Southern Silver (SSV.V) hasn’t wasted any time since announcing the agreement to acquire the Puro Corazon claim, and the company has released its first assay results. While hole 25CLM-202 wasn’t all that great with 8.7 meters of 148 g/t silver-equivalent including 2.9 meters (2.4 meters true thickness) of 266 g/t silver-equivalent, SSV calls hole 203 a bonanza-grade hole.
And rightly so. As you can see in the table below, hole 203 encountered 13.4 meters (10.5 meters true thickness) at an average grade of 1,115 g/t silver-equivalent, including 3.4 meters true thickness at an average grade of almost 1982 g/t silver-equivalent. The latter interval consists of 1067 g/t ‘real’ silver while the 39% ZnPb grade makes up t he vast majority of the remainder of the silver-equivalent grade.
And just slightly deeper, just 13.7 meters further down-hole, the drill bit encountered 2.6 meters (again true thickness) with an average grade of 280 g/t silver-equivalent including two higher-grade but narrower zones.
These are just the preliminary results. The company disclosed that several additional mineralized zones were intersected deeper in the hole, and those samples are currently at the lab, with assays pending. The company has now completed ten of the 21 holes for a total of 4,000 meters of the planned 12,000 meter drill program. The drill program is designed to drill-test the mineralization on the claim both laterally and to a depth of up to 450 meters below surface.
Southern Silver should be able to report a steady news flow in the next few months, and we are already looking forward to seeing the additional drill results, and the impact on the resources at Cerro Las Minitas as the resource estimate will be updated after the Puro Corazon drill program.
Just one day after the assay results were released, Southern Silver announced a bought deal LIFE placement with Red Cloud Securities for C$5M. This is a straight share (no warrant) financing at C$0.50, and this will put the company on an even more comfortable financial footing.
Disclosure: The author has a small long position in Southern Silver but recently sold some shares to exercise warrants. Southern Silver is a sponsor of the website. This post is for educational purposes only; be mindful investing in junior mining stocks is risky and you may lose your entire investment if things go wrong. Please read the disclaimer.
