Southern Silver Exploration Interview Transcript with Larry Page-President and Director

START AUDIO

Harry: Hello, this is Harry Norman for Proactive Investors and welcome to another Proactive audio Interview. Today is the 11th August 2011 and I’m talking with Larry Page, President and Director of Southern Silver Exploration.  Listed on the TSX Venture Exchange, Metals and Mining Sector.  Stock ticker SSV, share price 17 cents Canadian, market cap 16.03 Million Dollars Canadian.  Southern Silver Exploration is also listed on the Frankfurt exchange, web address Southernsilverexploration.com.  Larry, thank you very much for joining us for this interview.

Larry: You’re very welcome Harry.

Harry: Please give investors a brief introduction to Southern Silver, the company’s business model and business development strategy.

Larry: Southern Silver Exploration Corporate is a Vancouver based company.  Which was reorganised some four, five, six years ago to see if it could follow in the success of Western Silver which is another company that I was involved with and which developed a large silver and gold prospect in Zacatecas in Mexico.  Which is now in production by Gold Corp.  The western shareholders had a great payday, 1.2 billion dollars.  

We hope to emulate that success with Southern Silver.  That’s why we developed a business model of finding properties in which we could obtain 100% interest in areas of North America that are amenable to mining and contain large deposits.  It’s taken us four to five years to put together four great projects and we’re exploring all of them at the present time.

Harry: Since acquiring the Cerro Las Minitas Silver Lead Zinc Project in Durango State of Mexico last September, Southern Silver has published seven releases about exploration and exploration results from this project.  Please talk us through this acquisition and tell us what you have found so far at Cerro Las Minitas?

Larry: This property was well known for a large period of time but it was never consolidated.  By that I mean there are two small mines that have been there and worked since colonial times.  Cerro Las Minitas means, “A hill of several mines.”  We were fortunate to negotiate and conclude an Option Agreement to acquire a large block of ground, 11,000 hectares which contains the outcrops and the areas where the mines are.  We attacked it in a way that we expect to be able to ascertain the amount of resource there.  Hopefully what the next round of drilling, we’re in the process of doing 10,000 metres of drilling at the present time, some 40 holes.  

They follow air born magnetics and an IT survey and they were very, very optimistic that we will be able to develop a significant resource there that can become a mine.

Harry: What are your thoughts about and plans for Southern Silver’s San Luis Vein System on the Minas de Ameca Copper Gold Project in Jalisco State, Mexico, Larry?

Larry: We will be going into another phase, a drill programme in September there.  This is an interesting prospect and it’s a good idea to look at why we get into this type of an area.  It’s an expanding area in Jalisco where they are developing silver, copper and gold properties.  We’ve got about 1.3 million dollars in the ground.  We have developed a small Mexican mine in the words of our Mexican geologist.  We hope to increase the resource there so that, that vein system will be of some interest to a major company that wants to develop into a mine.

Harry: Southern Silver has a joint venture with Freeport-McMoRan for a new copper, molybdenum porphyry discovery at Dragoon in Arizona.  Please bring us up to speed with the Dragoon project.

Larry: We sold this property under auction from an American based geologist who always had a view that at depth there was a large porphyry copper system.  The property has been explored in a shallow way to be an open pit with no commercial results.  Freeport approached us and asked if they could spend three million dollars on the property, turned a 70% interest.  We were delighted; they are the largest copper miner in the world.  They now have two holes completed down to depths of some 1,100 metres.  Their analogue is to see if they can develop a mine such as the being developed the resolution deposit in Arizona where they are mining at one mile depth by block caving.  

We have just received the assays from the second hole.  We will release them shortly; they’re very, very encouraging.  We believe that Freeport is on the margins of a large system and importantly they have applied for permits to drill four more holes.  Each hole keeping mine costs around $500,000.  We expect that by the time they complete those four holes we’ll have a very good idea whether they have encountered a significant copper mine.  If so our 30% interest will accrue well to the benefit of our shareholders.

Harry: When we last spoke Southern Silver was planning to build up the size of the silver, gold, volume metallic Oro Project in Mew Mexico.  How have your plans worked out for building up the Oro Project and what are your plans for Oro?

Larry: They worked out considerably better than anticipated.  Although, the length of time was longer than we’d anticipated.  This is an amalgam of federal land, state land and private land that’s taken us some four years to put together.  We’ve done all of the science, we’ve drilled some holes and we now have a permit to drill the next round of drilling which will start in September.  We’ve added a good deal of ground to the property on what we conceive to be a new gold target.  We’ll be looking to see if we can expand the near surface polymetallic, silver, lead, and zinc resource that we now have.  Importantly to see whether there exists a depth and when I say depth somewhere below 1,000 feet for copper porphyry prospect.  

So, by the end of the year we’ll have a much better idea of the significance and value of this property but it’s one of our stars and we are very, very happy that we are now going forward to drill it.

Harry: On July 21st Southern Silver closed the first tranche of a private placement for gross proceeds of 2.4 million dollars US.  Where does this leave the company’s financial situation going forward?

Larry: By the end of August I believe we will have completed the announced four million dollar financing.  I suggest that a significant bet after we close the first tranche, [Leiberfund 0:06:42] of New York announced that they had subscribed for two million dollars worth of equity in our company.  They were an insider, they owned 10%.  I believe that that is a significant message to the market that major investors are taking our company seriously.  Added to the balance of the financing and a number of warrants that are outstanding, the company is adequately funded to undertake all of its land exploration.  

I should say that we’ve never had difficulty in raising exploration money for this company or other companies in our group, andwe expect to be able to continue to finance all of the exploration as we go forward.

Harry: What can investors expect from Southern Silver over the next 12 to 18 months?

Larry: Investors can expect firstly news flow.  We have the drills turning on all the projects.  Hopefully the news flow will be significant.  We’ll be talking about significant resources that can become mines.  So, for in that period of time I think the complexion and structure of our company will remarkably change that we won’t be a junior explorationsist.  We will be developing resources that will draw the significant of attention of miners.

Harry: Remember Proactive Investors is not an investment advice service.  Make sure you register as proactiveinvestors.com or proactiveinvestors.de for our weekly newsletter which will keep you informed about our articles, interviews and events.  Thank you for listening. 

END AUDIO