Mr. Lawrence Page reports
SOUTHERN SILVER REPORTS ON THE CERRO LAS MINITAS PROJECT
Southern Silver Exploration Corp. has executed an amending agreement with the optionor of the Cerro Las Minitas property in Durango, Mexico, to reduce the option payment due on May 18, 2013, from $1-million to $250,000 and to extend the balance of the purchase price of $1.75-million to be paid periodically, with the last payment due in March, 2015.
Freeport-McMoRan Exploration Corp. has been financing and directing Southern Silver's subsidiary, Minera Plata del Sur SA de CV, to explore the property pursuant to an earn-in agreement since October, 2012, and has advanced the $250,000 option payment together with a previous payment of $750,000 due Nov. 18, 2012, together with applicable IVA taxes, with such amounts being credited toward potential expenditures of $25-million required to earn an indirect 70-per-cent interest in the property.
Since execution of the earn-in agreement, Freeport-McMoRan has directed Minera Plata to conduct soil and vegetation geochemistry and geophysical surveys over the 15,125-hectare property, and to explore the property with diamond drilling utilizing two core rigs in order to advance the project quickly through this initial discovery and evaluation stage.
Approximately 1,300 metres of the planned 3,500-metre-plus drill program have been completed to date. Logging and sampling of the core continues. Assays are pending and will be reported upon the completion of the drill program.
Current plans are to test deeper offsets of known mineralized zones at the South Skarn, Blind zone and Santo Nino targets, and several geophysical and geochemical targets identified in recent surface exploration by Freeport McMoRan. The current drill program is targeting a deep-seated porphyry/skarn mineral system similar to the historical San Martin deposit (60 million tonnes of 118 grams per tonne silver, 0.9 per cent copper and 3.9 per cent zinc) located about 100 kilometres to the south of the Cerro Las Minitas project. See the news release of April 2, 2013, for further details of the exploration to date and the proposed drilling program.
President Lawrence Page commented: "The renegotiation of the option agreement provides greater flexibility to explore the property systematically within a reasonable time frame. Two million two hundred fifty thousand dollars has been paid on the $4-million purchase price to earn a 100-per-cent unencumbered interest in the property, with Freeport-McMoRan having contributed $1-million as a credit toward its earn-in threshold. Freeport-McMoRan may elect to make additional payments as they become due and as it continues its exploration program."
Robert Macdonald, PGeo, is a qualified person as defined by National Instrument 43-101. He has reviewed and approved the technical contents of this release.
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