Southern Silver Announces Equity Financing for Oro Gold Project Drill Program, New Mexico
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Apr 29, 2016) - Southern Silver Exploration Corp. ("Southern Silver") (TSX VENTURE:SSV)(FRANKFURT:SEG1)(SSE:SSVCL) plans to issue up to 10,000,000 units ("Units") in a non-brokered private placement at a price of $0.10 per Unit to raise $1,000,000. Each Unit will consist of one common share and one share purchase warrant, with each warrant exercisable to purchase one additional common share for a period of five years at an exercise price of $0.15 per share.
Finders' fees and commissions may be paid by Southern Silver in relation to this issuance. Southern Silver will make provision for an over-allotment option (Greenshoe) to allow a purchase of up to 10% additional Units beyond the number of units in this Offering.
Net proceeds from the private placement will be used to fund costs associated with a three phase exploration program on the Oro property in New Mexico and specifically the sediment-hosted near surface Stock Pond gold target. A USD$300,000 exploration program on the project will include initial phases of prospecting and trenching followed by drilling planned for the fall of 2016.
Southern Silver has consolidated the Oro district over the past several years and the Project consists of patented ground, State leases and BLM claims. Since acquisition, Southern Silver has spent USD$1,163,937 on exploration work on areas of the Project to develop porphyry copper, molybdenum, gold deposits.
Cerro Las Minitas Project
Exploration on the company's flagship Cerro Las Minitas property, Durango Mexico 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 option earn-in on the property, with Southern Silver acting as operator.
The Cerro Las Minitas project contains an estimated Inferred Resource of 17.5Mozs silver and 237Mlbs of lead and 626Milbs 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 87 drill holes for 32,410 metres have now been completed on the Cerro Las Minitas project with exploration expenditures of approx. US$7.5 million spent to date.
The 2016 Exploration program is underway with a drill program focused on targets based on the 2015 drill results which continued to extend the projections of high-grade silver-polymetallic mineralization at both the Blind - El Sol zones and the recent discovery at the Mina La Bocona zone.
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.
- 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 10m x 2m, 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 Resources 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. 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., PGeo., is Southern Silver's General manager of Exploration and is the Qualified Person responsible for the supervision and 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.
Contact
Southern Silver Exploration Corp.
Jay Oness
604-641-2759
JOness@mnxltd.com
www.southernsilverexploration.com
