Silver’s rally to fresh record highs has re‑priced optionality across the metal’s project pipeline.
In that context, a newly emerging, near‑surface carbonate-replacement style discovery sitting beside an established skarn system offers unusual torque to price, grade and payback—particularly when it can be integrated into a larger project already carrying a positive PEA and advancing technical de‑risking.
Enter: Southern Silver Exploration Corp. (TSXV:SSV). At Cerro Las Minitas (CLM) in Durango, México, three consecutive rounds of drill results in late 2025–January 2026 on the recently acquired Puro Corazon claim have outlined bonanza-grade, near‑surface CRD-style silver in a hanging‑wall lens outside the main skarn. In a market where silver has set all‑time highs, the interplay of grade + geometry + integration into an existing mine plan could be material to resource growth, early‐years head grades and project economics.
This article is disseminated in partnership with Southern Silver Exploration Corp. It is intended to inform investors and should not be taken as a recommendation or financial advice.
Why investors should care about the setting
- Corporate and project backdrop. CLM already carries an updated NI 43‑101 PEA (July 2024) that outlines a 17‑year, large-scale underground operation with after‑tax NPV5 per cent of US$501M, 21.2 per cent IRR, AISC of US$13.23/oz AgEq, and strong leverage to higher silver/zinc prices. Integration of incremental, near‑surface high‑grade material can disproportionately influence early cash flows and payback.
- Strategic bolt‑on. The company acquired rights to the Puro Corazon claim (Sept 2025), launched a ~12,000 m program, underground channel sampling and Lidar scans of the historic workings, expressly to fold this material into the broader CLM model and support a resource/PEA update in Q1 ‘26.
- Macro tailwind. Silver’s price burst to record territory in January 2026, reinforcing the value of high‑margin ounces near surface and the optionality embedded in Ag‑rich polymetallic systems.
Round 1 — December 2025: Bonanza grades in a hanging‑wall replacement lens
Rush assays from initial Puro Corazon drilling defined semi‑massive to massive sulphide replacements (CRD) outside the main skarn. The highlight in hole 25CLM‑203:
- 10.5 m (est. true thickness) averaging 560 g/t Ag, 0.1 g/t Au, 0.1 per cent Cu, 11.2 per cent Pb, 12.3 per cent Zn = 1,115 g/t AgEq,
including 3.4 m averaging 1,067 g/t Ag, 0.2 g/t Au, 0.2 per cent Cu, 20.0 per cent Pb, 19.1 per cent Zn = 1,982 g/t AgEq, within ~200 m of surface.
Two narrower, higher‑grade intercepts a few metres deeper composite to 2.6 m at 143 g/t Ag, 4.8 per cent Pb, 1.5 per cent Zn = 280 g/t AgEq. Mineralogy shows up to ~40 per cent sphalerite and 30 per cent galena, with silver strongly correlated to galena—textbook CRD signature in limestone outside the main skarn and historic Puro Corazon workings. Step‑outs cut similar replacement‑style sulphides laterally and at depth (assays pending at the time), and 25CLM‑202 at Santo Niño (north of the claim boundary) returned 2.4 m at 62 g/t Ag, 3.0 per cent Pb, 5.2 per cent Zn = 273 g/t AgEq. (All intervals estimated true thickness unless noted.)
Investor take: This is near‑surface, bonanza‑silver in a geometry that can be mined early and cheaply relative to deep skarn tonnage—exactly the kind of addition that can lift early‑period head grades and shorten payback when rolled into an existing underground plan.
Round 2 — Early January: 65 m step‑out confirms continuity and scale
A second release in early January reported four holes testing the Puro Corazon claim, including 25CLM‑205:
- 10.4 m at 365 g/t Ag, 0.1 g/t Au, 0.1 per cent Cu, 7.8 per cent Pb, 8.2 per cent Zn = 743 g/t AgEq,
including 3.9 m at 688 g/t Ag, 0.2 g/t Au, 0.1 per cent Cu, 17.1 per cent Pb, 17.1 per cent Zn = 1,490 g/t AgEq—a ~65 m step‑out from 25CLM‑203’s bonanza interval and consistent with a high‑grade hanging‑wall CRD zone outboard of the main skarn.
Additional near‑surface hits correlated with the El Sol veins within 100 m of surface:
- 25CLM‑202: 5.3 m at 73 g/t Ag, 2.8 per cent Pb, 3.4 per cent Zn = 221 g/t AgEq (incl. 1.2 m at 170 g/t Ag, 0.1 per cent Cu, 8.9 per cent Pb, 3.7 per cent Zn = 449 g/t AgEq).
- 25CLM‑204: 7.3 m at 102 g/t Ag, 0.5 per cent Cu, 3.6 per cent Pb, 3.7 per cent Zn = 305 g/t AgEq (incl. 4.0 m at 131 g/t Ag, 0.1 g/t Au, 6.4 per cent Pb, 5.4 per cent Zn = 456 g/t AgEq).
Deeper, broader zones tie into the Skarn Front with elevated Cu, e.g., 25CLM‑205: 11.8 m at 119 g/t Ag, 0.2 per cent Cu = 194 g/t AgEq (incl. 1.0 m at 483 g/t AgEq), plus 17.9 m at 136 g/t AgEq.
Investor take: The step‑out and multi‑horizon correlation (El Sol near surface; Skarn Front at depth) begin to link Puro Corazon into the broader CLM plumbing, opening the door to resource growth and mine‑plan optimization across multiple ore types.
Round 3 — Late January : Thickness, grade and plunge direction emerge
A third batch of four additional holes (late January) strengthened the case for a continuous, silver‑rich, polymetallic replacement lens:
- 25CLM‑206: 15.3 m at 195 g/t Ag, 0.3 per cent Cu, 6.6 per cent Pb, 9.0 per cent Zn = 581 g/t AgEq,
including 3.1 m at 267 g/t Ag, 0.3 per cent Cu, 7.8 per cent Pb, 14.8 per cent Zn = 837 g/t AgEq; and
22.0 m at 103 g/t Ag, 0.5 per cent Cu, 5.0 per cent Pb, 7.2 per cent Zn = 426 g/t AgEq,
including 3.0 m at 208 g/t Ag, 1.2 per cent Cu, 10.8 per cent Pb, 15.8 per cent Zn = 929 g/t AgEq. - 25CLM‑207: 11.1 m at 54 g/t Ag, 0.3 per cent Cu, 1.2 per cent Pb, 2.3 per cent Zn = 157 g/t AgEq,
including 0.4 m at 761 g/t Ag, 2.6 per cent Cu, 25.0 per cent Pb, 21.2 per cent Zn = 1,994 g/t AgEq.
Management reports the lens has now been traced to ~235 m below surface, with continuity and a potential plunge direction taking shape. 21 of 22 planned core holes were completed or in progress by this point, with eight holes reported and more assays pending “in the coming weeks.”
Investor take: The combination of thickness + grade + continuity argues for meaningful incremental ounces and higher early‑years AgEq grades, both of which can be disproportionately accretive to the 2024 PEA case at current silver prices.
Integration path: How these hits could translate into value
- Resource and PEA cadence. The company anticipates final assays by end‑Q1’26, then an updated Mineral Resource Estimate (MRE) and an updated PEA under NI 43‑101. The July 2024 PEA already showed robust economics; near‑surface CRD tons with bonanza‑grade silver can upgrade the front‑end of the mine plan (higher head grades, earlier cash flow, shorter payback).
- Operating context. CLM sits in a well‑established, mining‑friendly part of Durango, within Mexico’s prolific Faja de Plata, with existing site work advancing: baseline, hydrology, geotechnical, archaeological and land studies—critical de‑risking steps to keep an updated study decision‑ready.
- Strategic logic of Puro Corazon. Recall: the 2025 acquisition case emphasized capital efficiency, early high‑value material, and throughput optimization—themes now backed by drilling at Puro Corazon and by the multi‑horizon correlations into El Sol and Skarn Front.
What to watch next (and why it matters)
- Assays pending / lens geometry. Additional results that extend the lens along plunge or reveal parallel shoots would underpin scale and selectivity in early mining blocks—key inputs to an MRE/PEA refresh.
- Underground channel sampling. Up to ~2,000 channels across 13 levels in the historic Puro Corazon workings are planned to improve local geostatistics; expect tighter grade‑thickness modelling for potential bulk sampling sites and early stopes.
- Metallurgy across domains. Multi‑domain metallurgy (CRD vs. skarn vs. dyke‑replacement) and Ag/Pb recovery vs. galena content will influence payables and NSR cut‑offs—a lever on reserve conversion and the mine plan’s first five years.
- Price sensitivity. With silver setting new records in January 2026, projects with high Ag weighting can show outsized NPV/IRR deltas versus base‑case PEA prices (US$23/oz Ag in the 2024 model).
Investor’s corner
In a silver market that just posted all‑time highs, CLM’s Puro Corazon discovery checks the right boxes: bonanza‑grade silver, near surface, continuous thickness, and clear lines of integration into a large, advancing project with positive economics already on the board. The next resource and PEA updates will tell us how much of this new CRD lens can be front‑loaded into the plan—an outcome that, at today’s silver price deck, could strongly amplify the valuation math.
Actionable due‑diligence before the next set of assays:
- Re‑read the July 2024 NI 43‑101 PEA to understand price sensitivities and mine sequencing.
- Track the company’s January 2026 Puro Corazon releases for step‑out geometry and metallurgy notes, and watch for the end‑Q1’26 MRE/PEA timeline
- Calibrate project optionality against current silver levels and volatility; stress‑test using recent price ranges and record prints.
With silver’s record run reframing payback and leverage, Puro Corazon’s high‑grade CRD mineralization may be the catalyst that turns Cerro Las Minitas from a solid PEA story into a compelling development case worth deeper investor diligence.
To keep up with the latest developments from the company, visit southernsilverexploration.com.
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