Southern Silver Reports on Recent Property and Corporate Matters
Southern Silver Reports on Recent Property
and Corporate Matters
Vancouver, British Columbia--(Newsfile Corp. - March 17, 2021) -
Southern Silver Exploration
Corp. (TSXV: SSV) (OTCQB: SSVFF) ("Southern Silver" and the "Company")
reports:
PROPERTY MATTERS: Cerro Las Minitas Project, Durango Mexico- increase of drill program
The Company is doubling the size of the current drilling program on the Cerro Las Minitas Ag-Pb-Zn
project from an initial 10,000 metre program to a 20,000 metre program. Drilling will continue with two
drills targeting the east side of the Cerro where to date three near-surface sulphide lenses with Bonanza-
grades of silver have been identified. Shallow oxide Au-Ag mineralization has also been confirmed in the
Mina La Bocona area. Mineralization in all of these new target areas is separate from the existing
mineral resources. The current program has completed 28 core holes totaling 12,040 metres since
restarting drilling in September 2020. Assay results from 11 drill holes are pending and are anticipated
over the coming weeks.
Highlights from the current 2020-21 drill program include the following previously reported intercepts:
15.1m down-hole (8.0m est. TT) averaging 1,072g/t Ag, 18.8% Pb and 7.5% Zn (2,040g/t
AgEq; 51.7% ZnEq); and
20.9m down-hole (9.0m est. TT) averaging 212g/t Ag, 0.64g/t Au, 3.7% Pb and 3.3% Zn
(512g/t AgEq; 13.0% ZnEq) from the Bocona Chimney;
9.3m down-hole (6.1m est. TT) averaging 344g/t Ag, 0.59g/t Au. 5.7% Pb and 3.9% Zn
(728g/t AgEq; 18.5% ZnEq) from the Muralla Chimney; and
9.0m down hole interval (6.7m est. True Thickness) averaging 625g/t Ag, 11.8% Pb
and
7.5% Zn (1,454g/t AgEq; 30.0% ZnEq) at the South Skarn target.
The Cerro Las Minitas project is an advanced exploration-stage polymetallic Ag-Pb-Zn-Cu Skarn/CRD
project located in southern Durango, Mexico.
The Cerro Las Minitas project as of May 9
th
, 2019 contains a Mineral Resource Estimate, at a 175g/t
AgEq cut-off, of
(1)
Indicated - 134Moz AgEq:
37.5Moz Ag, 40Mlb Cu, 303Mlb Pb and 897Mlb Zn
Inferred - 138Moz AgEq
: 45.7Moz Ag, 76Mlb Cu, 253Mlb Pb and 796Mlb Zn
A total of 162 drill holes for approximately 71,750 metres have been completed on the Cerro Las Minitas
project to date, with acquisition and exploration expenditures of over USD$27.0 million spent.
Oro Project, New Mexico, USA-drill program planned
The Oro Project is a 100% owned porphyry copper-gold property, located in southwestern New Mexico,
USA, which includes patented land, State leases and BLM mineral claims totalling 22.3 sq. km., upon
which several historic mines are located. The property covers a large, zoned Laramide-age mineralizing
system containing a number of highly prospective, district-scale, copper-molybdenum and distal
sediment-hosted, oxide-gold targets.
Targeting has been finalized based upon geophysical surveys and permits are pending for a 5,000m drill
program, designed to test several of the copper-molybdenum porphyry and copper-gold skarn targets
within a broad quartz-sericite-pyrite alteration zone, interpreted to overlie an unexposed porphyry centre.
Drilling is expected to commence in Q3, 2021.
CORPORATE MATTERS:
Cerro Las Minitas working interest
: In 2020, Southern Silver purchased a 60% indirect working
interest in the Cerro Las Minitas property from Electrum Global Holdings LP for payment of
US$15.0 million in periodic payments, the second of which was paid on March 15, 2021 in the
amount of US$4.0 million as to 50% cash
and 50% shares valued at a 20-day VWAP. 5,216,533
shares were issued, bringing Electrum's current holdings to approximately 27 % of current issued
capital.
Warrant Exercises:
In Summer 2020, Southern Silver raised $14.2 million in Unit sales. Since the
closing of the equity raise and the working interest purchase in September 2020, the Company
has received a total of $2,428,228 from shareholder exercises of share purchase warrants,
inclusive of the recent 6,000,000 share purchase warrant exercise by Electrum Global Holdings LP
for proceeds of $480,000. Additionally, the Company has received $477,470 from the exercise of
incentive stock options and finders' warrants.
About Southern Silver Exploration Corp.
Southern Silver Exploration Corp. is a precious and base metal exploration and development company
with a focus on the discovery of world-class mineral deposits in north-central Mexico and in 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 the Cerro Las Minitas project
into a premier, high-grade, silver-lead-zinc mine. Our property portfolio also includes the Oro porphyry
copper-gold project located in southern New Mexico, USA. The Company engages in the acquisition,
exploration and development either directly or through joint-venture relationships in mineral properties in
major jurisdictions.
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 is
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.
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