Technical Report on CLM Project Provides Increased Silver, Lead and Zinc Grade and Tonnage Estimates
Technical Report on CLM Project Provides Increased
Silver, Lead and Zinc Grade and Tonnage Estimates
Vancouver, British Columbia--(Newsfile Corp. - June 24, 2019) - Southern Silver Exploration Corp. (TSXV: SSV) ("Southern")
reported today that it has filed a technical report ("Report") prepared in accordance with Canadian Securities Administrators'
National Instrument 43-101. The Report may be found under the Company's profile at
www.sedar.com
and on Southern's
website,
www.southernsilverexploration.com
.
The Report, dated June 24
th
, 2019, entitled "NI 43-101 Technical Report, Mineral Resource Estimate for Cerro Las Minitas
Project, Durango State, Mexico " was prepared by Garth D. Kirkham, P.Geo., following the guidelines of NI 43-101 and NI 43-
101F1.
The resource estimate provides updated grade and tonnage estimates for four mineral deposits on the property at the Blind, El
Sol, Las Victorias and Skarn Front zones which have been the focus of much of Southern's exploration activities on the property
since 2011. The Report supports the disclosure made by the Company in its news release dated May 9, 2019
"Southern
Silver Increases Mineral Resource at Cerro Las Minitas to:
Indicated 134Mozs AgEq or 2.0Blbs ZnEq: 37.5Mozs Ag,
303Mlbs Pb, and 897Mlbs Zn; and Inferred 138Mozs AgEq or 2.0Blbs ZnEq: 45.7Mozs Ag, 253Mlbs Pb, and 796Mlbs
Zn"
There are no material differences in the mineral resources contained in the Report from those disclosed in the May 9, 2019
news release.
Report Highlights
Compared to the 2018 Mineral Resource estimate, the 2019 update, at a 175g/t AgEq cut-off, features:
Indicated Mineral resources
-
134 million ounces silver equivalent or 2.0 billion pounds zinc equivalent.
A
0.97Mt increase
to
11.1Mt averaging 105g/t Ag, 0.1g/t Au, 0.16% Cu, 1.2% Pb and 3.7% Zn (375g/t AgEq; 8.2%
ZnEq),
containing: 37.5 million ounces of silver; 35 thousand ounces of gold; 40 million pounds of copper; 303 million
pounds of lead; and 897 million pounds of zinc.
Inferred Mineral resources - 138 million ounces silver equivalent or 2.0 billion pounds zinc equivalent.
A
significant increase
to
12.8Mt averaging 111g/t Ag, 0.07g/t Au, 0.27% Cu, 0.9% Pb and 2.8% Zn (334g/t AgEq;
7.2% ZnEq)
containing: 45.7 million ounces of silver; 31 thousand ounces of gold; 76 million pounds of copper, 253 million
pounds of lead; and 796 million pounds of zinc.
This new Mineral Resource Estimate illustrates the continuity of the mineralization and continued expansion of the mineral
deposit in the Cerro Las Minitas project and updates the previously reported January 2018 estimate. The new Resource
Estimate incorporates additional data from a very successful drilling program of 10,157 metres in 2018/19, updated metal
recoveries and pricing, application of a more rigorous specific gravity ("SG") measurement protocol and further refinement of the
resource wire frames.
Table 1: Base-case Mineral Resource Estimate for CLM Project Utilizing a 175g/t AgEq cut-off value:
Tonnes
Ag
Cu
Pb
Zn
Au
AgEq
ZnEq
Ag
TrOz
Au
TrOz
Pb
Zn
Cu
Lbs
AgEq
TrOz
ZnEq
Lbs
(Kt)
(g/t)
(%)
(%)
(%)
(g/t)
(g/t)
(%)
(000's)
(000's)
(Mlbs)
(Mlbs)
(Mlbs)
(000's)
(Mlbs)
150g/t
AgEq
Cut-off
Indicated
13,078
97
0.15
1.2
3.3
0.10
343
7.4
40,600
41
338
954
43
144,182
2,121
Inferred
15,673
101
0.25
0.8
2.5
0.07
304
6.6
50,742
37
287
873
86
152,960
2,272
175g/t
AgEq
Cut-Off
Indicated
11,102
105
0.16
1.2
3.7
0.10
375
8.2
37,485
35
303
897
40
133,891
2,007
Inferred
12,844
111
0.27
0.9
2.8
0.07
334
7.2
45,749
31
253
796
76
138,119
2,043
250g/t
AgEq
Cut-Off
Indicated
7,457
126
0.19
1.4
4.6
0.11
457
9.9
30,255
27
233
750
31
109,520
1,622
Inferred
6,692
146
0.31
1.2
3.9
0.09
449
9.6
31,481
20
175
574
46
96,521
1,419
350g/t
AgEq
Cut-Off
Indicated
4,656
147
0.22
1.6
5.7
0.14
556
11.9
22,005
21
167
590
23
83,194
1,221
Inferred
3,854
187
0.35
1.5
4.9
0.10
564
12.1
23,135
12
124
417
30
69,891
1,024
Notes: The 175g/t AgEq cut-off value was 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,
92% lead, 82% zinc and 80% copper and for the Skarn Front deposit of 85% silver, 89% lead, 92% zinc and 84% copper were
used to define the cut-off grades. The base case cut-off grade assumed $75/tonne operating, smelting and sustaining costs. All
prices are stated in $USD.
Table 2: Mineral Resource Cut-off Sensitivities for CLM Project
Indicated
Zone
Tonnes
Ag
Cu
Pb
Zn
Au
AgEq
ZnEq
Ag
TrOz
Au
TrOz
Pb
Zn
Cu
Lbs
AgEq
TrOz
ZnEq
Lbs
(Kt)
(g/t)
(%)
(%)
(%)
(g/t)
(g/t)
(%)
(000's)
(000's)
(Mlbs)
(Mlbs)
(Mlbs)
(000's)
(Mlbs)
Blind
Zone
2,007
103
0.12
2.0
2.3
0.04
310
8.0
6,647
3
90
103
5.2
19,983
354
El Sol
Zone
978
83
0.09
2.3
2.2
0.04
291
7.5
2,600
1
50
47
2.0
9,168
162
Las
Victorias
870
141
0.17
2.0
2.8
0.62
385
10.0
3,949
17
39
53
3.2
10,775
191
Skarn
Front
7,246
104
0.19
0.8
4.3
0.06
403
8.1
24,290
14
125
694
29.7
93,965
1,299
Total
11,102
105
0.16
1.2
3.7
0.10
375
8.2
37,485
35
303
897
40
133,891
2,006
Inferred
Zone
Tonnes
Ag
Cu
Pb
Zn
Au
AgEq
ZnEq
Ag
TrOz
Au
TrOz
Pb
Zn
Cu
Lbs
AgEq
TrOz
ZnEq
Lbs
(Kt)
(g/t)
(%)
(%)
(%)
(g/t)
(g/t)
(%)
(000's)
(000's)
(Mlbs)
(Mlbs)
(Mlbs)
(000's)
(Mlbs)
Blind
Zone
1,261
80
0.08
1.4
2.0
0.17
243
6.2
3,258
7
38
56
2
9,848
173
El Sol
Zone
794
65
0.05
1.9
2.4
0.03
262
6.6
1,669
1
33
42
1
6,695
116
Las
Victorias
216
180
0.06
2.7
2.1
0.90
416
11.0
1,252
6
13
10
0
2,892
53
Skarn
Front
10,573
116
0.31
0.7
3.0
0.05
349
7.3
39,569
17
169
689
73
118,684
1,701
Total
12,844
111
0.27
0.9
2.8
0.07
334
7.2
45,749
31
253
796
76
138,119
2,043
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 $16.6/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.
5)
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.
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.
7)
All figures are rounded to reflect the relative accuracy of the estimate and therefore numbers may not appear to add precisely.
Model Parameters
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 are traced for over 1300 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
and has been drilled along an approximate 1100 metre strike length and to depths of up to 1000 metres.
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 and grade retention 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.
2018-19 Exploration Review:
Drilling in the 2018-19 Exploration season, as reflected in the updated Mineral Resource estimate, successfully:
filled grade gaps in the earlier block model and allowed the more effective projection of higher grade mineralization
throughout the deposits;
built continuity of several higher grade zones within the central part of the Skarn Front deposit establishing several high-
grade lenses of mineralization within 400 metres of surface;
established greater continuity between the Skarn Front deposit and footwall mineralization (lateral to and equivalent to the
Skarn Front style mineralization) in the Las Victorias zone;
extended and built continuity of higher-grade, shallow mineralization (<400 metres) in both the Las Victorias deposit and
North Skarn zone;
added 163Kt Indicated Resource and 216Kt Inferred Resource at grades >380g/t AgEq in the Las Victorias deposit;
added 2.1Mt Indicated Resource and 2.7Mt Inferred Resource to the Skarn Front deposit at similar or higher average
AgEq grade;
provided better definition of three higher grade sub-zones within the El Sol deposit; and
identified anomalous silver and pathfinder mineralization in the CLM West Epithermal 19,500 ha. claim group located
approximately 10-15km to the southwest of the established mineral resources on the CLM property.
The Mineral Resources at Cerro Las Minitas have increased substantially since the initial resource estimate in 2016 with 133
drill holes for 59,000 metres, US$18.5M spent to date and with a
discovery cost of: $0.07/oz AgEq; $0.005/lb ZnEq.
The project continues to provide a strong high-grade resource growth projection.
2019 Exploration Program
Compilation and analysis of the 2018-19 results continues toward further drill targeting for the 2019-20 exploration program with
Southern as the operator. New targeting has identified additional exploration potential on-strike to the southeast of the Las
Victorias zone and on the eastern side of the Central Intrusion which has receive only limited drill testing to date.
Sample selection for variability test work, following the previously announced metallurgical results on the Skarn Front composite
(see NR-10-18) is underway. The previous work resulted in the successful separation of a potential "saleable grade" copper
concentrate and the generation of a cleaner zinc concentrate grading above 50% zinc without sacrificing zinc, lead or silver
recoveries. The new test work will look to confirm these earlier results and further test a range of grades and metal ratios to help
define the potential "payables" in different parts of the known deposits.
The overall objective of the 2019-20 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.
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 Geosciences Limited is the 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.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/45832