Southern Silver Increases Value of Concentrates in Locked-cycle Test work
Southern Silver Increases Value of Concentrates in
Locked-cycle Test work
Vancouver, British Columbia--(Newsfile Corp. - January 16, 2020) -
Southern Silver Exploration Corp. (TSXV: SSV)
("Southern Silver")
reported today that the company continues to de-risk the Cerro Las Minitas project with the completion of
the latest round of metallurgical test work. Results confirmed a sequential process flowsheet able to produce marketable copper,
lead and zinc concentrates from a representative composite of the Skarn Front deposit, significantly increasing the marketability
and projected value of the resulting lead and zinc concentrates compared to earlier batch testing.
These results are highlighted by a
94.7% zinc recovery grading 54.0% Zn
in the zinc concentrate and grades of
5,504g/t Ag
and
65.1% Pb
in the lead concentrate. Silver strongly partitions into the lead and copper concentrates for a combined
83.8%
Ag recovery
into concentrates that traditionally receive favourable payable terms.
This round of test work utilized a more robust protocol than the earlier reported batch testing (see NR-10-18; September 19,
2018), resulting in significant upgrades of both the lead and zinc concentrates and greater confidence in the recovery and grade
projections. Further variability test work on the Skarn Front deposit continues in order to determine the broader parameters for
metallurgical recoveries and concentrate values. Results from this additional test work are still pending.
President, Lawrence Page Q.C. stated "
The results of this most recent test work demonstrate a process to derive increased
value from silver, lead and zinc, the prevalent metals identified in the CLM deposit. This is a significant milestone in that we
have advanced a viable Cu-Pb-Zn processing flowsheet with no fatal flaws and increased the overall value of the resulting
concentrates compared to the earlier batch test work."
Test Work Details
The test work was conducted on behalf of Southern Silver by Blue Coast Research of Parksville, British Columbia, and improves
on earlier batch testing (see NR-06-18, May 14, 2018 and NR-10-18, September 19, 2018) that generated high-grade lead and
zinc concentrates from the Blind-El Sol deposits and high-grade lead, zinc and copper concentrates from the Skarn Front
deposit.
The current test work program comprises:
locked-cycle and batch testing of the Cu-Pb-Zn flowsheet of the Skarn Front composite which has now been completed;
and
batch testing of subset composites to better understand the implications of grade variability within the deposit
Eight different samples were collected for variability test work. These ranged from high grade to low grade with varying precious
and base-metal ratios designed to reflect a range of potential ore compositions throughout the Skarn Front deposit. A total of
210.8kg of mineralized material
from 17 different drill holes was collected for the test work.
Aliquots from seven of the variability samples were blended into a homogenized Master Composite totalling
91.8kg
and grading
111g/t Ag, 0.24% Cu, 1.3% Pb and 5.8% Zn.
A locked-cycle test was conducted that was based on an open circuit flowsheet
established in the earlier batch test work. The locked cycle test produced a robust assessment of final lead and zinc
concentrates. Owing to the lower copper content of the Master Composite, a larger scale batch cleaner test was conducted to
establish the copper metallurgy. Results from the locked-cycle test were combined with the copper cleaner test work to create an
overall metallurgical projection for the Skarn Front composite.
Projected recoveries and grades from the
Skarn Front composite
are:
83.6% Pb and 77.3% Ag into the lead concentrate which assays 65.1% Pb and 5,504g/t Ag respectively after
three stage of cleaning; and
94.7% Zn and 8.0% Ag into the zinc concentrate which assays 54.0% Zn and 92g/t Ag respectively after three
stages of cleaning.
60.2% Cu and 6.5% Ag recovered into the copper concentrate which assays 27.0% Cu and 1255g/t Ag
respectively after three stages of cleaning;
Table 1: Projected Metallurgy for the Cerro Las Minitas Skarn Front Master Composite
To view an enhanced version of Table 1, please visit:
https://orders.newsfilecorp.com/files/5344/51525_3bcac339c48c0ae6_002full.jpg
Cerro Las Minitas Project
The Cerro Las Minitas (CLM) project is an advanced exploration stage polymetallic Ag-Pb-Zn-Cu Skarn/CRD project located in
southern Durango, Mexico.
The CLM project as of May 9
th
, 2019 contains an estimated Indicated Resource, at a 175g/t AgEq cut-off, of
37.5Mozs silver,
40Mlbs copper, 303Mlbs lead and 897Mlbs zinc
(134Mozs AgEq)
and an estimated Inferred Resource of
45.7Mozs silver,
76Mlbs copper, 253Mlbs lead and 796Mlbs zinc (138Mozs AgEq)
.
(1)
A total of 133 drill holes for 59,000 metres have now been completed on the Cerro Las Minitas project with exploration
expenditures of approximately US$18.5 million equating to exploration discovery costs of approximately $0.07 per AgEq ounce
to the end of 2019.
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.
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 and Los Gatos. We have assembled a team of highly experienced technical, operational and
transactional professionals to support our exploration efforts with the objective of 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.
1
.
The 2019 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 values
interpolated using ID3 weighting. Silver and zinc equivalent values were subsequently calculated from the interpolated
block grades. The model is identified at a 175g/t AgEq cut-off, with an indicated resource of 11,102,000 tonnes averaging
105g/t Ag, 0.10g/t Au, 1.2% Pb, 3.7% Zn and 0.16% Cu and an inferred resource of 12,844,000 tonnes averaging 111g/t
Ag, 0.07g/t Au, 0.9% Pb, 2.8% Zn and 0.27% Cu. AgEq cut-off values were calculated using average long-term prices of
$16.6/oz. silver, $1,275/oz. gold, $2.75/lb. copper, $1.0/lb. lead and $1.25/lb. zinc. Metal recoveries for the Blind, El Sol
and Las Victorias deposits of 91% silver, 25% gold, 92% lead, 82% zinc and 80% copper and for the Skarn Front deposit
of 85% silver, 18% gold, 89% lead, 92% zinc and 84% copper were used to define the cut-off grades. Base case cut-off
grade assumed $75/tonne operating, smelting and sustaining costs. All prices are stated in $USD. Silver Equivalents
were calculated from the interpolated block values using relative recoveries and prices between the component metals
and silver to determine a final AgEq value. The same methodology was used to calculate the ZnEq value. Mineral
resources are not mineral reserves until they have demonstrated economic viability. Mineral resource estimates do not
account for a resource's mineability, selectivity, mining loss, or dilution. 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. All figures are rounded to reflect the relative accuracy of the
estimate and therefore numbers may not appear to add precisely.
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
.
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.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/51525