Silver Exploration in the South: Identifies a new discovery on the El Sol concession with 3.5 meters grading an average of 549 g/t Ag, 0.3 g/t Au, 8.6% Pb and 3.6% Zn (982 g/t AgEq); drilling CV
Southern Silver identifies a new discovery on the El Sol concession with 3.5 meters grading an average of 549 g/t Ag, 0.3 g/t Au, 8.6% Pb and 3.6% Zn (982 g/t AgEq ); drilling CV
January 25, 2022
Southern Silver Exploration Corp. (TSX.V: SSV) (“Southern Silver”) announced today that drilling has identified a new high-grade mineral discovery on the El Sol concession, located in the Cerro Las Minitas project area, Durango, Mexico.
The El Sol concession is an area of 63 ha largely covered with gravel. located at the northwest boundary of the Bocona claim block and adjacent to the Cerro area which hosts the six mineral deposits currently identified by Southern Silver on the Cerro Las Minitas claim package.
Highlight tests include:
- an interval of 0.8 meters grading 1,760 g/t Ag, 0.9 g/t Au, 23.6% Pb and 1.2% Zn (2,622 g/t AgEq) in an interval of 3.5 meters grading an average of 549 g/t Ag, 0.3 g/t Au, 8.6% Pb and 3.6% Zn (982 g/t AgEq) of the borehole 21SOL-003
Hole 21SOL-003 is one of five holes drilled in the fall of 2021 to test a series of targets defined by surface mapping, rock and soil sampling, and proximity to artisanal workings. The highlighted interval intersected down dip historic workings located on a northeast-southwest trending structure that was traced on surface to 300 meters laterally before plunging under a gravel cover.
Drill crews mobilized to the El Sol concession to complete three additional holes before returning to the Cerro area for further drill testing on the North Felsite target. Two holes are planned to test down-dip from 21SOL-003 and a third hole to test along strike from 13CLM-072 and an extension of the Blind – El Sol zone located in the southwest part of the dealership (see Figure 2).
Rob Macdonald, Vice President Exploration said: “The identification of a new high-grade zone continues to highlight the increased exploration potential surrounding known mineral deposits at Cerro Las Minitas. Drilling will continue on the property through early 2022, beginning with follow-up drilling on the El Sol concession prior to transitioning back to the North Felsite target, while the company continues work on a preliminary economic assessment of known mineral deposits to be completed in the second quarter of 2022.”
Figure 1: Map Map of the Cerro area showing the distribution of CLM deposits and the location of new drill targeting, on the North Felsite target and the El Sol concession.
Figure 2: Plan map of the El Sol concession showing the distribution of drill holes in relation to mineralized structures and the locations of surface rock samples.
Table 1: Select El Sol concession analysis intervals:
FA/AA analysis for gold and ICP-AES by ALS Laboratories, North Vancouver, BC. Silver (>100ppm), copper, lead and zinc (>1%) overlimits analyzed by ICP ore grade analysis, high silver overlimits (>1500g/t Ag) and gold overlimits ( >10g/t Au) reanalyzed with FA-Grav. High values of Pb (>20%) and Zn (>30%) exceed the limits assayed by titration. AgEq and ZnEq were calculated using average metal prices: $20/oz silver, $1650/oz gold, $3.25/lb copper and $0.9/lb lead and 1 .15 USD/lb of zinc. The AgEq and ZnEq calculations did not take into account the relative metallurgical recoveries of the metals. Ore grade composites are calculated using an AgEq cut-off of 80 g/t in sulphide and 0.5 g/t AuEq in the gold oxide zone. Composites have
Oro Project Update
The Company’s real estate portfolio also includes the Oro porphyry copper-gold project located in southern New Mexico, United States, consisting of patent lands, state leases and BLM mining concessions totaling 22.3 km2 . Targeting has been finalized for a 4,000m drill program, designed to test multiple copper-molybdenum porphyry and copper-gold skarn targets within a broad zone of quartz-sericite-pyrite alteration, interpreted to overlie an unexposed porphyry center. Permits and bonds are finalized and drilling is expected to begin the first week of February 2022.
Cerro Las Minitas Project
Southern Silver continues to advance one of the world’s largest undeveloped silver/lead/zinc resources, the Cerro Las Minitas Project, through advanced exploration, metallurgical work and pre-production engineering and an economic evaluation. The Skarn Ag-Pb-Zn-Cu CLM system is conveniently located in southern Durango, Mexico, in a safe jurisdiction surrounded by producing businesses, with easy access and strong community support.
The Cerro Las Minitas Project, as of October 27, 2021, contains a mineral resource estimate, at an NSR cut-off grade of $60/t, of (1):
• Indicated – 137Moz AgEq: 42.1Moz Ag, 44Mlb Cu, 358Mlb Pb and 895Mlb Zn
• Inferred – 198 Moz AgEq: 73.6 Moz Ag, 98 Mlb Cu, 500 Mlb Pb and 1,009 Mlb Zn
The new mineral resource estimate significantly increases the size of the resource on a tonnage and silver equivalency basis, making it one of the largest and richest undeveloped silver deposits in the world. The new resource estimate increases silver as a proportion of contained metals, significantly increases the NSR value of the deposits and will now form the basis of a preliminary economic assessment (PEA), which is expected to be completed by the second quarter of 2022.
A total of 180 drill holes for 81,000 meters have been completed on the CLM project with exploration expenditures of approximately US$30.0 million, which equates to exploration discovery costs of approximately 0 CA$.09 per ounce AgEq.
About Southern Silver Exploration Corp.
Southern Silver Exploration Corp. is an exploration and development company focused on discovering world-class mineral deposits, either directly or through joint venture relationships at mineral properties located in major jurisdictions. Our specific focus is the 100% owned silver-lead-zinc Cerro Las Minitas project, located in the heart of Faja de Plata, Mexico, which hosts several world-class mineral deposits such as Penasquito, Los Gatos, 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 projects and the Hermanas gold-silver vein projects located in southern New Mexico, United States.
Cerro Las Minitas 2021 Resource Estimate as of October 27and, 2021 has been prepared according to the CIM definitions for the classification of mineral resources. Resources are constrained using mainly geological constraints and approximately 10 g/t AgEq grade shells. The block models are composed of a set of blocks measuring 10m x 3m x 10m, with grades for Au, Ag, Cu, Pb, Zn values interpolated using ID2 weighting. Silver, zinc equivalent and $NSR/t values were then calculated from the interpolated block grades. The reference model assumed a 60 NSR/t cut-off for mining, processing and sustaining costs, with an indicated resource of 12,325,000 tonnes grading an average of 106 g/t Ag, 0.07 g/t Au , 1.3% Pb, 3.3% Zn and 0.16% Cu and an inferred resource of 19,605,000 tonnes grading an average of 117 g/t Ag, 0.12 g/t Au, 1.2% Pb, 2.3% Zn and 0.23% Cu. AgEq threshold values and NSR values were calculated using long-term average prices of $20/oz. silver, $1,650/oz. gold, $3.50/lb. copper, $1.0/lb. lead and $1.20/lb. zinc. Metal recoveries are variable depending on deposit and concentrate and are detailed in NR-18-21, October 27, 2021. All prices are quoted in $USD. Silver equivalents, Zn equivalents and NSR $/t values were calculated from interpolated block values using recoveries and relative prices between component metals and silver to determine final values. Mineral resources are not mineral reserves until they have demonstrated their economic viability. Mineral resource estimates do not take into account the mineability, selectivity, mining loss or dilution of a resource. The current resource estimate was prepared by Garth Kirkham, P.Geo. of Kirkham Geosciences Ltd. who is the independent qualified person responsible for submitting and reviewing the mineral resource estimate. All numbers are rounded to reflect the relative accuracy of the estimate and therefore numbers may not appear to add up accurately.
Robert Macdonald, MSc. P.Geo, is a Qualified Person as defined by NI 43-101 and directly supervised the CLM Project data collection that is reported in this Disclosure and is responsible for the presentation of technical information in this Disclosure.
On behalf of the Board of Directors
Laurent Page, QC
President and Director, Southern Silver Exploration Corp.
For more information, please visit Southern Silver’s website at https://www.southernsilverexploration.com or contact us at 604.641.2759 or by email at [email protected]
Neither the 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 press release contains 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 these statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include the timing and receipt of governmental and regulatory approvals, the continued availability of capital and financing and general economic, market or Business. Southern Silver Exploration Corp. does not undertake any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.