Outcrop Provides Update ON Exploration and Metallurgical Studies at Santa Ana
OUTCROP PROVIDES UPDATE ON
EXPLORATION AND METALLURGICAL
STUDIES AT SANTA ANA
VANCOUVER, BC
,
Feb. 23, 2022
/CNW/ -
Outcrop Silver & Gold Corporation
(TSXV: OCG)
(OTCQX: OCGSF) (DE: MRG1) ("Outcrop") is pleased to provide an update on the exploration
program and metallurgical test work in progress at its 100% owned Santa Ana high-grade silver
project in
Colombia
. Outcrop has completed a fluid inclusion study and commenced a LiDAR survey
covering 19,000 hectares to generate new vein targets. Outcrop has also prepared four sample
composites from the Ivana and Megapozo shoots to be sent to SGS for initial metallurgical test work
as part of a Maiden Resource Estimate to be completed by the end of year.
Highlights
Mapping and sampling of trenches and outcrops show that El Dorado vein system extends a
further 700 metres to the north of the Dorado shoot and consists of at least two sub-parallel
veins. Surface sampling of outcrop and float show gold and silver assays up 29 g Au/t and
3,838 g Ag/t in the Dorado North target area.
A second drill-rig was added south of the historic Santa Ana mines to drill the new Isabela
target.
Fluid inclusion and mineralogic studies of seven samples from core and outcrop revealed
temperatures and salinities consistent with a mesothermal, orogenic vein system, suggesting
mineralization could extend to significant depths.
Mineralogic studies revealed that the main silver bearing phases are tetrahedrite, acanthite,
native silver, and silver-rich electrum. Importantly, it was observed that the silver bearing phases
rim or fill factures of early pyrite, sphalerite and galena which can indicate good metallurgical
recoveries from conventional milling.
MPX Geophysics commenced a LiDAR survey over 19,000 hectares to locate drill-hole collars
more accurately and to advance regional exploration. High-resolution LiDAR DTM is able to
penetrate vegetation to map vein structures and old mine workings. This will significantly
enhance the target generation process.
In preparation for a Maiden Resource Estimate by year end, four 50 kg sample composites of
high and low grades from the Ivana and Megapozo shoots were selected for metallurgical
testing at SGS. Preliminary metallurgical test results expected by end of March.
"With the addition of the second drill-rig on Isabela and the recent confirmation of two parallel veins
in El Dorado, we anticipate that we will maintain a steady flow of drilling results in the months to
come," comments
Jesus Velador
, Vice President of Exploration. "Additionally, we are confident that
the new fluid inclusion, LiDAR and metallurgical initiatives will expand our knowledge of our Santa
Ana discovery to facilitate exploration and resource estimation."
"Outcrop expects to continue to add to its inventory of high-grade shoots by generating and testing
numerous high-quality targets on our district scale property," adds
Joseph Hebert
, Chief Executive
Officer. "Extending Dorado expands the potential resource area for a compliant maiden resource
report before the end of 2022. Dorado North and La Isabela are just the first two of numerous
additional targets that are recently drill-permitted on an additional 5,046 hectares."
El Dorado and Isabela
Geologic mapping and sampling of trenches, outcrops, and vein float at El Dorado, revealed that the
area consists of a system of two to three sub-parallel, high-angle veins. Assays to date show gold
and silver grades as high as 29 g Au/t and 3,838 g Ag/t at El Dorado area. One rig is drilling on El
Dorado north target exploring El Dorado and Dorado East veins, and a second rig located to the
south is drilling the Isabella vein target (Figures 1 and 2). A steady flow of drill results is expected in
the months ahead.
Figure 1 – Rock samples along El Dorado vein north of El Dorado shoot. (CNW Group/Outcrop
Silver & Gold Corporation)
Figure 2 – Discovered shoots and new targets at Santa Ana.
Dorado North and La Isabela are
currently being drilled. (CNW Group/Outcrop Silver & Gold Corporation)
Fluid Inclusions
Tawn Albinson
, a renowned expert on fluid inclusions, analyzed seven vein samples to determine the
fluid inclusion and mineralogical character of the veins. The comprehensive study revealed that the
fluid temperatures and salinities are consistent with mesothermal orogenic-type veins. Mesothermal
veins can have significant depth potential.
It was observed that the main silver-bearing phases tetrahedrite, acanthite, native silver and
electrum form rims on and fill fractures in earlier pyrite, sphalerite, and galena. This late-stage
mineral habit can indicate of good silver recoveries in conventional milling.
LiDAR (Light Detection and Ranging)
MPX Geophysics has commenced a LiDAR survey over 19,000 hectares of the project area. The
objective of the survey is twofold, to be able prepare more accurate and precise 3D models by
accurately locating drill-hole collars, and to aid target generation through identification of vein traces,
lineaments and old mine workings. LiDAR employs a laser scanner that sees through vegetation
creating a high-resolution model of the terrain. The survey will cover 16.5 kilometres of vein trend
extending from El Dorado in the north, to the Frias Mine in the south.
Metallurgical Test Work
Outcrop prepared four sample composites from Ivana and Megapozo shoots from coarse lab-
rejects (two composites per shoot). Each composite weighs approximately 50 kilograms and the
samples represent two domains: one high-grade domain and one low-grade domain. The high-
grade domain is the average grade of the shoot, whereas the low grade is 200 g Eq Ag/t, the
threshold used by Outcrop to define significant silver equivalent grades. The four composites were
sent to SGS Colombia and we expect to have results by the end of March.
QA/QC
Core samples are sent to either Actlabs in
Medellin
or ALS Chemex in
Medellin
for preparation then
to ALS Chemex in
Toronto
or
Lima, Peru
for analysis. In line with QA/QC best practice,
approximately three control samples are inserted per twenty samples (one blank, one standard and
one field duplicate). The samples are analysed for gold using standard fire-assay on a 50-gram
sample with a gravimetric finish. Multi-element geochemistry is determined by ICP-MS using either
aqua regia (ME-MS41) or four acid (ME-MS61) digestion. Comparison to control samples and their
standard deviations indicates acceptable accuracy of the assays and no detectible contamination.
About Santa Ana
The 100% owned Santa Ana project comprises over 36,000 hectares located in northern Tolima
Department,
Colombia
, 190 kilometres from
Bogota
. The project consists of five or more 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 Royal Santa Ana project, located at the northern extent of just one of the regional vein
systems controlled by Outcrop, seven high grade shoots have been discovered – La Ivana hanging-
wall and footwall (La Porfia vein system);
San Antonio
,
Roberto Tovar
,
San Juan
(Royal Santa Ana
vein systems); El Dorado (El Dorado and El Paraiso vein systems) and Megapozo (El Paraiso vein
system). Each zone commonly contains multiple parallel veins. The veins can show both high-grade
silver and high-grade gold mineralization and low angle veins appear to connect more common high
angle veins.
Outcrop drilling indicates that mineralization extends from surface or near surface to depths of at
least 300 metres. Cumulatively, over 60 kilometres of mapped and inferred vein zones occur on the
Santa Ana project. The Frias Mine on the south-central part of the project, 12 kilometres south of
the Royal Santa Ana Mines produced 7.8 million ounces of silver post-production in the Spanish
colonial era at a recovered grade of 1.3 kg Ag/t. The Frias Mine is considered an analogue to each
of the seven shoots discovered to date by Outcrop.
Outcrop has advanced numerous target areas to the north, including north
Eldorado
that comprises
the northern extension of seven Royal Santa Ana veins for over 1 kilometre. The north
Eldorado
shows high values over 3.0 kg Ag/t. Between the Royal Santa Ana mines and Frias, veins have been
extended 2.8 kilometres to the south providing strong drill targets in the Espiritu Santo, Maras, and
El Christo veins that show high values up to 5.5 kg AgEq/t. These veins show widths up to 2.8 to 4.0
metres.
About Outcrop
Outcrop is rapidly advancing exploration on five silver and gold exploration projects with world-class
discovery potential in Colombia. Outcrop is currently drilling and expanding the Santa Ana historic
high-grade silver district. These assets are being advanced by a highly disciplined and seasoned
professional team with decades of experience in Colombia.
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 of Outcrop.
ON BEHALF OF THE BOARD OF DIRECTORS
Joseph P Hebert, Chief Executive Officer
Mars Investor Relations
+1 775 340 0450
+1 647 557 6640
www.outcropsilverandgold.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.
SOURCE
Outcrop Silver & Gold Corporation
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For further information:
Joseph P Hebert, Chief Executive Officer, +1 775 340 0450,
[email protected], www.outcropsilverandgold.com; Mars Investor Relations,
+1 647 557 6640, [email protected]
CO: Outcrop Silver & Gold Corporation
CNW 09:35e 23-FEB-22