Southern Silver Intersects High-grade Massive Sulphides in Final Drill Hole at Cerro Las Minitas
Southern Silver Intersects High-grade Massive Sulphides
in Final Drill Hole at Cerro Las Minitas
Vancouver, British Columbia--(Newsfile Corp. - November 6, 2017) -
Southern Silver Exploration Corp. (TSXV: SSV)
(“Southern Silver”)
reported today that it has intersected high-grade massive sulphides in the final hole of the 2017 exploration
program at the Cerro Las Minitas project. The massive sulphide intercepts were contained within a broader mineralized zone in
drill hole 17CLM-106 that supports continuity within the newly defined Skarn Front.
Highlight intercepts from drill hole 17CLM-106 include:
a 2.5m down hole interval (2.1m est. True Thickness) averaging 88g/t Ag, 0.2% Pb and 10.3% Zn
(465/t AgEq;
13.1% ZnEq including a higher grade 0.8m interval (0.7m est. TT) averaging 181g/t Ag,
0.4% Pb and 21.9% Zn
(988g/t AgEq; 27.9% ZnEq); and
a 1.8m down hole interval (1.5m est. TT) averaging 30g/t Ag, 0.1% Cu, and 20.7% Zn (782g/t AgEq;
22.1% ZnEq);
Drill hole 17CLM-106 continues the identification of mineralized intercepts into the newly defined Skarn Front which forms a
large anomalous zone, approximately 800m x 600m, located at depth beneath the Blind and El Sol zones. The drill hole tested
an area of the Skarn Front
extending approximately 400m between the previously reported intercepts in drill holes
17CLM-095
(8.0 metres est. TT of 602g/t Ag, 7.1% Pb and 17.9% Zn; 1488g/t AgEq or 42% ZnEq - see NR-06-17)
and
17CLM-098
(8.7 metres est. TT of 288g/t Ag, 2.0% Cu 0.8%Pb and 1.2% Zn; 575g/t AgEq or 16.2% ZnEq).
Hole 17CLM-106
increases the continuity of the mineralization between these holes and opens up further exploration potential.
Southern Silver is in the process of reviewing, modelling and compiling the 2017 drill results toward an updated Mineral
Resource Estimate for the Cerro Las Minitas Project due in the coming weeks.
Table 1: Significant Mineralized Intercepts from 17CLM-106
Hole #
From
(m)
To
(m)
Interval
(m)
Est. TT
(m)
Ag
(g/t)
Au
(g/t)
Cu
(%)
Pb
(%)
Zn
(%)
AgEq
(g/t)
ZnEq
(%)
17CLM-106
889.3
891.7
2.5
2.1
88
0.0
0.0
0.2
10.3
465
13.1
17CLM-106
921.3
930.4
9.1
7.7
22
0.0
0.0
0.0
3.6
153
4.3
inc.
926.2
930.4
4.2
3.5
30
0.0
0.0
0.1
5.8
238
6.7
17CLM-106
941.6
943.4
1.8
1.5
30
0.1
0.1
0.0
20.7
782
22.1
Figure 1: Outline of the Skarn Front, Blind and El Sol zones, Cerro Las Minitas project
To view an enhanced version of Figure 1, please visit:
http://orders.newsfilecorp.com/files/5344/30243_figure1.jpg
Summary of Results - 2017 Exploration Program
Exploration on the Cerro Las Minitas project in 2017 was successful in both the systematic expansion of the existing Mineral
Resource and the development of additional exploration targets in the adjacent licenses controlled by the company. Highlights
from the 2017 Exploration Program include the:
Reinterpretation of the geological model during the 2017 drilling program
leading to the modelling of the Skarn Front
mineralization that will be
accretive to the existing Mineral Resources on the Cerro Las Minitas project;
Resolution of a geological model/concept that appears to explain both
primary and secondary controls on the distribution
of mineralization in the
new deposit that will be useful in further delineation and expansion of higher
grade mineralization;
Identification of two new target areas for offset drill testing in 2018;
and
Identification of new precious-metal targets in "greenfields" exploration
on newly acquired and contiguous claims located
10km to the southwest of the
known resource in the area of the Cerro.
Drilling in 2017 by Southern Silver completed 18 core holes totaling 13,600 metres and successfully outlined the Skarn Front as
a zone of mineralization, located at depth beneath the Blind and El Sol Zones. Mineralization occurs on the outer edge of the
skarn alteration zone surrounding the Central Monzonite Intrusion at or near the transition into marble and forms the primary
geological control on the distribution of sulphide mineralization. Geological modelling suggests that intersections between the
sub-vertical, northwest-trending Blind and El Sol mineralized zones and the generally more shallowly dipping Skarn Front may
localize higher-grade shoots of mineralization which may be in part responsible for higher grade intervals identified in some of
the 2017 drilling
(eg: 17CLM-095 - 8.0 metres est. TT of 602g/t Ag, 7.1% Pb and 17.9% Zn)
.
Exploration in 2017 has identified two new step-out targets for drill testing in 2018. Mineralization in the Skarn Front is open for
approximately 500 metres along strike to the southeast of drill holes 17CLM-101 and -105 in what is now termed the Las
Victorias zone (see NR-14-17 dated September 06, 2017) and up to 600 metres along strike to the northeast, where the zone
wraps around the northern margin of the Central Intrusion, in the North Skarn zone (see NR-06-17; June 12, 2017).
Southern Silver is very encouraged by the success to the 2017 drilling program and its potential to positively impact
the existing Mineral Resource Estimate. Further exploration is required to determine the full development potential of
the property. The newly identified Las Victorias and North Skarn Target areas, as lateral extensions of the Skarn
Front, highlight the continued growth potential of the project through step-out drilling and systematic resource
expansion.
Figure 2: Plan Map showing the distribution of Drill Holes at Cerro Las Minitas for the 2017 core drilling program
To view an enhanced version of Figure 2, please visit:
http://orders.newsfilecorp.com/files/5344/30243_figure2.jpg
Greenfields Exploration
Southern Silver also reported on its surface float sampling program for the newly staked Creston del Oro, Biznagas and Los
Lenchos claims located contiguous to the larger Cerro Las Minitas property.
Surface exploration is targeting high-grade epithermal silver-gold quartz vein systems within Tertiary volcanic stratigraphy which
are found in a geologically similar environment to the veins at the Avino Mine located approximately 10 km to the NW of the
northern claim boundary and at Hecla's San Sebastian mine located approximately 40kmto the east of the target area.
Sampling has been conducted throughout the three claims over the last several months with collected samples of mostly quartz
and rhyolite float. Mapping in areas of exposure in the northern parts of the claims have identified multiple quartz veins and
silicified zones up to 15m thick.
Over 1400 rock chip and float samples have been collected to date and reveal a +12km 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 targeting for an RC drill program in 2018.
Work on the Cerro Las Minitas project through Autumn 2017 will include an independent update of the 2016 Mineral Resource
Estimate, additional metallurgical studies and further advancement and development of the exploration targets on the Creston
del Oro, Biznagas and Los Lenchos claims.
Figure 3: Plan Map showing the distribution of Surface sampling on the Creston del Oro, Biznagas and Los Lenchos
claims
To view an enhanced version of Figure 3, please visit:
http://orders.newsfilecorp.com/files/5344/30243_figure3.jpg
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 project through a US$5.0M earn-in on the
property, with Southern Silver acting as operator.
The Cerro Las Minitas project as of March 21
st
, 2016 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 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 $0.13 per AgEq ounce (as of December 2016).
Table 2: Select Composites from 2016-17 Drilling on the Skarn Front Zone, Cerro Las Minitas Project
Hole #
From
To
Interval
Est. TT
Ag
Au
Cu
Pb
Zn
AgEq
ZnEq
(m)
(m)
(m)
(m)
(g/t)
(g/t)
(%)
(%)
(%)
(g/t)
(%)
Skarn Front Zone
16CLM-091
662.8
677.9
15.1
14.8
39
0.0
0.0
0.1
10.2
411
11.6
inc.
667.5
672.3
4.8
4.7
39
0.0
0.1
0.1
23.2
877
24.8
17CLM-094
788.8
802.9
14.1
9.9
49
0.0
0.0
0.3
3.6
186
5.3
inc.
794.2
798.6
4.4
3.1
92
0.0
0.0
0.4
7.1
361
10.2
17CLM-095
575.5
579.3
3.8
2.9
27
0.0
0.0
0.5
3.0
155
4.4
inc.
575.5
576.1
0.6
0.5
115
0.0
0.0
3.0
7.4
479
13.5
17CLM-095
691.3
700.3
9.0
8.0
602
0.1
0.0
7.1
17.9
1488
42.0
inc.
693.0
700.3
7.3
6.5
737
0.0
0.1
8.6
21.8
1814
51.2
17CLM-096
969.8
978.5
8.7
5.7
23
0.0
0.3
0.1
0.8
87
2.4
inc.
969.8
971.1
1.3
0.8
58
0.0
0.2
0.4
3.4
211
5.9
17CLM-097
1080.6
1082.6
2.0
1.2
131
0.1
0.0
0.3
4.5
308
8.7
inc.
1080.6
1082.1
1.5
0.9
158
0.1
0.0
0.3
5.0
352
9.9
17CLM-098
1086.0
1139.8
53.8
32.3
105
0.0
0.9
0.3
0.4
230
6.5
inc.
1086.5
1101.0
14.5
8.7
288
0.0
2.0
0.8
1.2
575
16.2
inc.
1092.6
1096.7
4.1
2.5
686
0.1
3.7
1.0
1.7
1171
33.1
17CLM-099
731.15
734.50
3.35
2.50
55.4
0.01
0.02
1.7
0.7
140.5
4.0
17CLM-100
723.10
724.70
1.60
0.77
3.5
0.00
0.01
0.0
2.4
90.2
2.5
727.65
728.95
1.30
0.62
1.8
0.00
0.01
0.0
2.5
92.5
2.6
17CLM-101
229.9
247.4
17.6
12.5
154
2.0
0.2
3.2
3.9
558
15.7
inc.
229.9
232.9
3.0
2.1
269
0.9
0.8
4.7
5.6
769
21.7
and inc.
235.4
241.0
5.7
4.0
261
4.0
0.2
6.0
6.9
999
28.2
17CLM-101
452.5
462.6
10.1
9.2
220
0.0
0.3
3.6
5.4
574
16.2
inc.
456.9
459.2
2.3
2.1
373
0.1
0.9
7.4
10.3
1089
30.7
17CLM-102
NSV
NSV
NSV
NSV
NSV
NSV
NSV
NSV
NSV
NSV
NSV
17CLM-103
859.3
864.4
5.2
3.3
27.4
0.0
0.0
0.4
2.6
134
3.8
inc.
859.3
860.2
1.0
0.6
126.0
0.0
0.0
1.7
8.2
480
13.6
17CLM-104
NSV
NSV
NSV
NSV
NSV
NSV
NSV
NSV
NSV
NSV
NSV
17CLM-105
356.9
367.8
10.9
6.8
194
0.8
0.1
4.4
2.0
480
13.6
inc.
356.9
360.1
3.3
2.0
551
0.8
0.2
11.9
4.7
1208
34.1
and inc.
358.2
359.1
0.9
0.6
1100
1.5
0.4
23.2
5.9
2244
63.4
17CLM-105
507.6
520.9
13.3
13.0
105
0.1
0.1
0.5
0.4
153
4.3
inc.
510.6
513.2
2.5
2.5
318
0.1
0.4
1.4
0.8
444
12.5
17CLM-105
525.9
534.7
8.9
8.7
69
0.1
0.3
0.3
1.1
152
4.3
inc.
529.8
530.5
0.8
0.7
195
0.0
1.1
0.8
4.4
498
14.1
17CLM-105
557.9
558.5
0.6
0.5
56
0.2
2.5
0.0
0.0
337
9.5
17CLM-106
889.25
891.70
2.45
2.06
87.7
0.03
0.04
0.2
10.3
465
13.1
17CLM-106
921.25
930.40
9.15
7.69
22.0
0.00
0.00
0.0
3.6
153
4.3
and inc.
926.20
930.40
4.20
3.53
29.7
0.01
0.00
0.1
5.8
238
6.7
17CLM-106
941.60
943.40
1.80
1.51
30.0
0.10
0.11
0.0
20.7
782
22.1
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.
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, 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 center and distal
sediment-hosted, oxide-gold target.
____________________
1
.
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
ID
2
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
.
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.