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Co. Sees Silver Lining in Colombia
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The Quick Take

  • Research Capital Corp. initiated coverage on Outcrop Silver & Gold Corp with a "Speculative Buy" rating and a CA$0.75/share target price.
  • Outcrop's Santa Ana property offers district scale potential in Colombia's richest historic silver camp.
  • Testing at Santa Anta indicates the presence of numerous parallel veins and veinlets similar to other epithermal systems.
  • Under a conservative narrow-vein mining scenario, intercepts averaged nearly 650 g/t Ag eq.
  • So far, less than 10% of Santa Ana's 36,000 ha property has been drill-tested, leaving the possibility for a much larger mineral system.
  • Outcrop is now conducting an 18,000 meter drill program focusing on the highly prospective Megapozo shoot area. The form's management feels this area offers strong potential to increase the resource by as much as 60%.
  • Outcrop had cash of $7.8 million, working capital of $6.7 million and no debt on its balance sheet as of May 31, 2021.
Outcrop Gold Santa Ana

Research Capital Corp. Mining Analyst Stuart McDougall commented in a Nov. 25 research note that Vancouver-based metals explorer "Outcrop Silver & Gold Corp. (OCG:TSX.V; OCGSF:OTCQX; MRG1:DE) is quickly advancing its Santa Ana project as one of Colombia's newest high-grade precious metals plays."

The analyst claimed that the "the Santa Ana project offers district scale potential in Colombia's richest historic silver camp."

The research firm advised that it commenced its coverage of Outcrop Silver & Gold as the company has now successfully completed three phases of drilling and has identified seven high-grade shoots. Analyst McDougall stated that Outcrop is actively preparing to test five other prospective areas in H1/22.

Research Capital indicated that it initiated its coverage on the company with a "Speculative Buy" rating and a CA$0.75/share target price. The firm qualified its estimate noting that the target price is based on the assumption that Outcrop will eventually be able to grow the resource to 50 Moz Ag eq or higher.

The report from Research Capital stated that results from drilling at the property to extend and confirm the property's high-grade vein system. McDougall advised that assay results from 111 piece points across 84 holes showed grades exceeding an internal benchmark of 200 g/t Ag eq.

McDougall commented, "Although the veins are thin, we think the grades have so far proven rich enough to work under a narrow-vein mining scenario, having averaged 1,345 g/t Ag eq, and even adjusting for dilution, the intercepts average nearly 650 g/t Ag eq."

The company is presently conducting an 18,000 meter drill program, its fourth such planned program. The firm has succeeded in expanding the boundary of the Megapozo shoot. The analyst wrote that Outcrop's management believes this area may offer the potential to increase the resource area by 60%.

The 36,000 ha Santa Ana property holds the potential for a much larger mineral system. Other mines in the vicinity were historically reported to have produced 7.8 Moz Ag.

The company has made investments in four additional "non-core" legacy exploration projects in Columbia which are presently inactive. Research Capital does not consider these investments in its valuation, but noted that they could be explored or sold at a later date and might possibly reduce the need for future dilutive external funding.

Outcrop Silver & Gold Corp. shares trade on the TSX Venture Exchange under the symbol "OCG" and last closed for trading at CA$0.25 on Wednesday, Feb. 2, 2022. In addition, the company's shares trade under the ticker "OCGSF " on the OTCQX market.


1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Outcrop Silver & Gold. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Outcrop Silver & Gold, a company mentioned in this article.

DISCLOSURES for Research Capital Corp., Outcrop Silver & Gold Corp., Nov. 25, 2021

1. The issuer has generated investment banking revenue for RCC.

2. RCC has holdings of this issuer.

ANALYST CERTIFICATION: I, Stuart McDougall, certify the views expressed in this report were formed by my review of relevant company data and industry investigation, and
accurately reflect my opinion about the investment merits of the securities mentioned in the report. I also certify that my compensation is not related to specific recommendations or views expressed in this report.

Research Capital Corporation publishes research and investment recommendations for the use of its clients. Information regarding our categories of recommendations, quarterly summaries of the percentage of our recommendations which fall into each category and our policies regarding the release of our research reports is available at or may be requested by contacting the analyst.

Each analyst of Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.

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