Southern Silver Exploration Corp. (“Southern Silver”) reports today that it has executed an amending agreement with the Optionor of the Cerro Las Minitas property in Durango Mexico to reduce the option payment due on May 18, 2013 from $1 million to $250,000 and to extend the balance of the purchase price of $1.75 million to be paid periodically with the last payment due in March 2015.
Freeport-McMoRan Exploration Corporation (‘FMEC”) has been funding and directing Southern Silver’s subsidiary, Minera Plata del Sur, S.A. de C.V. (“MPS”) to explore the property pursuant to an earn-in agreement since October 2012 and has advanced the $250,000 option payment together with a previous payment of $750,000 due November 18, 2012, together with applicable IVA taxes with such amounts being credited toward potential expenditures of $25 million required to earn an indirect 70% interest in the property.
Since execution of the earn-in agreement, FMEC has directed MPS to conduct soil and vegetation geochemistry and geophysical surveys over the 15,125 hectare property and to explore the property with diamond drilling utilizing two core rigs in order to advance the project quickly through this initial discovery and evaluation stage.
Approximately 1300 metres of the planned +3500 metres drill program has been completed to date. Logging and sampling of the core continues. Assays are pending and will be reported upon the completion of the drill program.
Current plans are to test deeper offsets of known mineralized zones at the South Skarn, Blind Zone and Santo Nino targets and several geophysical and geochemical targets identified in recent surface exploration by FMEC. The current drill program is targeting a deep seated porphyry/skarn mineral system similar to the historic San Martin deposit (60Mt of 118g/t silver, 0.9% copper and 3.9% zinc) located about 100 kilometres to the south of the Cerro Las Minitas project. See news release NR-07-13, April 2, 2013 for further details of exploration to date and the proposed drilling program.
President Lawrence Page commented, “The renegotiation of the option agreement provides greater flexibility to explore the property systematically within a reasonable time frame. $2.25 million has been paid on the $4 million purchase price to earn a 100% unencumbered interest in the property with FMEC having contributed $1 million as a credit towards its earn in threshold. FMEC may elect to make additional payments as they become due and as FMEC continues its exploration program. “
About Southern Silver Exploration Corp.
Southern Silver Exploration Corp. is a precious and base metal exploration and development 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 either directly or through joint venture relationships high-quality mineral properties in progressive jurisdictions within North America including Southern Silver’s silver-lead-zinc Cerro Las Minitas project located in Durango, Mexico. Freeport-McMoRan Exploration Corporation currently holds an option to earn a 70% indirect interest in the project by making staged purchase payments and funding exploration and development expenditures of $25 million on the project over a ten year period.
Desert Star Resources Ltd. has the option to earn up to a 70% interest in the gold-silver-copper Oro project in New Mexico by making cash payments to underlying optionors, issuing one million shares, completing a preliminary economic assessment and incurring exploration expenditures of $6 million on the property over a period of 66 months. Southern Silver is currently advancing the porphyry copper-molybdenum Dragoon project in Arizona and the Minas de Ameca silver, lead-zinc project in Jalisco, Mexico.
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, Q.C.
President & Director, Southern Silver Exploration Corp.
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.