Southern Silver Initiates Drill Program at the Puro Corazon Mine on its Cerro Las Minitas Property, Durango, Mexico

Executive Summary

• Southern Silver announced mobilization of crews to begin a up‑to‑12,000 m core drilling program on the newly acquired 9‑ha Puro Corazón claim, which will be integrated into the larger Cerro Las Minitas project in Durango, Mexico.
• The drill campaign will test lateral extensions (≈200 m) and deeper targets (to ≈450 m) of existing mineralization, including six hanging‑wall structures and the Skarn Front deposit, with results to feed an updated Technical Report and Preliminary Economic Assessment slated for Q1 2026.
• Concurrently, the company granted incentive stock options for 13.9 million shares at $0.41 per share to directors, officers and consultants, following the expiration of a prior option pool.

Key Details

• Claim Acquisition: Puro Corazón claim (9 ha) adjacent to Cerro Las Minitas; acquisition described as a “significant milestone” for project integration and potential capital/operating synergies.
• Drilling Program:
• Up to 12,000 m of core drilling using three drill rigs.
• Targets: lateral extension of mineralization ≈200 m, depth up to 450 m below surface, and six hanging‑wall structures outboard of the Skarn Front zone.
• Additional work: compilation of existing underground geological data, new sampling in historic workings, and a LiDAR survey of underground mine workings.
• Current Mine Operations (Puro Corazón): Privately operated, mining ~60 t/day, producing silver‑lead concentrate and zinc concentrate; development currently ≈200 m laterally and 250 m deep.
• Technical Reporting: Drill results will be incorporated into the Cerro Las Minitas model for an updated Technical Report and Preliminary Economic Assessment (PEA) scheduled to begin in Q1 2026, per NI 43‑101 requirements.
• Synergy Highlights:
• Near‑term resource growth via infill drilling.
• Capital efficiency gains by accessing higher‑grade mineralization earlier.
• Enhanced mine‑plan sequencing and potential improvements to NPV/IRR.
• Operational efficiencies across permitting, environmental management, safety, and data collection.
• Stock Option Grant: Incentive stock options granted for 13,900,000 common shares at an exercise price of $0.41 per share; exercisable over five years under the company’s stock option plan and TSX V rules. This follows expiration on 2025‑09‑24 of a prior pool of 8,500,000 options at $0.51.
• Qualified Person: Robert Macdonald, MSc., P.Geo., Vice President of Exploration, signed off as the Qualified Person for the technical information disclosed.

Notable Quotes

(No direct quotes were provided in the release.)