Southern Silver acquires 65% of Fury's copper prospect
2006-07-17 12:14 MT - News Release
Mr. Lawrence Page reports
SOUTHERN SILVER EXPANDS MEXICAN HOLDINGS FROM 3.6 SQUARE KILOMETRES TO 97 SQUARE KILOMETRES
Southern Silver Exploration Corp. has expanded its interest in a Mexican copper exploration district to more than 97 square kilometres by agreeing to acquire a 65-per-cent interest in the Magistral I copper prospect in Jalisco, Mexico, from Fury Explorations Ltd.
The Magistral I claims border the 100-per-cent-owned La Sorpresa project which Southern Silver currently is exploring with a drill program that is targeting high-grade copper mineralization in quartz-tourmaline breccias within disseminated copper-bearing intrusives. The agreement with Fury also includes the acquisition of data from a 1997 airborne geophysical survey, which covers both the La Sorpresa claims and a significant portion of the Magistral I claim within a total flown area of 81 square kilometres.
The company said that the Magistral I concession, which covers 9,400 hectares and adjoins the La Sorpresa claim on the north, east and west borders, is significantly larger than the original 360-hectare La Sorpresa claim block and includes multiple untested magnetic, electromagnetic and radiometric geophysical anomalies, some of which overlap the boundaries between the two claim blocks.
Southern Silver may acquire 65-per-cent interest in the property by issuing a total of 500,000 shares vested as to 50,000 shares upon signing the option agreement, 50,000 shares in each of the first four years of the option term and 250,000 shares in year five as well as expending $3-million (U.S.) on exploration expenditures, in staged increments, over five years. Share issuances are subject to regulatory approval.
Southern Silver president Lawrence Page said: "Through this acquisition Southern Silver has consolidated a district-size land package containing numerous exploration targets and now has the ability to follow several target zones, developed on the La Sorpresa claims through detailed mapping and geophysical surveys, on to the newly acquired property. Because Southern Silver has a drill rig on site at the La Sorpresa claims currently undertaking a drilling program, we have the ability to quickly initiate a drilling program on targets within the Magistral I concession identified by analysis of present data and ground evaluation by our on-site geologists."
The Magistral I property is accessible via a series of gravel roads from the town of Ameca (population 50,000), which is located 80 kilometres southwest of Guadalajara.
Rob Macdonald, PGeo, is the qualified person responsible for reviewing the technical results reported in this release.
We seek Safe Harbor.
K.D.
