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 gold (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
|
Las Maras
|
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
|
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.
|
|
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
joseph.hebert@outcropsilverandgold.com
www.outcropsilverandgold.com
Kathy Li
Director of Investor Relations
+1 778 783 2818
li@outcropsilverandgold.com
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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