Southern Silver raises $3.6 million for Mexico drilling
Southern Silver Exploration Corp. [SSV-TSXV, SSVFF-OTCQX, SSVCL-SSEV] said it has raised $3.6 million after closing the final tranche of a previously announced non-brokered private placement financing.
Net proceeds will be used to fund continued development of the Cerro Las Minitas property in Durango Mexico and for working capital. Specifically, the company plans to launch a resource expansion program of up to 6,000 metres 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 company said in a press release. “Work continues to de-risk the project through the initiation of base-line studies, and continued social engagement.
Meanwhile, Southern Silver has raised $3.6 million by issuing 16.4 million units, each of which consists of one common share and one-half of one share purchase warrant. Each whole warrant entitles the holder to buy one common share for three years at 30 cents per share. The final $211,530 tranche consisted of 961,500 units priced at 22 cents each.
Southern Silver shares were active on the news, easing 10.9% or $0.03 to 24.5 cents. The shares currently trade in a 52-week range of 33.5 cents and 11 cents.
Cerro Las Minitas already ranks as one of the largest and high- grade undeveloped silver projects in the world. It is located in a well-established silver mining district, about 79 kilometres to the northeast of the city of Durango. Consisting of 25 concessions covering 34,450 hectares, it lies within the heart of the Faja de Plata (Belt of Silver) of north central Mexico.
The belt is one of the most significant silver producing regions in the world, with current reserves/resources and historic production in excess of 3.0 billion ounces of silver. Major mining operations in the region include Newmont Corp.’s [NGT-TSX, NEM-NYSE] Penasquito mine.
According to an updated estimate dated March 20, 2024, Cerro Las Minitas hosts an indicated resource of 13.3 million tonnes, averaging 102 g/t silver, 0.07 g/t gold, 0.17% copper, 1.3% lead, and 3.1% zinc, totalling 43.4 million ounces of silver, 32,000 ounces of gold, 49 million pounds of copper, 374 million pounds of lead and 921 million pounds of zinc.
On top of that is an inferred resource of 23.4 million tonnes averaging 111 g/t silver, 0.14 g/t gold, 0.21% copper, 1.1% lead and 2.1% zinc, totaling 83.4 million ounces of silver, 104,000 ounces of gold, 111 million pounds of copper, 582 million pounds of lead, and 1.1 billion pounds of zinc.
According to an updated preliminary economic assessment (PEA) announced on June 10, 2024, the project can support a large-scale mining operation with a 17-year mine life and average annual plant feed of 14.3 million ounces of silver equivalent (AgEq), (including 5.8 million ounces of silver) and life-of-mine feed totaling 243.2 million ounces of AgEq. (including 98.6 million ounces of silver).