Outcrop Silver Announces 2024 Santa Ana Drill Program
OUTCROP SILVER ANNOUNCES 2024 SANTA
ANA DRILL PROGRAM
VANCOUVER, BC
,
March 18, 2024
/CNW/ -
Outcrop Silver & Gold Corporation
(TSXV: OCG)
(OTCQX: OCGSF) (DE: MRG)
("Outcrop Silver")
is pleased to announce the 2024 drilling program
at the 100% owned Santa Ana high-grade silver project in
Colombia
is expected to commence in
April 2024
. The program, is designed to not only expand resources in areas previously identified for
their potential but also to drill new targets along the 18.5 kilometres of strike that has been drill
permitted.
The program will focus on extending mineralization along strike and down dip at El Dorado, including
veins not previously included in the 2023 maiden resource due to insufficient drill density.
Additionally, we will explore untested veins, such as the promising Aguilar-Guadual target, and Los
Mangos area to the southwest, identified by numerous high-grade channel samples. This
comprehensive approach aims to underscore the scalability of the Santa Ana project and its potential
for substantial resource growth.
"2024 is a watershed year for Outcrop Silver as we launch an extensive drilling program to unlock
the full potential of the Santa Ana project," comments
Ian Harris
, President and CEO. "By
strategically shifting our drilling contractors and focusing our exploration efforts, we aim to establish
a robust roadmap for expanding our resource base across both established and new targets within
our extensive land holdings."
Our 2024 drill campaign will focus solely on high-potential targets with proven mineralization,
significant resource expansion potential, and strategic locations within a highly prospective
mineralized corridor. These targets have exhibited significant mineralization through surface samples,
initial drilling, and geological mapping, indicating an excellent potential for resource expansion. They
are located along a prolific mineralized corridor that offers a linear path for systematic exploration
and resource delineation across a vast area. This presents an unparalleled opportunity for expanding
known mineral resources and discovering new zones of mineralization.
2024 Drill Targets
El Dorado
El Dorado target offers an opportunity to step out along strike to discover new high-grade shoots
and to expand known high-grade shoots, like Las Abejas, along the dip. This potential for both lateral
and vertical extension makes it a prime candidate for increasing the mineral resource. The previous
successful intersection of high-grade mineralization in drill hole DH317 (3.05 metres true width @
16.08 g/t Au and 2,719 g/t Ag, (see
News Release from
January 30, 2023
) suggests that targeting
around the 750 metres absolute elevation could be a highly effective exploration strategy along this
vein system.
Aguilar-Guadual
The Aguilar-Guadual target area stands out for its historical significance, high-grade silver potential,
and strategic importance for resource expansion, being a more than 1,800 metre long vein system.
The results from initial exploration have provided a highly prospective drill-ready target that needs to
be tested to unlock its full potential. Channel samples from old underground workings and from
surface have returned assays as high as 5,572 and 7,220 g/t AgEq, respectively (see News
Release from
January 03, 2023
and
April 26, 2023
).
Los Naranjos
Los Naranjos remains open along strike after drilling included in the Mineral Resource. The apparent
continuity of mineralization along strike indicates a clear opportunity to expand the resource by
extending the known mineralized zones. The presence of high-grade silver in quartz veins and
associated shear zones, underscores the target's potential for contributing significantly to the
project's overall resource. High-grade drill intercepts previously reported are hole DH270 (5.82
metres true width @ 4.27 g/t Au and 1,770 g/t Ag) or DH272 (1.09 metres true width @ 4.1 g/t Au
and 712 g/t Ag) (see
News Release from
July 27, 2022
).
Alaska
Alaska
represents the northernmost extension of the Santa Ana vein system. Drilling
Alaska
will
provide critical data to understand the full scope of the mineralized system, potentially leading to the
discovery of new zones of mineralization within the same structural trend. Despite previous drilling
success, the drill density at
Alaska
was insufficient to include the area in the Mineral Resource.
Additional drilling is required to increase the drill density to a level where it can contribute to the
resources, converting known mineralization into categorized resources. Channel samples have
returned high-grade assays up to 13.78 g/t Au and 3,415 g/t Ag and drill intercept with 1.07 meters
true width @ 561 g/t AgEq (see
News Release from
April 26, 2023
).
Los Mangos
Los Mangos has demonstrated some of the highest grades in surface samples along with very
consistent and wide vein occurrences, suggesting the presence of a robust mineralized system.
Located along strike to the southwest, Los Mangos supports the strategic goal of generating mineral
resources across the entire length of the 20 kilometre mineralized corridor, enhancing the project's
scalability and economic value.
The high-grade assays from both historic mine dumps and in-situ quartz veins, coupled with the
continuity of vein outcrop over 650 metres, underscore the area's potential. Samples from quartz
veins from historic workings returned up to 4,545 g/t Ag. Vein material from historic mine dumps
shows assays of 27.71 g/t Au and 9,738 g/t Ag (see
News Release from
August 23, 2022
).
Map 1. 2024 Drilling campaign targets and drill hole locations. (CNW Group/Outcrop Silver & Gold
Corporation)
ATM Program
Further to an at-the-market offering of common shares made pursuant to a prospectus supplement
dated
September 6, 2023
, Outcrop Silver issued 5,970,500 common shares and raised gross
proceeds of
$1,247,639
pursuant to such offering from
October 1, 2023
to
December 31
, 2023.
Fees of 2.5% of the gross proceeds of the at-the-market offering were paid to Research Capital
Corporation, being
$31,190
.
Clarification
Further to the news release dated
February 9, 2024
, the effective date of the Consulting Agreement
with Triomphe Holdings Ltd. was
February 15, 2024
, rather than
February 12, 2024
and the fee of
$60,000
was paid in advance.
ICP Securities Inc. Engaged for Automated Market Making Services
Outcrop Silver has engaged the services of ICP Securities Inc. ("ICP") to provide automated market
making services, including use of its proprietary algorithm, ICP Premium™, in compliance with the
policies and guidelines of the TSX Venture Exchange and other applicable legislation. ICP will
receive a fee of
C$7,500
plus applicable taxes per month, payable monthly in advance. The
agreement between Outcrop Silver and ICP is for an Initial Term of four (4) months and shall be
automatically renewed for subsequent one (1) month terms (each month called an "Additional Term")
unless either party provides at least thirty (30) days written notice prior to the end of the Initial Term
or an Additional Term, as applicable. There are no performance factors contained in the agreement
and no stock options or other compensation are being granted in connection with the engagement.
ICP and its clients may acquire an interest in the securities of Outcrop Silver in the future.
ICP is an arm's length party to Outcrop Silver. ICP's market making activity will be primarily to
correct temporary imbalances in the supply and demand of Outcrop Silver's shares. ICP will be
responsible for the costs it incurs in buying and selling Outcrop Silver's shares, and no third party will
be providing funds or securities for the market making activities.
ICP is a
Toronto
based CIRO dealer-member that specializes in automated market making and
liquidity provision, as well as having a proprietary market making algorithm, ICP Premium™, that
enhances liquidity and quote health. Established in 2023, with a focus on market structure,
execution, and trading, ICP has leveraged its own proprietary technology to deliver high quality
liquidity provision and execution services to a broad array of public issuers and institutional investors.
Silver Equivalent
Metal prices used for equivalent calculations were
US$1,800
/oz for gold, and
US$25
/oz for silver.
Metallurgical recoveries based on Outcrop Silver's Metallurgical test work are 97% for gold and
93% for silver.
QA/QC
For exploration core drilling, the company applied its standard protocols for sampling and assay.
HQ-NTW core is sawn with one-half shipped. Core samples were sent to either ALS, Actlabs or
SGS in
Medellin, Colombia
, for preparation. Samples delivered to Actlabs were AA assayed on Au,
Ag, Pb, and Zn at
Medellin
using 1A2Au, 1A3Au, Multielements AR (Ag Cu Pb Zn), and Code 8
methods. Then samples are sent to Actlabs Mexico for ICP-multi-elemental analysis with code 1E3.
After preparation, the samples sent to ALS Colombia were shipped to ALS Lima for assaying using
Au-ICP21, Au-GRA21, ME-MS41, Ag-GRA21, Ag-AA46, Pb-AA46, and Zn-AA46 methods. In line
with QA/QC best practices, blanks, duplicates, and certified reference materials are inserted at
approximately three control samples every twenty samples into the sample stream, monitoring
laboratory performance. Comparison to control samples and their standard deviations indicates
acceptable accuracy of the assays and no detectible contamination. The samples are analyzed for
gold and silver using a standard fire assay on a 30-gram sample and with a gravimetric finish when
surpassing over limits. Multi-element geochemistry was determined by ICP-MS using either aqua
regia or four acid digestions. Crush rejects, pulps, and the remaining core are stored in a secured
facility for future assay verification.
Qualified Person
Edwin Naranjo Sierra
is the designated Qualified Person for this news release within the meaning of
the National Instrument 43-101 (NI 43-101) and has reviewed and verified the technical information in
this news release. Mr. Naranjo has anholds a M.Sc. in Earth Sciences, and is a Fellow of the
Australasian Institute of Mining and Metallurgy (FAusIMM) and the Society of Economic Geology.
About Santa Ana
The 100% owned Santa Ana project comprises 27,000 hectares, including titles and applications,
110 kilometres from
Bogota, Colombia
. Santa Ana consists of regional-scale parallel vein systems
covering a majority of the Mariquita District. The Mariquita District is
Colombia's
highest-grade
primary silver district, where mining records date to at least 1585, with historic silver grades
reported to being among the highest in
Latin America
from dozens of mines.
Santa Ana maiden resource estimate contains an estimated indicated resource of 24.2 million
ounces silver equivalent at a grade of 614 grams per tonne silver equivalent and an inferred mineral
resource of 13.5 million ounces silver equivalent at a grade of 435 grams per tonne silver equivalent,
based on the NI 43-101 Technical Report titled "Santa Ana Property Mineral Resource Estimate,"
dated
June 8, 2023
, and prepared by AMC Mining Consultants. The resource is comprised of the
seven vein systems (commonly containing multiple parallel veins and multiple ore shoots) discovered
to date – Santa Ana (
San Antonio
,
Roberto Tovar
,
San Juan
shoots); La Porfia (La Ivana); El
Dorado (El Dorado, La Abeja shoots); Paraiso (Megapozo); Las Maras; Los Naranjos and La
Isabela.
Veins with similar high grade and thickness exist along strike toward the south, forming a high-grade
silver enriched trend that extends for 30 kilometres. Outcrop Silver's exploration team has identified
numerous additional veins based on high-grade samples from outcrop and historical workings that
have yet to be drill-tested. Outcrop Silver remains focused on identifying and drilling new vein targets
with high-grade potential, and adding substantially derisked mineralized silver-bearing veins that will
increase the published maiden resource.
About Outcrop Silver
Outcrop Silver is advancing the Santa Ana high-grade silver deposit with exploration activities aiming
to expand the current mineral resource. Santa Ana is being advanced by a highly disciplined and
seasoned professional team with decades of experience in
Colombia
.
ON BEHALF OF THE BOARD OF DIRECTORS
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
SOURCE
Outcrop Silver & Gold Corporation
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For further information:
Ian Harris, Chief Executive Officer, +1 604 294 9039,
[email protected], www.outcropsilverandgold.com; Kathy Li, Vice President of
Investor Relations, +1 778 783 2818, [email protected]
CO: Outcrop Silver & Gold Corporation
CNW 07:00e 18-MAR-24