Southern Silver Signs Earn-in Agreement with Freeport-McMoRan

 

VANCOUVER, BC - Southern Silver Exploration reported that it has signed an earn-in agreement with Freeport-McMoRan Exploration Corporation (FMEC), for the Company's Dragoon Porphyry Project located approximately 100 kilometres southwest of Tucson, Arizona.

Under the terms of the agreement, FMEC has the exclusive right and option to acquire a 70% ownership interest in the Dragoon project by spending US$3 million on the property by December 31, 2012 which includes drilling one hole of approximately 300 metres on or before December 31, 2010. FMEC will assume all annual property maintenance requirements with the State and Federal authorities as well as assuming all payments pertaining to the underlying option agreement.

The Dragoon property is a contiguous block of 1,280 ha comprising 68 unpatented mining claims and four State leases that contain areas of exposed Cu-Mo mineralization, Laramide-age monzogranite porphyry and geothitic "leached capping" which occur in the eastern part of the property. A larger down-dropped block of porphyry related rocks underlie the gravel-covered western and northwestern portion of the property.

Drilling in these areas by Kennecott, Noranda and US Borax has identified hematite-quartz-sericite-altered intrusive rocks, low-grade chalcopyrite and chalcocite mineralization and further hematite leached capping. The presence of the "leached capping" is significant as it may overlie supergene-enriched copper mineralization at depth in the relatively under-explored gravel covered portions of the property.

CEO Lawrence Page Q. C. said, "We are very fortunate to have partnered with a Company which has the financial ability and technical expertise to explore the Dragoon property with an initial drill hole of approximately 300 metres as part of the $3 million earn in. Initial targeting of a potential enriched zone beneath the hematitic leached capping is a significant step in determining the full potential of this widespread Laramide porphyry Cu-Mo system."

FMEC's parent company, Freeport-McMoRan Copper & Gold Inc. (FCX), is the world's largest publicly-traded copper company.

The company’s address is Suite 1100, 1199 West Hastings Street, Vancouver, BC, V6E 3T5, (604) 899-2515, fax: (604) 688-4670, email: [email protected].