Southern Silver Drills 6.3 Metres of 874 G/T AgEq at Cerro Las Minitas Project, Durango, México

Why It Matters

The drill results dramatically boost the grade and tonnage outlook for Cerro Las Minitas, positioning the project for a stronger resource model and potentially higher valuation in the competitive Mexican silver‑lead‑zinc sector.

Key Takeaways

• 6.3‑m interval averages 395 g/t Ag, 874 g/t AgEq
• 1.5‑m interval hits 886 g/t Ag, 2062 g/t AgEq
• 12‑m skarn zone returns 138 g/t Ag, 225 g/t AgEq
• All 23 planned holes drilled, depths exceed 500 m
• Results will update resource estimate and 2026 PEA

Pulse Analysis

The Cerro Las Minitas project sits in Mexico’s prolific Faja de Plata, a corridor that hosts world‑class deposits such as Penasquito and Naica. Southern Silver’s latest drilling underscores the district’s potential by intersecting multiple high‑grade silver‑lead‑zinc zones, including a hanging‑wall bonanza that rivals historic benchmarks. These grades, especially the 886 g/t Ag interval, are rare in bulk‑tonnage projects and suggest a robust, vertically extensive mineral system that can support large‑scale underground mining.

From a market perspective, silver prices have been buoyant, while demand for lead and zinc remains strong due to infrastructure and renewable‑energy applications. The newly reported intervals improve the project's economics, offering higher metal credits that can lower the cut‑off grade and increase net present value. Investors will watch the upcoming resource update and 2026 Preliminary Economic Assessment, as they will translate these drill results into quantified reserves, mine life, and cash‑flow forecasts that could position Southern Silver as a mid‑tier producer in a mining‑friendly jurisdiction.

Beyond the immediate drill data, Southern Silver is advancing baseline studies, permitting, and community engagement, de‑risking the project ahead of a potential financing round. The integration of the Puro Corazon results into the broader Cerro Las Minitas model is expected to enhance the mine plan’s scalability and reduce capital intensity. If the company can sustain this grade continuity at depth, it may attract strategic partners seeking exposure to high‑grade polymetallic assets, further strengthening its balance sheet and market positioning.