As the founder of Manex Resource Group, the parent company of Southern Silver, could you provide a background into Manex’s history, achievements, and strategy? 

LP: Manex – a portmanteau for Manage + Exploration – has two sides to the business: A services side, under Malaspina Consultants, and the Manex Resource Group, which comprises four exploration companies with assets in North America. The four companies are Southern Silver Exploration (TSX-V: SSV), Nickelex Resource Corporation (TSX-V: NICK), Bravada Gold Corporation (TSX-V: BVA), and Equity Metals Corporation (TSX-V: EQTY). 

We have raised half a billion CAD for companies under Manex’s umbrella since our creation. We are not producers ourselves, but we advance early-stage mineral properties through development and marry them to producing mining companies. For example, 12 years ago, we took control of a junior company called Western Silver and developed what is now known as the Peñasquito mine, one of the largest silver mines in the world, operated by Newmont.

Southern Silver is another great case study of our succesful model and what we can achieve. 

Southern Silver has just announced a letter of agreement to acquire the Nazas exploration project from La Cuesta International. Do you see Nazas as a company-making asset and how does it fit in your vision?

LP: A few weeks ago, we were contacted by well-known prospectors, Perry Durning and Frank (Bud) Hillemeyer, about the Nazas property in the Faja de Plata, just 15 km away from Endeavour Silver’s Pitarilla deposit. We shook hands shortly after and announced the agreement for the option to earn in 100% interest in the Nazas project for a total of US$130.000 paid over 36 months. Nazas is an Au-Pb-Zn property containing five claims over 2,189 ha, with a high potential to host epithermal vein, porphyry, and replacement-styled mineral deposits. We see Nazas becoming the nucleus of a new company, a spin-out from Southern Silver with clear dividend and warrant benefits.

Have you started looking for a buyer for Southern Silver?

LP: It has taken us about 12 years to develop Cerro Las Minitas to a saleable and mineable stage, so we have now begun the process to find a buyer so we can focus on the new exploration properties. We are confident we can replicate the success we had with Western Silver, which we also developed for over a decade before selling it at a significant profit. 

What makes Southern Silver’s Cerro Las Minitas project in Mexico particularly attractive?

RM: Cerro Las Minitas (CLM) is a 100% owned silver-lead-zinc property located just 70 km northeast of the city of Durango, Mexico. We are in a prime geological district. CLM is a classic Carbonate Replacement Deposit (CRD) system in the heart of the Faja de Plata (“Belt of Silver”) structure, which hosts deposits like Newmont’s Peñasquito, First Majestic’s Los Gatos or San Martin, or Endeavour Silver’s Pitarilla project. Second, we are blessed with excellent infrastructure, including a four-lane highway running through just 300 m away from the underground resource. 

Could you elaborate on the geology of Cerro Las Minitas, the drilling completed to date, and the key PEA metrics?

LP: Since we started exploring the project in 2011, we identified significant ore grade mineralization to over 1 km in depth. Southern Silver completed over 92,000 m of drilling, upgrading the mineral resource to 36.7 million t. As highlighted in our 2024 updated PEA, we are looking at a large-scale underground mining operation with a 17-year LOM for a plant feed capacity of 14.3 million oz AgEq. Under conservative silver and zinc price assumptions, our base case scenario estimates a 5% after-tax NVP of US$501 million and an IRR of 21.2% with a 48-month payback. Revenues would amount to US$4.5 billion. 

As someone with decades of experience operating in Mexico, what advice can you offer to investors and prospectors interested in the country?

LP: When you go into somebody else's backyard, you better be represented by competent people who know the political and legal system. You also need to make sure you buy the property in the right way from the start, without any overriding burdens or title issues. Many companies will claim to own 100% of the property, but most will have overriding royalties. With the right people who know the law, a great geological team, and the right principles to operate as a good neighbor, Mexico is the place to be, especially for precious metals exploration.