Southern Silver Exploration (SSV.V) reported additional assay results last week from the zone below a previously reported copper-rich zone at Cerro Las Minitas. The total length of the mineralization in the lower part of that hole is now almost 33 meters in true width with an average grade of almost 3.5 ounces silver per tonne of rock as well as 0.9% copper after adding 1.1 meters containing 406 g/t silver and 3.8% copper to the interval.
The copper grades are really strong, and according to the company, this might represent a transition zone into a mineralized endoskarn which seems to remain open along strike. That’s really important for the future of the project, and Southern Silver now seems to refer to Cerro Las Minitas as a ‘poly-metallic project’ rather than the silver-lead-zinc project it used to be. Electrum will very likely be very happy it has spent the $5M needed to earn its 60% stake in the property (leaving Southern Silver with a 40% stake in the project).
And Southern Silver had more good news as it also released the results of a surface sampling program at the newly acquired Biznagas and Los Lencho claims which are located right next to Cerro Las Minitas. Even though these claims are contiguous to CLM, the mineralization is completely different and Southern Silver planned to search for epithermal gold-silver veins (rather than the skarn and CRD mineralization at CLM).
The initial sampling results are absolutely encouraging as Southern Silver confirmed the existence of several ‘pathfinders’ like arsenic, whilst the assay results also confirmed anomalous gold and silver grades. An additional interesting kicker are the encountered antimony values which range from 383 ppm to 777 ppm. Whilst a pound of antimony is quite cheap right now, we do believe it could be highly sought after in the next 5-10 years as end-users would like to break the Chinese supply dominance and establish their own, reliable supply chains.
Grid sampling is still continuing at Biznagas and Los Lencho, which should result in Southern Silver identifying a few high-priority drill targets which will then be drilled after the summer.
Southern Silver is also still in the process of closing a C$5M private placement which was announced in May. A first tranche of C$2.55M has already been closed, but the closing date of the second tranche has been extended to August 16th. As a brief reminder, each unit – consisting of one share and one three year warrant with a strike price of US$0.55 (C$0.70).