Outcrop Silver & Gold Corp. (OCG:TSX.V; OCGSF:OTCQX; MRG1:DB) encountered the "richest intercept to date" at its Santa Ana gold-silver project in Colombia via hole 317 drilled in the Las Abejas shoot, reported Research Capital Corp. analyst Stuart McDougall in a Jan. 30 research note. The new drill results extend high grades northward along El Dorado, the vein system containing Las Abejas.
Standout Silver Grade: 11,088 G/T
The best intercept of hole 317 returned a silver grade of 11,088 grams per ton (11,088 g/t) and a gold grade of 71.2 g/t over 1.09 meters (1.09m), McDougall reported.
The intercept was located within a shallow interval that also showed 1,836 g/t silver and 5.01 g/t gold in the first 0.61m downhole and 3,703 g/t silver and 22.3 g/t gold in the final 2.05m downhole.
Another "particularly rich intercept" the drill bit hit in hole 317 showed the presence of precious and base metals, noted McDougall. It was 5.28m of 2,719 g/t silver, 16.08 g/t gold, and 2.81% lead-zinc. Similarly, 15m further downhole, 0.47m of 4,336 g/t Ag and 17.96 g/t gold were encountered.
High Grades From Megapozo, Too
New drill data from the Megapozo shoot showed that holes 314 and 315 "essentially filled in a gap," McDougall wrote. Hole 314 returned 1.75m of 584 g/t silver and 2.17 g/t gold. Grades in hole 315 were lower than in hole 314, at 434 g/t silver and 0.82 g/t gold, over 0.81m.
Research Capital estimated Megapozo's undiluted grade potential at about 870 g/t silver and about 10 g/t gold over an average drill width of 0.79m.
Rich El Dorado Vein System
So far, Outcrop has identified two shoots in El Dorado, about 300m apart, Las Abejas and Megapozo, with a possible third, Figueroa, 420m north of Las Abejas, McDougall pointed out. Combining the drill results of all three shoots, Research Capital calculated undiluted grades of about 1,500 g/t silver and about 10 g/t gold over an average drill width of 0.97m.
These grades suggest El Dorado is "among, if not, the richest of the vein systems tested to date," McDougall wrote.
Pattern to Mineralization Emerging
The analyst also pointed out that in a recent drill result announcement, Outcrop indicated the mineralized system at Santa Ana appears to top out at the 750m elevation level.
"Future holes are being designed to test that theory elsewhere in order to make future programs more focused and efficient," McDougall added.
Research Capital has a Speculative Buy rating and a CA$0.75 per share target price on Outcrop, the current share price of which is about CA$0.29.
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