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Southern Silver Exploration Corp. (TSXV: SSV,OTC:SSVFF) (the "Company" or "Southern Silver") is pleased to report it has reached an agreement to acquire the Puro Corazon mining claim located contiguous to its 100%-owned Cerro Las Minitas project (see Figures 1 and 2 below) from an arms-length third-party.
The Puro Corazon mine, which is operated privately, is currently mining approximately sixty tonnes of ore per day and produces a silver-lead concentrate and a zinc concentrate. Southern Silver will be incorporating Puro Corazon into the much larger Cerro Las Minitas project to unlock significant capital and operating synergies. Southern Silver intends to immediately commence a 12,000-meter infill drilling program at Puro Corazon and then in the first quarter of 2026, commence preparation of an updated Technical Report and Preliminary Economic Assessment ("PEA") in accordance with the provisions of National Instrument 43-101.
Key Transaction Highlights
- Strong Potential for Near-term Resource Growth: infill drilling program to support incremental resource additions for the consolidated Cerro Las Minitas project.
- Capital Efficiency Gains: opportunity to improve capital efficiency through faster access to higher value mineralization, while avoiding development around the Puro Corazon mining claim.
- Enhanced Mine Plan Sequencing: incorporating Puro Corazon material early in the mine plan, given its near-surface and high-grade characteristic, is anticipated to strengthen project economics.
- Improved Project Economics: combination of capital efficiencies, optimized sequencing and potential throughput increases resulting in potential improvements to NPV and IRR.
- Additional Benefits: potential synergies and efficiencies across permitting, environmental management, safety and data collection.
Lawrence Page K. C., Company President, said, "The acquisition of Puro Corazon will allow us to derisk and accelerate the development of Cerro Las Minitas in a capital efficient manner, with significantly enhanced production profile and economics."
Robert Macdonald, Vice President of Exploration, said, "I am excited about the opportunity to begin drilling at Puro Corazon, with numerous high-grade near-surface targets already identified. We have significant historic data from Puro Corazon that will guide exploration and the results of which will be incorporated into an updated PEA, and I am confident that we will be able to add significant value to the Cerro Las Minitas project."
Figure 1: Location of Puro Corazon Claim and Existing Small-Scale Mine and Processing Facility
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Figure 2: Location of Puro Corazon Claim Location Relative to Existing Cerro Las Minitas Deposits
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The Company has been granted the right to acquire the Puro Corazon mining claim from an arms-length vendor in consideration for a series of cash payments to be made over a forty-month period following entering into of a definitive assignment agreement with the vendor. The acquisition does not involve the issuance of any securities of the Company.
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 either directly or through joint-venture relationships in mineral properties in major jurisdictions. 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, Los Gatos, 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. Located in the same State as the Cerro Las Minitas property is the newly acquired Nazas property. Our property portfolio also includes the Oro porphyry copper-gold project and the Hermanas gold-silver vein project where permitting applications for the conduct of a drill program is underway, both located in southern New Mexico, USA.
Robert Macdonald, MSc. P.Geo, is Vice President of Exploration for Southern Silver Exploration Corp., is a Qualified Person as defined by National Instrument 43-101 and supervised directly the collection of data from the Cerro Las Minitas project that is reported in this disclosure and is responsible for the presentation of the technical information in this disclosure.
On behalf of the Board of Directors
"Lawrence Page"
Lawrence Page, K.C.
President & Director, Southern Silver Exploration Corp.
For further information, please visit Southern Silver's website at southernsilverexploration.com or contact us at 604.641.2759 or by email at corpdev@mnxltd.com.
Neither TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking statements. 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. In particular, this press release contains forward-looking information relating to, among other things, the proposed drilling program on the Puro Corazon claim as well as the preparation of a technical report and PEA. These statements are based on a number of assumptions, including, but not limited to, 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 the timing and receipt of government and regulatory approvals, and continued availability of capital and financing and general economic, market or business conditions.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/266683
