Outcrop Silver Intercepts 0.90 Metres of 767 Grams Equivalent Silver PER Tonne IN Las Maras and Provides an Update ON the Resource Estimation at Santa Ana
OUTCROP SILVER INTERCEPTS 0.90
METRES OF 767 GRAMS EQUIVALENT
SILVER PER TONNE IN LAS MARAS AND
PROVIDES AN UPDATE ON THE RESOURCE
ESTIMATION AT SANTA ANA
VANCOUVER, BC
,
Dec. 29, 2022
/CNW/ -
Outcrop Silver & Gold Corporation
(TSXV: OCG)
(OTCQX: OCGSF) (DE: MRG1)
("Outcrop")
is pleased to announce the results of two additional
core holes in the Las Maras shoot on its 100% owned Santa Ana high-grade silver project in
Colombia
and provide an update on its pending maiden compliant resource estimation.
Highlights
DH308 intercepted 0.9 metres true thickness of 767 grams equivalent silver per tonne.
DH306 and DH308 extend Las Maras high-grade mineralization at depth and to the south.
(Figure 3).
Definitive flotation tests in progress by SGS labs will provide higher confidence
diagnostic flotation recovery tests and allow Micon International to use higher metal
recoveries in Santa Ana's maiden resource report. Initial metallurgical testing showed
recoveries of 94% of contained silver and 96% of contained gold in a concentrate
containing 6,540 grams per tonne of silver and 83 grams per tonne of go
l
d (press
release
November 3, 2022
)
.
A third drill rig has been added at Santa Ana.
"The resource report will be delayed until the first quarter in order to capture the benefit of optimized
higher recoveries," comments
Joseph Hebert
Chief Executive Officer. "Further, a third drill rig was
added at Santa Ana in December in order to complete planned deeper delineation drilling of some of
the high-grade shoots which can now be included in the resource estimation. Las Maras high-grade
mineralization extends to over 350 metres and is open at depth. Other shoots to be included in the
resource report are only drilled to an average depth of 170 metres."
Maras Drilling
Twenty-seven drill holes have been completed in Las Maras to date. Seventeen have returned high-
grade assays (Figure 3) including 2.1 metres of 2,034 grams equivalent silver per tonne and 5.9
metres of 1,697 grams equivalent silver per tonne. Recent drilling targeted step-down intercepts
from hole DH290. Las Maras remains open at depth.
Target
Hole ID
From
(m)
To
(m)
Width*
(m)
Au g/t
Ag g/t
Pb %
Zn %
AgEq
g/t
SAMR22DH306
306.63
306.93
0.28
2.65
523
0.59
0.81
759
SAMR22DH306
319.54
320.48
0.71
0.78
194
0.35
0.20
263
Las Maras
including
320.09
320.48
0.29
1.70
453
0.84
0.45
606
SAMR22DH308
171.46
173.10
0.87
2.72
537
0.47
0.62
767
including
171.94
172.65
0.38
4.11
801
0.60
0.97
1,148
*Estimated True width. Metal prices used for equivalent calculations were US$1,827/oz for gold, US$21.24/oz for silver, US$0.90/lb for lead and US$1.56/lb for zinc. Metallurgical
recoveries assumed are 93% for gold, 90% for silver, 90% for lead and 92% for zinc.
Table 1. Significant drill assays from the Las Maras Target.
Map 1. Las Maras area with DH306 and DH308 drill hole traces. (CNW Group/Outcrop Silver &
Gold Corporation)
Figure 1. Las Maras cross section with DH306 and DH308 reported in this release. (CNW
Group/Outcrop Silver & Gold Corporation)
Map 2. Location of Las Peñas vein in Las Maras target, 3 km south of the main Santa Ana vein
system. (CNW Group/Outcrop Silver & Gold Corporation)
Figure 3. Las Maras long section shoot illustrating drill pierce points with true widths. (CNW
Group/Outcrop Silver & Gold Corporation)
Hole ID
Easting
Northing
Elevation
(m)
Depth (m)
Azimuth
Dip
SAMR22DH306
505775.127
564244.355
910.011
345.94
137
-58
SAMR22DH308
505850.075
564165.053
890.412
185.92
138
-60
Table 2. Collar and survey table for reported drill holes.
Metallurgy Update
Outcrop has continued a sequence of more definitive processing flotation tests that will allow Micon
International, the resource estimate report author, to use higher metal recoveries than would be
possible with the testing completed to date.
Outcrop Silver reported excellent preliminary metallurgical test results on
November 3, 2022
, which
show that gold is 90% in native free state, with 8% native silver and electrum comprise 8% by mass,
and 88% of silver occurs in a single mineral argentite. These metal distributions present a very
simple "ore" mineralogy, allowing a simple processing design. The results show average recoveries
of 94% for silver and 96% for gold in concentrate, grading 6,540 grams per tonne of silver and
82.94 grams per tonne of gold.
The current second phase of metallurgical tests includes locked cycle kinetic flotation, cleaner stage
flotation, concentrate gold screening and concentrate mineralogical characterisation. This more
comprehensive metallurgical testing will significantly derisk the Santa Ana Project by determining
processing parameters that will optimize metal recoveries. This sequence of testing will allow higher
metal recoveries to be used in the estimation report by Micon International.
In order to include the results of this second phase of metallurgical tests, the resource estimate has
been delayed under Q1 2023. A third drill rig was added in December to complete planned deeper
delineation drilling of some of the high-grade shoots which can now be also included in the resource
estimation.
QA/QC
Core samples are sent to either Actlabs or SGS in
Medellin, Colombia
, for preparation and AA
assaying on Au and Ag, then to SGS
Lima, Peru
, for multi-element analysis. Samples sent to
Actlabs are then shipped to Actlabs Mexico for multi-element 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 analyzed for gold using a standard fire assay on
a 30-gram sample with a gravimetric finish when surpassing over limits. Multi-element geochemistry
is determined by ICP-MS using aqua regia digestion. Comparison to control samples and their
standard deviations indicate acceptable accuracy of the assays and no detectible contamination.
About Santa Ana
The 100% owned Santa Ana project comprises 36,000 hectares located in the 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 majority 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. The extremely high silver and gold values on Santa Ana reflect at least three
recognized overprinting mineralization events.
At the core Royal Santa Ana project, located at the northern extent of just one of the regional vein
systems controlled by Outcrop, thirteen high-grade shoots have been discovered to date – La Ivana
hanging-wall and footwall (La Porfia vein system);
San Antonio
,
Roberto Tovar
,
San Juan
(Royal
Santa Ana vein systems); Las Maras (Las Penas vein system); El Dorado, La Abeja (El Dorado vein
systems); Megapozo, Paraiso (El Paraiso vein system);
Espiritu Santo
(Aguilar vein system); La
Isabela and Los Naranjos. 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 to
more common high-angle veins.
Outcrop drilling indicates that mineralization extends from surface or near surface to depths of at
least 370 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, 16 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 thirteen shoots discovered to date by Outcrop. Numerous priority drill targets have been
discovered along this 16 kilometre trend with outcropping veins up to 4.7 metres wide.
About Outcrop Silver & Gold
Outcrop Silver & Gold is rapidly advancing the Santa Ana high-grade silver discovery with ongoing
expansion drilling and an initial resource to be released in the coming months. Outcrop is also
progressing exploration on four gold projects with world-class discovery potential in Colombia. 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
+1 775 340 0450
www.outcropsilverandgold.com
Kathy Li
Director of Investor Relations
+1 778 783 2818
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 has 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
View original content to download multimedia:
http://www.newswire.ca/en/releases/archive/December2022/29/c9480.html
%SEDAR: 00005232E
For further information:
Joseph P Hebert, Chief Executive Officer, +1 775 340 0450,
[email protected], www.outcropsilverandgold.com; Kathy Li, Director of
Investor Relations, +1 778 783 2818, [email protected]
CO: Outcrop Silver & Gold Corporation
CNW 07:00e 29-DEC-22