Southern Silver Exploration Corp. (TSX-V:SSV) reported that it has filed a technical report prepared in accordance with Canadian Securities Administrators’ National Instrument 43-101. The Report may be found under the Company’s profile at www.sedar.com and on Southern’s website, www.southernsilverexploration.com.
The Report, dated December 13th, 2021, entitled “NI 43-101 Technical Report, Mineral Resource Estimate for Cerro Las Minitas Project, Durango State, Mexico” was prepared by Garth D. Kirkham, P.Geo. and Arthur Barnes, P.Eng., FSAIMM, following the guidelines of NI 43-101 and NI 43-101F1.
The updated Mineral Resource estimate features increased sulphide resources from two new mineral deposits, a small oxide resource in one of the new deposit areas and an update of the previously reported deposits utilizing new metal pricing and metallurgical recoveries. Resource reporting now utilizes a Net Smelter Return (“NSR”) cut-off and reports average grades on a AgEq, ZnEq and $US/t NSR basis. The Report supports the disclosure made by the Company in its news release dated October 27, 2021 “Southern Silver Increases Mineral Resource at Cerro Las Minitas to: Indicated 137Mozs AgEq or 2.3Blbs ZnEq: 42.1Mozs Ag, 358Mlbs Pb, and 895Mlbs Zn; and Inferred 198Mozs AgEq or 3.3Blbs ZnEq: 73.6Mozs Ag, 500Mlbs Pb, and 1,009Mlbs Zn”
There are no material differences in the mineral resources contained in the Report from those disclosed in the October 27, 2021 news release.
Cerro Las Minitas Resource Model Highlights:
The 2021 update, at a US$60/t NSR cut-off, features:
42.1 million ounces of silver; 28 thousand ounces of gold; 44 million pounds of copper, 358 million pounds of lead; and 895 million pounds of zinc.
73.6 million ounces of silver; 78 thousand ounces of gold; 98 million pounds of copper, 500 million pounds of lead; and 1,009 million pounds of zinc (1Blbs Zn).
The new Resource Estimate incorporates an additional 20,991 metres of core drilling completed in 2020-21, updated metal recoveries and pricing and the incorporation of over 1,127 metres of specific gravity (“SG”) measurements.
Table 1: Base-case Sulphide Mineral Resource Estimate for CLM Project Utilizing a US$60/t NSR cut-off value:
A small oxide resource was identified within the upper 100 metres of surface in the La Bocona zone. The 2021 oxide resources at a US$60/t cut-off are:
An Indicated Mineral resource totalling 65,000 tonnes averaging 28g/t Ag and 2.2 g/t Au equalling a US$93/t NSR value, containing:
58,000 ounces of silver and 4,500 ounces of gold.
An Inferred Mineral resource totalling 219,000 tonnes averaging 120g/t Ag and 0.8g/t Au equalling a US$88/t NSR value, containing:
844,000 ounces of silver and 5,600 ounces of gold
A 74% silver recovery was utilized in the resource model and was based on acid-leach test work conducted on samples from the Blind – El Sol zone. Gold recovery has been estimated at 70% for the purposes of this report. Further metallurgical test work is required to confirm the gold recovery from the La Bocona oxides.
Table 2: Base-case Oxide Mineral Resource Estimate for CLM Project Utilizing a US$60/t NSR cut-off value:
Notes: The $60/t NSR cut-off value was calculated using average long-term prices of $20/oz. silver, $1,650/oz. gold. Base metals were not recovered in the leach circuit. Metallurgical work from batch test work recovered 74% silver from oxidized composites from the Blind – El Sol zones. Gold recovery was not assessed and is estimated at 70% for the purposes of this report. This work, along with marketing studies, were used to decide the NSR cut-off value. All prices are stated in $USD.
Cerro Las Minitas Project Highlights:
Six separate mineral deposits were modelled in the resource estimate, four deposits in 2019 and two in 2021. The Blind, El Sol and Las Victorias deposits form sets of sub-parallel, northwest-trending and steeply dipping mineralized zones which are traced for over 1300 metres strike and up to 600 metres depth. The Skarn Front forms beneath the Blind, El Sol and Las Victorias deposits and is localized on the outer edge of the skarn alteration zone surrounding the Central Monzonite Intrusion and has been drilled along an approximate 1100 metre strike length and to depths of up to 1000 metres.
Similarly, the South Skarn Zone is localized on the outer edge of the skarn alteration zone surrounding the Central Monzonite Intrusion, but on the eastern side. The deposit forms a tabular, steeply east-dipping body that has a strike length of approximately 350m and has been drilled to a depth of 500m. The Bocona Zone consists of two separate sub-zones – the Bocona Skarn Zone and the Muralla Zone. The Bocona Skarn Zone is also localized on the outer edge of the skarn alteration zone surrounding the Central Monzonite Intrusion, but on the North side, wrapping around the Northeastern Margin. The upper part of the Muralla zone is strongly oxidized and is the basis of the quoted oxide resource.
Mineral Resource Estimate Parameters for the South Skarn and Bocona Zones
Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Inferred Resources are considered too speculative geologically to have economic considerations applied to them that would enable them to be classified as Mineral Reserves. An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.
NSR Calculation Parameters
Table 3: Variables considered in the NSR calculations for each concentrate.
The independent Qualified Persons for the Technical Report are Garth Kirkham, P.Geo., Principal, Kirkham Geosystems Ltd and Arthur Barnes P.Eng., FSAIMM, Principal, MPC Metallurgical Process Consultants Limited, who have reviewed and approved the contents of this release. In accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects, Robert Macdonald, P.Geo, Vice President Exploration, is the Qualified Person for the Company and has validated and approved the technical and scientific content of this news release.
Southern Silver is aware this project is subject to the same types of risks that large precious and base metal projects experience at an early stage of development in Mexico. The Company has engaged experienced management and specialized consultants to identify, manage and mitigate those risks. However, the types of risks will change as the project evolves and more information becomes available.
About Southern Silver Exploration Corp.
Southern Silver Exploration Corp. is an exploration and development company with a focus on the discovery of world-class mineral deposits. Our specific emphasis is the 100% owned 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 the Cerro Las Minitas project into a premier, high-grade, silver-lead-zinc mine.
The Company’s property portfolio also includes the Oro porphyry copper-gold project located in southern New Mexico, USA, which includes patented land, State leases and BLM mineral claims totalling 22.3 sq. km. Targeting has been finalized and bonding pending for a 4,000m drill program, designed to test several copper-molybdenum porphyry and copper-gold skarn targets within a broad quartz-sericite-pyrite alteration zone, interpreted to overlie an unexposed porphyry centre. Permitting is in the final stages with drilling expected to commence in Q1, 2022.
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