Southern Silver Exploration Corp (TSX-V:SSV, OTCQX:SSVFF) announced that Kirkham Geosystems Ltd has completed an update of its independent mineral resource estimate (MRE) on the Cerro Las Minitas project in Mexico.
The updated MRE, which incorporates results from 26 additional drill holes totaling 11,801.5 meters, significantly expands sulphide resources in the La Bocona deposit through the incorporation of the North Felsite zone into the resource model, the company said.
The newly-modeled mineral resources represent an approximate 63% increase in the size of the La Bocona deposit (on a silver equivalent basis) and an overall 4.5% increase in the mineral resources of the entire project.
Shares of Southern Silver Exploration jumped more than 6% to C$0.17 in Toronto.
"This latest resource update represents one more step in the continued evolution of the Cerro La Minitas project through the identification of further shallow, high-grade mineralization which is accretive to the existing mineral resources on the property and adjacent to the planned project infrastructure,” said Rob Macdonald, VP of exploration.
Compared to the 2021 MRE, the 2023 update includes an indicated mineral resource increase of 0.18 megatonnes up to 12.5Mt averaging 106 grams per tonne (g/t) silver, 0.07 g/t gold, 0.2% copper, 1.3% lead and 3.3% zinc. That equates to a US$130/tonne NSR value.
Inferred mineral resources increased by 1.4 Mt to 21 Mt averaging 118 g/t silver, 0.1 g/t gold, 0.2% copper, 1.2% lead and 2.2% zinc, equalling a US$123/tonne NSR value.
“Future work will maintain a focus on adding value to the project early in the production timeline for maximum economic benefit,” Macdonald said. “This includes: further engineering upgrades to the project design; a detailed review of the capital expenditures; the addition of gold payables to the cash-flow model; and pre-concentration to improve the project economics.”
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