Southern Silver Exploration Corp. (“Southern Silver”) reported today that Electrum Global Holdings L.P. (“Electrum”) has provided an additional tranche of funds to Southern Silver as operator and now has contributed a total of US$2.0 million and earned-in for an indirect 30% interest in the Cerro Las Minitas project in Durango, Mexico.
Electrum has the right to earn an additional 20% by expending US$1.5 million in exploration expenditures in the succeeding 30 months of the option term. A final 10% interest may be earned by expending an additional US$1.5 million in exploration expenditures during this time period. Electrum has been encouraged by the results to date on the 2015 exploration program and has advised Southern Silver that it is prepared to exceed the initial US$2.0 million in expenditures and to continue funding exploration expenses subsequent to completion of the current 10,000m drill program expected to be concluded by early 2016.
2015-16 Exploration Update
Management is very pleased with the results received from the systematic exploration and definition drilling on the Cerro Las Minitas project, and will continue targeting both known zones of mineralization and new additional discovery zones on the property. Nine holes totaling approximately 6250 metres have been completed on the project as part of the 2015 exploration program. Two holes are currently in progress and include the extension of 11CLM-010 and is designed to test down-dip of mineralization from the new discovery hole 15CLM-078. Hole 15CLM-078 was collared ~ 350 metres outboard of Mina La Bocona intersecting previously unrecognized mineralized structures which included an upper oxide gold zone that graded 7.8m (3.9m est. TT) of 13.5g/t Au, 37g/t Ag, 3.9% Pb/Zn (see NR-10-15).
Five drill sites remain to be tested in the area of the central intrusion and additional targets are being developed in other parts of this +130 square kilometre property. Sample intervals from drill holes 15CLM-081, (testing the extension of the Blind/El Sol zones) and holes 15CLM-082 and -083 (step-outs from hole 15CLM-078) have been submitted for assay. Results are pending and will form the basis of the next update.
Noteworthy milestones from the 2015 drilling program include:
- the identification of new high-grade Ag-Pb-Zn discoveries in the Mina La Bocona area (15CLM-078; see NR-10-15) and outboard of the Blind –El Sol zone (15CLM-081; see NR-12-15);
- the identification of potential new extensions to high-grade mineralization at the Santo Niño Mine (15CLM-023A; NR-12-15); and
- the continued extension of mineralized structures to depth in the Blind – El Sol zone (15CLM-077, see NR-10-15), and on strike at the Mina La Bocona and the South Skarn targets (15CLM-079, see NR-12-15)
The 2015 program follows earlier exploration work by Southern Silver which totaled 23,310 metres of diamond drilling in 75 core holes, which subsequently resulted in the identification of two new mineral deposits known as the Blind and El sol zones. Airborne magnetic geophysics over the entire property and gravity and IP geophysics in specific targeted areas were also conducted and will form the basis for future planned exploration drilling programs in other areas of the project.
Plan Map: Hole distribution for the 2015 Cerro Las Minitas drill program
For a current drill-hole plan and a full table of drill results please visit the company’s website at www.southernsilverexploration.com.
About Electrum Global Holdings L.P.
Electrum is a privately-held U.S. based group that has operated in natural resources for over 20 years. Leveraging a global team of experienced technical, operational, and transactional professionals, Electrum strategically invests in precious and base metals assets and companies. Electrum is led by Thomas S. Kaplan, an Oxford-educated historian who applies his deep understanding of market behavior to forecast developing trends, combining a top-down and bottom-up entrepreneurial approach to investing.
In addition to having founded and operated several successful natural resources companies, such as Sunshine Silver Mining & Refining Corporation and Electrum Ltd., Electrum is a significant shareholder in a number of publicly traded natural resources companies, including NovaGold Resources Inc., NovaCopper Inc., Gabriel Resources Ltd., and Taung Gold International Limited.
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.
Robert Macdonald, MSc. P.Geo, is a Qualified Person as defined by National Instrument 43-101 and responsible for the supervision of the exploration on the Cerro Las Minitas Project and for the preparation of the technical information in this disclosure.
On behalf of the Board of Directors
Lawrence Page, Q.C.
President, 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.