Precious Metals

Southern Silver Exploration Corp. (TSXV: SSV) ("Southern Silver") reports results from its Preliminary Economic Assessment ('PEA") on its 100% owned Cerro Las Minitas project ("CLM"). 

PEA Highlights (all figures in $US unless otherwise noted):

Robust Project Economics - Base Case: after-tax NPV5% of $349M (C$450M) and IRR of 17.9% (using Ag- $21.95/oz, Cu - $3.78/lb, Pb - $0.94/lb and Zn - $1.33/lb);

Excellent Silver and Zinc Price Leverage - Base-case +15%: after-tax NPV5% of $561M (C$730M)and IRR of 24.4% (Ag- $25.24/oz, Cu - $4.35/lb, Pb - $1.08/lb and Zn - $1.53/lb);

Large-Scale Underground Mining Operation with a 15-year mine life with an annual average plant feed of 14.2 MozsAgEq (inc. 5.8 Mozs Ag) at an AISC of $13.27/oz AgEq sold;

High-Revenue Project: Base Case gross revenues total US$3.7B with silver representing 42% of revenues, zinc representing 39% of revenues. The project has an Initial CapEx of $341M and an NPV-to-CapEx ratio of 1.0X;

Well Located Project in a mining friendly jurisdiction with excellent infrastructure in southeast Durango state, Mexico; and

Further Exploration Upside: Drilling through to August 2022 has confirmed mineralized extensions to the Mina La Bocona and Skarn Front deposits that have not been incorporated into the current Resource Model. Other deposits remain open laterally and to depth and remain to be explored

Lawrence Page. Q. C. President, said: "Cerro las Minitas is aptly named in Mexico as the "Hill of Mines" and is located in the Faja de Plata or "Silver Belt" of northern Mexico where numerous silver and base metal mines have been developed and are currently operating. This location is significant since all the elements necessary to establish a mine are present in infrastructure, competent work force, access to transportation, miner-friendly legislation, power and access to mills and smelters and an environment amenable for year-round operations.

The PEA modelling is based upon a Mineral Resource Estimate prepared in late 2021 with data derived from 171 drill holes. Since that time, twenty-four additional drill holes have been completed resulting in the identification of a further 400 metres of mineralized strike-length and additional value added. The property remains under-explored and the current PEA, with details disclosed in this news release, presents the outline of a large-scale, underground, silver and base metal mine with robust economics which can only grow larger and more valuable as drilling continues to define additional high - grade mineralization.

Since acquisition of the property in 2010 and subsequent identification of the mineral resources, a very profitable and valuable mine has been modelled in the results of the PEA disclosed today. Total acquisition, exploration and development costs are approximately $35 million and significantly, the property is not burdened with royalties, presenting potential financing opportunities for additional drilling and development work on the property. This presentation of the results of the PEA marks a significant milestone in the development of the property and 'the best is yet to come' ".

PEA SUMMARY:

Study support

  • The study is based on the Mineral Resource Update ("Resource") by KGL, as of October 27th 2021, using a $60NSR/t cut-off:
    • Indicated - 12.3Mt averaging 106g/t Ag, 0.16% Cu 1.3% Pb, and 3.3% Zn totaling 42.1Moz Ag, 44Mlb Cu, 358Mlb Pb and 895Mlb Zn; and
    • Inferred - 19.6Mt averaging 117g/t Ag, 0.23% Cu, 1.2% Pb and 2.3% Zn totaling 73.6Moz Ag, 98Mlb Cu, 500Mlb Pb and 1,009Mlb Zn.
      (see Appendices for Resource details)
  • Only sulphide mineralization was included in the study;
  • The PEA project team included Kirkham Geosciences Ltd. ("KGL"), M3 Engineering & Technology Corp. ("M3"), Entech Mining Limited ("Entech"), and Metallurgical Process Consultants Limited ("MPC"); and
  • Base Case PEA metal price assumptions: Ag = $21.95/oz, Cu = $3.78/lb, Pb = $0.94/lb, Zn = $1.33/lb.

Cautionary Statement

The PEA is preliminary in nature, it may include mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized. Mineral resources that are not mineral reserves have not demonstrated economic viability. The mineral resources may be affected by subsequent assessment of mining, environmental, processing, permitting, taxation, socio-economic, and other factors.

Project Economics

The CLM project demonstrates robust LOM revenues over 15 years of production and after-tax Net Present Value at a 5% discounted rate (NPV5%) of $349M. Projected maximum cash outlay for the project is estimated to be US$341M and project payback is approximately 60 months.

Table 1: CLM Project Economics

ItemUnitsBase Case
Revenue $M US$3,705
Total Costs (excl. income tax and EBITDA royalty)$M US$2,581
LOM pre-tax cash flow$M US$1,124
LOM after-tax cash flow$M US$696
   
NPV pre-tax (5% Discount)$M US$619
NPV pre-tax (10% Discount)$M US$336
IRR pre-tax%25.4%
   
NPV after-tax (5% Discount)$M US$349
NPV after-tax (10% Discount)$M US$156
IRR After Tax%17.9%
   
Max Cash Outlay$M US$341
   
Payback (discounted, after-tax)months60

 

After-Tax, Free Cash Flow

Figure 1 illustrates the estimated annual and cumulative after-tax cash flow over the life-of-mine ("LOM"). Mine scheduling targets higher margin mineralization in the first eight years of production leading to a more aggressive paydown of capital and improved economics.

Figure 1: Annual and LOM after-tax Cash Flow

Cannot view this image? Visit: https://images.newsfilecorp.com/files/5344/135230_a6c73f215430abf0_003.jpg

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/5344/135230_a6c73f215430abf0_003full.jpg

Economic Sensitivities

The Project's gross revenues, NPV5% and IRR shows greatest sensitivity to metal prices.

Table 2: Gross Revenue, NPV5% and IRR sensitivity at base-case and +/- 15% pricing

All Metal Price (Ag, Cu, Pb, Zn) Sensitivity
Metal PriceRevenue (US$M)NPV, after tax @ 0% (US$M)NPV, after tax @ 5% (US$M)IRR, after Tax
Base Case$3,705$696$34917.9%
 +15%$4,261$1,024$56224.4%
-15%$3,149$368$13710.6%


Note: Base Case price assumes Ag = $21.95/oz, Cu = $3.78/lb, Pb = $0.94/lb, Zn = $1.33/lb

Other factors that may impact the NPV sensitivity include changes in silver and zinc metal recoveries, OpEx and Initial Capital. These relative impacts together with changes in silver and zinc prices are shown in Table 3 and Figure 2.

Table 3: NPV sensitivity as a function of select metals prices, recoveries, CapEx and OpEx:

Sensitivity NPV @ 5%, after Tax (US$M)
SensitivitySilver PriceZinc PriceSilver in Pb RecoveryZinc RecoveryInitial CapitalOPEX
20%$468$460  $286$240
15%$438$432  $302$268
10%$408$404$405$387$318$295
5%$379$377$377$368$333$322
0%$349$349$349$349$349$349
-5%$320$321$321$330$365$376
-10%$290$294$293$311$381$403
-15%$260$266$265$292$396$431
-20%$231$239$236$273$412$458


Note: +15% and +20% Silver and Zn recoveries are not applicable

Figure 2: After-tax NPV5% sensitivities

Cannot view this image? Visit: https://images.newsfilecorp.com/files/5344/135230_a6c73f215430abf0_006.jpg

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/5344/135230_a6c73f215430abf0_006full.jpg

Production and Costs:

Potential annual mine production is estimated to deliver 14.2 Moz AgEq (includes 5.8 Mozs Ag) to the processing facility averaged over a 15-year period. Potential annual saleable product in concentrate, which excludes treatment and refining, is estimated to average 12.7 Moz AgEq (includes 5.3 Moz Ag) with annual product of sales (net deductions, treatment and refining) averaging 11.3 Moz AgEq (includes 4.7 Mozs Ag).

Peak annual Plant Feed is achieved in Year 8 with 22.7 Mozs AgEq (includes 8.2 Moz Ag) being mined with peak annual saleable product in concentrate of 20.7 Moz AgEq (includes 7.5 Moz Ag), and peak annual product of sales of 18.0 Moz Ag Eq (includes 6.7 Moz Ag). Table 4 summarizes the estimated metal production from the CLM project.

Table 4: CLM LOM Production and Metal Sales

 UnitsY1-8LOM
AgEq Plant Feed (Yearly Average)(Moz)16.814.2
AgEq Saleable Product (Yearly Average)(Moz)15.212.7
AgEq Product of Sales (Yearly Average)(Moz)13.411.3
AgEq Plant Feed (Total)(Moz)134.8213.6
AgEq Saleable Product (Total)(Moz)121.4190.4
AgEq Product of Sales (Total)(Moz)107.5168.8
All-In Sustaining Cost (AISC)(US$/AgEq oz)$12.73$13.27
includes Contained Silver   
 UnitsY1-8LOM
Ag Plant Feed (Yearly Average)(Moz)6.95.8
Ag Saleable Product (Yearly Average)(Moz)6.35.3
Ag Product of Sales (Yearly Average)(Moz)5.64.7
Ag Plant Feed (Total)(Moz)55.286.4
Ag Saleable Product (Total)(Moz)50.679.1
Ag Product of Sales (Total)(Moz)45.270.8


Note: AgEq was determined assuming only base case metal pricing

Mine Schedule and All-In-Sustaining-Cost (AISC)

Mine scheduling targets higher value silver-lead production in the first 8 years of mine life with lower AgEq grading material (zinc-copper dominant) being targeted in the final 7 years. Total plant feed (mine production) is estimated to be 213.6 Mozs AgEq (includes 86.4 Mozs Ag) with 168.8 Moz AgEq (includes 70.8 Moz Ag) being sold. Total all-in sustaining costs ("AISC") are estimated to be $US 2.24B, averaging $US 91.61/t mined or $US10.49/oz AgEq plant feed, US$11.76/oz AgEq for saleable product and $US13.27/oz AgEq sold. LOM production and AISC are illustrated in Figure 3.

Figure 3: LOM AgEq sales and AISC:

Cannot view this image? Visit: https://images.newsfilecorp.com/files/5344/135230_a6c73f215430abf0_008.jpg

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/5344/135230_a6c73f215430abf0_008full.jpg

OPERATIONS:

Mining:

The mine plan was completed by Entech and incorporates longitudinal and transverse longhole stoping methods. Two separate portals are proposed to access the various deposits, with one portal accessing the Blind-El Sol and Skarn Front deposits, and a second portal accessing the La Bocona and South Skarn deposits. The process in creating the mine plan is further described below:

  • Datamine® Mineable Stope Optimizer ("MSO") was used to produce shapes for mine planning purposes. The Resource model from October 27, 2021 by Kirkham Geosciences Ltd. was used for the evaluation and MSO analyses considered a preliminary cut-off value of $US 64/t NSR;
  • MSOs considered minimum mining width of 3.0 m minimum mining width (inclusive of 1.0 m width for unplanned dilution in rock), 25 m sub-levels, and 20 m strike lengths;
  • A total of 24.5 million tonnes averaging $US 128/t NSR (109 g/t Ag, 0.20 % Cu, 1.07 % Pb, and 2.57 % Zn) was sent to the processing facility, representing a conversion of approximately 78% of the Resource at a $US 64/t cut-off value;
  • Depending on the width of the stope and the strike of continuous sections of wider zones, transverse stoping was selected and mined bottom-up. For predominately narrower zones (typically less than 18m) longitudinal stoping was selected and mined either top-down or bottom-up depending on location and timing of development. Overall, the average stope width by tonnage was 16.5 m;
  • Detailed geotechnical analysis including hydrogeological modelling is to be completed in further studies of the deposit. The assumptions made for the study included that longhole stoping would be an appropriate method for this Preliminary Economic Assessment. An equivalent linear overbreak slough (ELOS) was assumed to be 1.0m (0.5m from each wall) and additional dilution for mining of backfill was considered. Backfill dilution was varied depending on exposure, with 1.0m considered from the backs (top-down), 0.25m from the floor (bottom-up), 0.5m from the far wall (longitudinal stoping), and 0.5m from one adjacent wall (transverse stoping mined centre-out);
  • A stope recovery factor of 93% and development recovery factor of 97% was considered.

The grade and average stoping widths are illustrated in Figure 4 and Figure 5 respectively.

Figure 4: US$NSR/t grade distribution of the Cerro Las Minitas MSO model - looking northeast

Cannot view this image? Visit: https://images.newsfilecorp.com/files/5344/135230_a6c73f215430abf0_009.jpg

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/5344/135230_a6c73f215430abf0_009full.jpg

Figure 5: Average Stope Width of the Cerro Las Minitas MSO model - looking northeast

Cannot view this image? Visit: https://images.newsfilecorp.com/files/5344/135230_a6c73f215430abf0_010.jpg

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/5344/135230_a6c73f215430abf0_010full.jpg

Processing:

The process plant for the base-case PEA-level study is a conventional sulphide flotation system consisting of:

  • Primary crushing, a 15,000 tonnes ROM stockpile, reclaim and secondary crushing, closed-circuit ball mill grinding and sequential Cu-Pb-Zn (each with rougher-regrind-cleaner stages) flotation circuit producing three filtered concentrates for sale;
  • Sulphide tails are dry sequestered for potential future recovery of refractory gold;
  • Barren tailings to Paste Plant for underground mine cement backfill with the surplus, dry-stacked to surface
  • Design Annual Throughput of 1,642,500 tonnes based on nominal 4,500 tpd throughput and 5,500 tpd instantaneous throughput. (92% availability LOM).

Head grades:

MSO scheduling successfully prioritized higher grade material to the mill earlier in the mine life resulting in higher heads grades (and associated annual revenue) in the first eight years of production as compared to the final 7 years.

Similarly, processed tonnes averages 1.79 million tonnes in the first eight years of mine life and 1.44 million tonnes in the final 7 years.

Table 5: Head grade over Yr1-8 and LOM

HEAD GRADESUnitsY1-8 AverageLOM
Avg. Annual Plant Feed(kt)1,7911,630
Ag(g/t)120110
Cu(%)0.140.20
Pb(%)1.41.1
Zn(%)2.82.6
AgEq(g/t)293272

 

Recoveries and Tailings:

  • Only sulphide mineralization was included in the mine model. Average grades are reported above.
  • A series of Batch/Locked cycle testwork/variability testwork programs conducted between 2018 and 2022 confirmed that the Cu-Pb-Zn sequential flotation flowsheet would be appropriate for processing all the sulphide mineralization from the deposit.
  • Circuit design based on high Eh stainless grinding media and optimised reagent selection for sequential flotation which maximizes base metal grades and recoveries while minimizing misplacement of base metals to other concentrates.
  • While mining progresses through various geo-metallurgical ore types, the plant is designed to handle wide variations in both grade and sulphide mass pull. The LOM data indicates that 75% -80% of the mined tonnage is Skarn Front type ore, and the tabled grades reflect this averaging.
  • Recent testwork confirmed that arsenic elimination from the zinc circuit allows generation of a pyrite/arsenopyrite-rich concentrate containing 80% of the ROM gold to be produced. This material is to be filtered and sequestered for possible future recovery of the refractory gold.
  • Non-sulphide tailings surplus to the backfill requirements are dry stacked in a suitable area some 1000m NW of the process plant.

CONCENTRATE TERMS:

Metal Payables

The project is expected to produce three clean, high-quality concentrates with minimal penalty elements as established in Southern Silver's metallurgical test work. Southern Silver utilized Industry standard payables and deductions.

Approximately 91% of Ag is recovered with 84 % reporting to the Pb concentrate.

Table 6: Metal Recoveries established for the PEA

ItemPb Conc.Zn Conc.Cu Conc.
Pb Recovery88%  
Zn Recovery 93% 
Cu Recovery  60%
Ag Recovery84.3%7.3% 
Concentrate Grade (Primary Base Metal)65%53%27%

 

Refining and Treatment:

Treatment and refining charges were based on consultation with industry professionals and generated the terms indicated below:

Table 7: Refining and Treatment

 AgCuPbZn
Cu Concentrate    
Average Concentrate Grade LOM-27%--
Payable Metal-95%--
Minimum Deduction 1 unit  
Pb Concentrate    
Average Concentrate Grade LOM6,350g/t-64.90%-
Payable Metal95%-95%-
Minimum Deduction50g/t-3 Units-
Zn Concentrate    
Average Concentrate Grade LOM179g/t--53.50%
Payable Metal70%--85%
Minimum Deduction3oz/t--8 units


The high Ag grade in the Pb concentrate makes it attractive to smelters and could result in more favourable treatment terms, but these have not been considered at the PEA level. Penalty elements are low, with Cd (in solution with Zn) ($49/t conc.) being the major contributor to Zn penalties, and Sb (in solution with Pb) being the major source of Pb penalties ($27/t conc). Arsenic present in 2020 concentrates was removed in 2022 testwork, but an allocation of $14.60/t Pb concentrate is still provided for in the PEA.

Concentrate Transportation:

Transportation costs assume trucking of the concentrate via containers to the international port at Manzanillo, Colima, and then shipping via ocean freight to Asia. Estimated transportation costs (trucking, port handling and ocean freight) are US$96/wmt (wet metric tonnes) for Pb concentrate and US$106/wmt for Zn concentrate. Moisture contents are assumed to be 8.5% based on the grind size of the final concentrates.

CAPITAL EXPENDITURES:

Total initial capital investment in the project is estimated to be $341.0 million and includes $55 million contingency, which represents the total direct and indirect cost for the development of the project, including associated infrastructure.

Table 8: Capital Expenditure break down.

ItemTotal ($M)
Process Plant and Infrastructure 
Project Directs including freight$185
Project Indirects$35
Contingency$55
Sub-Total$275
Process Pre-production$3
Mining 
Pre-Production Capital Costs$63
Total Initial Capital Costs$341
Sustaining Capital$168
Total Capital Costs$509

 

The initial Capex of $275M was distributed in the Cash Flow model using a 40% (Yr -2), 55% (Yr -1), 5% (Yr 1) methodology.

Mining development costs were developed by Entech considering a mining contractor model. Total capital costs including sustaining capital allocated to mining are approximately $US228M comprising of the following:

Table 9: Mining Capital Breakdown

ItemTotal (US$M)
Initial Development$35
Sustaining  Development$104
Capitalised OpEx$23
Equipment Purchases/Rebuilds$29
Projects $37
Total  Mining Capital  Costs$228
  • Initial development costs are approximately $US 35M;
  • Sustaining development are approximately $US 104M;
  • Reallocated operating expense of $US 23M.
  • Contractor mobilization, equipment purchases and half-life rebuilds (pumps, primary and auxiliary fans, compressors, and substations) are approximately $US 29M;
  • Initial project capital expenses (portals, primary fans, initial pump stations, refuge chambers, etc. plus a 25% contingency) are approximately $US 37M; and,
  • Total lateral capital development cost of $US 5,705 /m and includes a reallocation of operating expense to capital of $US 701 /m;
    - Direct costs of $3,749 /m and indirect costs of $US 1,255 /m.

OPERATING COSTS

Operating costs are broken down into Mining, Processing, G&A and Treatment and Refining costs, plus additional production charges including government royalty, employee profit sharing and closure expenses. Operating costs were developed by M3 and Entech (Mine Operating Cost).

Table 10: Operating cost breakdown on a per tonnage basis

AreaUS$/mt ore processed
Mine Operating Cost$38.74
Process Plant Operating Cost$15.12
G & A$3.59
Treatment & Refining Charges$22.66
Operating Cost$80.10
Royalties - Revenue$0.32
PTU-Profit Sharing$4.15
Closure & Salvage Value$0.17
Other Production Cost$4.63
Total $84.74​

 

Mining:

The operating costs reflect a contractor mining option which defers capital but utilizes the experience of a contractor for initial construction and development of the mine. Mining considers a modern and large operation using large 21-t loaders and 63-t capable trucks targeting an average daily plant feed of approximately 4,500 tpd (peak of 5,200 tpd averaged for Year 5) and 5,200 tpd when including waste development (peak of 6,100 tpd in Years 2-4). Mining costs are developed by Entech and are from Entech's cost database which includes pricing from mining contractors.

Table 11: Production and Development Breakdown

ItemTotal (US$)Total (US$/t)
Development$140$5.71
Production$808$33.03
Total Production and Development Costs$947$38.74

 

Operating costs are summarized as follows and are appropriate for a Preliminary Economic Assessment:

  • Total underground mining operating costs are approximately $US 947M at an average of $US 38.74/t;
  • Operating development (including non-capital waste development) of $US 2,852/m (direct costs of $US 2,505 /m) and averages on a per tonne basis of $US 5.71/t;
  • Production costs of $US 33.03/t of which $US 24.71 are direct costs and $US 8.32/t are indirect costs which includes labour (mine management/technical services), maintenance, power, and other costs.

Processing and G+A costs:

The process plant for the base-case PEA-level study is a conventional sulphide flotation system consisting of both primary and secondary crushing, a closed-circuit ball mill grinding and sequential Cu-Pb-Zn flotation circuit producing three filtered concentrates for sale. Operating costs are as follows:

Table 12: Breakdown of Process Plant Operating cost

Operating & MaintenanceUS$/mt ore processed
Labor$1.35
Electrical Power$4.45
Reagents$5.08
Liners/Grinding Media$1.31
Maintenance Parts$1.60
Supplies and Services$1.33
Total (US$)$15.12

 

G&A costs reflect a well-located project in an area of excellent infrastructure and immediately adjacent to the town of Guadalupe Victoria (population: ~35,000).

Table 13: Breakdown of G&A cost

ItemUS$/mt ore processed
Labor$0.95
IT/Communications$0.50
HR/Safety/Social$0.68
Property/Security$0.96
Legal/Finance/Accounting$0.50
Total$3.59


 

OPPORTUNITIES:

Mine life extension: Additional drilling on the project, through to August 2022 (see NR-06-22; July 25,2022), has now confirmed the continuity of new mineralization over an approximate 400 metre strike-length extending laterally from the Mina La Bocona to the Skarn Front deposits. This mineralization has not been accounted for in the current study. Furthermore, mineralization remains open at depth, specifically beneath the Mina La Bocona, South Skarn and some portions of the Skarn Front deposits suggesting further potential Resource growth.

Infill Drilling: Infill drilling, specifically on the portions of the deposit that fall within the Inferred category of classification will increase confidence in the Mineral Resource estimate, will further de-risk the project and potentially increase the value of the project.

Metallurgical Upside: Recent metallurgical testwork confirmed that arsenic elimination from the zinc circuit allows generation of a pyrite/arsenopyrite-rich concentrate containing 80% of the ROM gold to be produced. This material is to be filtered and sequestered for possible future recovery of the refractory gold.

TECHNICAL DISCLOSURE

  • All mineral resources have been estimated in accordance with Canadian Institute of Mining and Metallurgy and Petroleum (CIM) definitions, as required under NI43-101.

  • Mineral resources reported demonstrate reasonable prospect of eventual economic extraction, as required under NI43-101.

  • Mineral resources are not mineral reserves and do not have demonstrated economic viability. The mineral resources may be materially affected by environmental, permitting, legal, marketing, and other relevant issues.

  • The PEA is preliminary in nature, it may include mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized.

  • An inferred mineral resource has a lower level of confidence than that applying to an indicated mineral resource and must not be converted to a mineral reserve. It is reasonably expected that most of the inferred mineral resources could be upgraded to indicated mineral resources with continued exploration.

  • All-in Sustaining cost (AISC) is calculated as: Operating costs (mining, processing and G&A) + Incremental PTUs + Concentrate Transportation + Treatment & Refining Charges + Penalties + Sustaining Capital + Closure Costs +Silver Revenue Royalty and is reported on using a per tonne mined, AgEq plant feed, AgEq recovered for sale, and AgEq payable basis

  • A full technical report will be prepared in accordance with NI 43-101 and will be filed on SEDAR within 45 days of this press release.

APPENDICES

Appendices with the following supporting information is found at the back of this release.

Appendix A: Base Case Sulphide Mineral Resource Estimate

Appendix B: Project location and Infrastructure

Appendix C: Simplified Process Flow Sheet

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. Our property portfolio also includes the Oro porphyry copper-gold project where a diamond drill program is underway 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

On behalf of the Board of Directors

"Lawrence Page"

Lawrence Page, Q.C.

President & Director, Southern Silver Exploration Corp.

For further information, please visit Southern Silver's website at https://www.southernsilverexploration.com or contact us at 604.641.2759 or by email at ir@mnxltd.com.

Qualified Person

The PEA for the Cerro Las Minitas project as summarized in this release was completed by Kirkham Geosystems Ltd. ("KGL"), M3 Engineering & Technology Corp. ("M3"), Entech Mining Limited ("Entech"), and Metallurgical Process Consultants Limited ("MPC"). A full technical report will be prepared in accordance with NI43-101 and will be filed on SEDAR within 45 days of this press release.

The scientific and technical content of this news release was reviewed and approved by Robert Macdonald, MSc. P.Geo, VP. Exploration, and is a Qualified Person as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects.

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 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. 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. 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.

Appendix A: Base Case Sulphide Mineral Resource Estimate

CLM Sulphide Resources @ $60/t Cutoff 
         
Indicated ResourcesAverage Grade
ZoneTonnesAgAuPbZnCuAgEqZnEqNSR
 (Kt)(g/t)(g/t)(%)(%)(%)(g/t)(%)(US$/t)
Blind Zone         2,347970.041.92.10.112957.2108
El Sol Zone         1,154800.042.22.00.092796.8100
Skarn Front Zone         7,2541080.060.84.20.193839.3140
La Bocona Zone         1,5711320.192.21.60.173027.3136
Total       12,3251060.071.33.30.163478.4130
          
          
Inferred ResourcesAverage Grade
ZoneTonnesAgAuPbZnCuAgEqZnEqNSR
 (Kt)(g/t)(g/t)(%)(%)(%)(g/t)(%)(US$/t)
Blind Zone         1,347830.141.41.80.062486.088
El Sol Zone            863650.031.82.30.052636.490
Las Victorias Zone         1,0831480.662.12.60.1443110.5145
Skarn Front Zone       11,4661150.050.72.70.323187.7126
South Skarn Zone         3,7891400.182.01.30.093097.5130
La Bocona Zone         1,0571060.201.32.20.182937.1117
Total       19,6051170.121.22.30.233147.6123
          
          
Indicated ResourcesContained Metal 
ZoneTonnesAg TrOzAu TrOzPbZnCuAgEq TrOzZnEq Lbs 
 (Kt)(000's)(000's)(Mlbs)(Mlbs)(Mlbs)(000's)(Mlbs) 
Blind Zone         2,3477,3503991095.522,291371 
El Sol Zone         1,1542,956255512.210,337172 
Skarn Front Zone         7,25425,1061412667830.789,4211,490 
La Bocona Zone         1,5716,6881077566.015,275255 
Total       12,32542,1002835889544137,3232,288 
          
          
Inferred ResourcesContained Metal 
ZoneTonnesAg TrOzAu TrOzPbZnCuAgEq TrOzZnEq Lbs 
 (Kt)(000's)(000's)(Mlbs)(Mlbs)(Mlbs)(000's)(Mlbs) 
Blind Zone         1,3473,58264055210,749179 
El Sol Zone            8631,8161354317,283121 
Las Victorias Zone         1,0835,152235162315,006250 
Skarn Front Zone       11,46642,4621817768780117,0651,951 
South Skarn Zone         3,78917,00722167112737,660628 
La Bocona Zone         1,0573,5897305149,950166 
Total       19,60573,610785001,00998197,7123,295 

1) The current Resource Estimate was prepared by Garth Kirkham, P.Geo., of Kirkham Geosystems Ltd.

2) All mineral resources have been estimated in accordance with Canadian Institute of Mining and Metallurgy and Petroleum ("CIM") definitions, as required under National Instrument 43-101 ("NI43-101").

3) Mineral resources were constrained using continuous mining units demonstrating reasonable prospects of eventual economic extraction.

4) Silver Equivalents were calculated from the interpolated block values using relative recoveries and prices between the component metals and silver to determine a final AgEq value. The same methodology was used to calculate the ZnEq value.

5) Silver Equivalents and NSR$/t values were calculated using average long-term prices of $20/oz. silver, $1,650/oz. gold, $3.25/lb. copper, $1.0/lb. lead and $1.20/lb. zinc. Metal recoveries, payables and deductions are reported in Table 1. All prices are stated in $USD.

6)Mineral resources are not mineral reserves until they have demonstrated economic viability. Mineral resource estimates do not account for a resource's mineability, selectivity, mining loss, or dilution.

7)An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.

8) All figures are rounded to reflect the relative accuracy of the estimate and therefore numbers may not appear to add precisely.

Appendix B: Project Location and Site Infrastructure

Cannot view this image? Visit: https://images.newsfilecorp.com/files/5344/135230_a6c73f215430abf0_021.jpg

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/5344/135230_a6c73f215430abf0_021full.jpg

Appendix C: Simplified Process Flow Sheet

The process plant for the base-case PEA-level study is a conventional sulphide flotation system consisting of both Primary and secondary crushing, a closed-circuit ball mill grinding and sequential Cu-Pb-Zn flotation circuit producing three filtered concentrates for sale. A fourth pyrite concentrate will be produced and sequestered.

Cannot view this image? Visit: https://images.newsfilecorp.com/files/5344/135230_a6c73f215430abf0_022.jpg

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/5344/135230_a6c73f215430abf0_022full.jpg

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/135230

News Provided by Newsfile via QuoteMedia

SSV:CA
Southern Silver Exploration

Southern Silver Exploration


Keep reading...Show less
Southern Silver Reports Thick Zone of Copper Mineralization at Oro, Cu-Au Project, New Mexico

Southern Silver Reports Thick Zone of Copper Mineralization at Oro, Cu-Au Project, New Mexico

Southern Silver Exploration Corp. (TSXV: SSV) ("Southern Silver" and the "Company") reports that it has received assay results from the first two drill holes of its approximate 4,000-metre diamond drilling program currently underway to test several Laramide-age copper porphyry and skarn targets at its wholly owned Oro property, located in southwestern New Mexico, USA. The first two deep holes tested the main porphyry target on the Oro property, identified through earlier geological compilation, clay-alteration studies and ZTEM airborne geophysics.

Drilling successfully intersected:

News Provided by Newsfile via QuoteMedia

Keep reading...Show less
Southern Silver Returns High-Grade Silver from the North Felsite Zone Including: 1.6 Metre Averaging 675g/t Ag, 0.3% Cu, 5.5% Pb and 3.4% Zn  at Cerro Las Minitas

Southern Silver Returns High-Grade Silver from the North Felsite Zone Including: 1.6 Metre Averaging 675g/t Ag, 0.3% Cu, 5.5% Pb and 3.4% Zn at Cerro Las Minitas

Southern Silver Exploration Corp. (TSXV: SSV) ("Southern Silver") reported today that drill results continue to extend silver-polymetallic mineralization laterally to the east and west in the North Felsite Target on the Cerro Las Minitas project, Durango, Mexico.

The North Felsite target is located on the eastern side of the Cerro and wraps around the northern edge of the Central intrusion where it transitions into the North Skarn target area (Figure 1). The new drilling now confirms the continuity of mineralization with previously modelled mineral resources in the Mina La Bocona and the Skarn Front deposits, continues to identify gold enrichment in several hanging wall intercepts outboard of the main skarn target at the North Felsite zone and has identified high-grade copper mineralization in the North Skarn target area.

News Provided by Newsfile via QuoteMedia

Keep reading...Show less
Southern Silver Exploration

Southern Silver Returns Bonanza-Grade Silver from the North Felsite Zone Including: 1.0 metre Averaging 1785g/t Ag, 0.5g/t Au, 1.4% Cu, 3.1% Pb and 5.9% Zn at Cerro Las Minitas

Southern Silver Exploration Corp. (TSXV: SSV) ("Southern Silver") reported today that drilling continues to develop continuity within and extend silver-polymetallic mineralization on the North Felsite and El Sol Targets on the Cerro Las Minitas project, Durango, Mexico.

The North Felsite target is located on the eastern side of the Cerro, approximately 400 metres to the northwest of the La Bocona and Mina Pina shafts, in an area that was not included in the most recent NI43-101 Mineral Resource update on the property. New drilling tested the continuity of mineralization in both the main Ag-Pb-Zn Skarn as well as strongly Au-enriched hanging wall zone.

News Provided by Newsfile via QuoteMedia

Keep reading...Show less
Falcon Provides Exploration Update At Its Hope Brook Project Contiguous To Benton-Sokoman's JV, NFLD

Falcon Provides Exploration Update At Its Hope Brook Project Contiguous To Benton-Sokoman's JV, NFLD

Falcon Gold Corp. (FG:TSX-V), (3FA:GR), (FGLDF:OTCQB), ("Falcon"); and Marvel Discovery Corp. (TSX-V:MARV), (Frankfurt:O4T), (MARVF:OTCQB), ("Marvel"); and together (the "Alliance") are pleased to provide an update on their combined exploration focus for their Hope Brook Projects which are strategically located contiguous to Benton-Sokoman Joint Venture, and First Mining's ground which was recently optioned to Big Ridge Exploration. The Alliance had originally planned to complete high resolution magnetic gradiometer surveys over the project area, a proven method to distinguish structural complexities in geological terranes. Start of the survey work has been delayed due to helicopter availability from forest fires in Central Newfoundland, a state of emergency was issued. Providing the Alliance an opportunity to conduct a geophysical review and structural interpretation over the Hope Brook project area in advance of the survey and surface work. The Alliance is pleased to announce that the geophysical review has identified kilometer-scale shear zone corridors, and a major fold closure, interpreted from the magnetic patterns, within the Hope Brook Property area. These will be the focus of prospecting and till sampling projects employed to verify the structures and determine their mineralization potential. With recent success in identifying anomalous gold, tungsten, silver and copper reported by Falcon at their Gander North Property (September 15, 2022), the Alliance has shifted their exploration focus to the Gander district

News Provided by ACCESSWIRE via QuoteMedia

Keep reading...Show less
Satori Commences Fall Drilling Campaign at Past Producing Tartan Lake Gold Mine, Flin Flon, Manitoba

Satori Commences Fall Drilling Campaign at Past Producing Tartan Lake Gold Mine, Flin Flon, Manitoba

Satori Resources Inc. (TSXV: BUD) ("Satori" or the "Company") is pleased to announce the commencement of its fall drilling campaign at the Tartan Lake Project, Flin Flon, Manitoba.

The Company plans to test the Hanging Wall Zone (in Main Zone) to extend the significant mineralization that was intersected in hole TLMZ21-12, which returned 47.56 g/t Au over 5.8 metres, within a broader interval that averaged 23.76 g/t Au over 12.6 metres (see news release dated December 6, 2021). This intercept isthe second highest value intercept ever recorded at Tartan Lake Main Zone and the Company believes that the physical differences in lithology and mineralization tenor suggest that this could represent the upper portion of a new zone in the hanging wall of the Main Zone trend.

News Provided by Newsfile via QuoteMedia

Keep reading...Show less
Finlay Minerals reports trenching results including 32.4 g/t silver, 0.34 % copper, 1.07 % lead, 2.98 % zinc, and 0.04 g/t gold over 11 metres on the ATTY

Finlay Minerals reports trenching results including 32.4 g/t silver, 0.34 % copper, 1.07 % lead, 2.98 % zinc, and 0.04 g/t gold over 11 metres on the ATTY

Finlay Minerals Ltd. (TSXV: FYL) (OTCQB: FYMNF) (" Finlay " or the " Company ") is pleased to announce results from the 2022 exploration program conducted on its ATTY Property (" ATTY ") which included trenching at the Attycelley Target, and mapping and rock sampling at the KEM Target

Highlights included Trench 2 on the Attycelley Target assaying 32.4 g/t silver ("Ag"), 0.34 % copper ("Cu"), 1.07 % lead ("Pb"), 2.98 % zinc ("Zn"), and 0.04 g/t gold ("Au") over 11 metres, ("m") including 1 metre grading 198 g/t Ag, 1.62 % Cu, 8.23 % Pb, 0.88 % Zn, and 0.18 g/t Au.

News Provided by Canada Newswire via QuoteMedia

Keep reading...Show less
Nevada Sunrise Announces Name Change

Nevada Sunrise Announces Name Change

Nevada Sunrise Gold Corporation (TSXV: NEV) (OTC: NVSGF), (" Nevada Sunrise" or the " Company "), announced today that effective September 23, 2022 the Company's name will change from "Nevada Sunrise Gold Corporation" to "Nevada Sunrise Metals Corporation."

Nevada Sunrise Gold Corp. Logo (CNW Group/Nevada Sunrise Gold Corporation)

The Company's common shares will begin trading on the TSX Venture Exchange on September 23, 2022 under the new name.  The Company's trading symbol will remain "NEV".  The new CUSIP will be 641492103 and the new ISIN number will be CA6414921032. The share capital of the Company remains unchanged.

About Nevada Sunrise

Nevada Sunrise is a junior mineral exploration company with a strong technical team based in Vancouver, BC , Canada , that holds interests in lithium, gold, copper and cobalt exploration projects located in the State of Nevada, USA .

Nevada Sunrise owns 100% interests in the Gemini and Jackson Wash lithium projects, both of which are located in Esmeralda County, NV. The Company owns Nevada water right Permit 86863, located in the Lida Valley basin, near Lida, NV.

The Company's key gold asset is a 20.01% interest at the Kinsley Mountain Gold Project ("Kinsley Mountain") near Wendover, NV. Kinsley Mountain is a joint venture with Copaur Minerals Inc. Kinsley Mountain is a Carlin-style gold project hosting a National Instrument 43-101 compliant gold resource consisting of 418,000 indicated ounces of gold grading 2.63 g/t Au (4.95 million tonnes), and 117,000 inferred ounces of gold averaging 1.51 g/t Au (2.44 million tonnes), at cut-off grades ranging from 0.2 to 2.0 g/t Au 1 .

1

Technical Report on the Kinsley Project, Elko County, Nevada, U.S.A., dated June 21, 2021 with an effective date of May 5, 2021 and prepared by Michael M. Gustin, Ph.D., and Gary L. Simmons, MMSA and filed under New Placer Dome Gold Corp.'s Issuer Profile on SEDAR ( www.sedar.com ).



Nevada Sunrise has right to earn a 100% interest in the Coronado VMS Project, located approximately 48 kilometers (30 miles) southeast of Winnemucca, NV. The Company owns a 15% interest in the historic Lovelock Cobalt Mine and the Treasure Box copper properties, each located approximately 150 kilometers (100 miles) east of Reno, NV , with Global Energy Metals Corp. holding an 85% participating interest.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this press release.

SOURCE Nevada Sunrise Gold Corporation

Cision View original content to download multimedia: http://www.newswire.ca/en/releases/archive/September2022/21/c0362.html

News Provided by Canada Newswire via QuoteMedia

Keep reading...Show less
New Break Discusses Fresh Collaborative Approach to Exploring the Moray Property

New Break Discusses Fresh Collaborative Approach to Exploring the Moray Property

New Break Resources Ltd. (CSE: NBRK) ("New Break" or the "Company") is pleased to outline the Company's 2022 exploration programs at its 100% owned Moray property ("Moray") located approximately 49 km south of Timmins, Ontario and 32 km northwest of the Young-Davidson Gold Mine operated by Alamos Gold Inc. New Break developed a fresh approach to 2022 exploration following the interpretation of results from its 2021 exploration programs, including observations and findings from detailed compilation work that also identified gaps in historical exploration work. Gold mineralization at Moray occurs in second order structures interpreted as splays off the Cadillac Larder-Lake Fault Zone, part of the famous Abitibi greenstone belt.

News Provided by Newsfile via QuoteMedia

Keep reading...Show less
Kuya Silver Announces Update to Carmelitas Project in the Bethania District

Kuya Silver Announces Update to Carmelitas Project in the Bethania District

Kuya Silver Corporation (CSE: KUYA) (OTCQB: KUYAF) (FSE: 6MR1) (the "Company" or "Kuya Silver") is pleased to announce that the terms of its agreement to acquire the Carmelitas concessions (located in the district of Acobambilla, department of Huancavelica, and in the district of Chongos Altos, department of Junín, in Peru) have been amended, and Kuya Silver intends to commence initial field work. The acquisition of the three concessions was first announced on May 14, 2021, with the purchase price consisting of cash and common shares of Kuya Silver, to be paid on a schedule over eighteen months. Kuya Silver and the vendor, Freddy Canales, have agreed to amend the terms of the transaction as follows:

News Provided by Newsfile via QuoteMedia

Keep reading...Show less

Latest Press Releases

Related News

×