Southern Silver Exploration Corp. (TSX.V: SSV) (“Southern Silver”) reported today that geophysical crews are mobilizing to commence a +300 line kilometer airborne Z-TEM survey over the Oro property, New Mexico.
The geophysical survey, which will be conducted over the entire property at 200m line spacing by Geotech Airborne Geophysical Surveys, is part of a larger evaluation of the project by Southern Silver to identify new targeting to test the Cu-Mo porphyry potential of the property. A recent study by a consulting economic geologist, commissioned by the Company, has identified two primary target areas based on a compilation of the geochemical, alteration and geological data. The Z-TEM survey is designed to identify conductive targets (potential Cu-Mo porphyry or skarn mineralization) at depth that may form the basis for future deep drilling on the property.
The survey is expected to take 3 to 4 days to complete. Processing and interpretation of the data will occur over the coming weeks.
The Z-TEM survey will also cover the Stock Pond gold target where Southern Silver is planning a follow-up drill program to the Fall 2016 RC drill program which was successful in identifying the edge of a potentially large auriferous mineralizing system and in particular, showed open vectors to the east of the drilling area. Permit amendments have been filed for a program to test a 500m x 800m area to the east of the earlier drilling and is expected to commence in early Fall 2017.
For more information on Geotech and the Z-TEM Airborne system please see the following link: http://geotech.ca/hunting-for-giants-an-introduction-to-ztem-surveys-in-mineral-exploration/
The Oro property consists of patented land, State leases and BLM located mineral claims which cover and surround a highly prospective quartz-sericite-pyrite alteration zone, interpreted to overlie an unexposed porphyry center. Classic porphyry system zonation is indicated by gold and copper mineralization associated with Laramide-age intrusions, flanked by lead-zinc skarn and carbonate-replacement mineralization. The Stockpond target may be a sediment-hosted gold occurrence distal to the larger porphyry system, located 3 kilometres to the southwest, or a separate mineralizing system related to later intrusions.
Figure 1: Cu-Mo porphyry target areas on the Oro property as defined in the latest targeting compilation
Cerro Las Minitas Update
The current 2017 drill program on the Cerro Las Minitas project, Durango Mexico, has identified additional significant intervals of new mineralization in the Blind Shoulder Target along an approximate 650m strike-length and widths of up to 350 metres. Drill results have been successful in tracing the new mineralization beneath the Blind and El Sol deposits. Geological modelling suggests that intersections between the sub-vertical, northwest-trending Blind and El Sol mineralized zones and the generally more shallowly dipping, northeast-trending shoulder may localize higher-grade shoots of mineralization which may be in part responsible for the strong silver-enrichment identified in recent drill results.
Approximately 10,000 metres in 13 drill holes have now been completed in the current US$2 million 2017 exploration program. Drilling will continue into July with two core rigs that will continue testing the North Skarn target.
Exploration on the Cerro Las Minitas property is funded by Electrum Global Holdings L.P. (“Electrum”), which has financed a broad range of exploration activities and has earned a 60% interest in the project through a US$5.0M earn-in on the property, with Southern Silver acting as operator.
The Cerro Las Minitas project contains an estimated Inferred Resource as of March 21, 2016 of 17.5Mozs silver and 237Mlbs of lead and 626Mlbs zinc (77.3Mozs AgEq) and an estimated Indicated Resource of 10.8Mozs silver, 189Mlbs lead and 207Mlbs zinc (36.5Mozs AgEq).(1)
A total of 104 drill holes for 46,351 metres have now been completed on the Cerro Las Minitas project with exploration expenditures of approximately US$10.8 million.
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. Our specific emphasis is the 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 Pitarrilla. We have assembled a team of highly experienced technical, operational and transactional professionals to support our exploration efforts in developing, along with our partner, Electrum Global Holdings LP, 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.
- The 2016 Cerro Las Minitas Resource Estimate was prepared following CIM definitions for classification of Mineral Resources. Resources are constrained using mainly geological constraints and approximate 10g/t AgEq grade shells. The block models are comprised of an array of blocks measuring 10m x 2m x 10m, with grades for Au, Ag, Cu, Pb, Zn and AgEq values interpolated using ID2 weighting. The models identified at a 150g/t AgEq cut-off, an indicated resource of 3,724,000 tonnes averaging 90g/t Ag, 0.05g/t Au, 2.3% Pb, 2.5% Zn and 0.09% Cu and a cumulative inferred resource of 6,611,000 tonnes averaging 82g/t Ag, 0.17g/t Au, 1.6% Pb, 4.3% Zn and 0.2% Cu. Mineral Resource cut-offs are estimated using an average long-term price of $15/oz silver, $1,100/oz gold, $2.75/lb Cu, $0.90/lb lead and $0.90/lb zinc and metal recoveries of 82% silver, 86% lead and 80% zinc. AgEq calculations did not account for relative metallurgical recoveries of the metals. All prices are stated in $USD. Mineral Resources are conceptual in nature and as such do not have demonstrated economic viability.
The current Resource Estimate was prepared by Garth Kirkham, P.Geo. of Kirkham Geosciences Ltd. who is the Independent Qualified Person responsible for presentation and review of the Mineral Resource Estimate.
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 & 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. 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. Factors that could cause actual results to differ materially from those in forward looking statements include 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.