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Southern Silver Reports Results of RC Drilling on Stockpond Gold Target at Oro Project in New Mexico

Southern Silver Exploration Corporation ("Southern Silver") (TSX VENTURE:SSV)(FRANKFURT:SEG1)(SSE:SSVCL)(OTCQB:SSVFF) reported today results from Reverse Circulation (RC) drilling on the Stockpond gold target of the Oro project, southwestern New Mexico, USA. Drilling intersected widespread alteration and a thick zone of strongly anomalous gold mineralization in a sediment-hosted oxide-gold system located on the edge of the drill pattern, which remains open laterally to the east, north and south under thin gravel cover.

Management is very encouraged by the results and has subsequently staked an additional 54 lode claims on BLM-administered land on the Oro project, covering potential extensions of the Stockpond mineral system and the other potential targets. In addition, the Company has begun the process of planning and permitting for additional drill sites to test an approximate five-square-kilometre area to the east of the current drilling.

2016 Exploration Program Details

The 2016 Stockpond drill program consisted of nine RC drill holes totaling 1,223 metres and targeted a previously defined 500 metre x 500 metre gold-in-soil anomaly with limited outcrop and trenched bedrock exposures of strongly silicified and oxidized gold-bearing sedimentary rocks.

Highlights from the drilling include:

  • a 9.1 metre interval averaging 0.75g/t Au, contained within a 41.2 metre interval averaging 0.42g/t Au from hole SP16-004.

Gold in drill hole SP16-004 is associated with up to 4.5g/t Ag and anomalous values of pathfinder elements such as As, Sb, Se and Hg and forms part of a widespread alteration system with similarities to many highly productive gold systems. Elevated gold values were also returned from drill holes SP16-007 (12.2 metres averaging 0.23g/t Au) and SP16-008 (4.6 metres averaging 0.30g/t Au).

Drilling intersected thick horizons (10s of metres) of strongly silicified and hematite-rich sediments in eight of nine drill holes with the higher gold grades spatially associated with zones of stronger silicification. This alteration assemblage is found underlying much of the original 0.25 square kilometre target area and increases in intensity and thickness eastward beneath gravel cover.

The results from this initial program were successful in identifying the edge of a potentially large auriferous mineralizing system and in particular, showing open vectors to the east of the Phase I drilling which will now be the focus for further surface exploration, geophysical studies and an eight to ten hole, wide-spaced drill program covering an approximate five square kilometre area.

President Lawrence Page Q. C. said, "For some time we have not actively explored the Oro property while we were engaged on expanding the polymetallic resource at Cerro las Minitas in Durango, Mexico where we are currently conducting a 10,000 metre drill program at a cost of US$2 million. Oro remains a most attractive porphyry copper/gold target with distal gold values. We have expanded our land base with the addition of located mineral claims and now intend to vigorously continue exploration for a significant gold resource in the northeastern portion of the property where values of gold discovered to date, are similar to those being mined in other major oxide gold deposits throughout the western United States."

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/ssv1123fig1.pdf.

Table 1: Select gold assays from the 2016 Drill Program

Hole No. From (m) To (m) Interval (m) Au (g/t)
SP16-004 54.9 96.0 41.2 0.42
inc 54.9 64.0 9.1 0.75
SP16-007 6.1 18.3 12.2 0.23
SP16-008 30.5 35.1 4.6 0.30

Analyzed by FA/AA for gold by Skyline Labs, Tucson, Arizona. True Thicknesses unknown due to limited drill information.

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