Southern Silver Files NI43-101 Technical Report
for its Updated Preliminary Economic Assessment for the Cerro Las
Minitas Project
Vancouver, British Columbia -- July 25th,
2024 -- Southern Silver Exploration Corp.
(TSX.V:SSV) ("Southern Silver") reports that it has
filed on SEDAR its National Instrument 43-101 Technical Report
titled Cerro Las Minitas, NI43-101 Technical
Report, Preliminary Economic Assessment dated July
23, 2024 (the "Technical Report"). The authors are Ausenco
Engineering USA South Inc. and Ausenco Sustainability ULC.
("Ausenco"), Kirkham Geosystems Ltd. ("KGL"), Entech Mining Limited
("Entech"), and MPC Metallurgical Process Consultants Limited
("MPC"). The report can also be found on Southern Silver's website
by clicking here.
Filing of the Technical Report follows Southern Silver's news
release issued June 10th, 2024 announcing
the results of its Updated Preliminary Economic Assessment ("PEA")
on its 100% owned Cerro Las Minitas Project, Durango State,
Mexico.
PEA Highlights (all figures in $US
unless otherwise noted):
-
Robust Project
Economics – Base Case1:
after-tax NPV5%
of $501M
(C$682M) and IRR
of 21.2%
with a 48-month
payback;
-
Excellent Silver and
Zinc Price Leverage - Base-case + 20% Metal
Prices2:
after-tax NPV5%
of $876M
(C$1,193M) and
IRR
of 30.1%
with a 37-month
payback;
-
Base Case Metal Prices: Ag- $23.00/oz, Au - $1850/oz, Cu –
$4.00/lb, Pb – $1.00/lb and Zn - $1.25/lb
-
Base Case +20% metal prices: Ag- $27.60/oz, Au - $2220/oz, Cu –
$4.80/lb, Pb – $1.20/lb and Zn - $1.50/lb
The 2024 Preliminary Economic Assessment features:
-
A Large-Scale
Underground Mining Operation with a
17-year mine
life and an annual average plant feed of
14.3 Mozs
AgEq3
(inc. 5.8 Mozs Ag) and life-of-mine (LOM)
feed totalling 243.2 Mozs
AgEq3; (inc. 98.6 Mozs Ag). LOM product
sales total 194.3Mozs
AgEq3
at an AISC
of $13.23/oz
AgEq3
sold; and
-
A High-Revenue
Project with gross revenues
totalling $4.47B
with silver and gold representing 45% of
revenues, and zinc representing 35% of projected revenues. The
project has an Initial CapEx of
$388M, an NPV5%-to-CapEx
ratio of 1.3X
and a paydown of 48 months on a post-tax
basi.
-
AgEq is calculated on a (contained metal x metal price)/ Ag price
basis
This latest economic update of Cerro Las Minitas is the culmination
of a number of technical improvements of the earlier PEA, developed
over the last 18 months, which together result in a significant
increase in the value of the Cerro Las Minitas asset. This includes
the addition of new mineral resources from the North Felsite zone
as first reported in March 2023; the standardization of the
metallurgical recoveries and charges across each of the deposits,
including the addition of gold revenues into the project cash-flow;
improvements in the mine scheduling and optimization both the
Operating and Capital costs of the project.
The updated PEA:
-
Increases the Life of Mine (LOM) production
by 5Mt, representing an approximate 20%
increase;
-
Increases daily mine production capacity
to 5300 tonnes per day
("tpd"), representing an approximate 18%
increase;
-
Extends the mine life by
2.6yrs;
-
Increases the LOM Revenue by
$765M, representing an approximate 17%
increase in revenues;
-
Increases the after-tax NPV5% by 45%
to $501M; and
-
Similarly, increases the post-tax IRR by 3.3%
to 21.2%.
Cautionary Statement
The PEA is preliminary in nature, it may
include mineral resources that are considered too speculative
geologically to have the economic considerations applied to them
that would enable them to be categorized as mineral reserves, and
there is no certainty that the PEA will be realized. Mineral
resources that are not mineral reserves have not demonstrated
economic viability. The mineral resources may be affected by
subsequent assessment of mining, environmental, processing,
permitting, taxation, socio-economic, and other factors.
Recommendations
The Technical Report recommends the continued development of the
Cerro las Minitas project toward pre-feasibility. Specific
recommendations include:
-
further drilling to upgrade the
classification of areas of high-value tonnes within the payback
years and to expand mineral resources;
-
further geotechnical assessment for mining
and mineral processing (tailings) purposes;
-
the initiation of base-line environmental
studies; and
-
continued social engagement with the local
populations in the vicinity of the project.
The company plans to initiate a core drilling program of up to
6000m in 11 holes to test shallow targets along the north side of
the Cerro between the North Felsite and Skarn Front deposits.
Drilling will start in early September. The work is the first stage
of a larger 25,000 metre exploration program on the property with
the goal of adding an additional 4 million to 8 million tonnes of
mineralization to the resource base.
About Southern Silver Exploration
Corp.
Southern Silver Exploration Corp. is an exploration and development
company with a focus on the discovery of world-class mineral
deposits either directly or through joint-venture relationships in
mineral properties in major jurisdictions. Our specific emphasis is
the 100% owned Cerro Las Minitas silver-lead-zinc project located
in the heart of Mexico's Faja de Plata, which hosts multiple
world-class mineral deposits such as Penasquito, Los Gatos, San
Martin, Naica and Pitarrilla. We have assembled a team of highly
experienced technical, operational and transactional professionals
to support our exploration efforts in developing the Cerro Las
Minitas project into a premier, high-grade, silver-lead-zinc mine.
Our property portfolio also includes the Oro porphyry copper-gold
project and the Hermanas gold-silver vein project where permitting
applications for the conduct of a drill program is underway, both
located in southern New Mexico, USA.
On behalf of the Board of Directors
"Lawrence Page"
Lawrence Page, K.C.
President & Director, Southern Silver Exploration Corp.
For further information, please visit Southern Silver's website at
https://www.southernsilverexploration.com
or contact us 604.641.2759 by email at corpdev@mnxltd.com.
Qualified Person
The PEA for the Cerro Las Minitas project as summarized in this
release was completed by Kirkham Geosystems Ltd. ("KGL"), Ausenco
Engineering USA South Inc. and Ausenco Sustainability ULC.
("Ausenco"), Entech Mining Limited ("Entech"), and MPC
Metallurgical Process Consultants Limited ("MPC"). The report is
now filed on SEDAR.
The scientific and technical content of this news release was
reviewed and approved by Robert Macdonald, MSc. P.Geo, VP.
Exploration, who is a Qualified Person as defined by National
Instrument 43-101 – Standards of Disclosure for Mineral
Projects.
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.
This news release contains forward-looking
statements. Forward-looking statements address future events and
conditions and therefore involve inherent risks and uncertainties.
Actual results may differ materially from those currently
anticipated in such statements. Factors that could cause actual
results to differ materially from those in forward looking
statements include the timing and receipt of government and
regulatory approvals, and continued availability of capital and
financing and general economic, market or business
conditions. Southern Silver
Exploration Corp. does not assume any obligation to update or
revise its forward-looking statements, whether as a result of new
information, future events or otherwise, except to the extent
required by applicable law.