Southern Silver Exploration Corp Announces Significant Milestone with Updated PEA on Cerro Las Minitas Project

Southern Silver Exploration Corp President Larry Page has announced the results of an updated Preliminary Economic Assessment (PEA) for the Cerro Las Minitas project. The study, based on an updated Mineral Resource estimate, indicates substantial increases in both the indicated and inferred categories.

The updated Mineral Resource includes 13.3 million tonnes (Mt) of indicated resources averaging 102 grams per tonne (g/t) silver (Ag), 0.07 g/t gold (Au), 0.17% copper (Cu), 1.3% lead (Pb), and 3.1% zinc (Zn). This totals 43.4 million ounces (Moz) of silver, 32,000 ounces (oz) of gold, 49 million pounds (Mlb) of copper, 374 Mlb of lead, and 921 Mlb of zinc. In the inferred category, the project boasts 23.4 Mt averaging 111 g/t silver, 0.14 g/t gold, 0.21% copper, 1.1% lead, and 2.1% zinc, totaling 83.4 Moz of silver, 104,000 oz of gold, 111 Mlb of copper, 582 Mlb of lead, and 1,106 Mlb of zinc.

According to Page, the project's robust economics include a Base Case1 after-tax Net Present Value (NPV5%) of $501 million and an Internal Rate of Return (IRR) of 21.2%, with a payback period of 48 months. This economic update represents a significant milestone in the evolution and development of the Cerro Las Minitas project. The progress is attributed to several technical improvements over the past 18 months, resulting in a substantial increase in the project's value.

Among the enhancements contributing to this milestone are the addition of new mineral resources from the North Felsite zone, initially reported in March 2023, and the standardization of metallurgical recoveries and charges across the deposits. The inclusion of gold revenues into the project cash flow and improvements in mine scheduling and optimization of both operating and capital costs have also played critical roles.

Page highlighted the need for infill drilling, particularly in areas classified under the inferred category, to boost confidence in the Mineral Resource estimate. This step is expected to further de-risk the project and potentially increase its value. Additionally, the property's freedom from net smelter return royalties enhances its attractiveness for future deals.

The company's focus is now on securing favorable agreements to maximize shareholder value. With these advancements, Southern Silver Exploration Corp aims to continue its trajectory of growth and development in the mining industry.

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