AbraSilver Announces Initial Drill Results from Phase IV Exploration Program at the Diablillos Silver-Gold Project; Intersects 33 Metres Grading 245 g/t Silver
220 Bay Street, Suite 550, Toronto, ON, M5J 2W4
www.abrasilver.com
AbraSilver Announces Initial Drill Results from Phase IV Exploration Program at the
Diablillos Silver-Gold Project; Intersects 33 Metres Grading 245 g/t Silver
Toronto – July 22, 2024: AbraSilver Resource Corp. (TSX.V: ABRA; OTCQX: ABBRF) (“AbraSilver”
or the “Company”) is pleased to announce the first set of assay results from the Company’s fully-funded
20,000 metre Phase IV drill program, on its wholly-owned Diablillos project in Salta Province, Argentina
(the “Project”).
The ongoing Phase IV drill program is focused on expanding target areas with known mineralization as
well as exploring newly identified prospective exploration targets within the broader Diablillos land
package. Key takeaways from the latest drill results include the following holes all in the southwest of
the JAC zone.:
Hole DDH 24-003 intersected a broad zone of near-surface silver mineralization, consisting of 33
metres grading 87 g/t Ag starting at a down-hole depth of only 69 metres . The intercept is
located in a zone within the conceptual open pit boundary that is currently classified as waste.
Hole DDH 24-004 encountered a wide zone of high-grade silver mineralization, grading 245 g/t
Ag over 33.4 metres. Drilling in this zone is designed to convert Inferred Mineral Resources to
the Indicated category, within the conceptual open pit boundary.
Hole DDH 24-005 intersected 26 metres grading 113 g/t Ag. This intercept is located
approximately 35 metres south of the conceptual open pit margin and is expected to extend
mineralization and the Mineral Resources in that direction.
John Miniotis, President and CEO, commented, “We are pleased to see this successful start to our Phase
IV drilling program which demonstrates the significant upside potential at Diablillos. These initial results
demonstrate the strong continuity of high-grade silver mineralization surrounding the JAC deposit, which
continues to remain open in multiple directions.”
Dave O’Connor, Chief Geologist, commented, “We are excited by the initial drill results received from the
Phase IV drill program. In addition to the ongoing step-out drilling near JAC, drilling is also currently
underway in the area northeast of the Oculto Mineral Resource and the adjacent Cerro Bayo area.
Additional holes in these areas will be sited with the aid of detailed structural mapping to optimize targets."
The latest assay result highlights are summarized in Table 1 below.
Table 1 – Summary of Diablillos Drill Results
Intercepts greater than 2,000 gram-metres Ag shown in bold text:
Drill Hole Area
From
(m)
To
(m) Type
Interval
(m)
Ag
g/t
Au
g/t
DDH-24-003 JAC 69.0 102.0 Oxides 33.0 86.5 0.01
DDH-24-004 JAC 54.0 69.0 Oxides 15.0 31.0 0.01
DDH-24-004 105.0 108.0 Oxides 3.0 71.8 0.01
DDH-24-004 110.0 143.4 Oxides 33.4 244.9 0.01
DDH-24-004 Includes 125.0 131.0 Oxides 6.0 603.4 -
DDH-24-005 JAC 93.0 119.0 Oxides 26.0 112.9 0.03
122.0 129.0 Oxides 7.0 143.3 0.03
Note: All results in this news release are rounded. Assays are uncut and undiluted. Widths are drilled widths, not true widths. True widths are
estimated to be approximately 80% of the interval widths for oxides.
Figure 1 – Plan View of Latest Drill Holes
Figure 2 – Long Section Through Newly Announced Drill Holes
Phase IV Exploration Program Update
The ongoing, fully-funded 20,000 m Phase IV drill program is focused on the following high-priority
exploration targets:
Epithermal District: Approximately 75% of the drill program will focus on expanding the existing Mineral
Resource estimates near the main Oculto deposit and on identifying additional near-surface high-grade
silver-gold oxide mineralization.
Oculto Northeast Zone: Broad spaced drilling within the conceptual open pit and its northeast
extensions in 2023 intersected silver and gold mineralization which was not included in the latest
Mineral Resource estimate. This new mineralized zone represents a high-priority target.
JAC Extension / Alpaca: Recent drilling in this area has uncovered a trend of silver mineralization
perpendicular to the JAC zone which is believed to connect the Alpaca target to the high-grade
JAC zone. This is interpreted as being a conjugate set of mineralised structures, with silver
occurring both within andesite volcanics and in underlying basement rocks.
Cerro Bayo: A recent reinterpretation of geology has emphasised the possibility of shallow
mineralisation in the Cerro Bayo area, which is located approximately 500 metres east of the Oculto
pit boundary. A previous geochemical survey obtained highly anomalous gold results and a
historical drill hole intersected shallow gold mineralization. Detailed geological mapping in the
Cerro Bayo area and adjacent Oculto Northeast zone will be completed within the next month to
define structures which will be targets for drilling.
Fantasma: Historical drilling at Fantasma outlined a Mineral Resource estimate which is located
approximately 1 km west-northwest of the Oculto deposit. Recent intercepts suggest that silver
mineralization continues from Oculto towards the Fantasma zone and that these zones may
connect.
Laderas: Drilling is planned to explore for extensions of the existing gold dominant Mineral
Resource historically outlined in this area which is immediately north of the conceptual open pit
boundary.
New Regional Step-out Targets: Approximately 25% of the drill program will be focused on new
regional step-out exploration targets on the Diablillos property that remain largely untested to date. These
targets include a substantial quartz-sericite alteration zone and associated anomalous gold in historical
shallow holes drilled at the Cerro Viejo target and the newly defined Jasperoid magnetic target.
Porphyry Complex (Cerro Blanco / Cerro Viejo): The Cerro Blanco / Cerro Viejo area is located
approximately 3.5 km northeast of the Oculto deposit. Following an electromagnetic survey the
Company plans to commence drilling deeper holes in September to explore for an underlying
porphyry system. Gold mineralization in this area is typically associated with pyrite in quartz-sericite
alteration, which is interpreted as potentially representing the upper part of a mineralised porphyry
system.
Jasperoid Target: This is an elongated zone of low magnetic response which was identified in the
geophysical survey conducted in late 2023. The zone follows the trend of a major north-south
regional fault and a nearby historical reverse circulation drill hole intersected anomalous gold in
vuggy silica. The geology of this zone makes it a high priority target for epithermal gold-silver
mineralisation.
Collar Data
Hole
Number
UTM Coordinates Elevation Azimuth Dip Depth
(m)
Area Notes
DDH 24-
001
E719933 N7198848 4,190 0 -60 203.5 JAC-Oculto
connection
No meaningful
intercepts
DDH 24-
002
E720500 N7200502 4,216 0 -60 130.5 North
Laderas
No meaningful
intercepts
DDH 24-
003
E719068 N7198623 4,129 0 -60 152 JAC -
DDH 24-
004
E719186 N7198628 4,131 0 -60 194 JAC -
DDH 24-
005
E719332 N7198649 4,141 0 -60 164 JAC -
DDH 24-
006
E719973 N7198926 4,194 0 -60 150 JAC-Oculto
connection
No meaningful
intercepts
About Diablillos
The Diablillos property is located within the Puna region of Argentina, in the southern part of Salta
Province along the border with Catamarca Province, approximately 160 km southwest of the city of Salta
and 375 km northwest of the city of Catamarca. The property comprises 15 contiguous and overlapping
mineral concessions acquired by AbraSilver in 2016. The project site has good year-round accessibility
through a 150 km paved road, followed by a well-maintained gravel road, shared with other adjacent
projects.
There are several known mineral zones on the Diablillos property. Approximately 150,000 m have been
drilled to date, which has outlined multiple occurrences of epithermal silver-gold mineralization at Oculto,
JAC, Laderas and Fantasma. Additionally, several satellites zones of silver/gold-rich epithermal
mineralization have been located within a 500 m to 1.5 km distance surrounding the Oculto/JAC
epicentre.
Comparatively nearby examples of high sulphidation epithermal deposits include: La Coipa (Chile);
Yanacocha (Peru); El Indio (Chile); Lagunas Nortes/Alto Chicama (Peru) Veladero (Argentina); and Filo
del Sol (Argentina).
The most recent Mineral Reserve estimate for Diablillos is shown in Table 2:
Table 2 - Diablillos Mineral Reserve Estimate – As of March 07, 2024
Category Tonnage
(000 t)
Ag
(g/t)
Au
(g/t)
Contained Ag
(000 oz Ag)
Contained Au
(000 oz Au)
Proven 12,364 118 0.86 46,796 341
Probable 29,930 80 0.80 76,684 766
Proven &
Probable 42,294 91 0.81 123,480 1,107
Notes for Mineral Reserve Estimate:
1. Mineral reserves have an effective date of March 7th, 2024.
2. The Qualified Person for the Mineral Reserve Estimate is Mr. Miguel Fuentealba, P.Eng.
3. The mineral reserves were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), Definition Standards for Mineral
Resources and Reserves, as prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.
4. The mineral reserves were based on a pit design which in turn aligned with an ultimate pit shell selected from a Whittle TM pit optimization
exercise. Key inputs for that process are:
• Metal prices of USD $1,750/oz Au; USD $22.50/oz Ag
• Variable Mining cost by bench and material type. Average costs are USD $1.94/t for all lithologies except for “cover”, Cover mining cost of
USD 1.73/t, respectively.
• Processing costs for all zone, USD $22.97/t. • Infrastructure and G&A cost of USD 3.32/t. • Pit average slope angles varying from 37° to 60°
depending on the geotechnical domain. • The average recovery is estimated to be 82.8% for silver and 86.6% for gold.
5. The Mineral Reserve Estimate has been categorized in accordance with the CIM Definition Standards (CIM, 2014).
6. A Net Value per block (“NVB”) cut-off was used to constrain the Mineral Reserve with the reserve pit 2shell. The NVB was based on "Benefits
= Revenue-Cost" being positive, where, Revenue = [(Au Selling Price (USD/oz) - Au Selling Cost (USD/oz)) x (Au grade (g/t)/31.1035)) x Au
Recovery (%)] + [(Ag Selling Price (USD/oz) - Ag Selling Cost (USD/oz)) x (Ag grade (g/t)/31.1035)) x Ag Recovery (%)] and Cost = Process Cost
(USD/t) + Transport Cost (USD/t) + G&A Cost (USD/t) + [Royalty Cost (%) x Revenue]. The NVB method resulted in an average equivalent cut-
off grade of approximately 46g/t AgEq.
7. In-situ bulk density was read from the block model, assigned previously to each model domain during the process of mineral resource
estimation, according to samples averages of each lithology domain, separated by alteration zones and subset by oxidation.
8. All tonnages reported are dry metric tonnes and ounces of contained gold and silver are troy ounces.
9. All figures are rounded to reflect the relative accuracy of the estimates. Minor discrepancies may occur due to rounding to appropriate
significant figures.
QA/QC and Core Sampling Protocols
AbraSilver applies industry standard exploration methodologies and techniques, and all drill core samples
are collected under the supervision of the Company’s geologists in accordance with industry practices.
Drill core is transported from the drill platform to the logging facility where drill data is compared and
verified with the core in the trays. Thereafter, it is logged, photographed, and split by diamond saw prior
to being sampled. Samples are then bagged, and quality control materials are inserted at regular
intervals; these include blanks and certified reference materials as well as duplicate core samples which
are collected in order to measure sample representivity. Groups of samples are then placed in large bags
which are sealed with numbered tags in order to maintain a chain-of-custody during the transport of the
samples from the project site to the laboratory.
All samples are sent to the Alex Stewart sample preparation facility in Jujuy, then the sample pulps are
sent to the Alex Stewart laboratory in Mendoza where they are analyzed. All samples are analyzed using
a multi-element technique consisting of a four-acid digestion followed by ICP/AES detection, and gold is
analyzed by 50g Fire Assay with an AAS finish. Silver results greater than 100g/t are reanalyzed using
four acid digestion with an ore grade AAS finish.
Qualified Persons
David O’Connor P.Geo., Chief Geologist for AbraSilver, is the Qualified Person as defined by National
Instrument 43-101 Standards of Disclosure for Mineral Projects, and he has reviewed and approved the
scientific and technical information in this news release.
About AbraSilver
AbraSilver is an advanced-stage exploration company focused on rapidly advancing its 100%-owned Diablillos
silver-gold project in the mining-friendly Salta province of Argentina. The current Proven and Probable Mineral
Reserve estimate for Diablillos, from a recently completed Pre-Feasibility Study, consists of 42.3 Mt grading 91 g/t
Ag and 0.81 g/t Au, containing approximately 124 Moz silver and 1.1 Moz gold, with significant further exploration
upside potential. In addition, the Company has entered into an earn-in option and joint venture agreement with Teck
on the La Coipita project, located in the San Juan province of Argentina. AbraSilver is listed on the TSX-V under
the symbol “ABRA” and in the U.S. on the OTCQX under the symbol “ABBRF.”
For further information please visit the AbraSilver Resource website at www.abrasilver.com, our LinkedIn page at
AbraSilver Resource Corp., and follow us on Twitter at www.twitter.com/abrasilver
Alternatively please contact:
John Miniotis, President and CEO
Tel: +1 416-306-8334
Cautionary Statements
This news release includes certain "forward-looking statements" under applicable Canadian securities legislation.
Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while
considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause
the actual results and future events to differ materially from those expressed or implied by such forward-looking
statements. All statements that address future plans, activities, events or developments that the Company believes,
expects or anticipates will or may occur are forward-looking information. There can be no assurance that such
statements will prove to be accurate, as actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking
statements. When considering this forward-looking information, readers should keep in mind the risk factors and
other cautionary statements in the Company’s disclosure documents filed with the applicable Canadian securities
regulatory authorities on SEDAR+ at www.sedarplus.ca. The risk factors and other factors noted in the disclosure
documents could cause actual events or results to differ materially from those described in any forward-looking
information. The Company disclaims any intention or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise, except as required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of
the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release