Tuesday 1 May 2012

Southern Silver shares rise as it extends mineralized zones at Cerro Las Minitas

Southern Silver Exploration Corp. (CVE:SSV)(FRANKFURT:SEG) saw its shares rally Tuesday after it said it extended mineralized zones at its Cerro Las Minitas project in Durango State, Mexico both laterally and to depth.

The projections of the known mineralized structures at both the Blind zone and El Sol deposits were extended.

At the Blind zone, three core holes were drilled to depths of between 120 to 150 metres along the northwestern extension of the area, with each hole returning multiple high grade intercepts of silver-polymetallic mineralization, the company said.

High grade results included a 4.4 metre interval averaging 186 grams per tonne (g/t) silver, 5.6g/t lead and 4.6% zinc from hole 12CLM-047; a 0.8 metre interval of 421g/t silver, 15.2% lead and 6.8% zinc from hole 12CLM-045; and a 0.5 metre interval grading 1040 g/t silver, 16.7% lead and 2.9% zinc from hole 12CLM-049.

Southern Silver said drilling continues to extend Blind zone mineralization at depth toward the northwest, with initial modelling identifying three distinct mineralized structures that project along a 550 metre strike-length of the deposit.

Several additional less continuous lenses of mineralization were also identified in the model, the company added.

"The Blind zone mineralization was identified through IP geophysics and subsequent drilling and has validated this method of identifying mineralization below gravel cover," said president Lawrence Page.

"While present drilling is identifying mineralization in the area of the Cerro Las Minitas intrusion, large portions of the 15,000 hectare mineral claims, which are overlain with gravel cover, contain geophysical anomalies similar to the anomalies at Cerro Las Minitas and will be tested in subsequent drill programs after the nature and extent of the mineralization presently being developed at Cerro Las Minitas is fully ascertained."

Meanwhile, at the El Sol deposit, drilling continues to extend the northwestern extension of previously reported mineralization from hole 12CLM-027, which returned 24.8 metres of 124 g/t silver, 1.9% lead and 2.1% zinc.

The company said it hit a 0.8 metre interval grading 745 g/t silver, 0.8% lead and 0.4% zinc within a broader 5.9 metre interval averaging 133 g/t silver, 1.3% lead and 0.5% zinc from drill hole 12CLM046.

While earlier drilling on this deposit targeted near surface mineralization, this latest hole "significantly" extends the depth projection of the El Sol zone to around 200 metres below surface, Southern said.

Drilling on the El Sol deposit has also identified a rough 250 metre cumulative strike-length in seven drill holes.

In 2012, the company will continue to drill at the project with two core rigs. One drill rig remains dedicated to mineralization in the Blind and El Sol zones, while the second rig is testing occurences in an area of historic mining as well as several new targets.

Last year, 29 drill holes for a total of 8,030 metres were completed on the project. An additional 5,977 metres in 27 drill holes have been completed so far this year, with two additional holes in progress. Assays from six drill holes are pending, the company said.

The company is planning 20,000 metres of core drilling in 2012, with the aim of completing a NI 43-101 compliant resource on these first set of targets by the fourth quarter.

This will be the initial milestone toward the company's goal of delineating a larger, multi-million tonne, high-grade, silver-enriched polymetallic resource on the project.

Shares were up more than 14 percent Tuesday Morning, at 8 cents.

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