Southern Silver Exploration Corp. reported that it has received assay results from the first two drill holes of its approximate 4,000-metre diamond drilling program currently underway to test several Laramide-age copper porphyry and skarn targets at its wholly owned Oro property, located in southwestern New Mexico, USA. The first two deep holes tested the main porphyry target on the Oro property, identified through earlier geological compilation, clay-alteration studies and ZTEM airborne geophysics.

Drilling successfully intersected: Classic geochemical and alteration zoning demonstrating near surface lower temperature prophyllic alteration transitioning at depth into a thick zone of strong pyritic/phyllic-alteration, and at further depth transitioning into higher temperature potassic alteration with strong copper enrichment; Increasing molybdenite concentrations with depth within the potassic alteration, suggesting the strongest copper mineralization lies deeper in the hydrothermal system; and Unexposed hydrothermal diatreme breccias with copper oxides directly beneath gravel cover in one hole, a potential host for high-grade copper at depth. Regionally important Cretaceous carbonate host rocks were not adequately tested in either hole due to the complex array of dikes encountered beneath Laramide-age volcanic rocks; thus, the carbonate sequence remains a high priority to test for high-grade skarn development. Results from these initial two holes provide the company with a better understanding of the underlying stratigraphy, the distribution of the main alteration phases and, importantly, the relationship between the ZTEM geophysical signatures and the alteration assemblages to enhance further drill targeting within this 4km2 area.

Thick zones of copper mineralization were intersected in hole OR22-011 (Total Depth of 1,005.8m), which includes 644m (2,113 feet) of 0.030% Cu from 359m to 1,003m depth, with the lower 180m (590 feet averaging 0.048% Cu). Copper and molybdenum concentrations, as well as the intensity of alteration, generally increase to the end of the maximum permitted depth. The complex assemblage of high-level dikes, hydrothermal breccias, and the erratic increase in molybdenum concentrations from generally less than 10 ppm to narrow zones of +0.01% Mo indicate higher grades of copper should lie deeper in this rotated porphyry system.

Hole OR22-010 (Total Depth of 914.4m) encountered similarly increasing phyllic alteration into potassic alteration, intersecting 143m of 0.012% Cu from 569 to 712m depth, and then back into lower temperature phyllic alteration, suggesting the hole skimmed the edge of copper mineralization. Drilling continues at Oro with hole OR22-012, which is testing a strong ZTEM geophysical anomaly where regionally important Cretaceous-age carbonate host rock is projected to lie at relatively shallow depths. The Oro property consists of patented land, New Mexico State leases, and Federal/BLM mineral claims acquired by purchase, staking and lease over the past several years.

Several historic mines produced copper, lead, zinc, silver, and gold from discrete portions of the amalgamated property. The property covers a large, well-zoned Laramide-age mineral system consisting of a ring of Carbonate Replacement Deposits (CRDs) around a core of intense sericite-pyrite alteration, which clay mineralogy indicates is the lithocap overlying an unexposed porphyry centre. Targeting for copper mineralization is based upon 3D modelling of data generated by geologic mapping, historic drill holes, geochemical zoning studies, alteration clay zoning studies, and geophysical surveys.

A 6-hole (4,000-metre) diamond drill program currently in progress will focus on porphyry and skarn targets. Surrounding the CRD zone are distal-disseminated, sediment-hosted, gold showings, such as at the Stockpond target, where the Company has conducted limited exploratory drilling. The drilling encountered strongly oxidized, disseminated gold mineralization beneath shallow gravel cover that was limited by a post-mineral fault which buried potential extensions beneath a thick cover of gravel and which remains open for further exploration.