Southern Silver Exploration (TSXV: SSV) aims to add up to 8 million tonnes in shallow and deep resources to the Cerro Las Minitas project in Durango, Mexico, VP of exploration Robert MacDonald says.
The goal is to boost the US$388 million capex project's resources to over 45 million tonnes. This will be done through a staged 25,000-metre drilling program. MacDonald said this will enhance its long-term economic potential. The project is 900 km northwest of Mexico City.
"This is one of the largest undeveloped silver projects in the world," MacDonald said last month during The Northern Miner's International Metals Symposium.
Last June, the company released a preliminary economic assessment. It outlined a 17-year mine life, producing 242.7 million silver-equivalent ounces. The all-in sustaining cost is forecast at US$13.23 per ounce.
The study calculated an after-tax NPV of US$501 million (at a 5% discount rate) and an IRR of 21.2%, with projected revenues of US$4.5 billion, 45% of which come from silver and gold.
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