Sothern Silver Exploration Corp. reported today an exploration update on the company’s projects in Mexico, Arizona and New Mexico.
Since the company last reported on its exploration progress to shareholders in March 2008, operations continued in Mexico until the onset of the rainy season. Following the cessation of the rainy season, exploration has recommenced as set out below.
Minas de Ameca project, Jalisco
The Minas de Ameca Project was formed through the consolidation of the La Sorpresa, Magistral-1, El Magistral and Quila concessions. The project covers 332 square kilometers and has a 25 kilometre strike length.
Magistral 1 concession
The second of two phases of diamond drilling totaling 4,832 metres in 20 core holes was completed on the San Luis target during the 2008 season. Drilling has now tested the vein system to depths of over 400 metres and up to 800 metres in strike length. Mineralized intervals with greater than 1g/t Au and 1% Cu range in thickness from 1 metre to +10 metres and comprise single and sheeted quartz veins within envelopes of strong argillic alteration with iron and copper sulphides. Previously unreleased results include a 3.15 metre interval averaging 3.77g/t Au and 1.54% Cu from drill hole SL08-18 and 3.55 metres grading 0.12g/t Au and 0.86% Cu from drill hole SL08-19.
Ground preparation is complete and a 10 line kilometre Gradient IP geophysical survey over the vein system has begun. The survey is designed to identify additional mineralized veins and to extend the boundaries of the present mineralized zones. A third phase of diamond drilling will follow upon interpretation of the geophysical results.
Systematic exploration of the Quila claims proceeded through the 2008 field season. Regional mapping, rock and chip sampling were followed by detailed surveys in the Altavista de Ramos and El Texcalme target areas. Soil sampling was conducted in areas of heavy soil cover as an additional targeting tool. Several priority targets were identified and drill tested in mid-2008.
To date, 1,020 metres of core drilling in five holes have been completed in the Altavista de Ramos area. Drilling targeted widespread copper-gold-bearing hematite-specularite breccias and quartz-sulphide veins and returned thick intervals of highly anomalous gold and copper in two holes ranging from 27.1 metres averaging 0.1g/t Au and 0.15% Cu in drill hole QAL08-05 and 0.02g/t Au and 0.28% Cu in drill hole QAL08-03.
Additional drilling targeted the El Texcalme area where two drill holes were completed for a total of 418.4 metres. Drilling intersected a strongly fractured zone over 90 metres containing traces of chalcopyrite, bornite and native copper throughout the interval and returned 1 to 7.8 metre thick intervals of strongly anomalous copper ranging from 0.1% to 0.6%.
The styles and distribution of alteration and mineralization throughout the entire Quila and Magistral concessions, and particularly the association of copper and gold mineralization with Fe-oxides such as hematite, specularite and magnetite indicate a large scale IOCG-styled taget. Within this framework Southern is concentrating its exploration activity on four favorable areas of the Northern region of this extensive concession; Altavista de Ramos, Texcalame, San Jose de Pena - Minas de Claudio and Los Copales where the presence of gold, silver and copper values are to be further evaluated by detailed mapping, sampling and ground geophysics followed by diamond drilling.
The company also reported that it has developed through sampling and evaluation of historic geological data several prospective drill targets on portions of the Oro property where the company has patented and located mineral claims. A permitting process has been developed with respect to several targets identified at the sites of historic mines on the property. It is anticipated that a diamond drill program will commence on these targets in the first quarter of 2009.
Phase I drilling on the Tombstone project completed five holes for a total of 2,230 metres and tested prospective stratigraphy and mineralized structures through the northern and central part of this 1,600 ha property. Initial tests of two of the mineralized structures returned highly anomalous silver and base-metal mineralization in two holes including a 4.8 metre interval averaging 42.4g/t Ag, 2.24% Pb and 4.46% Zn from drill hole TS08-01 and a 7.3 metre interval averaging 21.7g/t Ag and 0.47%Pb and 0.44% Zn from drill hole TS08-03. The company continues to develop targets for the 2009 exploration program through detailed evaluation of the 2008 drill results with respect to the structural and stratigraphic controls on the mineralization.
The company’s consultants have recommended an initial two phase drill program on the company’s Dragoon property which will commence following acquisition of drill permits expected in the first quarter of 2009.
The erosion in market price is of great concern to the Board of Directors notwithstanding that the entire resource sector has been similarly affected. Our asset base is secure and the fundamental direction of the company remains focused upon development of our precious metals properties on a systematic basis utilizing funds in the treasury in the current amount of $1.1 million on priority exploration expenses.
The company also reported that it has appointed Mahesh Liyanage, CA as Chief Financial Officer (“CFO”) of the company effective October 29, 2008.
Rob Macdonald, (P.Geo.), is the Qualified Person responsible for reviewing the technical results reported in this release on behalf of Southern Silver Exploration Corp. William McGuinty (P.Geo.), is the Qualified Person responsible for reviewing the technical results reported in this release on behalf of Soltoro Ltd.
On behalf of the Board of Directors
Lawrence Page, President,
Southern Silver Exploration Corp.
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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. Southern Silver Exploration Corp. relies upon litigation protection for forward looking statements.