Southern Silver files 43-101 Cerro Las Minitas report

Oct 14, 2022

2022-10-13 18:16 ET – News Release

Mr. Lawrence Page reports

SOUTHERN SILVER FILES NI43-101 TECHNICAL REPORT FOR ITS PRELIMINARY ECONOMIC ASSESSMENT FOR THE CERRO LAS MINITAS PROJECT

Southern Silver Exploration Corp. has filed on SEDAR its National Instrument 43-101 technical report titled “Preliminary Economic Assessment of the Cerro Las Minitas Project, Durango State, Mexico,” dated Oct. 13, 2022. The report was authored by M3 Engineering & Technology Corp., Kirkham Geosystems Ltd., Entech Mining Ltd. and Metallurgical Process Consultants Ltd.

Filing of the technical report follows Southern Silver’s news release issued Aug. 29, 2022, announcing the results of its preliminary economic assessment on its 100-per-cent-owned Cerro Las Minitas project, Durango state, Mexico.

PEA highlights:

Robust project economics: an after-tax net present value discounted at 8 per cent of $220-million (U.S.) ($302-million (Canadian)); after-tax NPV discounted at 5 per cent of $349-million (U.S.) ($480-million (Canadian)) and project internal rate of return of 17.9 per cent (using base-case metal pricing of silver: $21.95 per ounce, copper: $3.78 per pound, lead: 94 cents per pound and zinc: $1.33 per pound);
Large-scale underground mining operation with a 15-year mine life with an annual average plant feed of 14.2 million ounces silver equivalent (including 5.8 million ounces silver);
High-revenue project: base-case gross revenues total $3.7-billion (U.S.) with silver representing 42 per cent of revenues, zinc representing 39 per cent of revenues; the project has an initial capex of $341-million (U.S.);
Well-located project in a mining-friendly jurisdiction with excellent infrastructure in southeast Durango state, Mexico;
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.

About Southern Silver Exploration Corp.

Southern Silver is an exploration and development company with a focus on the identification of world-class mineral deposits in major jurisdictions, advancing them either directly or through joint venture relationships. Its specific emphasis is on advancing the 100-per-cent-owned Cerro Las Minitas project, one of the world’s largest undeveloped silver-lead-zinc deposits, to a production decision.

Southern Silver has assembled a team of highly experienced technical, operational and transactional professionals to support its efforts in developing (recent robust PEA) the Cerro Las Minitas project into a premier, high-grade, silver-lead-zinc mine. The property portfolio also includes the Oro porphyry copper-gold project, where a diamond drill program is under way, and the Hermanas gold-silver vein project, where permitting applications to conduct a drill program are under way. Both are located in southern New Mexico, United States.

Qualified person

The PEA for the Cerro Las Minitas project as summarized in this release was completed by Kirkham Geosystems, M3, Entech and Metallurgical Process Consultants. The full technical report is available on Southern Silver’s website and on SEDAR under Southern Silver Exploration Corp.

The scientific and technical content of this news release was reviewed and approved by Robert Macdonald, MSc, PGeo, vice-president, exploration, a qualified person as defined by National Instrument 43-101 (Standards of Disclosure for Mineral Projects).

We seek Safe Harbor.

https://southernsilverexploration.com/