Southern Silver Exploration Corp has achieved a notable milestone with the release of its updated Preliminary Economic Assessment (PEA) for the Cerro Las Minitas project. The updated study, based on an enhanced Mineral Resource estimate, reveals a substantial increase in both indicated and inferred resources. Specifically, the indicated resources now stand at 13.3 million tonnes (Mt) averaging 102 grams per tonne (g/t) of silver (Ag), 0.07 g/t of 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 thousand ounces (Koz) of gold, 49 million pounds (Mlb) of copper, 374 Mlb of lead, and 921 Mlb of zinc. Inferred resources have also seen an increase, now totaling 23.4 Mt averaging 111 g/t Ag, 0.14 g/t Au, 0.21% Cu, 1.1% Pb, and 2.1% Zn, amounting to 83.4 Moz Ag, 104 Koz Au, 111 Mlb Cu, 582 Mlb Pb, and 1,106 Mlb Zn.
According to Larry Page, President of Southern Silver Exploration Corp, the updated PEA showcases robust economic metrics with a base case after-tax Net Present Value (NPV) of $501 million and an Internal Rate of Return (IRR) of 21.2%, with a payback period of 48 months. These improvements are the result of several technical enhancements developed over the past 18 months, including the integration of new mineral resources from the North Felsite zone and the standardization of metallurgical recoveries and charges. Additionally, the inclusion of gold revenues into the project’s cash flow, along with optimization of mine scheduling and both operating and capital costs, has significantly boosted the project's overall value.
Page emphasized the importance of infill drilling, particularly in areas classified under the inferred category. This drilling is expected to bolster confidence in the Mineral Resource estimate, mitigate project risks, and potentially further enhance the project's value. Another key highlight is that the Cerro Las Minitas property is free from net smelter return royalties, which increases its attractiveness for future agreements aimed at maximizing shareholder value.
This update signifies an important progression in the Cerro Las Minitas project's journey, reflecting the culmination of incremental technical improvements and strategic planning. The enhanced economic metrics and increased mineral resources underscore the project's potential to be a significant asset not only for Southern Silver Exploration Corp but also for the broader mining industry. Future steps will focus on securing favorable agreements and conducting further exploration activities to continue adding value to this promising project.
