Southern Silver Completes Purchase of Oro Property

VANCOUVER, BC - Southern Silver Exploration Corp. has finalized acquisition of a 100% interest in the Oro property, located in New Mexico. The Oro property consists of 157 BLM claims, two State leases and patented land comprising approximately 17.2 sq km. Since 2006, Southern Silver has paid total monetary consideration of USD$1,083,382 to purchase the claim package. The property is subject to a 2% net smelter return royalty, which may be purchased for $2 million.

To fund payment of the balance of the purchase price, Southern Silver received payment of USD$150,000 from Desert Star Resources Ltd.       Which holds an option to acquire up to a 70% interest in the Oro property by the issuance of 1,000,000 common shares and incurring expenditure of USD$6 million on exploration and development work together with the preparation and delivery of a Preliminary Economic Assessment before 2019.

The Oro property is located approximately 80 km southwest of the Silver City porphyry copper district and lies within the prolific Laramide Porphyry Copper Belt of the southwestern USA. The property covers a highly prospective 6 square kilometer area of quartz-sericite-pyrite alteration, interpreted to overlie an unexposed porphyry center. Classic porphyry system zonation is indicated by surface gold and copper mineralization associated with Laramide-age intrusions in this core area, flanked by lead-zinc skarn mineralization and distal sediment-hosted gold occurrences.

From 2007-2011 completed surface mapping and sampling, a 455 line-kilometer airborne magnetic survey over the entire property and 3,201 meters of diamond drilling which tested several skarn and carbonate replacement targets along the periphery of the porphyry target area. Exploration expenditures on the project during this time totaled approximately $1.25 million.

In addition to bulk tonnage porphyry copper-molybdenum-gold potential, the Oro Project claims also include the high-grade sediment-hosted Stock Pond gold target. Reconnaissance rock sampling has been completed over a strike length of 140 meters at Stock Pond, yielding values up to 4.8 g/t gold. Gold mineralization at Stock Pond is interpreted to be related to the main porphyry center, located 4 kilometers to the southwest.