Outcrop Silver & Gold Corp. (OCG:TSX.V; OCGSF:OTCQX; MRG1:DE) is advancing exploration on five silver and gold exploration projects with world-class discovery potential in the low-risk mining jurisdiction of Colombia.
Netflix subscribers who devoured the ultra-violent first season of Narcos may not think of Colombia as “low-risk,” but that TV series was set in the 1990s.
Colombia is now a mature mining jurisdiction, ranked 18th in the world by the Fraser Institute’s 2021 survey “Best Practices Mineral Potential Index,” where it is sandwiched between Queensland and Sweden, and three places below Quebec, Canada.
The company is currently drilling and expanding the Santa Ana historical high-grade silver district. Outcrop has a seasoned geo team on the ground with decades of experience in Colombia.
On May 9, Outcrop announced that it has identified a new, 3.5-meter-wide vein at Santa Ana, Aguilar. The company noted that the vein can be traced for over 1,000 meters, and its multiple parallel structures include values as high as 1,915 grams per tonne (g/t) silver and 16.9 g/t gold.
The company also noted that including Aguilar, "the vein systems at Santa Ana have been mapped and sampled for a continuous 12 kilometers in length."
Outcrop has also drilled high-grade intercepts in La Isabela short and on the El Dorado and Espiritu Santo veins. Among the highlights, in addition to Aguilar, are:
- Current drilling has defined La Isabela shoot 150 meters along the surface and 90 meters at depth. Additional drilling is planned to define La Isabela at depth.
- La Isabela is comprised of three or more stacked vein segments, each of which may contribute to potential resource areas.
- Current drilling along El Dorado vein confirms high-grade mineralization 420 meters north of the recently discovered La Abeja shoot.
- The Espiritu target returned 0.72 meter true thickness of 597 grams silver equivalent per tonne and may contain a new shoot.
"We are excited to continue to identify additional new high-grade veins at Santa Ana's district-scale property," stated Joseph Hebert, Outcrop's CEO. "New veins and expanding shoots continue to add to the potential resource areas which will be incorporated into the maiden resource planned for completion by the end of 2022."
Earlier, on March 14, Outcrop announced that two additional shoots, La Abeja and La Isabela, had been added, for a total of 10 shoots in the potential resource area at Santa Ana.
Those were the first two targets drill tested in the newly permitted drill concessions.
One drill rig was testing targets to the north and one to the south of the Santa Ana Mines, where drilling to date has been concentrated.
A third drill rig was being mobilized in March to infill drill known shoots to define the upcoming maiden resource.
In March, Outcrop noted:
- Drilling in La Abeja shoot 300 meters north along the Dorado vein intercepted 2.2 meters of 2,790 grams equivalent silver per ton and 1.2 meters of 1,362 grams equivalent silver per ton. La Abeja is characterized by abundant native silver.
- Drilling in La Isabela shoot 2 kilometers to the southwest of the San Antonio shoot intercepted 1.22 meters of 609 grams equivalent silver per ton and 0.49 meter of 1,350 grams equivalent silver per ton.
- Adding La Abeja and Isabela, Santa Ana now comprises 10 large, high-grade shoots. All shoots remain open along the surface and at depth. Both new shoots will contribute to the potential resource area and are locally comprised of a package of two or more parallel, high-angle veins.
“Our focused drilling at Santa Ana continues to prove successful. A second rig on newly permitted concessions is resulting in the early definition of additional shoots,” commented Jesus Velador, VP of exploration.
“The new La Isabela shoot is two kilometers southwest of the previously southernmost San Antonio shoot,” according to Outcrop. “Isabela is on a recently granted and permitted concession.”
Drillhole 202 intercepted high-grade mineralization in two close-spaced veins. Isabela is distinct due to being hosted within a northeast-trending vein, in contrast to the north-trending veins of the Royal Santa Ana Mines group.
Drillhole 202 has the probability of projecting to the surface, where high-grade samples were collected. Isabela is open in all directions; the high-grade vein float extends more than 150 meters south of the current drilling in Isabela. That it occurs in a northeast-trending vein expands the exploration model by confirming another primary vein trend to explore.
On March 9, Outcrop announced that it had raised CA$6.9 million consisting of 25,555,555 units at a price of CA$0.27 per unit.
“This financing funds Outcrop’s 2022 drilling campaign which is already underway at the Santa Ana high-grade silver project and will culminate in a maiden resource,” stated Hebert. “Due to the leadership of our existing shareholders, including Eric Sprott, the financing was significantly oversubscribed.”
“Bay Street legend Eric Sprott . . . became a billionaire betting on gold and silver,” confirms the Financial Post. “Sprott retired from the firm he created in 2017 and now invests his own money. But the 77-year-old still has a great deal of influence, as he remains one of the most deep-pocketed and bullish investors in Canada’s precious-metals mining industry.”
“Sprott has often commanded a following from other investors, who look to mimic his portfolio on a smaller scale,” continued the Post. “And it is not uncommon for the share price of companies to bounce higher in the weeks after he discloses an investment as investors debate it on internet chat boards.”
Sprott acquired 7.4 million units of Outcrop Silver & Gold pursuant to the offering for total consideration of CA$1,998,000. He owns about 16.9% of Outcrop on a non-diluted basis and 27.1% on a partially diluted basis, assuming he exercises of all of his warrants.
“Globally narrow veins provide over 30% of all underground production. Several major underground mobile equipment manufacturers provide mechanized drilling, and load and haul equipment specifically for narrow-width mines,” according to an Outcrop announcement in January.
Narrow Vein Advantages:
- Less capital is required
- Less development
- Less waste per tonne
- Fewer tailings
- Smaller environmental impact
“Outcrop expects to continue to add to its inventory of high-grade shoots by generating and testing numerous high-quality targets on our district-scale property,” Hebert said in February. “Extending Dorado expands the potential resource area for a compliant maiden resource report before the end of 2022.”
“It's pretty much put a clear path forward for investors,” added Hebert in March. “Outcrop has a growing high-grade discovery in a low-risk jurisdiction that is moving to the next tier of value by publishing a maiden robust compliant resource in 2022.”
Outcrop has 132,148,953 shares outstanding; it is currently trading at CA$0.14 with a market cap of CA$19.85 million.
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1) Lukas Kane compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. They or members of their household own securities of the following companies mentioned in the article: None. They or members of their household are paid by the following companies mentioned in this article: None. Their company has a financial relationship with the following companies referred to in this article: None.
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