Southern Silver Purchases Land and Equipment at Cerro Las Minitas; Provides Corporate Update
VANCOUVER, May 16, 2016 - Southern Silver Exploration Corp. (TSX VENTURE:SSV) (FRANKFURT:SEG1) (SSE:SSVCL) ("Southern Silver") has completed the purchase and obtained legal title to land at the Cerro Las Minitas project formerly held by the vendor of the mineral claims to Southern Silver. As part of the July, 2015 agreement, the Company negotiated the cessation of mining rights on the property by the vendor, the acquisition of all mining equipment on the claims and the purchase of a 5.9 hectare surface lot which partially overlies the Blind and El Sol mineral deposits. The surface lot surrounds two shafts that the property vendor used for small-scale mining (<50tpd) during the term of the option of the Cerro Las Minitas mineral tenures.
The acquisition of this surface lot, combined with the 2011 purchase of an initial 5 hectare surface lot, bring to a total of 10.9 hectares of land which may be utilized for mining, milling and production facilities on the property in the future.
Lawrence Page Q. C. President said "during the exploration of the CLM claims while Southern Silver was funding the option payments, it became apparent that ownership of surface rights to land overlying the mineral claims would be greatly beneficial for future development of the property. We have now accomplished the purchase of land which will be significant in any exploitation of the claims. Additionally, through our Mexican Corporation, which is the owner of the mineral claims, we have negotiated and executed exploration access agreements with the local Ejidos holding surface rights over the deposits allowing continued exploration on the property".
Corporate Update
The Company has added Mr. Donald Head to its Board of Directors. Mr. Head, a native of Arizona and a resident of Scottsdale, graduated from Arizona State University with a BA in Business and holds a law degree from the University of Arizona. He co-founded Centurion Development and Investments Inc., a company engaged in real estate development. He practiced as an Attorney in Arizona where, for many years, he represented Canadian public mineral exploration companies in property acquisitions and equity finance and has served in an advisory capacity and as a Director for a number of Canadian public companies.
He currently serves as Officer of Head Management Investments LLC. and formerly served as the Founder, Chairman, President and Chief Executive Officer of Capital Title Group Inc., a public company providing title insurance services in the USA, since inception in 1981 until it was sold in 2006 for gross proceeds of US$ 265 million.
Cerro Las Minitas Project
Exploration on the company's flagship Cerro Las Minitas property, Durango Mexico is funded by Electrum Global Holdings L.P. ("Electrum"), which is financing a broad range of exploration activities to earn a 60% interest in the project through a US$5.0M option earn-in on the property, with Southern Silver acting as operator.
The Cerro Las Minitas project contains an estimated Inferred Resource of 17.5Mozs silver and 237Mlbs of lead and 626Milbs 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 87 drill holes for 32,410 metres have now been completed on the Cerro Las Minitas project with exploration expenditures of approx. US$7.5 million spent to date.
The 2016 Exploration program is underway with a drill program focused on targets based on the 2015 drill results which continued to extend the projections of high-grade silver-polymetallic mineralization at both the Blind - El Sol zones and the recent discovery at the Mina La Bocona zone.
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 with specific emphasis on our 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 Pitarilla. 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. 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.
| 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 ID2 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 Resources 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. 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., PGeo., is Southern Silver's General manager of Exploration and is the Qualified Person responsible for the supervision and preparation of the technical information in this disclosure.
On behalf of the Board of Directors
Lawrence Page, Q.C.
President, Southern Silver Exploration Corp.
For further information, please visit the Company's website at www.southernsilverexploration.com.
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 including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. 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. These statements are based on a number of assumptions, including, but not limited to, assumptions regarding general economic conditions, interest rates, commodity markets, regulatory and governmental approvals for the company's projects, and the availability of financing for the company's development projects on reasonable terms. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, 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.
Contact
Southern Silver Exploration Corp.
Jay Oness
604-641-2759
JOness@mnxltd.com
www.southernsilverexploration.com