Southern Silver Exploration Corp. ("Southern Silver") reported today that final permits have been received and crews have mobilized for the next phase of a fully funded exploration program on the 100% controlled Oro project, New Mexico. The program includes a trenching program over some key target areas, followed by a 1200-metre reverse-circulation drill program scheduled to begin in mid-September on the Stockpond gold target. Eight to ten holes are planned for this phase of drilling, which will test the area within and around a previously outlined 500m x 500m gold-in-soil anomaly and mineralized outcrop exposure where rock-chip samples returned up to 4.8g/t Au. The dimension of the gold anomaly coupled with the sampled grades underscore the project's potential for the discovery of a significant bulk-tonnage, intrusive-related, disseminated oxide-gold deposit.
The Oro property consists of Federal and State mineral claims surrounding private land owned by Southern Silver and totals 11.8 square kilometres in the historic Eureka mining district in Grant County, New Mexico. The property is located approximately 80 kilometres southwest of the Silver City porphyry copper district.
The property covers and surrounds 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, and distal sediment-hosted gold occurrences. The Stockpond target is interpreted as one of these gold occurrences distal to the main porphyry center, which is located 3 kilometres to the southwest (Figure 1).
Cerro Las Minitas Project Update
Southern Silver also reported that crews have mobilized and that soil sampling is underway as part of the next phase of work on the Cerro Las Minitas project, located in Durango, Mexico. The work will target new discoveries on the largely gravel-covered property. The sampling program will further evaluate targets developed during the Company's detailed re-evaluation of airborne and ground geophysics, property-wide biogeochemical surveys, and soil and float sampling completed by Southern Silver over the last several years. Initial work has started with step-out soil lines to determine the potential strike-length of a 500 metre-long gold-in-soil anomaly in Target Area 1 (Figure 2), located about 4 km to the southwest of the Blind, El Sol and Santo Nino deposits. Follow-up drilling is anticipated as new targets are developed and refined.
To view Figure 1: Metal zoning at the Oro project please visit the following link: http://media3.marketwire.com/docs/1068033a.pdf.
Gravel-covered areas are extensive at the Cerro Las Minitas property and remain highly prospective, with little or no drilling. The areas are on trend with Avino's gold and silver mine to the west and Hecla's San Sebastian gold and silver mine to the east; San Sabastian reopened in January, 2016.
Exploration on the company's Cerro Las Minitas property is funded by Electrum Global Holdings L.P. ("Electrum"), which is financing a broad range of exploration activities to earn a 60% interest in the project through a US$5.0M earn-in option, with Southern Silver as operator.
The Cerro Las Minitas project contains an estimated Inferred Resource 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 91 drill holes for 35,955 metres have now been completed on the Cerro Las Minitas project, with exploration expenditures of approximately US$8.35 million spent on the property to date.
To view Figure 2: Property wide targets for further evaluation on the Cerro Las Mintas Project please visit the following link: http://media3.marketwire.com/docs/1068033b.pdf.