Wednesday, October 27, 2021


Southern Silver Broadcasts a Vital Enhance to the Mineral Useful resource at Cerro Las Minitas

To: Indicated 137Mozs AgEq or 2.3Blbs ZnEq: 42.1Mozs Ag, 358Mlbs Pb, and 895Mlbs Zn; andInferred 198Mozs AgEq or 3.3Blbs ZnEq:…

By Staff , in Silver , at October 27, 2021


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

Vancouver, British Columbia–(Newsfile Corp. – October 27, 2021) – Southern Silver Exploration Corp. (TSXV: SSV) (“Southern”) stories that Kirkham Geosystems Ltd. (“KGL”) has accomplished an replace of its unbiased Mineral Useful resource Estimate on the Cerro Las Minitas (“CLM”) undertaking in Durango State, Mexico. The up to date Mineral Useful resource estimate options elevated sulphide assets from two new mineral deposits, a small oxide useful resource in one of many new deposit areas and an replace of the beforehand reported deposits using new metallic pricing and metallurgical recoveries. Useful resource reporting now makes use of a Internet Smelter Return (“NSR”) cut-off, as detailed in Desk 1, and stories common grades on a AgEq, ZnEq and $US/t NSR foundation.

President Lawrence Web page Q.C. acknowledged, “It is a most welcome milestone within the progress of our firm’s improvement of the Cerro Las Minitas silver-lead-zinc property. In Mexican folklore, the property has been referred to as the hill of mines – discrete claims exploited by a number of artisanal miners over time using fundamental exploration and mining strategies. For the reason that buy of the claims in late 2010 we’ve spent some $30 million in acquisition, exploration and improvement culminating within the identification of one of many largest undeveloped silver-based assets on this planet.”

“You will need to be aware that our firm owns a 100% curiosity in all claims comprising CLM with no NSR or different burdens.”

“Exploration continues at CLM whereas a 3rd get together authored Preliminary Financial Evaluation is ready for launch in Q2 2022. This report will inform on potential mining situations, design, metallic processing flowsheet, capital necessities, prices and cashflow for the undertaking. It’s the subsequent milestone within the evolution of a prospect right into a mine.”

“Drilling will quickly start at our Oro copper-gold undertaking in New Mexico with the allowing course of nearing completion and we count on to discover and develop various promising targets recognized via a earlier geophysics program.”

Cerro Las Minitas Useful resource Mannequin Highlights:

In comparison with the 2019 Mineral Useful resource estimate, the 2021 replace, at a US$60/t NSR cut-off, options:

  • A 1.2Mt enhance in Indicated Mineral Assets to 12.3Mt averaging 106g/t Silver, 0.1g/t Gold, 0.2% Copper, 1.3% Lead and three.3% Zinc (347g/t AgEq; 8.4% ZnEq) equalling a US$130/t NSR worth, containing:

42.1 million ounces of silver; 28 thousand ounces of gold; 44 million kilos of copper, 358 million kilos of lead; and 895 million kilos of zinc.

This equates to 137 million ounces silver equal or 2.3 billion kilos zinc equal; and

  • A 6.8Mt enhance in Inferred Mineral assets to 19.6Mt averaging 117g/t Silver, 0.1g/t Gold, 0.2% Copper, 1.2% Lead and a pair of.3% Zinc (314g/t AgEq; 7.6% ZnEq) equalling a US$123/t NSR worth containing:

73.6 million ounces of silver; 78 thousand ounces of gold; 98 million kilos of copper, 500 million kilos of lead; and 1,009 million kilos of zinc (1Blbs Zn).

This equates to 198 million ounces silver equal or 3.3 billion kilos zinc equal.

The brand new Useful resource Estimate incorporates a further 20,991 metres of core drilling accomplished in 2020-21, up to date metallic recoveries and pricing and the incorporation of over 1,127 metres of particular gravity (“SG”) measurements.

Cerro Las Minitas Undertaking Highlights:

  • The up to date NI43-101 Mineral Useful resource estimate considerably will increase the scale of the useful resource on a tonnage foundation by roughly 33%, with a lot of the enhance ensuing from the addition and delineation of the La Bocona and the South Skarn deposits;

  • Newly added assets within the La Bocona deposit whole 1.6Mt Indicated averaging 302g/t AgEq or US$136/t NSR and 1.1Mt Inferred averaging 293g/t AgEq or US$117/t NSR;

  • Newly added assets within the South Skarn deposit whole 3.8Mt Inferred averaging 309g/t AgEq or US$130/t NSR;

  • The Mineral Useful resource replace contains a important enhance in contained silver in each the indicated and inferred classes which now whole Indicated: 42.1Mozs Silver and Inferred: 73.6 Mozs Silver representing an approximate 38% enhance from the 2019 useful resource estimate;

  • The brand new deposits have a a lot stronger Silver-Lead bias leading to typically larger general NSR values for the South Skarn and the Indicated element of the La Bocona useful resource estimates in comparison with earlier useful resource estimates. Equally, silver maintains the next proportion of the general metallic content material of the deposits than in earlier estimates;

  • Increased grade parts of the brand new assets are comparatively shallow and happen inside 300 metres of floor which may probably profit future mining situations;

  • Gold restoration is at present not thought-about within the sulphide NSR calculation. Additional metallurgical work is deliberate to evaluate gold recoveries in each the sulphide and oxidized mineralization;

  • Mineralization in each the South Skarn and Mina La Bocona deposits stays open at depths beneath 500 metres, leaving extra exploration potential. A number of different targets stay un-tested or poorly-tested within the space of the Cerro and can type the premise for additional exploration on the undertaking via 2022;

  • This new Mineral Useful resource estimate will now type the premise for a Preliminary Financial Evaluation (“PEA”), which is predicted to be accomplished by Q2 2022; and

  • Exploration continues on the CLM undertaking. Eight extra holes totalling 2,822 metres have been accomplished within the Space of the Cerro and 5 holes totalling 1,936 metres on the adjoining El Sol Declare. Assays from these holes are pending.

NSR Calculation Parameters

The NSR values have been calculated utilizing common long-term costs of $20/oz. silver, $1,650/oz. gold, $3.25/lb. copper, $1.00/lb. lead and $1.20/lb. zinc. Metallurgical check work recognized three saleable concentrates for the Skarn zones and two from the Blind, El Sol and Las Victorias zones (BESS). NSR values for every focus have been calculated using the parameters summarized in Desk 1 and summed to find out a complete NSR worth for every block.

Solely silver and gold recoveries in dore have been thought-about for the oxide NSR calculations. Gold was not recovered within the sulphide concentrates and is estimated at 70% within the oxide circuit for the needs of this reporting.

All costs are acknowledged in $USD.

Desk 1: Variables thought-about within the NSR calculations for every focus.

Sulfides

Oxides

Merchandise

Pb Focus

Zn Focus

Cu Conc.

Ag-Au leach

Skarn

BESS

Skarn

BESS

Skarn

Pb Restoration

84%

90%

Zn Restoration

95%

78%

Cu Restoration

60%

Ag Restoration

77%

79%

8%

12%

7%

74%

Au Restoration

70%

Payable Metals

Pb, Ag

Pb, Ag

Zn, Ag

Zn, Ag

Cu, Ag

Au, Ag

Focus grade,
(major base metallic)

65%

70%

54%

52%

27%

Transport, Therapy,
Penalty fees, $ dmt

230

267

358

364

183

Base metallic Focus
Grade Deduction

3%

3%

8%

8%

1%

Ag Focus
Grade Deduction, g/t

50

50

93

93

Ag Refining cost, $/oz

0.6

0.6

0.4

Base metallic
Refining, $/lb

0.107

Ag payable

90%

Desk 2: Base-case Sulphide Mineral Useful resource Estimate for CLM Undertaking Using a US$60/t NSR cut-off worth:

Indicated Assets

Common Grade

Zone

Tonnes

Ag

Au

Pb

Zn

Cu

AgEq

ZnEq

NSR

(Kt)

(g/t)

(g/t)

(%)

(%)

(%)

(g/t)

(%)

(US$/t)

Blind Zone

2,347

97

0.04

1.9

2.1

0.11

295

7.2

108

El Sol Zone

1,154

80

0.04

2.2

2.0

0.09

279

6.8

100

Skarn Entrance Zone

7,254

108

0.06

0.8

4.2

0.19

383

9.3

140

La Bocona Zone

1,571

132

0.19

2.2

1.6

0.17

302

7.3

136

Complete

12,325

106

0.07

1.3

3.3

0.16

347

8.4

130

Inferred Assets

Common Grade

Zone

Tonnes

Ag

Au

Pb

Zn

Cu

AgEq

ZnEq

NSR

(Kt)

(g/t)

(g/t)

(%)

(%)

(%)

(g/t)

(%)

(US$/t)

Blind Zone

1,347

83

0.14

1.4

1.8

0.06

248

6.0

88

El Sol Zone

863

65

0.03

1.8

2.3

0.05

263

6.4

90

Las Victorias Zone

1,083

148

0.66

2.1

2.6

0.14

431

10.5

145

Skarn Entrance Zone

11,466

115

0.05

0.7

2.7

0.32

318

7.7

126

South Skarn Zone

3,789

140

0.18

2.0

1.3

0.09

309

7.5

130

La Bocona Zone

1,057

106

0.20

1.3

2.2

0.18

293

7.1

117

Complete

19,605

117

0.12

1.2

2.3

0.23

314

7.6

123

Indicated Assets

Contained Metallic

Zone

Tonnes

Ag TrOz

Au TrOz

Pb

Zn

Cu

AgEq TrOz

ZnEq Lbs

(Kt)

(000’s)

(000’s)

(Mlbs)

(Mlbs)

(Mlbs)

(000’s)

(Mlbs)

Blind Zone

2,347

7,350

3

99

109

5.5

22,291

371

El Sol Zone

1,154

2,956

2

55

51

2.2

10,337

172

Skarn Entrance Zone

7,254

25,106

14

126

678

30.7

89,421

1,490

La Bocona Zone

1,571

6,688

10

77

56

6.0

15,275

255

Complete

12,325

42,100

28

358

895

44

137,323

2,288

Inferred Assets

Contained Metallic

Zone

Tonnes

Ag TrOz

Au TrOz

Pb

Zn

Cu

AgEq TrOz

ZnEq Lbs

(Kt)

(000’s)

(000’s)

(Mlbs)

(Mlbs)

(Mlbs)

(000’s)

(Mlbs)

Blind Zone

1,347

3,582

6

40

55

2

10,749

179

El Sol Zone

863

1,816

1

35

43

1

7,283

121

Las Victorias Zone

1,083

5,152

23

51

62

3

15,006

250

Skarn Entrance Zone

11,466

42,462

18

177

687

80

117,065

1,951

South Skarn Zone

3,789

17,007

22

167

112

7

37,660

628

La Bocona Zone

1,057

3,589

7

30

51

4

9,950

166

Complete

19,605

73,610

78

500

1,009

98

197,712

3,295

1) The present Useful resource Estimate was ready by Garth Kirkham, P.Geo., of Kirkham Geosystems Ltd.

2) All mineral assets have been estimated in accordance with Canadian Institute of Mining and Metallurgy and Petroleum (“CIM”) definitions, as required underneath Nationwide Instrument 43-101 (“NI43-101”).

3) Mineral assets have been constrained utilizing steady mining items demonstrating cheap prospects of eventual financial extraction.

4) Silver Equivalents have been calculated from the interpolated block values utilizing relative recoveries and costs between the element metals and silver to find out a closing AgEq worth. The identical methodology was used to calculate the ZnEq worth.

5) Silver Equivalents and NSR$/t values have been calculated utilizing common long-term costs of $20/oz. silver, $1,650/oz. gold, $3.25/lb. copper, $1.0/lb. lead and $1.20/lb. zinc. Metallic recoveries, payables and deductions are reported in Desk 1. All costs are acknowledged in $USD.

6) Mineral assets will not be mineral reserves till they’ve demonstrated financial viability. Mineral useful resource estimates don’t account for a useful resource’s mineability, selectivity, mining loss, or dilution.

7) An Inferred Mineral Useful resource has a decrease degree of confidence than that making use of to an Indicated Mineral Useful resource and should not be transformed to a Mineral Reserve. It’s moderately anticipated that almost all of Inferred Mineral Assets might be upgraded to Indicated Mineral Assets with continued exploration.

8) All figures are rounded to replicate the relative accuracy of the estimate and due to this fact numbers could not seem so as to add exactly.

Oxide Assets

A small oxide useful resource was recognized inside the higher 100 metres of floor within the La Bocona zone. The 2021 oxide assets at a US$60/t cut-off are:

An Indicated Mineral useful resource totalling 65,000 tonnes averaging 28g/t Ag and a pair of.2 g/t Au equalling a US$93/t NSR worth, containing:

58,000 ounces of silver and 4,500 ounces of gold.

An Inferred Mineral useful resource totalling 219,000 tonnes averaging 120g/t Ag and 0.8g/t Au equalling a US$88/t NSR worth, containing:

844,000 ounces of silver and 5,600 ounces of gold

A 74% silver restoration was utilized within the useful resource mannequin and was primarily based on acid-leach check work performed on samples from the Blind – El Sol zone. Gold restoration has been estimated at 70% for the needs of this report. Additional metallurgical check work is required to substantiate the gold restoration from the La Bocona oxides.

Desk 3: Base-case Oxide Mineral Useful resource Estimate for CLM Undertaking Using a US$60/t NSR cut-off worth:

Common Grade

Contained Metallic

La Bocona

Tonnes

Ag

Au

NSR

Ag TrOz

Au TrOz

(kt)

(g/t)

(g/t)

(US$/t)

(koz)

(koz)

Indicated

65

28

2.2

93

58

4.5

Inferred

219

120

0.8

88

844

5.6

Notes: The $60/t NSR cut-off worth was calculated utilizing common long-term costs of $20/oz. silver, $1,650/oz. gold. Base metals weren’t recovered within the leach circuit. Metallurgical work from batch check work recovered 74% silver from oxidized composites from the Blind – El Sol zones. Gold restoration was not assessed and is estimated at 70% for the needs of this report. This work, together with advertising research, have been used to determine the NSR cut-off worth. All costs are acknowledged in $USD.

Mannequin Parameters

Six separate mineral deposits have been modelled within the useful resource estimate, 4 deposits in 2019 and two in 2021. The Blind, El Sol and Las Victorias deposits type units of sub-parallel, northwest-trending and steeply dipping mineralized zones that are traced for over 1300 metres strike and as much as 600 metres depth. The Skarn Entrance kinds beneath the Blind, El Sol and Las Victorias deposits and is localized on the outer fringe of the skarn alteration zone surrounding the Central Monzonite Intrusion and has been drilled alongside an approximate 1100 metre strike size and to depths of as much as 1000 metres.

Equally, the South Skarn Zone is localized on the outer fringe of the skarn alteration zone surrounding the Central Monzonite Intrusion, however on the japanese facet. The deposit kinds a tabular, steeply east-dipping physique that has a strike size of roughly 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 can also be localized on the outer fringe of the skarn alteration zone surrounding the Central Monzonite Intrusion, however on the North facet, wrapping across the Northeastern Margin. The higher a part of the Muralla zone is strongly oxidized and is the premise of the quoted oxide useful resource.

A NI 43-101 Technical Report shall be posted on SEDAR inside 45 days.

Mineral Assets that aren’t Mineral Reserves wouldn’t have demonstrated financial viability. Inferred Assets are thought-about too speculative geologically to have financial issues utilized to them that will allow them to be labeled as Mineral Reserves. An Inferred Mineral Useful resource has a decrease degree of confidence than that making use of to an Indicated Mineral Useful resource and should not be transformed to a Mineral Reserve. It’s moderately anticipated that almost all of Inferred Mineral Assets might be upgraded to Indicated Mineral Assets with continued exploration.

Mineral Useful resource Estimate Parameters for the South Skarn and Bocona Zones

  • The estimate was carried out utilizing separate block fashions for the Bocona and South Skarn Zones constrained by 3D wireframes of the person mineralized zones. The block mannequin is comprised of an array of blocks measuring 10m x 3m x 10m that are sub-blocked to 0.5m x 0.3m x 0.5m, with grades for Ag, Au, Cu, Pb and Zn interpolated utilizing Inverse Distance to the Second Energy (ID2) weighting. NSR/t, silver equal and zinc equal values have been subsequently calculated from the interpolated block grades.

  • The interpolation was carried out in two passes utilizing progressively bigger search radii of 60m x 60m x 30m to a most of 100m x 100m x 50m for all zones except the La Bocona Skarn zone the place the second go was restricted to 60m x 15m x 25m at an orientation of 60 levels perpendicular to strike and -80 levels down dip. The primary go was restricted to a minimal of two and a most of 12 composites, with a most of 4 composites from anyone drill gap (i.e. a minimal of two drill holes required for >4 composites) whereas the second go was extra restrictive utilizing a minimal of three and a most of 9 composites, with a most of three composites from anyone drill gap.

  • Bulk densities at La Bocona have been primarily based on a complete of 418 pattern interval measurements taken by Southern subject personnel. For every pattern interval, sub-samples have been taken from every particular person size of core and the weighted common for the pattern used. Density values ranged from 1.9 t/m3 to 4.73 t/m3. Bulk densities at Skarn South have been primarily based on a complete of 387 pattern interval measurements the place density values ranged from 1.51 t/m3 to 4.35 t/m3. Density values have been interpolated on a block-by-block foundation utilizing an inverse distance to the second energy. A mean worth of two.97 t/m3 was assigned to blocks that weren’t interpolated.

  • Silver composite values have been capped as a way to take away the consequences of potential overestimation on account of statistical outliers. The edge chosen was 700 g/t silver for each La Bocona and South Skarn. As well as, outlier values for the co-product metals have been capped on the threshold ranges of 5 g/t gold, 1.4% copper, 15% lead and 10% zinc at La Bocona and a pair of.5 g/t gold, 0.5% copper, 15% lead and eight% zinc at South Skarn, respectively.

  • The mineralized zones have been initially outlined by Southern personnel and subsequently validated and refined by KGL. The mineralized wire frames have been outlined utilizing a mix of geological constraints and grade boundaries with no minimal mining thickness utilized. Intervals that weren’t sampled have been assigned a zero grade.

  • For all zones, blocks are labeled as Inferred if they’re included inside 75m of no less than one drill gap intercept. Blocks inside 40m of the closest intercept, and estimated by no less than two drill holes have been labeled as Indicated. Nonetheless, an interpreted boundary is the ultimate dedication of indicated and inferred assets as a way to take away outlier blocks and the “noticed canine” impact. As well as, steady probably underground mining panels have been created to display “cheap prospect of eventual financial extraction.”

Certified Individuals

The unbiased Certified Particular person for the mineral useful resource disclosure for the undertaking is Garth Kirkham, P.Geo., Principal, Kirkham Geosystems Ltd., who has reviewed and accepted the contents of this launch.‎ In accordance with Nationwide Instrument 43-101 Requirements of Disclosure for Mineral Initiatives, Robert Macdonald, P.Geo, Vice President Exploration, is the Certified Particular person for the Firm and has validated and accepted the technical and scientific content material of this information launch.

Threat Components

Southern Silver is conscious this undertaking is topic to the identical sorts of dangers that enormous treasured and base metallic tasks expertise at an early stage of improvement in Mexico. The Firm has engaged skilled administration and specialised consultants to determine, handle and mitigate these dangers. Nonetheless, the sorts of dangers will change because the undertaking evolves and extra info turns into obtainable.

Additional particulars concerning the foregoing estimate, together with the estimation strategies and procedures, shall be detailed within the pending NI 43-101 Technical Report, which shall be filed on SEDAR (www.sedar.com) underneath the Firm’s profile inside 45 days from the date of this information launch.

About Southern Silver Exploration Corp.

Southern Silver Exploration Corp. is an exploration and improvement firm with a deal with the invention of world-class mineral deposits. Our particular emphasis is the 100% owned Cerro Las Minitas silver-lead-zinc undertaking situated within the coronary heart of Mexico’s Faja de Plata, which hosts a number of world-class mineral deposits comparable to Penasquito, San Martin, Naica and Pitarrilla. We’ve got assembled a crew of extremely skilled technical, operational and transactional professionals to assist our exploration efforts in growing the Cerro Las Minitas undertaking right into a premier, high-grade, silver-lead-zinc mine.

The Firm’s property portfolio additionally contains the Oro porphyry copper-gold undertaking situated in southern New Mexico, USA, which incorporates patented land, State leases and BLM mineral claims totalling 22.3 sq. km. Concentrating on has been finalized and bonding pending for a 4,000m drill program, designed to check a number of copper-molybdenum porphyry and copper-gold skarn targets inside a broad quartz-sericite-pyrite alteration zone, interpreted to overlie an unexposed porphyry centre. Allowing is within the closing phases with drilling anticipated to start in Q1, 2022.

On behalf of the Board of Administrators

“Lawrence Web page”

Lawrence Web page, Q.C.
President & Director, Southern Silver Exploration Corp.

For additional info, please go to Southern Silver’s web site at southernsilverexploration.com or contact us at 604.641.2759 or by e mail at [email protected]

Neither TSX Enterprise Trade nor its Regulation Companies Supplier (as that time period is outlined within the insurance policies of the TSX Enterprise Trade) accepts duty for the adequacy or accuracy of this launch.

This information launch could comprise forward-looking statements. Ahead-looking statements handle future occasions and circumstances and due to this fact contain inherent dangers and uncertainties. Precise outcomes could differ materially from these at present anticipated in such statements. Components that would trigger precise outcomes to vary materially from these in forward-looking statements embody the timing and receipt of presidency and regulatory approvals, and continued availability of capital and financing and common financial, market or enterprise circumstances. Southern Silver Exploration Corp. doesn’t assume any obligation to replace or revise its forward-looking statements, whether or not on account of new info, future occasions or in any other case, besides to the extent required by relevant legislation.

To view the supply model of this press launch, please go to https://www.newsfilecorp.com/launch/100961



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