The Mineral Resource estimates for the South Skarn,
The newly modelled mineral resources represent an approximate 63% increase in the size of the La Bocona deposit (on a AgEq basis) and an overall 4.5% increase in the mineral resources of the entire project.
The now extended La Bocona deposit projects laterally along the eastern margin of the central intrusion and together with the previously identified South Skarn deposit forms a 1,200 metre long, semi-continuous zone of mineralization featuring three separate higher-grade 'shoots' which project to 500m below surface and remain open at depth for further resource expansion.
Vice President of Exploration,
Resource Model Highlights: Compared to the 2021 Mineral Resource estimate, the 2023 update, at a
This equates to 140 million ounces silver equivalent or 2.3 billion pounds zinc equivalent and Inferred Mineral Resources: A 1.4Mt increase to 21.0Mt averaging 118g/t Silver, 0.1g/t Gold, 0.2% Copper, 1.2% Lead and 2.2% Zinc (311g/t AgEq; 7.6% ZnEq) equalling a
This equates to 210 million ounces silver equivalent or 3.5 billion pounds zinc equivalent.
The new Mineral Resource Estimate incorporates results from 26 additional drill holes totalling 11,801.5 metres which tested the north-western extension the La Bocona deposit. Mineralization was also identified in several holes specifically along the northern margin of the central intrusion that were not incorporated into the new resource update and with further drilling, represent additional expansion opportunities.
NSR Calculation Parameters
The NSR values were calculated using average long-term prices of
Gold recovery was not assessed in the sulphide concentrates and as a result was not included in the NSR calculation. Work is proceeding to determine gold recoveries/payables from the sulphide concentrates. Results are pending.
Model Parameters for the Bocona/North Felsite and North Felsite HW Zones
The estimate was carried out using separate block models constrained by 3D wireframes of the individual mineralized zones. The block model is comprised of an array of blocks measuring 10m x 1m x 10m which are sub-blocked to 1m x 1m x 1m, with grades for Ag, Au, Cu, Pb and Zn interpolated using Ordinary Kriging within the Bocona/North Felsite zone and Inverse Distance to the
The interpolation was carried out in two passes using progressively larger search radii along strike and down dip of 60m x 60m to a maximum of 100m x 100m. Composites were restricted to a minimum of 3 and a maximum of 9 composites, with a maximum of 3 composites from any one drill hole.
Bulk densities were based on sample interval measurements taken by Southern field personnel. For each sample interval, sub-samples were taken from each individual length of core and the weighted average for the sample used. Density values were interpolated on a block-by-block basis using an inverse distance to the second power. An average value of 2.85 t/m3 was assigned to blocks that were not interpolated.
Silver composite values have been capped in order to remove the effects of potential overestimation due to statistical outliers. The threshold chosen was 700 g/t silver for the Bocona/North Felsite and North Felsite HW zones. In addition, outlier values for the co-product metals were capped at the threshold levels of 1.5 g/t gold, 2% copper, 18% lead and 10% zinc at Bocona/North Felsite and 2 g/t gold, 0.2% copper, 3% lead and 5% zinc for the North Felsite HW zones, respectively.
The mineralized zones were initially defined by Southern personnel and subsequently adjusted and redefined, validated and verified by KGL. The mineralized wire frames were defined using a combination of geological constraints and grade boundaries in addition to consideration of potential reasonable mining thickness. Intervals that were not sampled were assigned a zero grade.
For all zones, blocks are classified as Inferred if they are included within 100m of at least one drill hole intercept. Blocks within 40m of the nearest intercept, and estimated by at least two drill holes were classified as Indicated. However, an interpreted boundary is the final determination of indicated and inferred resources in order to remove outlier blocks and the 'spotted dog' effect. In addition, continuous potentially underground mining panels were created to demonstrate 'reasonable prospect of eventual economic extraction'.
Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Inferred Resources are considered too speculative geologically to have economic considerations applied to them that would enable them to be classified as Mineral Reserves. An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.
Risk Factors
Southern Silver is aware this project is subject to the same types of risks that large precious and base metal projects experience at an early stage of development in
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This news release may contain 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.
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