AbraSilver Expands Exploration Drilling Program at Diablillos and Commences Drilling at the La Coipita Project
220 Bay Street, Suite 550, Toronto, ON, M5J 2W4
www.abrasilver.com
AbraSilver Expands Exploration Drilling Program at Diablillos and Commences Drilling
at the La Coipita Project
Toronto – February 21, 2023: AbraSilver Resource Corp. (TSX.V: ABRA; OTCQX: ABBRF)
(“AbraSilver” or the “Company”) is pleased to announce an expansion of the ongoing Phase III drill
program on the Company’s wholly-owned Diablillos property in Salta Province, Argentina (“Diablillos” or
the “Project”).
The Phase III drill program is now expected to consist of approximately 22,000 metres of diamond drilling,
up from 15,000 metres, using two diamond drill rigs. Phase III drilling is designed to delineate a maiden
Mineral Resource estimate on the recently discovered JAC zone, located several hundred metres
southwest of the conceptual open pit that constrains the current Mineral Resource estimate on the main
Oculto deposit. Additional drill holes are required as mineralization at the JAC zone remains open in most
directions.
To date, the Company has completed approximately 12,200 metres of drilling, in 60 holes, as part of the
Phase III program. The expanded program is expected to be completed in July 2023, and will be followed
by an updated Mineral Resource estimate (“MRE”) and a Pre-Feasibility Study (“PFS”) on the Diablillos
project in Q4/2023.
The main objectives of the expanded Phase III drill program are listed below (see Figure 1):
Systematically drill off silver-dominant mineralisation at the JAC zone in order to estimate Measured
and Indicated Mineral Resources that can be incorporated into the planned MRE and PFS.
Delineate the margins of the JAC zone and conduct geotechnical drilling necessary for a conceptual
open pit design.
Potentially conduct reconnaissance drilling at other targets on the Diablillos land package, including
Fantasma, Alpaca and the Southern Zone.
Additionally, the Company is pleased to announce the commencement of its second drill campaign at the
La Coipita Project (“La Coipita”), located in the San Juan province of Argentina. Further details are
provided in the ‘Commencement of Drilling at La Coipita Project’ section below.
John Miniotis, President and CEO, commented, “Our Phase III exploration program is continuing to
provide us with excellent results on a very consistent basis, confirming the significant upside potential at
our new JAC zone. To date, every hole drilled in the JAC target has successfully intersected near-
surface, silver mineralization over substantial widths (see summary in Table 1, below). As we have not
yet delineated the limits of mineralization at this impressive new silver discovery, we are excited to expand
the size of our current drill program which we believe will lead to a significant Mineral Resource estimate
at JAC. We expect the JAC target to significantly increase the silver in our MRE and have a meaningful
impact on project economics, which will be estimated in the PFS anticipated in Q4.”
JAC Target - Exploration Update
The discovery hole at the JAC target was announced in August 2022. To date, assay results from 30
holes have been received in which multiple high-grade intercepts have been reported (see Table 1
below). Based on the highly encouraging results, the Company is expanding the Phase III drill program
from 15,000 to 22,000 metres. The expanded drill program will have a total cost of approximately US$6.6
million, of which only US$3.0 million remains to be spent. The Company remains well-funded with a
current cash balance of approximately CAD$15.0 million.
Table 1: JAC Target – Highlights of Phase III Intercepts Announced to Date
Drill Hole
From
(m)
To
(m) Type
Interval
(m)
Ag
g/t
Au
g/t AgEq 1g/t
DDH-22-019 89 176 Oxides 87.0 346.0 0.15 356.5
DDH-22-044 121 179 Oxides 58.0 208.8 0.20 222.8
DDH-22-046 123 165.5 Oxides 42.5 400.5 0.11 408.2
DDH-22-052 139.5 164.5 Oxides 25.0 754.4 0.12 764.2
DDH-22-053 140.5 168.5 Oxides 28.0 266.4 0.64 318.8
DDH-22-056 110.0 167.5 Oxides 57.5 141.4 0.27 163.5
DDH-22-057 144.0 164.0 Oxides 20.0 498.6 0.10 506.8
DDH-22-058 138.0 152.5 Transition 14.5 176.2 - 176.2
DDH-22-060 114.0 154.0 Oxides 40.0 203.4 - 203.4
DDH-22-061 65.0 168.0 Oxides 103.0 138.7 - 138.7
DDH-22-062 119.0 170.0 Oxides 51.0 169.4 0.20 185.8
DDH-22-063 56.0 85.0 Oxides 33.0 143.4 - 143.4
DDH-22-063 135.0 169.0 Oxides 34.0 118.6 0.08 125.2
DDH-22-065 83.0 118.0 Oxides 35.0 82.0 - 82.0
DDH-22-067 143.0 179.0 Oxides 36.0 463.3 0.71 521.5
DDH-22-067 179.0 206.0 Sulphides 27.0 745.0 1.54 871.1
DDH-22-072 92.0 122.0 Oxides 30.0 73.2 0.12 83.0
DDH-22-075 151.0 167.0 Oxides 16.0 604.4 0.82 671.5
DDH-22-076 147.0 169.0 Oxides 22.0 476.8 0.20 493.2
DDH-22-076 169.0 177.5 Oxides 8.5 1,952.8 6.66 2,498.3
DDH-22-077 60.0 92.0 Oxides 32.0 121.9 - 121.9
DDH-22-078 58.0 99.0 Oxides 41.0 103.5 - 103.5
DDH-22-079 144.0 179.0 Oxides 35.0 199.2 0.36 228.7
DDH-22-080 50.0 102.0 Oxides 52.0 125.1 - 125.1
DDH-22-081 128.0 165.0 Oxides 37.0 179.3 - 179.3
DDH-22-082 154.5 181.0 Transition 26.5 311.4 0.43 346.6
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.
1AgEq based on 81.9(Ag):1(Au) calculated using long-term prices of US$25.00/oz Ag and US$1,750/oz Au, and 73.5%
process recovery for Ag, and 86.0% process recovery for Au as demonstrated in the Company’s Preliminary Economic
Assessment in respect of Diablillos dated January 13, 2022, using formula: AgEq g/t = Ag g/t + Au g/t x (Gold
Price/Silver Price) x (Gold Recovery/Silver Recovery).
Figure 1 – Diablillos Plan Map Showing Magnetics (RTP), Recent Drill Holes & Exploration Targets
Updated Mineral Resource Estimate & Pre-Feasibility Study
While the maiden Mineral Resource estimate on the JAC target and the Diablillos PFS were originally
planned to be completed in H1/2023, the additional drilling at JAC, which is expected to positively impact
the economics of the project, will take longer than expected and will not be completed until July 2023.
As a result, the updated MRE and PFS are now expected to be completed in Q4/2023 and will incorporate
the assay results from the expanded 22,000m Phase III drill program.
The Company continues to progress key aspects of the PFS, including advancing additional metallurgical
testwork, optimizing process design and engineering, equipment sizing, advancing renewable power
generation alternatives, and updating capital and operating cost estimates with market-sourced
quotations.
Commencement of Drilling at La Coipita Project
The La Coipita project is located in the San Juan Province, Argentina, in a geological setting similar to
world-class deposits in the same belt, including the Filo del Sol and Los Azules projects, where porphyry
style mineralisation is found immediately beneath epithermal mineralization.
On June 28, 2022, the Company announced the discovery of a significant new copper-gold-molybdenum
porphyry system at La Coipita based on results from two initial deep drill holes. The discovery hole, DDHC
22-002, returned broad intervals of copper-gold-molybdenum porphyry mineralization including 226
metres grading 0.34% copper, 0.07 g/t gold and 66 ppm molybdenum. The hole also encountered a
separate interval of 146 metres grading 0.27% copper and 75 ppm molybdenum, with the hole ending in
mineralization at a down-hole depth of 1,202.5 metres.
This year’s follow-up drill campaign is expected to consist of one deep hole (approximately 1,400m),
targeting the anticipated higher-grade zone of the porphyry system intercepted in hole DDHC 22-002.
Drilling has now commenced and is expected to be completed in April 2023. Quartz-veinlet intensity (from
1 to >10 per m) and presence of molybdenum (as molybdenite) indicate a potential dome-like feature
that is believed to likely be centred above the deeper copper system and will be targeted by this year’s
drilling (Figure 2).
Figure 2 – La Coipita Drill Section
Incentive Stock Option Grant
The Company announces, that pursuant to the Company’s Share Compensation Plan and regulatory
approval, an aggregate of 5,725,000 incentive stock options (“Options”), exercisable at a price of $0.37
per share for a period of five years, has been granted to officers, directors, employees and consultants
of the Company. The Options vest in 25% instalments every 6 months, starting from the date of the
grant.
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.
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 received by the SGS offices in Salta who then dispatch the samples to the SGS
preparation facility in San Juan. From there, the prepared samples are sent to the SGS laboratory in
Lima, Peru 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.
For additional information regarding Mineral Resources please see Technical Report on the Diablillos
Project, Salta Province, Argentina, dated November 28, 2022, completed by Mining Plus, and available
on www.SEDAR.com.
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 Measured and Indicated Mineral
Resource estimate for Diablillos consists of 51.3 Mt grading 66g/t Ag and 0.79g/t Au, containing approximately
109Moz silver and 1.3Moz gold, with significant further upside potential based on recent exploration drilling. The
Company is led by an experienced management team and has long-term supportive shareholders including Mr.
Eric Sprott. In addition, AbraSilver owns a portfolio of earlier-stage copper-gold projects including the La Coipita
copper-gold project in the San Juan province of Argentina. AbraSilver is listed on the TSX-V under the symbol
“ABRA” and in the U.S. 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.sedar.com. 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