Southern Silver (SSV.V) has announced a maiden resource estimate at the Cerro Las Minitas project, where Electrum is funding an exploration program to earn a 60% stake in the property.
The property currently contains 28.5 million ounces of silver as well as in excess of 400 million pounds of lead and almost 835 million pounds of zinc for a total silver-equivalent resource of in excess of 110 million ounces at an average grade of 305 g/t AgEq in the indicated category and 363 g/t AgEq in the inferred category. Southern Silver assumed recovery rates of 82% for the silver, 86% for lead and 80% for zinc.
This first resource estimate is actually pretty good (although the deeper portion of the resource might not be viable at the current commodity prices) , considering the company has spent less than $12M to outline a silver-equivalent resource of in excess of 100 million ounces. This is a good platform to start on, and we would expect Electrum to go ahead with its earn-in. It already owns a 30% interest after having spent $2M on the property and can now earn an additional 20% stake by spending an additional $1.5M on the property (with the option to spend $1.5M on top of that to earn a 60% stake).
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The author has no position in Southern Silver. Please read the disclaimer
