Source Exploration Corp.

Source Exploration Corp.

July 06, 2010 12:09 ET

Source Underground Drilling at San Acacio Intersects High -Grade Hanging Wall Stringer Zone; Footwall Zone Grades 88.3 G/T Silver, 0.12g/T Gold, 0.72% Zinc Across 7.80 Metres

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 6, 2010) - SOURCE EXPLORATION CORP. (the "Corporation" or "Source") (TSX VENTURE:SOP) is pleased to announce that underground drilling at the San Acacio property, Zacatecas, Mexico, has intersected high- grade silver mineralization grading 1,094 g/t silver and 0.109 g/t gold with minor base metal values over a core length of 0.65 metres in the hanging wall of the Veta Grande vein system. The footwall zone of the vein graded 88.3 g/t silver, 0.12 g/t gold and 0.72% zinc across a 7.80 metres of core length, including a 1.30 metre interval grading 171.0 g/t silver, 0.20 g/t gold and 0.67 % zinc.

Diamond drill holes SA-UG-01 and SA-UG-02 were designed to test the downward extension of mineralization 30 metres below the historic Labrado and Rodadillos stopes. The Rodadillos stope was one of the largest high grade oxide stopes mined at San Acacio, with a strike length in excess of 93.0 metres at the Pursima level elevation. Hole SA-UG-01 intersected a mineralized fault zone in the hanging wall of the Veta Grande vein grading 183.0 g/t silver and 0.17 g/t gold over a core length of 0.50 metres. The mineralization was contained within a wider zone with a weighted average grade of 63.80 g/t silver and 0.15g/t gold over a 3.45 metre core length. Hole SA-UG-02 intersected the Veta Grand vein approximately 210 metres northwest on strike from hole DA-UG-01. The hole cut a high grade stringer zone in the hanging wall of the Veta Grande vein as well as a mineralized zone in the footwall of the vein. The Veta Grande vein measured 10.7 metres in width in hole SA-UG-02. The sulfide content of the vein was high, ranging up to 20 % sulphides, with elevated gold and zinc values grading up to 1.04 g/t gold and 0.95% zinc.

Highlights from the drilling are detailed below:

  • 1094 g/t silver and 0.11 g/t gold across 0.65 metres in hole SA-UG-02 intersected in the hanging wall of the Veta Grande Vein.

  • 183 g/t silver and 0.17 g/t gold over 0.5 metres in hole SA-UG-01 intersected in the hanging wall of the Veta Grande vein.

  • 171 g/t silver and 0.19 g/t gold over 1.30 metres in hole SA-UG-02 intersected in the hanging wall of the Veta Grande vein, contained within 7.80 metres grading 88.3 g/t silver, 0.12 g/t gold and 0.72% zinc.

  • 168 g/t silver and 0.38 g/t gold over 0.82 metres in hole SA-UG-01 intersected in the hanging wall of the Veta Grande vein.

  • 162 g/t silver and 0.199 g/t gold over 0.45 metres in hole SA-UG-02 intersected in the hanging wall of the Veta Grande vein.

  • 159 g/t silver and 0.12 g/t gold over 0.25 metres in hole SA-UG-02 intersected in the hanging wall of the Veta Grande vein.

The details of the significant intervals of silver, gold, copper, lead and zinc mineralization are listed below.

Hole ID From (m) To (m) Interval (m) Ag(g/t) Au(g/t) Cu % Pb% Zn% Zone
SA-UG-01 113.30 133.80 0.50 183.0 0.17 trace 0.39 0.66 Hanging wall
  118.60 120.00 1.40 74.0 0.09 0.01 0.03 0.07 Hanging wall
  120.00 122.55 2.55 84.8 0.05 0.01 0.03 0.09 Hanging wall
  136.10 137.00 0.90 76.80 0.03 0.01 0.12 0.05 Hanging wall
  137.00 137.95 0.95 93.20 0.05 0.01 0.02 0.06 Hanging wall
  148.80 149.62 0.82 168.0 0.38 trace 0.08 0.11 Hanging wall
  163.40 163.65 0.25 60.50 0.53 trace 0.19 0.05 Hanging wall
SA–UG-02 183.05 193.70 0.65 1094.0 0.11 trace trace 0.05 Hanging wall
  238.15 238.40 0.25 159.0 0.12 0.01 0.05 0.11 Hanging wall
  252.75 253.90 1.15 64.20 0.07 0.01 0.05 0.16 Hanging wall
  257.90 259.20 1.30 68.7 0.37 0.02 0.11 0.46 Hanging wall
  259.20 259.65 0.45 162.0 0.20 0.02 0.21 0.63 Hanging wall
  333.60 334.75 1.15 75.90 0.14 0.01 0.08 0.67 Footwall
  334.75 336.05 1.30 171.0 0.19 0.01 0.20 0.67 Footwall
  336.05 337.15 1.10 99.80 0.13 0.01 0.10 0.68 Footwall
  337.15 338.25 1.10 52.2 0.10 trace 0.06 0.88 Footwall
  338.25 339.40 1.15 90.20 0.10 trace 0.06 0.91 Footwall
  339.40 340.55 1.15 53.80 0.08 trace 0.06 0.82 Footwall
  340.55 341.40 0.85 54.40 0.07 trace 0.04 0.24 Footwall

Hole SA-UG-01 true widths are estimated to be the same as intersection widths.

Hole SA-UG -02 was drilled obliquely and true widths are estimated to be approximately 32% per cent of intersection widths.

Brian Robertson, President and CEO stated, "These drilling results have the potential to add to the resource at San Acacio and support our continuing evaluation of potential near term production scenarios as outlined in our news release of June 22, 2010."

The San Acacio property, which hosts the Veta Grande vein system, is a former silver producer located in the world renowned silver producing of Zacatecas in Central Mexico. The Zacatecas Silver Belt is one of the most prolific silver producing areas in the world, hosting the Fresnillo and Zacatecas silver mines which, combined, have produced over 1.5 billion ounces of silver. (Source: Western Silver Annual Report 2003).

An NI 43-101 Mineral Resource Estimate and Technical Report prepared by PEG Mining Consultants Inc. ("PEG") – see News Release dated April 13, 2010, stated that at a 45 g/t Ag equivalent cutoff base case, the deposit contains an Indicated Resource of 1.49 million tonnes or 4.05 million ounces of silver and 9,000 ounces of gold or 4.59 million silver equivalent ounces. Inferred resources are estimated to be 4.18 million tonnes containing 14.35 million ounces of silver and 22,200 ounces of gold or 15.56 million silver equivalent ounces.

A recently completed Strategic Production Study by PEG, see News Release dated June 22, 2010, provided a guideline for evaluating potential near term open pit and underground production scenarios for the property. A feasibility study has not been completed and there is no certainty the proposed operations will be economically viable.

Sonny Bernales, P.Geo. is the Qualified Person for information contained in this press release and is a qualified Person within the meaning of National Instrument 43-101. All of the core was logged near the drill site at Zacatecas. One half of the sample was then shipped to SGS Mineral Services (ISO/IEC 17025) at Durango, Mexico for assaying. The remaining core was replaced in the core box and stored in a secure location for future reference. Assaying for silver was by three acid digest and AA finish. Assays over 300 g/t were re-assayed by lead collection fire assay with gravimetric finish on a 30 gram sample. As part of the due diligence, the very high grade sample in hole SADD-09-04A was sent for re-assaying, which confirmed the original assay results. QA/QC included the insertion of numerous standards and blanks into the sample stream at the rate of 1 per 10 samples (or 10 % of the total samples). The standard samples were sourced from CDN Resource Laboratories Ltd. of Delta B.C., Canada.

About Source Exploration

Source Exploration Corp. (TSX VENTURE:SOP) is a Canadian based mineral exploration company focused on the evaluation, acquisition and development of precious metals deposits in Mexico. For more information, please contact:

Certain terms or statements made that are not historical facts, such as anticipated advancement of mineral properties or programs, productions, sales of assets, exploration plans or results, costs, prices, performance are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and involve a number of risks and uncertainties that could cause actual results to differ materially from those projected, anticipated, expected or implied. These risks and uncertainties include, but are not limited to; metals price volatility, volatility of metals production, project development risks and ability to raise financing. Certain statements included in this news release constitute "forward-looking information" within the meaning of applicable securities legislation. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements.

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