Change: $0.000 Volume: 109 Last: $0.055

NEWS

May 17, 2012

Southern Silver Continues Expansion of the Blind Zone; New Gold-Copper Discovery at Cerro Las Minitas

Southern Silver Exploration Corp. (TSX.V:SSV) reported today that drilling on the Cerro Las Minitas project, located in Durango State, Mexico, continues to identify thick intervals of high-grade silver-polymetallic mineralization at the Blind Zone deposit. A new zone of gold and copper mineralization has been identified in drill core at the South Skarn area located approximately 1.5 kilometres south east of the Blind zone.

Blind Zone

Recent core drilling has targeted near surface mineralization along the strike-length of the Blind Zone deposit as well as further extended the zone to the northwest.

Assay highlights include:

  • a 4.2 metre interval averaging 409g/t silver, 18% lead and 4.0% zinc (1094g/t AgEq) from drill hole 12CLM-056,
  • a 6.2 metre interval grading 238g/t silver, 3.2% lead and 0.1% zinc (332g/t AgEq) within a broader 20 metre zone averaging 143g/t silver from drill hole 12CLM-051, and
  • a 1.7 metre interval averaging 9g/t silver, 6.2% lead and 9.3% zinc (443g/t AgEq) from drill hole 12CLM-054

Mineralization intersected in drill holes 12CLM-051 and 12CLM-056 occurs within 50 metres of surface and continues to demonstrate the internal continuity of several mineralized structures that comprise the Blind Zone deposit. Drill hole 12CLM-054 extended the known zone of mineralization an additional 60 metres to the northwest.

Initial modelling of the Blind zone has identified three distinct mineralized structures along much of the 618 metre strike-length of the deposit. Several additional less continuous lenses of mineralization are also identified in the model. True thickness of the mineralized intervals are estimated at 60% to 70% of the down hole thicknesses.

South Skarn Target

Drilling has discovered a new highly encouraging zone of gold-copper mineralization. The new zone is gravel covered and is located approximately 1.5 kilometres to the southeast of the Blind Zone deposit and is open in all directions.

Hole 12CLM-055 intersected an outer zone of weakly to moderately altered limestone followed by a 37 metre thick diatreme breccia, an intermixed zone of hematite breccia, skarn-hornfels and aplite dyke before entering variably altered monzonite/feldspar porphyry. Strongly anomalous gold mineralization was identified over a 20 metre interval within the hematite breccia which averaged 0.8g/t gold and included a 4.3 metre interval averaging 2.8g/t gold and 28g/t silver. A second 4.3 metre interval averaging 1.4g/t gold, 89g/t silver and 1.8% copper was intersected further down hole and is hosted in chlorite-garnet skarn related to the adjacent intrusions.

The significance of this discovery is two-fold:

  1. it demonstrates large scale metal zoning across multiple structures and occurrences, and
  2. it raises the potential for the discovery of a significant gold-enriched mineral deposit on the property.

Additional drilling is planned to further test and delineate this new zone of mineralization.

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.

 

 

2012 Exploration Program

Diamond drilling with one drill continues on the Cerro Las Minitas project and is dedicated to the delineation of mineralization in the Blind and El Sol zones.

Twenty-nine drill holes totaling approximately 8,030 metres were completed on the project in 2011. An additional 7,207 metres in thirty-two drill holes have been completed to date in 2012. An extension drill hole 12CLM-032 is currently underway. Assays from seven drill holes are pending.

The Company has scheduled 20,000 metres of core drilling in 2012, with the goal 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 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.

 

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.