Outcrop Silver Annual Letter to Shareholders
OUTCROP SILVER ANNUAL LETTER TO SHAREHOLDERS
VANCOUVER, BC, Jan. 13, 2025 /CNW/ -
Dear Fellow Shareholders,
As 2024 comes to a close, I am proud to reflect on what has been a transformative year
for Outcrop Silver. Santa Ana has further cemented its position as one of the world's
highest-grade primary silver deposits, with over 73% of its value derived from silver and
simple metallurgy with over 96% recoveries. Its rich history, dating back to Colombia's
colonial era, ties this project deeply to the heritage of the Mariquita district.
Today, as we unlock its modern potential, we are building on this legacy, demonstrating
that Santa Ana is not only an economic opportunity but also a source of pride and
progress for the communities and stakeholders we serve.
2024: A Year of Vision and Progress
At the start of 2024, we laid out a bold and ambitious plan: to step beyond the comfort of
the known resource area in the northeast, along the 17-kilometre drill-permitted area,
and expand southward on the trend. Our goal was clear: to demonstrate how Santa Ana
could grow dramatically and solidify its position as one of the world's premier primary
silver projects. Achieving this vision required significant step-outs into never before
drilled areas—testing the unexplored and expanding the project boundaries.
A standout moment that symbolized this year's progress came from the town of Falan,
where municipal letters celebrating the essence of the community were unveiled. The
letter "L" highlighted Falan's rich mining heritage and its vital role in the global silver
industry, as well as its future in sustainable energy. Falan also proudly honored Camilo
Aros, the town's first geological engineer and an employee of Outcrop Silver, as a
bridge between its historical mining legacy and a future rooted in innovation and
responsibility.
Falan's municipal letters, symbolizing the spirit of the community, were unveiled in a heartfelt celebration.
(CNW Group/Outcrop Silver & Gold Corporation)
Falan celebrated Camilo Aros, its first geological engineer and Outcrop Silver employee, as a bridge
between its mining heritage and a future of innovation and responsibility. (CNW Group/Outcrop Silver &
Gold Corporation)
This recognition is more than symbolic; it embodies the trust, pride, and shared vision
the community has in Santa Ana. It's a treasure we hold dear, reaffirming that this
project is not just economically significant but a deeply valued part of the cultural and
social fabric of the region.
This foundation of trust and collaboration proved essential in overcoming one of the
most critical hurdles in our ambitious plan: access to new areas for exploration. Through
the dedication and reputation of our team, we secured more than 100 right-of-way
agreements with local landowners—a remarkable achievement that underscores the
strength of the relationships and reputation we've built over the years. These
agreements allowed us to drill in previously untouched areas, turning potential into
opportunity and demonstrating that technical excellence must always be paired with
meaningful community engagement to drive success.
Delivering Exceptional Results
In 2024, our primary goal was to demonstrate how the Santa Ana resource could grow.
This meant focusing on the most critical step: testing as many drill-ready targets as
possible and converting them into discoveries.
By the end of 2024, we exceeded our initial targets, completing 16,135 metres of
drilling. But more than just metres drilled—it was about methodically stepping out across
the 17-kilometre drill-permitted trend to prove that Santa Ana's high-grade silver
mineralization extends far beyond the existing 37-million-ounce resource in the
northeast. By targeting previously undrilled areas, we successfully demonstrated the
continuity of high-grade primary silver throughout the district.
Map of the Santa Ana project highlighting key areas of planned exploration and development (CNW
Group/Outcrop Silver & Gold Corporation)
Among the most significant discoveries this year are:
• Aguilar Vein System: Aguilar now extends to 650 metres along strike and 200
metres in depth, with additional potential from parallel veins like Aguilar North
and Aguilar HW.
• Jimenez Vein System: High-grade mineralization has been confirmed over 500
metres, with further upside from the parallel Jimenez North vein.
• La Ye and La Lupe Veins: La Ye is now a confirmed discovery with high-grade
intercepts, while the La Lupe vein's connection to La Ye further enhances the
scalability of this system.
• Los Mangos Vein: By the end of 2024, drilling commenced at the Los Mangos
target, marking the most substantial step-out from the existing Mineral Resource
area to date. This represents a significant step toward demonstrating that high-
grade mineralization extends across the entire trend, highlighting the substantial
exploration potential within the Santa Ana project.
Aguilar vein intercept from hole DH369: 6.56 metres starting from a depth 158.11 metres (5.22 metres
estimated true width) of 3.14 g/t Au and 592 g/t Ag (828 g/t AgEq). (CNW Group/Outcrop Silver & Gold
Corporation)
Aguilar vein intercept from hole DH369: 6.56 metres starting from a depth 158.11 metres (5.22 metres
estimated true width) of 3.14 g/t Au and 592 g/t Ag (828 g/t AgEq). (CNW Group/Outcrop Silver & Gold
Corporation)
These results validate our strategy: to step out, test new targets, and convert them into
discoveries while advancing the economic potential of the project. Every discovery adds
to an inventory for future resource expansion.
In addition to these discoveries, we achieved a major metallurgical milestone that
solidifies Santa Ana's future as a significant silver producer. Using gravity and flotation
separation methods, we delivered exceptional recovery rates of 96.3% for silver and
98.5% for gold. What makes this achievement particularly exciting is the high
concentrate grade, which suggests Santa Ana could produce a clean, highly marketable
precious metal concentrate. This points to the potential for direct smelting on-site to
create dore, reducing the need for complex, expensive processing infrastructure and
significantly enhancing future project economics.
This metallurgical success highlights Santa Ana's trifecta of high grade, high recovery,
and high payables—a combination that drives revenue, de-risks the project, and
positions us as a future high-margin silver producer.
The Foundation for Efficient Growth
At Outcrop Silver, our disciplined and systematic approach continues to lay the
foundation for efficient resource growth. Every target tested and every vein discovered
adds to an inventory of high-grade opportunities, allowing us to expand the Santa Ana
resource base at costs well below our current valuation per ounce. This disciplined
methodology ensures that every dollar spent translates into meaningful and sustainable
value for our shareholders.
A major milestone in 2024 was the vote of confidence from Eric Sprott, who increased
his ownership in Outcrop Silver to over 19%. As one of the most respected figures in the
precious metals sector, his investment underscores the quality of our asset, the
capability of our team, and the clarity of our vision. This endorsement highlights our
ability to execute on our ambitious goals and deliver measurable progress.
2025: Building on Success
As we look to 2025, we are entering the year with momentum and focus. Our strategy
remains twofold:
1. Transitioning to resource drilling: With a growing inventory of high-grade
discoveries, we are now poised to begin focused resource drilling. This transition
marks the next critical phase in showcasing Santa Ana's scalability and efficiently
expanding its resource base.
2. Continuing to generate and test new targets: Exploration remains at the heart
of our value proposition. Each target successfully converted into a discovery not
only validates Santa Ana's potential but also strengthens our ability to grow the
resource. Each new discovery adds flexibility to our resource expansion plans,
allowing us to prioritize areas that deliver the most ounces at the lowest cost.
This approach significantly de-risks our objectives, improves efficiency, and
maximizes shareholder value.
Outcrop Silver enters 2025 well-funded, well-positioned, and with a disciplined strategy
to unlock Santa Ana's full potential. By maintaining a focus on both exploration and
resource expansion, we are building a project that is efficient and highly adaptable,
ensuring meaningful returns for our shareholders while continuing to advance one of the
world's highest-grade primary silver projects.
Silver Market Outlook
As we enter 2025, the silver market appears poised for something extraordinary. Many
analysts predict a significant rise in silver prices, driven by silver's unique dual role: a
critical industrial metal crucial for the energy transition and a safe-haven investment.
One of the most striking dynamics in the silver market is the persistent structural deficit.
The Silver Institute estimates a 182-million-ounce shortfall in 2024, marking the fourth
consecutive year of deficits. Cumulatively, the past four years alone have resulted in a
staggering 725-million-ounce deficit—almost equivalent to an entire year of global mine
production.
Santa Ana stands as one of the most compelling undeveloped high-grade primary silver
projects globally. With its trifecta of high grade, high recovery, and high payables
potential, Santa Ana is a cornerstone asset in the evolving silver market.
Closing Thoughts
As we embark on 2025, Outcrop Silver stands at the intersection of extraordinary
opportunity and proven achievement. The progress made this past year has not only
expanded the horizons of the Santa Ana project but has also strengthened the
foundation upon which we will continue to build. With a disciplined strategy, dedicated
team, and a healthy treasury, we are poised to unlock the full potential of one of the
world's most compelling silver projects.
Thank you for your unwavering trust and support. As partners in this journey, your
confidence inspires us to continue building lasting value for all stakeholders while
shaping the future of silver.
Sincerely,
Ian Harris
President & CEO
Outcrop Silver & Gold Corporation
SOURCE Outcrop Silver & Gold Corporation
View original content to download multimedia:
http://www.newswire.ca/en/releases/archive/January2025/13/c4552.html
%SEDAR: 00005232E
For further information: Ian Harris, Chief Executive Officer, +1 604 638 2545,
[email protected]; Kathy Li, Vice President of Investor Relations, +1 778 783
2818, [email protected]; www.outcropsilver.com
CO: Outcrop Silver & Gold Corporation
CNW 07:30e 13-JAN-25