VANCOUVER, BRITISH COLUMBIA, Dec 10, 2012 (Menafn – MARKETWIRE via COMTEX) –Southern Silver Exploration Corp. (the “Company” or “SouthernSilver”) (frankfurt:SEG) reports thatFreeport-McMoRan Exploration Corporation (“Freeport”) has completedits due diligence under an Earn-In Agreement relating to the CerroLas Minitas project in Durango, Mexico.
The Earn-In Agreement
In October the Company entered into an Earn-in agreement whichgranted Freeport the right to earn an indirect 70% interest in theCerro Las Minitas property in Durango, Mexico by making stagedpurchase payments and funding exploration and developmentexpenditures of 25 million on the Cerro Las Minitas property over amaximum ten year period. The agreement was subject to due diligencereview, which has been satisfied and the agreement is now operative.Freeport has paid the Company an initial USD 918,000 which has beenutilized to pay an option payment to the Optionor of the property. Tokeep the Agreement operative, Freeport must pay to the Company600,000 by January 2, 2013.
Exploration planning is underway and the Company expects that theprogram will begin in early January, 2013 and will consist of ageophysical program followed by diamond drilling.
Cerro Las Minitas
The Cerro Las Minitas project is located about 70 kilometres to thenortheast of the city of Durango in Durango State, Mexico, and isaccessed easily by road. Southern Silver has explored the propertysince late 2010 and to date has completed airborne and groundgeophysics over the project and 15,540 metres of core drilling in 62drill holes.
Near surface mineralization occurs as massive-sulphide pipes, veinsand replacement deposits distributed in the skarn-altered margins ofa large intrusive body. To date, Southern Silver has identified twohigh-grade silver-polymetallic deposits, the Blind zone and El Solzone, which have been partially delineated and several other highpriority targets throughout the property.
In addition to the higher level silver-polymetallic targets at theBlind and El Sol zones, there exists excellent exploration potentialto develop deeper porphyry or skarn targets nearer the contact withthe central monzonite intrusion.
Initial testing of the central intrusion in the area of historicmining by Southern Silver identified widespread zones of argillicallyaltered intrusive and thinner intervals of elevated gold and coppermineralization. The company anticipates testing targets on themargins and beneath this broad alteration halo which is interpretedas the upper parts of a large and widespread polymetallic porphyrysystem.
About Southern Silver Exploration Corp.
Southern Silver Exploration Corp. is a precious and base metalexploration company and a member of the Manex Resource Group; aprivate company comprised of an exceptional multi-disciplinary teamof 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 develophigh-quality properties in progressive jurisdictions within NorthAmerica. Its current projects include the silver-lead-zinc Cerro LasMinitas project and the copper-gold-silver Minas de Ameca in Mexico,the porphyry copper-molybdenum Dragoon project in Arizona and thegold-silver-copper Oro project in New Mexico.
Robert Macdonald (P.Geo) is a Qualified Person as defined by NationalInstrument 43-101 and has reviewed and approved the technicalcontents of this release.
On behalf of the Board of Directors
Lawrence Page Q. C., President, Southern Silver Exploration Corp.
This news release may contain forward-looking statements includingbut not limited to comments regarding the timing and content ofupcoming work programs, geological interpretations, receipt ofproperty titles, potential mineral recovery processes, etc.Forward-looking statements address future events and conditions andtherefore involve inherent risks and uncertainties. Actual resultsmay differ materially from those currently anticipated in suchstatements. These statements are based on a number of assumptions,including, but not limited to, assumptions regarding general economicconditions, interest rates, commodity markets, regulatory andgovernmental approvals for the company’s projects, and theavailability of financing for the company’s development projects onreasonable terms. Factors that could cause actual results to differmaterially from those in forward looking statements include marketprices, exploitation and exploration successes, the timing andreceipt of government and regulatory approvals, and continuedavailability of capital and financing and general economic, market orbusiness conditions. Southern Silver Exploration Corp. does notassume any obligation to update or revise its forward-lookingstatements, whether as a result of new information, future events orotherwise, except to the extent required by applicable law.
Neither TSX Venture Exchange nor its Regulation Services Provider (asthat 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
[email protected]
www.southernsilverexploration.com
