Outcrop Silver Reports Excellent Metallurgical Results and Provides Update ON Upcoming Resource Estimation
OUTCROP SILVER REPORTS EXCELLENT
METALLURGICAL RESULTS AND PROVIDES
UPDATE ON UPCOMING RESOURCE
ESTIMATION
VANCOUVER, BC
,
Nov. 3, 2022
/CNW/ -
Outcrop Silver & Gold Corporation
(TSXV: OCG)
(OTCQX: OCGSF) (DE: MRG1)
("Outcrop")
is pleased to report excellent results from
metallurgical testing from the Santa Ana project and provides an update on work being conducted to
publish a maiden compliant resource before the end of 2022.
Highlights
Metallurgical testing demonstrates excellent recoveries from the processing of
mineralized veins in the Santa Ana project.
On average, 94% of contained silver and 96% of contained gold were recovered in a
concentrate containing 6,540 grams per tonne of silver and 82.94 grams per tonne of
gold.
Diagnostic work on mineral characterization, liberation, grain-size particle distribution,
and concentrate grades support excellent metallurgical recoveries of gold and silver by
conventional milling methods.
Micon International Limited will complete the NI 43-101 compliant Mineral Resource
Estimate for Santa Ana.
A total of eight modelled veins containing twelve high-grade shoots will be used in the
upcoming Resource Estimation.
Two hundred and thirty-eight holes comprising 44,608 metres of diamond drilling will
support the first maiden resource in Santa Ana.
Gold is 90% in free native form, and 88% of silver by mass is in argentite, for very simple
"ore" mineralogy.
"We are very excited about partnering with Micon to produce a compliant resource estimate before
the end of the year. Their track record and expertise independently support our vision for the Santa
Ana project," commented
Guillermo Hernandez
, Vice President of Exploration. "Simultaneous with
the resource-related work, further exploration drilling and prospecting is adding potential resource
areas that will be incorporated in a revised resource report when it is time to do so."
"Outcrop is reaching a very significant milestone in taking Santa Ana from a quality high-grade
discovery to a compliant resource," comments
Joseph Hebert
, Chief Executive Officer. "We believe
publishing a quality resource will add significant value to Outcrop. The maiden resource will
represent only a small part of the Santa Ana project's potential.'
Metallurgical Test Work
Outcrop prepared four sample composites, two per shoot, from Ivana (POR-1 and POR-2) and
Megapozo (PAR-1 and PAR-2) from coarse laboratory rejects (See news release dated
February 23, 2022
). Each composite weighs approximately 50 kilograms, and the samples
represent two metallurgical domains: high-grade and low-grade.
The high-grade composites represent the average grade in the shoot, while the low-grade
represents Outcrop's "significant result" threshold. SGS Labs have conducted all preparation and
testing to date.
Returned grades for the composites are as follows:
Prospect
Sample
Au g/t
Ag g/t
Pb %
Zn %
AgEq g/t
Cu %
S %
Megapozo
PAR-1
1.48
89
0.06
0.08
204
0.03
1.6
PAR-2
6.14
539
0.36
0.47
1,007
0.03
3.8
Ivana
POR-1
1.19
118
0.11
0.20
213
0.02
3.3
POR-2
7.36
313
0.32
0.53
904
0.03
3.5
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. Assayed head grades from the prepared composite samples.
The particle size mass distribution for sulfide minerals shows that between 80 and 90% of the
sulfides can be liberated from milling down to 53 to 106 microns (Figure 1). These grain sizes can be
achieved under conventional milling.
Figure 1. Particle size mass distribution for all sulfide phases. Yellow highlight indicates 90%
liberation between 53 and 75 microns, a good size distribution for processing. (CNW Group/Outcrop
Silver & Gold Corporation)
Mineral characterization during testing has shown electrum (Figure 2) to contain 60 to 70% silver
(with gold) and represents, on average, 3% of the silver-forming mineral mass. Argentite is the most
common silver-phase mineral, with 88% of the total mass, followed by Freibergite, with 8% of the
mass on average. Mineralogy is simple, with silver partitioned into mainly three minerals.
Figure 2. Backscattered electron image of an electrum particle from sample PAR-2. (CNW
Group/Outcrop Silver & Gold Corporation)
Diagnostic tests for gold show that 90% of the contained gold is in free native form, with only minor
amounts from 0.5% to 2% encapsulated in silicates. Native gold has a very high recovery rate from
simple processing.
ID-
Sample
p80 (
µ
m)
1st Cyanide Leaching Au
(%)
Acid leaching H
2
SO
4
/
2nd Cyanide Leaching
Au (%)
Acid Leaching HNO
3
/
3rd Cyanide Leaching
Au (%)
Residual
Au (%)
PAR-1
75
94.1
3.4
0.5
2.0
PAR-2
75
87.4
7.9
4.1
0.5
POR-1
75
87.5
4.4
5.9
2.2
POR-2
75
92.3
4.1
3.2
0.5
Gold State
Free Gold
Gold is associated with
pyrrhotite, calcite, hematite, galena,
dolomite
Primary sulfide-
associated Gold (pyrite,
arsenopyrite)
Silicates
encapsulated
Gold
Table 2. Summary results from a gold-diagnostic test.
Initial standard flotation tests were performed on sample PAR-2 from the Megapozo shoot in
Paraiso vein, since Outcrop anticipates a significant resource contribution from this target in the
Santa Ana resource estimation. 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.
Product Concentrate
Cumulative Recovery
Milling p80
Ag g/t
Au g/t
Ag
Au
75 µm
5,968
80
98.4
99.5
105 µm
6,044
75
98.2
99.5
150 µm
7,231
79
97.5
98.9
210 µm
7,110
102
94.4
97.3
Table 3. Summary results from flotation tests. The weighted average for all tests is 94 % for silver and 96% for gold.
NI 43-101 Compliant Resource Estimate
Outcrop engaged Micon International Limited, Mineral Industry Consultants (Micon), to conduct an
independent NI 43-101 compliant mineral resource estimate for the Santa Ana project.
Micon has provided independent consulting services to the world's mining industry since 1988. It
comprises highly qualified and experienced professionals guided by best practices and principles.
Micon has designated a team of five highly skilled independent associates with more than 130 years
of combined experience in resources estimations, geostatistics, geology and metallurgy to work on
the Santa Ana resource report.
Mineral Resource Guidance and future potential
Outcrop maintains an internal guidance of 45 to 55 million silver equivalent ounces (see news release
dated
January 25, 2022
), incorporating twelve shoots from the eight most well-defined veins on the
Santa Ana project (Figure 3 and Figure 4). The Megapozo shoot (Paraiso vein) and the Ivana shoot
(Porfia vein) represent more than 50% of the potential resources (Figure 3). The mineral resource
estimate will incorporate 44,608 metres of drilling in 238 drill holes distributed in the eight shoots
(Figure 3).
Figure 3. Projected possible vein contribution to compliant resource and drill hole metres in the eight
modelled veins. All mineralization in the veins remains open at depth. Percentages represent only
gross estimates of relative contributions to potential resources by internally calculated volume and
may not correlate with compliant resources estimated by Micon International. (CNW Group/Outcrop
Silver & Gold Corporation)
SEO=Silver Equivalent Ounces. 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.
Importantly the average depth of drilling in 12 defined shoots is only 170 metres, whereas recent
drilling in Las Maras shoot shows mineralization open at 370 metres. Drilling all shoots at depth in
early 2023 may add significant volume to known shoots when drilled out. Extending an average
depth of high-grade mineralization from 170 metres to 370 metres could at least double the volume
of known shoots for a rapid increase in potential resources.
Outcrop will continue with its regional target definition and drilling in numerous targets along the
mapped mineralized trend (see news release dated
August 23, 2022
) from the Aguilar-Guadual vein
systems along 8.5-kilometres to the Frias mine group of veins. (Figure 4).
The vein containing shoots in the resource represent less than 30% of the well-defined vein
segments on the project, and further work will continue to generate numerous more well-defined
targets. Outcrop Silver thinks it will be possible to significantly increase the maiden resource report
with an updated report in late 2023 or early 2024. Further, all exploration and drilling to date have
only been conducted on 12 percent of the Santa Ana project, indicating that Santa Ana has the
potential to be a world-class silver-gold province with over 60 kilometres of composite vein zone.
Figure 4. Resource included veins and prospective veins that will likely add to future resources. All
vein segments will show more continuity with future work. (CNW Group/Outcrop Silver & Gold
Corporation)
QA/QC
Core samples are sent to either Actlabs in
Medellin
or ALS Chemex in
Medellin
for preparation and
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 a 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 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. Between the Royal Santa Ana Mines and the
Frias Mine, veins have been extended to the south providing strong drill targets in the Aguilar,
Espiritu Santo
and El Cristo veins that show high values up to 5.5 kg AgEq/t. These veins show
widths up to 4.7 metres. Twelve kilometres of vein zones have been mapped between El Dorado
vein to the north and the Aguilar vein to the south. An additional seven kilometres of veins have been
mapped between Aguiler and the Frias mine, including the veins Los Mangos and La Ye, which
provide several targets with high values up to 9,738 g AgEq/t.
About Outcrop
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 Silver.
ON BEHALF OF THE BOARD OF DIRECTORS
Joseph P Hebert, Chief Executive Officer
Investor Relations
+1 775 340 0450
+1 778 330 3835
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; Investor Relations, +1
778 330 3835, [email protected]
CO: Outcrop Silver & Gold Corporation
CNW 07:00e 03-NOV-22