Southern Silver Exploration (SSV.V) has been very busy the past twelve months as it continued to drill the Cerro Las Minitas project in Mexico. The company took advantage of an excellent financing window in the summer of last year, and the proceeds of that financing, as well as the proceeds from warrant exercises throughout the year, allowed Southern Silver to keep drilling the property.
The updated resource estimate now contains 12.3 million tonnes in the indicated resources (up 1.2 million tonnes) while the inferred resource increased by almost 50% as it now contains 19.6 million tonnes, up 6.8 million tonnes compared to the previous resource estimate. That’s actually an impressive increase on both accounts as Southern Silver added 8 million tonnes of rock to the two resource categories with just about 21,000 meters of drilling. There were a few other factors at play as well, like the updated metallurgical recoveries for the silver and zinc content in the rock.
This is a very important and interesting step forward for Southern Silver and we will incorporate the new data into a new economic model. That will obviously be a back of the envelope model, as Southern Silver is working towards a maiden Preliminary Economic Analysis at Cerro Las Minitas, which should be completed by the summer of next year.
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