the mobilization of a second core drill to begin the next phase of the current US$3 million, 2018 exploration program on the project. The second drill will focus on the discovery and delineation of major Ag-Au quartz vein systems within the more recently acquired CLM West claim. The identification of a significant vein system at CLM West would greatly enhance the overall dynamic of the Cerro Las Minitas project through the addition of more precious-metal-enriched (Au-Ag) mineral systems to complement the existing base-metal-enriched (Zn-Ag-Pb) Mineral Resources currently identified on the project and targeted for expansion in the ongoing 2018 drill program.
Initially, 2000 metres of core drilling will test multiple Ag-Au quartz vein targets throughout the CLM West claim group which was acquired at modest cost through staking in 2017 as an addition to the main claims previously purchased by Southern Silver and which contain a mineral resource detailed below. The targets which were identified through a comprehensive sampling program of over 6000 float and rock chip samples, mapping and ground geophysics throughout much of the previous 12 months occur throughout a +10 kilometre x 5 kilometre north-south trending corridor underlying the 207 square kilometre CLM West claim package. Initial drilling will target exposed quartz veins in the northern part of the claims. Previous sampling of these veins returned strongly anomalous pathfinder values (As-Sb-Hg) indicative of the upper levels of a low sulphidation epithermal vein system. Drilling will test to initial depths of over 200 metres in order to evaluate both the depth extent of the veins and the potential of transitioning into a more precious-metal-enriched part of the mineral system.
Numerous other target areas are identified by extensive float sampling in the largely gravel covered property and form distinct clusters or linear trends of sometimes strongly anomalous metal values of gold (0.25 to 1.46g/t Au), silver (13.5 to 5,701g/t Ag), arsenic (250 to 5550ppm As), antimony (735 to +10,000ppm Sb) and mercury (5.6 to 747ppm Hg), which form much of the basis for additional drill testing on the property. Targeting is further refined using ground VLF surveys and some limited trenching.
These quartz-vein targets are similar to productive epithermal vein systems which occur throughout the Mexican Faja de Plata like those currently being mined at the Avino Gold-Silver mine, located just 8km to the NW of the targeted vein exposures and at Hecla Mining’s San Sebastian mine located approximately 50km to the east of CLM West.
President Lawrence Page Q. C. stated “The identification of a significant low sulphidation epithermal, precious metal system at CLM West when added to the existing skarn-hosted mineral resources of the project would greatly enhance the prospects of the overall property and highlight the true district-scale potential of the Cerro Las Minitas Project with potential contributions from two distinct geologic systems”
Figure 1: 2017-18 float and rock chip sampling on CLM West claim group, Cerro Las Minitas project, Durango, Mexico
Area of the Cerro Update
Southern Silver has now completed approximately 2,075 metres of diamond drilling in four drill holes as part of the current 2018 drill program in the Area of the Cerro where a significant resource has been developed. Offset drilling continues to test both up-dip and laterally of mineralization in the Las Victorias area, the North Skarn and the Skarn Front zone.
The drilling is part of an overall program to systematically expand the current Mineral Resource estimate on the Cerro Las Minitas project. 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) and an estimated Inferred Resource of 20.7Mozs silver, 131Mlbs lead and 870Mlbs zinc (92.7Mozs AgEq).(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.
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 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 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.
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.