Outcrop Consolidates the Historic Mariquita Silver-Gold District Along Strike from the High-Grade Santa Ana Project
Outcrop Consolidates the Historic Mariquita
Silver-Gold District Along Strike from the
High-Grade Santa Ana Project
Vancouver, British Columbia--(Newsfile Corp. - July 20, 2020) -
Outcrop Gold Corp.
(
TSXV: OCG)
(OTC Pink: MRDD.F) (FSE: MRG1
) ("
Outcrop
") is pleased to announce a significant increase in the
land position surrounding and along trend from the high-grade silver-gold Santa Ana project, including
the consolidation of multiple regional scale, parallel silver-gold belts in the Mariquita District, Colombia.
Highlights
Santa Ana land position increased three-fold to over 25,000 hectares
New claims cover five regional scale parallel vein systems across a trend 12 kilometres
wide and 30 kilometres long
Project contains dozens of historic mines including Santa Ana and the newly acquired
Frias mine
Acquisition dramatically increases project scale and exploration potential
"Outcrop is elated to make an acquisition of this quality and scale," remarks Outcrop Chief Executive
Officer, Joe Hebert. "Colombia is one of the few exploration jurisdictions in Latin America where a
company can consolidate this large of an area of high-grade veins with almost no modern exploration but
abundant artisan mining. Controlling numerous vein systems that extend for tens of kilometres will
position us for a world-class high-grade discovery."
Within the area of new acquisition, nineteen samples from historic workings by the Servicio Geológico
Colombiano (SGC) range from 48 to 2,576 g Ag/t and 0.4 to 272 g Au/t to average 449 g Ag/t and 43.8
g Au/t - or 3,313 eq g Ag/t and 46.3 eq g Au/t. Reconnaissance prospecting by the SGC demonstrates
the prevalence of high-grade parallel vein systems across a trend 12 kilometres wide by more than 30
kilometres in length.
The SGC assays, ubiquitous historic artisan workings and the clear northeast alignment of the Santa
Ana, Frias and El Porvenir mines demonstrate that the Mariquita Silver District and several parallel vein
systems are richly endowed with silver and gold - dramatically increasing scale and exploration potential.
Outcrop will prioritize work in areas of higher grades and vein thickness as reconnaissance prospecting
is completed.
The new applications contain over 38 reported historic mines - many with high-grade silver and gold
assays. The workings are dense and consistently aligned in multiple clusters, each over 2 to 4
kilometres. The northeast trending belts are first order structural zones - the associated veins occupy
north-northeast and west-northwest second order dilation zones. The veins may be both low and high
angle depending on local controls.
Figure 1: Acquisition expands Santa Ana on a district and regional scale.
To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/6343/60125_d79666199427a990_002full.jpg
Figure 2: High grade samples from SGC in Table 1.
To view an enhanced version of Figure 2, please visit:
https://orders.newsfilecorp.com/files/6343/60125_d79666199427a990_003full.jpg
Table 1: SGC sampling of historic workings.
SGC Sampling of Historic Workings
Sample
Sample ID
g Ag/t
g Au/t
eq g Ag/t*
eq g Au/t*
1
77645
150
100.0
9,950
101.5
2
77617
NA
272.0
26,656
272.0
3
77618
NA
0.4
41
0.4
4
77619
NA
1.5
147
1.5
5
77627
870
1.5
1,020
10.4
6
77655
500
NA
500
5.1
7
77621
485
4.0
877
8.9
8
77653
200
10.0
1,180
12.0
9
77624
325
6.6
972
9.9
10
77652
100
10.0
1,080
11.0
11
77624
101
65.0
6,471
66.0
12
675541
2576
NA
2,576
26.3
13
675542
525
NA
525
5.4
14
675543
122
NA
122
1.2
15
77650
50
NA
50
0.5
16
77651
700
50.0
5,600
57.1
17
77622
48
3.0
342
3.5
18
77623
330
45.0
4,740
48.4
19
77640
100
NA
100
1.0
Average
449
43.8
3,313
46.3
*Equivalents are calculated only using samples with
assays for both gold and silver.
Along with the legendary Santa Ana mines, other well-known historic mines occur either on the
acquired
ground (Frias mine) or immediately adjacent on continuous northeast trends (El Porvenir mine). Like
Santa Ana the mines have significant potential remaining at depth and along strike where high-grade
shoots have not been tested by drilling.
Frias mine
The Frias mine reported as active from 1868 to at least 1907, and during that period produced over 10
million ounces of silver. Mineralization in the Frias mine is referred to as "bonanza-type". The high-grade
shoots plunged steeply at inferred structural intersections and the ore was developed from between 90
to 300 metres from the surface. The Frias mine was considered exhausted in 1907 before a deeper
"ore-shoot" was discovered at the lower levels of the mine - suggesting high-grade shoots may stack at
different elevations within the plane of the vein with unmineralized gaps in between. The Frias mine was
ventilated and de-watered by hydraulically-generated power with water captured by a flume that
extended 20 miles - and was modern for its era.
El Porvenir mine
The adjacent El Porvenir mine reported veins from 0.5 to plus 3 metres wide, with gold-silver ratios of
2:1. Free gold is common and silver is associated primarily with galena. The veins are hosted by gneiss
and can be traced up to 2 kilometers by aligned artisan mine workings. Mineralization occurs in high-
grade shoots typical of the district and region - but also in silica-sulfide breccia bodies. The host rock at
El Porvenir is dominantly gneiss whose brittle fracture characteristics may provide thicker veins. Historic
drill intercepts are provided in Table 2 below.
Table 2: Mineros S.A. drill intercepts on El Porvenir project reported by Angel Gold Corp. in 2015.
El Porvenir Mine Drilling
Intercept width
(m)
g Ag/t
g Au/t
eq g Ag/t
eq g Au/t
1.0
177
213.0
21,051
215
3.0
48
30.1
2,998
31
3.3
77
30.2
3,037
31
Agreement
Outcrop has acquired applications for mineral concessions over 17,000 ha. The purchase price is
US$250,000 and the issuance of 1,000,000 common shares of Outcrop upon closing, with subsequent
payments of US$1,000,000 payable in common shares of Outcrop contingent upon future permitting
milestones and a 2% NSR royalty. 1% of the royalty may be purchased by Outcrop at any time for
US$500,000 payable in cash. The transaction is subject to TSX Venture Exchange approval.
QA/QC
Assays provided by the Servicio Geológico Colombiano (SGC) are considered reliable, consistent with
quality controls expected by state agencies. SGC sampling will be used to focus reconnaissance and
detailed exploration with Outcrop sampling confirming SGC sampling.
About Santa Ana Project
The Santa Ana project comprises over 25,000 ha located in northern Tolima Department, Colombia,
190 km from Bogota.
The project consists of five regional scale parallel vein systems across a trend 12
kilometres wide and 30 kilometres long. The Santa Ana project covers a significant part of the Mariquita
District where mining records date to at least 1585. The Mariquita District is the highest-grade primary
silver district in Colombia, with historic silver grades reported to be among the highest in Latin America
from dozens of mines.
Historic mining depths support a geologic and exploration model for composite mesothermal and
epithermal vein systems having mineralization that likely extends to great depth. At Santa Ana it is
unlikely that there is sharp elevation restriction common to high-grade zones in many epithermal systems
with no mesozonal component.
At the core Santa Ana target, located at the northern extent of just one of the regional vein systems, at
least eleven principle vein zones are recognized that cumulatively provide up to 14 km of cumulative
strike length - La Ivana (including the La Porfia vein system), Roberto Tovar (Royal Mines, including the
Santa Ana vein system), El Dorado, Morales, Pollera, Guanabanera, San Antonio, Palomos, Murillo,
Culebra and Megapozo. The zones commonly each contain multiple parallel veins. The veins can show
both high-grade silver and high-grade gold mineralization and may be both low and high angle
depending on local controls.
About Outcrop Gold
Outcrop is a hybrid prospect generator active in Colombia acquiring gold and silver exploration projects
with world-class discovery potential.
Outcrop performs its own grass roots exploration and then employs
a joint venture business model on its projects to maximize investor exposure to discovery and minimize
financial risk.
Outcrop has seven primary projects in Colombia with three at an advanced stage of
exploration. Outcrop also conducts focused drilling on flagship properties such as Santa Ana to create
its own catalysts for value creation.
Qualified person
The technical information in this news release has been approved by Joseph P. Hebert, a qualified
person as defined in NI43-101 and President and Chief Executive Officer to the Company.
ON BEHALF OF THE BOARD OF DIRECTORS
Joseph P Hebert, Chief Executive Officer
+1 775 340 0450
www.outcropgoldcorp.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in
the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release. Certain information contained herein constitutes "forward-looking information" under
Canadian securities legislation. Generally, forward-looking information can be identified by the use of
forward-looking terminology such as "potential", "we believe", or variations of such words and phrases
or statements that certain actions, events or results "will" occur. Forward-looking statements are based
on the opinions and estimates of management as of the date such statements are made and they are
subject to known and unknown risks, uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of Outcrop to be materially different from those
expressed or implied by such forward-looking statements or forward-looking information, including: the
receipt of all necessary regulatory approvals, capital expenditures and other costs, financing and
additional capital requirements, completion of due diligence, general economic, market and business
conditions, new legislation, uncertainties resulting from potential delays or changes in plans, political
uncertainties, and the state of the securities markets generally.
Although management of Outcrop
have attempted to identify important factors that could cause actual results to differ materially from
those contained in forward-looking statements or forward-looking information, there may be other
factors that cause results not to be as anticipated, estimated or intended.
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 and forward-looking information. Outcrop will not update any
forward-looking statements or forward-looking information that are incorporated by reference herein,
except as required by applicable securities laws.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/60125