Change: $0.000 Volume: 43,014 Last: $0.035

NEWS

March 20, 2012

Southern Silver Identifies Silver-Enriched High-Grade Polymetallic Mineralization at Cerro Las Minitas

Southern Silver Exploration Corp. (TSX.V:SSV) reported today that recently received assays from 2012 drilling have identified silver-enriched high-grade polymetallic mineralization in several separate target areas on the Cerro Las Minitas project, located in Durango State, Mexico.

Blind zone

Drilling on the Blind zone continues the process of delineating both the extent and internal continuity of the mineralized zone. Assay results from drill hole 12CLM-030 returned a 1.1 metre interval averaging 250g/t silver, 10.7% lead and 16.95 zinc (1007g/t AgEq) at a vertical depth of approximately 270 metres. Drill hole 12CLM-034 tested the continuity of mineralization within the Blind zone and returned multiple intervals of high-grade silver-enriched polymetallic mineralization including 1.5 metres averaging 338g/t silver, 0.5% copper, 11.1% lead and 15.9% zinc (1096g/t AgEq).

Drilling has now tested the Blind zone in excess of 600 metres strike length and in excess of 300 metres depth with the zone remaining open in all directions. Orientations of the mineralization may vary from sub-vertical to near horizontal. Assay results are therefore reported as down hole intervals.

El Sol zone

Drill hole 12CLM-038 tested approximately 50 metres to the SE of previously reported hole 11CLM-027 (24.8 metres of 124g/t Ag, 1.9% Pb and 2.1% Zn) and identified 17.7 metre and 15 metre zones of polymetallic mineralization (Table 1) which included higher-grade intervals of 0.7 metres averaging 167g/t silver, 6.2% lead and 3.6% zinc (475g/t AgEq) and 1.8 metres averaging 98g/t silver 1.3% lead and 4.5% zinc (267g/t AgEq) respectively.

South Skarn target

Two of three holes which tested the South Skarn target returned encouraging results. Drill hole 12CLM-031 intersected oxidized skarn mineralization from 74.4 to 165.0 metres depth. Elevated zinc values (>1000ppm Zn) occur through much of this drill intercept which includes a 2.4 metre interval averaging 16g/t silver, 0.2% copper and 9.8% zinc. Similarly, base and precious metal enriched skarn (Table 1) was intersected at the contact with the central monzonite porphyry in drillhole 12CLM-040 which is located approximately 300 metres to the northwest of hole 12CLM-031.

These two drill holes continue to demonstrate the widespread distribution of polymettalic mineralization throughout the Cerro Las Minitas project. Additional drilling is planned to further test and delineate these new zones of mineralization.

Other Target Areas

Drilling at the La Bocona target identified polymetallic mineralization in one hole that tested the skarn near the contact with the main monzonite porphyry. Testing of a single geophysical target located to the northeast of the monzonite (NE Geophysical target) returned sub-economic values.

2012 Exploration Program

Diamond drilling with two core rigs continues. One drill rig remains dedicated to the continued delineation of mineralization in the Blind and El Sol zones. The second drill rig is testing specific occurrences located within the area of historic mining and several targets derived from the recently completed surface sampling and an IP geophysical program. Multiple geological and geophysical targets remain to be tested and fully delineated within this portion of the property.

Twenty-nine drill holes totaling approximately 8,030 metres were completed on the project in 2011. An additional 4073 metres in seventeen drill holes have been completed to date in 2012, two additional holes are in progress. Assays from eight drill holes are pending.

The company has scheduled 20,000 metres of core drilling in 2012, with the aim of completing a NI 43-101 compliant resource on these first set of targets by Q4 of 2012. This will be the initial milestone toward the Company’s goal of delineating a larger, multi-million tonne, high-grade, silver-enriched polymetallic resource on the project.

For a current drill-hole plan and a full table of drill results please visit the company’s website at www.southernsilverexploration.com.

About the Cerro Las Minitas property

The Cerro Las Minitas property comprises 18 concessions which total 15,125 hectares and an approximate 25 kilometre lineal strike length. The property is located approximately 70 kilometres  northeast of the city of Durango, Durango State, Mexico and is accessed easily by road.

Small-scale mining has been conducted on the property since Colonial times and has identified several types of silver, lead and zinc-enriched massive-sulphide pipes, veins and carbonate-replacement deposits (CRDs), as well as mineralized skarns at the margins of a large intrusive body. The Santa Eulalia replacement deposit (45Mt of 310g/t Ag, 7.1% Zn and 8.2% Pb) and the skarn deposit of San Martin (60Mt of 118g/t silver, 0.9% copper and 3.9% zinc) are examples of two major Mexican mines occurring in similar geological environments(1). The more recent discovery and development of the Nuestra Senora mine by Scorpio Mining Ltd. (6.3Mt of 106g/t Ag, 0.4% Cu, 1.4% Pb, 3.2% Zn), provides a more modern example of the development of these highly productive Mexican deposits.

Several of the historic mineralized zones at Cerro Las Minitas have been exploited to depths of up to 300 metres and over widths of up to 60 metres.

Figure 1: Location of reported drill holes and targets on the Cerro Las Minitas project


Table 1: Summary of Select Composited Assays from the Cerro Las Minitas Project


Analyzed by FA-ES/AA for gold and ICP-MS by ALS Chemex, Vancouver BC; Silver overlimits (>100g/t Ag) re-assayed with FA-Grav. AgEq calculation uses values that approximate the three year trailing average of the contained metals: $23.3 silver, $1250 gold, $3.15 copper and $0.9 lead and $0.9 zinc. AgEq calculations did not account for relative metallurgical recoveries of the metals. NSV = No Significant Values

About Southern Silver Exploration Corp.

Southern Silver Exploration Corp. is a precious and base metal exploration company and a member of the Manex Resource Group; a private company comprised of an exceptional multi-disciplinary team of professionals with specific expertise in all areas of exploration, development, corporate finance and public company administration.

The company's growth strategy is to acquire, explore and develop high-quality properties in progressive jurisdictions within North America. Its current projects include the silver-lead-zinc Cerro Las Mintas project and the copper-gold-silver Minas de Ameca in Mexico, the porphyry copper-molybdenum Dragoon project in Arizona and the gold-silver-copper Oro project in New Mexico.

-30-

Robert Macdonald (P.Geo) is a Qualified Person as defined by National Instrument 43-101 and has reviewed and approved the technical contents of this release.

  1. Southern Silver advises that tonnage and grade of adjacent properties or those used for comparative purposes may not reflect the ultimate potential of the Cerro Las Minitas project

 

On behalf of the Board of Directors
“Lawrence Page”

Lawrence Page, President, Southern Silver Exploration Corp.

 

For further information, please visit the company’s website at southernsilverexploration.com or contact Liana Shahinian at 1.888.456.1112 or by email at liana@mnxltd.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.