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Southern Silver targets resource growth at Mexico project

Bnamericas Published: Tuesday, August 30, 2022
Southern Silver targets resource growth at Mexico project

Southern Silver Exploration is seeking to further expand mineral resources at its Cerro Las Minitas project in Mexico following completion of a preliminary economic assessment (PEA).

The PEA showed a US$341mn initial capex underground project producing an average of 12.7Moz/y silver equivalent, including 5.3Moz/y silver, over a 15-year mine life.

Post-tax IRR is 17.9% at US$21.95/oz silver, US$3.78/lb copper, US$0.94/lb lead and US$1.33/lb zinc prices.

The study is based on a mineral resource estimate from late 2021, which showed 42.1Moz silver, 44Mlb (19,958t) copper, 358Mlb lead and 895Mlb zinc in indicated resources and 73.6Moz silver, 98Mlb copper, 500Mlb lead and 1.01Blb zinc in the inferred category.

“Since that time, 24 additional drill holes have been completed resulting in the identification of a further 400m of mineralized strike length and additional value added,” company president Lawrence Page said in a release.

“The property remains under-explored and the current PEA…presents the outline of a large-scale, underground silver and base metal mine with robust economics which can only grow larger and more valuable as drilling continues to define additional high-grade mineralization,” he added.

Mineralization remains open at depth beneath the Mina La Bocona, South Skarn and some portions of the Skarn Front deposits, which suggests potential resource growth, while infill drilling will further de-risk the project and potentially increase its value, the company said.

Cerro Las Minitas also benefits from nearby infrastructure and a competent work force in Durango state, along with mining-friendly legislation, power and access to mills and smelters, it added.

Southern is planning up to 15,000m of drilling targeting untested or poorly tested areas in 2022, it said in a June presentation.

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