Southern Silver Exploration Corp. ("Southern Silver") reported today that equipment has mobilized and a new phase of diamond drilling has started on the Cerro Las Minitas Project, Durango Mexico.
Freeport-McMoRan Exploration Corporation (FMEC) continues to finance Southern Silver's exploration on the property and provide input on exploration programs. The current program follows the second phase of drilling, completed in late January 2014, which was successful in identifying additional high-grade Ag-Pb-Zn mineralization at depth in the El Sol zone from hole 13CLM-071 and a potential new target along the southwestern margin of the central intrusive in the area of hole 13CLM-073 (see NR-01-14; February 27, 2014).
Current plans are for approximately 2,000 metres of core drilling in three or more holes designed to test at depth several previously identified copper anomalies on the project. These include an extension of drill hole CLM-073, which terminated in anomalous copper mineralization at 708 metres depth; and a down-dip test of copper mineralization at the North Skarn target (CLM-003: 16.6 metres averaging 56g/t Ag, 0.8% Cu, 0.5%Pb and 1.6% Zn). Additional holes are planned for a deep test of the central intrusive and its southern margin (South Skarn target).
Since execution of an earn-in agreement on the Cerro Las Minitas project in October 2012, Southern Silver's Mexican subsidiary, Minera Plata del Sur, S.A. de C.V., has completed 5,500 metres of diamond drilling, conducted soil and vegetation geochemistry surveys and a Reconnaissance IP (RIP) geophysical survey over the entire 15,125 hectare property. Additional lines of deep-penetrating IP geophysics and a Gravity survey were completed over the area of historic mining which has led to the development of several new targets on the property.
FMEC has been providing funding to Southern Silver for Minera Plata del Sur's exploration of the property since October 2012 and holds an option to earn a 70% indirect interest in the project by paying Southern Silver both option payments and program funding that could reach $25 million on the project over a ten year period if FMEC does not terminate earlier. Included in the gross interest is an initial 51% interest to be earned in the first three years of the agreement by expenditure of $5 million. To date, FMEC has provided Southern Silver funding of approximately $4,100,000 for option payments and applicable taxes, and to fund exploration of the property.
Engagement of Golden Capital
Southern Silver has engaged Golden Capital Consulting Ltd. ("Golden Capital") to assist in formulating a capital markets strategic plan in Europe for an initial term of 12 months. Southern Silver has agreed to compensate Golden Capital with quarterly share issuances each valued at $25,000 using the Discounted Market Price of such shares (as determined in accordance with the policies of the TSX Venture Exchange) and each such share issuance is subject to TSX Venture Exchange acceptance. 500,000 common shares have been issued in respect of the first quarter and are subject to a hold period expiring July 25, 2014. Pursuant to the engagement, Southern Silver has also granted Golden Capital 500,000 incentive stock options at an exercise price of $0.05 for a term of 60 months.
About Southern Silver Exploration Corp.
Southern Silver Exploration Corp. is a precious and base metal exploration and development company, and a member of the Manex Resource Group; a private company comprised of an exceptional multi-disciplinary team of professionals with specific expertise in all areas of exploration, development, corporate finance and public company administration.
The company's growth strategy is to acquire, explore and develop either directly or through joint venture relationships high-quality mineral properties in progressive jurisdictions within North America including Southern Silver's silver-lead-zinc Cerro Las Minitas project located in Durango, Mexico. Freeport-McMoRan Exploration Corporation currently holds an option to earn a 70% indirect interest in the project by making staged purchase payments and funding exploration and development expenditures of $25 million on the project over a ten year period.
Desert Star Resources Ltd. has the option to earn up to a 70% interest in the gold-silver-copper Oro project in New Mexico by making cash payments to underlying optionors, issuing one million shares, completing a preliminary economic assessment and incurring exploration expenditures of $6 million on the property over a period of 66 months. Southern Silver is currently advancing the porphyry copper-molybdenum Dragoon project in Arizona.
Robert Macdonald (P.Geo) is a Qualified Person as defined by National Instrument 43-101 and is responsible for the compilation and review of the technical content of this release.
On behalf of the Board of Directors
Lawrence Page, Q.C., President & Director, Southern Silver Exploration Corp.