Southern Silver Exploration Corp. ("Southern Silver") (TSX VENTURE:
SSV)(FRANKFURT: SEG) announces that it has closed the first tranche
of its previously reported non-brokered private placement by
issuing 14,151,706 units at a price of $0.17 per unit for gross
proceeds of $2,405,790. Each unit consists of one common share and
one share purchase warrant exercisable to purchase one additional
common share for a period of two years at an exercise price of
$0.22 per share.
Securities issued pursuant to this tranche of the private
placement, including common shares, share purchase warrants and
finder's warrants issued as finder's fees, carry a legend
restricting trading of the securities until November 21, 2011. The
private placement and finder's fees are subject to regulatory
approval.
Net proceeds from the Offering will be utilized for exploration
and property maintenance expenses incurred on the Cerro Las Minitas
and Minas de Ameca projects in Mexico and the Oro project in the
USA.
Specifically, the Company intends to immediately expand its
current exploration program on its Cerro Las Minitas project in
Mexico after initial results returned high-grade silver and
polymetallic mineralization from four of ten core holes completed
as part of the Phase I exploration program, including bonanza grade
mineralization from a 1.8 metre interval averaging 1400g/t Ag,
19.7% Pb and 14.5% Zn within a 3.3 metre interval averaging 818g/t
Ag, 12.9% Pb and 10.9% Zn in drill hole 11CLM-008 (see
NR-08-11).
The positive results to date have prompted an expansion of the
project into a second phase program of 25 to 30 diamond drill holes
totaling 10,000 metres for which crews have now mobilized. This new
drilling will target specific occurrences located within the area
of historic mining and several additional targets derived from the
recently completed surface IP geophysical program including
extensions of this newly discovered high-grade zone in
11CLM-008.
Phase I drilling on the property by Southern Silver tested
widely-spaced targets, each of which with the potential to develop
significant high-grade mineral inventories. Surface work on other
regional targets continues.
A summary of the hole locations and significant results from the
Phase I drilling are presented in Figure 1 and Table 1.
To view Figure 1, please click on the following link:
http://media3.marketwire.com/docs/ssv720m.pdf
About the Cerro Las Minitas property
The Cerro Las Minitas property comprises 17 concessions which
total 10,980 hectares and an approximate 25 kilometre lineal strike
length. The property is located about 70 kilometres to the
northeast of the city of Durango in Durango State, Mexico, and is
accessed easily by road.
Mining has been conducted on the property since colonial times
and has identified several types of silver-, lead- and
zinc-enriched massive-sulphide pipes, veins and carbonate-
replacement deposits (CRDs), as well as mineralized skarns at the
margins of a large intrusive body. The Santa Eulalia replacement
deposit (45Mt of 310g/t Ag, 7.1% Zn and 8.2% Pb) and the skarn
deposit of San Martin (60Mt of 118g/t silver, 0.9% copper and 3.9%
zinc) are examples of two major Mexican mines occurring in similar
geological environments(1).
Limited historical drilling on the project by Noranda (not
independently verified by Southern Silver) returned numerous
intervals of higher grade silver and base metals, including: a
11.45 metre interval (down hole) grading 123g/t silver, 1.55% lead
and 7.79% zinc from drill hole NGV-00-02 and a 1.41 metre interval
(down hole) grading 529g/t silver, 6.99% lead and 1.27% zinc from
drill hole NGV-00-06.
The mineralized zones at Cerro Las Minitas have been exploited
to depths of 300 metres and over widths of 60 metres.
Table 1: Summary of Phase I Drilling Assays from the Cerro Las Minitas
Project
----------------------------------------------------------------------------
From To Interval Ag Cu Pb Zn
Hole No. m m m g/t % % %
----------------------------------------------------------------------------
11 CLM-001 296.2 297.4 1.2 99 0.14 0.04 0.05
----------------------------------------------------------------------------
11 CLM-002 93.7 94.3 0.6 94 0.02 1.64 3.25
96.5 111.2 14.7 40 0.06 1.02 0.65
inc 99.2 105.9 6.8 153 0.11 1.47 1.01
and 104.0 105.9 1.9 124 0.21 2.18 1.09
135.6 136.9 1.3 170 0.06 0.52 0.22
262.8 263.3 0.4 164 ---- 3.28 6.79
----------------------------------------------------------------------------
11 CLM-003 283.5 285.7 2.2 85 0.02 1.30 0.37
283.5 283.9 0.4 382 0.07 6.25 1.62
419.6 433.6 14.0 60 0.94 0.31 1.60
inc 419.6 421.7 2.1 100 1.37 0.17 3.08
inc 423.1 424.5 1.4 92 1.33 0.46 3.30
inc 428.8 430.3 1.5 72 1.45 0.53 1.56
inc 432.0 433.6 1.6 62 1.25 0.40 1.48
----------------------------------------------------------------------------
11 CLM-004 214.5 219.0 4.5 20 0.4 0.4 ----
----------------------------------------------------------------------------
11 CLM-005 182 190 7.8 8.6 ---- ---- ----
----------------------------------------------------------------------------
11 CLM-006 215.5 224.6 9.1 194 0.1 5.5 1.8
inc 220.4 223.3 2.9 514 0.1 12.8 0.9
and 342.1 343.4 1.3 22 ---- 1.0 2.1
and 410.5 427.9 17.4 51 0.4 0.2 4.7
inc 410.5 411.3 0.7 162 0.4 2.1 10.4
and 424.2 427.9 3.7 184 2.0 0.3 18.4
----------------------------------------------------------------------------
11 CLM-007 178.2 181.8 3.6 27 --- 0.3 ---
inc 178.2 178.8 0.6 71 --- 0.9 0.1
inc 180.9 181.8 0.9 62 --- 0.8 0.1
----------------------------------------------------------------------------
11 CLM-008 74.5 75.1 0.6 166 0.3 5.9 7.9
and 168.4 179.3 10.9 268 --- 4.5 3.8
inc 168.4 171.7 3.3 818 --- 12.9 10.9
and 169.6 171.4 1.8 1400 --- 19.7 14.5
----------------------------------------------------------------------------
About Southern Silver Exploration Corp.
Southern Silver Exploration Corp. is a precious/base metal
exploration 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
high-quality properties in progressive jurisdictions within North
America. Its current projects include the silver-lead- zinc Cerro
Las Mintas project and the copper-gold-silver Minas de Ameca in
Mexico, the porphyry copper-molybdenum Dragoon project in Arizona
and the gold-silver Oro project in New Mexico.
Robert Macdonald (P.Geo) is a Qualified Person as defined by
National Instrument 43-101 and has reviewed and approved the
technical contents of this release.
(1) Southern Silver advises that tonnage and grade of adjacent
properties or those used for comparative purposes may not reflect
the ultimate potential of the Cerro Las Minitas project
On behalf of the Board of Directors
Lawrence Page, Q.C., President, Southern Silver Exploration
Corp.
This news release may contain forward-looking statements
including but not limited to comments regarding the timing and
content of upcoming work programs, geological interpretations,
receipt of property titles, potential mineral recovery processes,
etc. 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. These statements are based on a
number of assumptions, including, but not limited to, assumptions
regarding general economic conditions, interest rates, commodity
markets, regulatory and governmental approvals for Southern
Silver's projects, and the availability of financing for Southern
Silver's development projects on reasonable terms. Factors that
could cause actual results to differ materially from those in
forward looking statements include market prices, exploitation and
exploration successes, 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.
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.
Contacts: Southern Silver Exploration Corp. Liana Shahinian
1.888.456.1112 liana@mnxltd.com
www.southernsilverexploration.com
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