Southern Silver's Cerro Las Minitas Increases Resource to: Indicated: 33.6Mozs Ag, 319Mlbs Pb and 813Mlbs Zn (116.1Mozs AgEq; 1.69Blbs ZnEq); and Inferred: 20.7Mozs Ag, 131Mlbs Pb and 870Mlbs Zn (92.7Mozs AgEq; 1.35Blbs ZnEq)
Southern Silver's Cerro Las Minitas Increases Resource
to: Indicated: 33.6Mozs Ag, 319Mlbs Pb and 813Mlbs Zn
(116.1Mozs AgEq; 1.69Blbs ZnEq); and Inferred: 20.7Mozs
Ag, 131Mlbs Pb and 870Mlbs Zn (92.7Mozs AgEq;
1.35Blbs ZnEq)
Vancouver, British Columbia--(Newsfile Corp. - January 8, 2018) -
Southern Silver Exploration Corp. (TSXV: SSV)
("Southern")
reports that Kirkham Geosystems Ltd. ("KGL") has completed an update of its independent Mineral Resource
Estimate on the
Cerro Las Minitas
("CLM") project in Durango State, Mexico, operated on a joint venture basis by SSV(40%)
as operator and Electrum Global Holdings LP(60%).
This Mineral Resource Estimate showcases the continuity of the mineralization and continued expansion of the Cerro Las
Minitas project and updates the previously reported March 2016 estimate. The new Resource Estimate incorporates additional
data from drilling conducted in 2016 and 2017 that has successfully delineated a major new deposit on the project and
significantly increased the resource base in both the Indicated and Inferred Resource categories as well as improving the overall
grade of the resource, most significantly in the Indicated category.
Resource Model Highlights
In comparison to the 2016 Mineral Resource estimate, the 2017 update, at a 175g/t AgEq cut-off, features:
a
318%
increase in Indicated Mineral resources
to
-
10.1Mt averaging 102g/t Ag, 0.1g/t Au, 0.15% Cu, 1.4%
Pb and 3.6% Zn (356g/t AgEq, 7.6% ZnEq);
an
18%
increase in Inferred Mineral resources
to
-
8.7Mt averaging 74g/t Ag, 0.04g/t Au, 0.15% Cu, 0.7%
Pb and 4.5% Zn (332g/t AgEq, 7.0% ZnEq);
the utilization of a higher cut- off (175g/t AgEq) to
reflect potential mining costs and metal recoveries;
an increase in the average grade, as denoted in AgEq, of
the Indicated Resources; and
the newly delineated Skarn Front zone which now forms the
single largest mineral deposit in the Cerro Las Minitas Project
area.
Table 1: B
ase-case Mineral Resource Estimate
for CLM Project U
tilizing a
1
75
g/t AgEq
cut-off value:
Indicated
Zone
Tonnes
Ag
Au
Pb
Zn
Cu
AgEq
ZnEq
Ag TrOz
Au TrOz
Pb
Zn
Cu
AgEq TrOz
ZnEq
(Kt)
(g/t)
(g/t)
(%)
(%)
(%)
(g/t)
(%)
(000's)
(000's)
(Mlbs)
(Mlbs)
(Mlbs)
(000's)
(Mlbs)
Blind Zone
3,168
86
0.05
1.8
2.1
0.11
279
5.9
8,739
6
128
145
8
28,461
414
El Sol
1,150
79
0.03
2.0
2.0
0.09
276
5.9
2,931
1
51
52
2
10,217
149
Las Victorias
708
122
0.70
2.0
2.5
0.23
403
8.6
2,772
16
32
38
4
9,177
133
Skarn Front
5,109
115
0.07
1.0
5.1
0.17
416
8.8
18,915
11
108
578
19
68,273
993
Total
10,135
102
0.10
1.4
3.6
0.15
356
7.6
33,356
34
319
813
33
116,127
1,689
Inferred
Zone
Tonnes
Ag
Au
Pb
Zn
Cu
AgEq
ZnEq
Ag TrOz
Au TrOz
Pb
Zn
Cu
AgEq TrOz
ZnEq
(Kt)
(g/t)
(g/t)
(%)
(%)
(%)
(g/t)
(%)
(000's)
(000's)
(Mlbs)
(Mlbs)
(Mlbs)
(000's)
(Mlbs)
Blind Zone
503
103
0.33
1.9
3.4
0.07
374
7.9
1,662
5
21
38
1
6,042
88
El Sol
264
61
0.06
1.7
2.5
0.04
263
5.6
515
1
10
15
0
2,233
32
Skarn Front
7,917
73
0.02
0.6
4.7
0.16
332
7.0
18,545
6
100
818
28
84,451
1,228
Total
8,685
74
0.04
0.7
4.5
0.15
332
7.0
20,721
12
131
870
29
92,726
1,349
Notes: The 175g/t AgEq cut-off value was calculated using average long-term prices of $16/oz. silver, $1,200/oz. gold, $2.75/lb. copper, $1.0/lb. lead and $1.10/lb. zinc and metal
recoveries of 82% silver, 86% lead, 80% zinc and 80% copper were used to define the cut-off grades. The base case cut-off grade assumed $75/tonne operating and sustaining costs. All
prices are stated in $USD.
Table2: Mineral Resource Cut-off Sensitivities at the
CLM
Project, Durango State, Mexico
Tonnes
Ag
Au
Pb
Zn
Cu
AgEq
ZnEq
Ag TrOz
Au TrOz
Pb
Zn
Cu
AgEq TrOz
ZnEq
(Kt)
(g/t)
(g/t)
(%)
(%)
(%)
(g/t)
(%)
(000's)
(000's)
(Mlbs)
(Mlbs)
(Mlbs)
(000's)
(Mlbs)
150g/t AgEq Cut-off
Indicated
11,920
94
0.10
1.4
3.3
0.14
327
6.9
36,027
37
357
864
36
125,438
1,825
Inferred
10,272
68
0.04
0.6
4.2
0.15
306
6.5
22,540
14
144
945
33
101,114
1,471
175g/t AgEq Cut-Off
Indicated
10,135
102
0.10
1.4
3.6
0.15
356
7.6
33,356
34
319
813
33
116,127
1,689
Inferred
8,685
74
0.04
0.7
4.5
0.15
332
7.0
20,721
12
131
870
29
92,726
1,349
250g/t AgEq Cut-Off
Indicated
6,140
130
0.12
1.7
4.8
0.18
453
9.6
25,699
23
228
649
24
89,352
1,300
Inferred
5,165
93
0.05
0.9
5.7
0.19
419
8.9
15,431
8
99
654
22
69,552
1,012
350g/t AgEq Cut-Off
Indicated
3,701
162
0.15
1.9
6.0
0.21
558
11.8
19,259
18
157
492
17
66,359
965
Inferred
3,115
114
0.06
1.1
6.7
0.25
498
10.6
11,455
6
72
459
17
49,850
725
Notes:
1)
The
current Resource Estimate was prepared by Garth Kirkham, P.Geo., of
Kirkham Geosystems Ltd.
2)
All
mineral resources have been estimated in accordance with Canadian
Institute of Mining and Metallurgy and Petroleum
(“CIM”) definitions, as required under National
Instrument
43-101 (“NI43-101”).
3)
Mineral resources were constrained using mainly geological
constraints and approximate 10g/t AgEq grade domains.
4)
AgEq
cut-off values were calculated using average long-term prices of $16/oz
silver, $1,200/oz gold, $2.75/lb Copper, $1.00/lb lead
and $1.10/lb zinc and metal recoveries of
82% silver, 86% lead, 80% copper
and 80% zinc. Base case cut-off grade assumed $75/tonne operating and sustaining costs. All prices
are stated in $USD.
5)
All contained metal content values (including equivalencies) were calculated assuming 100% recoveries.
6)
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.
All figures are rounded to reflect the relative
accuracy of the estimate and therefore numbers may not
appear to add precisely.
Four separate mineral deposits were modelled in the resource update with the Blind, the El Sol and the Las Victorias deposits
forming sets of sub-parallel, northwest-trending and steeply dipping mineralized zones which extend for over 1000 metres strike
and up to 600 metres depth. The fourth deposit known as the Skarn Front, forms beneath the Blind, El Sol and Las Victorias
deposits and is localized on the outer edge of the skarn alteration zone surrounding the Central Monzonite Intrusion. Thick zones
of higher-grade mineralization cluster at the projected intersections of the Blind and El Sol zones and the Skarn Front, the outline
of which forms an extensive "higher-grade" target area which rakes for over 800 metres diagonally and ranges from 300 to 600
metres in width. Significantly, this target region and other targets along the Skarn Front zone have been only partially drill tested
to date. More detailed drilling is required, particularly to delineate the extent of the higher-grade lenses. Analyses of the block
model has identified several new target areas for drill testing in 2018 as well as the previously described extensions of the Skarn
Front in the Las Victorias and North Skarn Target areas (see NR-18-17, November 6
th
, 2017).
KGL suggests that an underground mining scenario is appropriate for the project at this stage and has recommended a 175g/t
AgEq cut-off value for the base-case resource estimate. Also listed are grade-tonnage sensitivities at 150g/t, 175g/t, 250g/t,
and 350g/t AgEq cut-off values (see Table 2 above) which demonstrate both a significant increase in contained precious- and
base-metals at lower cut-off values and good tonnage retention, at increasing overall grade, at incrementally higher cut-off
values. A NI 43-101 Technical Report will be posted on SEDAR within 45 days.
Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Inferred Resources are
considered too speculative geologically to have economic considerations applied to them that would enable them to be
classified as Mineral Reserves. There is no assurance that any part of the Inferred Resource will be converted to Measured or
Indicated Mineral Resources or ultimately converted to a Mineral Reserve.
President, Lawrence Page Q.C. stated
"Since acquisition in September 2010,
CLM
continues to develop
Mineral Resources
with great potential to become a significant economic deposit. Exploration since 2016 has resulted in a
3
1
8
percent
increase
in Indicated Resources and a
n
1
8
percent
increase in Inferred Resources
,
largely through the delineation of the new Skarn
Front deposit
which significant
ly
remains open in several directions
.
W
e are confident that additional exploratory drilling
during 2018
will
continue
add
ing
great
value to the present
R
esource
"
.
"
Metal prices continue to enhance the value of the project with silver, lead and zinc
;
all industrial metals, increasing in
demand as evidenced by their respective
market
prices with silver having a duality in value as a currency.
T
he property is not
burdened with royalties which enhances the
prospects
of mining and processing.
Aggregate acquisition and exploration
costs
of $15.1 million, equate to a "finding" cost of
approximately
$0.0
7
per silver equivalent ounce
with continued upside to add
further resources.
"
"
During the past year, we have added
at nominal cost
19,500 hectares of prospective ground
to our property base, and have
developed drill targets for exploration
to
begin
here
within the next few months.
"
"
'
Location, location, location
'
must be strongly emphasized when assessing the value of a resource.
CLM
is
located
in the
middle of the Mexican silver district, in a "miner-friendly" jurisdiction surrounded by producing mines. Concurrently with the
continued development of the resource, we continue to obtain independent reports on metallurgy and mining
parameters
to
de-risk the project and increase value. Our shareholders will enjoy the
continuing
development of this
R
esource."
201
8
Exploration Program
Compilation and analysis of the 2016-17 results continues toward further drill targeting for the 2018 exploration program with
Southern as the operator.
Exploration in 2018 will continue to define the overall size of the project and include:
testing the immediate offsets of the Mineral Resource within the primary target area of the Skarn Front;
off-set drilling in the Las Victorias and North Skarn extensions;
continued development of precious-metal-enriched epithermal surface targets (similar to the nearby Avino Mine) on the
recently acquired CLM West claims (Biznagas, Los Lenchos and Cerro del Oro); and
RC drill testing of the newly defined CLM West targets in Q2 2018.
The overall objective of the 2018-19 exploration program is to continue to increase the existing resource base and to identify
and drill test new epithermal vein systems within the larger claim package.
CLM
Resource Parameters
The estimate was carried out using a block model constrained by 3D wireframes of the individual mineralized zones. The
block model is comprised of an array of blocks measuring 10m x 2m x 10m, with grades for Ag, Au, Cu, Pb and Zn
interpolated using Inverse Distance to the Third Power (ID3) weighting. Silver and zinc equivalent values were
subsequently calculated from the interpolated block grades.
The interpolation was carried out in three passes using progressively larger search radii to a maximum of 150m x 150m x
25m. For all passes, the interpolation was restricted to a minimum of 1 and a maximum of 12 composites, with a maximum
of 4 composites from any one drill hole (i.e. a minimum of two drill holes required for +4 composites).
Bulk densities were based on a total of 390 individual measurements taken by Southern field personnel from 21
mineralized intervals ranging from 1.7m to 30.4m in thickness. Density values ranged from 2.13 t/m
3
to 5.27 t/m
3
.
However, an average value of 2.85 t/m
3
was used as it was thought to be representative of the densities within the Blind, El
Sol, Las Victorias and Skarn Front zones.
Silver values have been capped in order to remove the effects potential overestimation due to statistical outliers. The
threshold chosen was 700 g/t silver. In addition, outlier values for the co-product metals were capped at the threshold levels
as follows; 1.5 g/t gold, 1.4% copper, 5% lead and 19% zinc.
The mineralized zones were initially defined by Southern personnel and then validated and refined by KGL. The
mineralized wire frames were defined using a combination of geological constraints, grade threshold of an approximately
10 g/t AgEq grade cut-off and no minimum thickness.
For all zones, blocks are classified as Inferred if they are included within 100m of at least one drill hole intercept. Blocks
within 65m of the nearest intercept, and estimated by at least two drill holes were classified as Indicated. However, an
interpreted boundary is the final determination of indicated resources in order to remove outlier blocks and the "spotted
dog" effect.
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 center and distal
sediment-hosted, oxide-gold target.
Robert Macdonald, MSc., P.Geo., is a Qualified Person as defined by National Instrument 43-101 and he is responsible for the
supervision of the exploration on the Cerro Las Minitas Project and for the preparation and review of the technical results in this
disclosure. Garth Kirkham, P.Geo., and Principal of Kirkham Geosystems Limited is an Independent Qualified Person
responsible for the preparation and disclosure of the Mineral Resource Estimate.
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.