Drilling Completed on Southern's Oro Project in New Mexico; Permits Received for Dragoon Drilling
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 12/01/11 -- Southern Silver Exploration Corp. (TSX VENTURE: SSV)(FRANKFURT: SEG) reported today the completion of its Phase II drilling on the Oro project, New Mexico, USA. Four core holes were drilled on the project for a total of 1,697 metres. Three holes tested the system to 400 metres depth along a 3.5 kilometre strike-length and within a 5 square kilometer area of pervasive hydrothermal alteration located in the historic polymetallic Eureka Mining District near the town of Lordsburg. A fourth shorter hole targeted the depth projection of a surface exposed, high-grade mineralized structure.
The company said that drilling intersected thick intervals of pyritic and less abundant base-metal sulphides in several holes, which are associated with silicified and pyritized hornfels, skarn, and altered intrusions. Logging and sampling of the holes continues. Assays are pending. Final targets for future exploration and drilling on the project will be developed upon receipt and compilation of the results.
Southern Silver President, Lawrence Page, QC stated: 'The geologic characteristics of the holes are strongly encouraging and continue to define a strong intrusion related hydrothermal system that is highly prospective for the discovery of gold and copper deposits.'
Dragoon Project, Arizona
Southern Silver also reported that optionee Freeport McMoran Exploration Corp. (FMEC) has received final drilling permits for four additional drill holes on the Dragoon project, a fifth hole is currently in the application stage. The planned holes are NE-SW step-outs from the two previously drilled holes on the project. The start of the next phase of drilling is anticipated in early 2012. FMEC has also reported encouraging results from a Soil-Gas Hydrocarbon survey in the area of the two previously drilled holes. Additional sampling is underway to assist the prioritization of the pending drilling program.
About the Oro property
The Oro Project comprises a contiguous block of Federal, State and Private land totaling 17.2 sq km in the historic Eureka mining district in southwest New Mexico.
The New Mexico Bureau of Mines estimates production from small mines and workings within the Oro district between 1880 and 1961 at 2.9 million pounds of lead, 1.7 million pounds of zinc, 0.5 million pounds of copper, 450,000 ounces of silver, and 5,000 ounces of gold mined from shallow workings above the water table(1). Southern Silver's most recent work on the project suggests a high-potential to host further gold- and silver-enriched CRD deposits, and also bulk-tonnage intrusion-related gold mineralization or possibly a deeply buried copper porphyry system.
Southern Silver has the right to earn a 100% interest in the property by payments totaling $425,000 to private vendors by December 2012.
About Southern Silver Exploration Corp.
Southern Silver Exploration Corp. is an emerging precious/base metal exploration company and a member of the Manex Resource Group; a private company comprised of an exceptional multi-disciplinary team of professionals, with specific expertise in all the areas of exploration, development and public company administration.
The company's growth strategy is to acquire, explore and develop high-quality properties in progressive jurisdictions within North America. Its current projects include the silver-lead-zinc Cerro Las Mintas, copper-gold-silver Minas de Ameca, the porphyry copper-molybdenum project Dragoon in Arizona and the gold-silver project Oro in New Mexico.
Robert Macdonald (P.Geo) is a Qualified Person as defined by National Instrument 43-101 and has reviewed and approved the technical contents of this release.
(1) Data is from historical State of New Mexico files. Southern Silver has not attempted to verify this data. but has no reason to believe that these results are not representative historical production from this area.
On behalf of the Board of Directors
Lawrence Page, President, Southern Silver Exploration Corp.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Southern Silver Exploration Corp.
Liana Shahinian
1.888.456.1112
liana@mnxltd.com
www.southernsilverexploration.com