Southern Silver Exploration: makes final payment to acquire 100% stake in Cerro Las Minitas silver project
Southern Silver makes final payment to acquire 100% stake in Cerro Las Minitas silver project
September 20, 2021
Southern Silver Exploration Corp. (TSX.V: SSV) (the “Company” or “Southern Silver”) purchased a 60% working interest in the Cerro Las Minitas Project (the “CLM Project”) located in Durango, Mexico from Electrum Global Holdings LP (“Electrum”) in September 2020 subject to a pledge of security. The Company has now made the final payment to Electrum of US $ 2 million and issued 7,971,878 common shares equivalent to US $ 2 million (based on the previous 20-day VWAP) and now holds a 100% stake. in the CLM project without such a guarantee of security. . In consideration for the acquisition, Southern Silver paid Electrum a total of US $ 15 million in a combination of cash and common stock.
Benefits for Southern Silver shareholders:
Simplifies the ownership structure of the CLM project
Establishes full control over project schedule and removes perceived joint venture discount
Provides 100% ownership of a premier polymetallic deposit in Mexico with substantial resource growth potential (with emphasis on targeting high grade silver targets)
150% increase in resources attributable to current Indicated resource: 134 Mozs AgEq and inferred: 138 Mozs AgEq (1)
Very profitable for Southern Silver shareholders
Electrum remains a key supporting investor
Southern Silver becomes a more attractive buyout target
Improves the Company’s market profile compared to its peer group
The acquisition of the 60% stake in Electrum provided Southern Silver with 49.9 million ounces of silver and 1.35 billion pounds of lead and zinc combined on the basis of the current mineral resource estimate of the National Instrument 43-101 (2019) of the CLM project. In addition, Southern Silver has become more attractive at the corporate level as the Company’s market profile is enhanced by owning 100% of one of the largest and richest undeveloped silver projects in the world. .
Since signing the agreement in June 2020, the Company has continued to advance and expand the CLM project by completing a total of 56 core holes totaling 22,360 meters and drilling began in September 2020. Southern Silver a now tested over 850 meters in side length. along the east side of Cerro to depths of up to 500 meters, mainly in the target areas of South Skarn and Mina La Bocona.
The results of all drilling programs since the date of the current mineral resource estimate (2019) will be incorporated into a current mineral resource report on the CLM project to be released in the coming weeks. In addition, the company continues to complete a Preliminary Economic Assessment (PEA) for publication in the first quarter of 2022.
The Cerro Las Minitas project as of May 9, 2019 contains an estimate of mineral resources, at a cut-off of 175g / t AgEq, of(1)
• Indicated – 134Moz AgEq: 37.5Moz Ag, 40Mlb Cu, 303Mlb Pb and 897Mlb Zn
• Inferred – 138 Moz AgEq: 45.7 Moz Ag, 76 Mlb Cu, 253 Mlb Pb and 796 Mlb Zn
Lawrence Page, QC, President and Director of Southern Silver, said: “Electrum was an excellent joint venture partner, providing funds and expertise to enable Southern Silver to reach the Resource 2019 milestone. Now Southern Silver, as sole owner of the CLM project, has explored new areas for establish resources not yet included in the Resource published in 2019. We anticipate that the global resource, which will soon be presented and published, will significantly increase the scale and value of the CLM project. Electrum remains an important and supportive shareholder. “
Capital increases and exercise of warrants: During the last twenty-one months, the Company has raised $ 35,500,000 in capital increases, warrants and exercise of options, which has enabled the Company to finance the purchase of the 60% direct stake. and exploration expenses at CLM. $ 15.5 million remains in the treasury to fund exploration and PEA costs at CLM and exploration costs at the Oro copper-gold porphyry project located in southern New Mexico, United States.
About Southern Silver Exploration Corp.
Southern Silver Exploration Corp. is an exploration and development company focused on the discovery of world-class mineral deposits. Our particular focus is on the 100% owned Cerro Las Minitas silver-lead-zinc project located in the heart of Faja de Plata, Mexico, which is home to several world-class mineral deposits such as Penasquito, 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 world-class high-grade silver-lead-zinc mine. The Company engages in the acquisition, exploration and development either directly or through joint venture relationships in mining properties located in major jurisdictions. Our portfolio of properties also includes the Oro porphyry copper-gold project located in southern New Mexico, United States.
The 2019 Cerro Las Minitas Resource Estimate has been prepared in accordance with the ICD Definitions for the Classification of Mineral Resources. Resources are limited using mainly geological constraints and shells of around 10g / t AgEq. The block models are composed of a set of blocks measuring 10 mx 2 mx 10 m, with grades for the Au, Ag, Cu, Pb, Zn values interpolated using the ID3 weighting. The equivalent silver and zinc values were then calculated from the interpolated contents of the blocks. The model is identified at a cutoff of 175g / t AgEq, with an indicated resource of 11,102,000 tonnes on average 105g / t Ag, 0.10g / t Au, 1.2% Pb, 3.7% Zn and 0, 16% Cu and an inferred resource of 12,844,000 tonnes averaging 111g / t Ag, 0.07g / t Au, 0.9% Pb, 2.8% Zn and 0.27% Cu. AgEq cutoff values were calculated using long term average prices of $ 16.6 / oz. silver, $ 1,275 / oz. gold, $ 2.75 / lb. copper, $ 1.0 / lb. lead and $ 1.25 / lb. zinc. Metal recovery for the Blind, El Sol and Las Victorias deposits of 91% silver, 25% gold, 92% lead, 82% zinc and 80% copper and for the Skarn Front deposit of 85% silver, 18% gold, 89% lead, 92% zinc and 84% copper were used to define the cut-off grades. The baseline cut-off grade assumed operating, melting and sustaining costs of $ 75 / tonne. All prices are shown in $ USD. The silver equivalents were calculated from the interpolated values of the blocks using the recoveries and the relative prices between the component metals and the silver to determine a final value of AgEq. The same methodology was used to calculate the ZnEq value. Mineral resources are not mineral reserves until they have demonstrated their economic viability. Mineral resource estimates do not take into account the exploitability, selectivity, mining losses or dilution of a resource. The current resource estimate was prepared by Garth Kirkham, P.Geo. by Kirkham Geosciences Ltd. who is the independent qualified person responsible for the presentation and review of the mineral resource estimate. All figures are rounded to reflect the relative accuracy of the estimate and, therefore, the figures may not appear to add up accurately.
Robert Macdonald, M.Sc. P.Geo, is a Qualified Person as defined by National Instrument 43-101 and has directly supervised the collection of Project CLM data that is reported in this disclosure and is responsible for the presentation of the information. techniques in this disclosure.
On behalf of the board of directors
Lawrence Page, QC
President and Director, Southern Silver Exploration Corp.
Neither the 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 press release contains forward-looking statements. Forward-looking statements deal with future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in these statements. Factors that could cause actual results to differ materially from those of forward-looking statements include the timing and receipt of government and regulatory approvals, the continued availability of capital and funding, and general economic, market or business conditions. Southern Silver Exploration Corp. assumes no 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.
Southern Silver Exploration Company published this content on September 20, 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on September 20, 2021 04:21:03 PM UTC.