Southern Silver Exploration (SSV.V) has confirmed crews have mobilized in preparation for an additional 12,500 meter drill program on its flagship Cerro Las Minitas project in Mexico’s Durango state. This drill program will follow up on the 2025-2026 drill campaign on the Puro Corazon target, the claims that formed a donut hole in the middle of the CLM project.
While this drill program is ongoing, the company will also continue to work on an updated resource estimate, which should be published later this quarter. That updated resource will incorporate all recent drilling at Puro Corazon and will lead to an updated Preliminary Economic Assessment. The latter will be important as it will likely include A) rock that’s more easily accessible, B) given the drill results, higher grade material that could potentially be processed and C) it will allow Southern Silver to use higher metal prices in its base case scenario which should more than offset the anticipated inflationary effects on the capex and opex.
Based on the three elements above, we hope to see a substantial improvement of the NPV and IRR at Cerro Las Minitas. With silver prices firmly holding their ground above $50/oz, this underground project in Mexico is looking increasingly interesting.
Disclosure: The author has no position in Southern Silver Exploration. 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.
