AbraSilver Announces Final Assay Results From Phase III Drilling at JAC Zone, Including 148 g/t Silver Over 64 Metres
Toronto – August 30, 2023: AbraSilver Resource Corp. (TSX.V: ABRA; OTCQX: ABBRF) (“AbraSilver” or the “Company”) is pleased to announce assay results for the final set of drill holes completed as part of the Company’s highly-successful Phase III drill program, on its wholly-owned Diablillos property in Salta Province, Argentina (“Diablillos” or the “Project”).
The reported holes were designed to delineate the margins of the JAC zone, ahead of the upcoming Mineral Resource estimate (“MRE”) and a Pre-Feasibility Study (“PFS”) on the Diablillos project. Key takeaways include:
- Holes DDH 23-066 to DDH 23-070 were drilled to determine the northwestern edge of the JAC zone. All holes encountered silver mineralization, with a broad intercept of 64 m grading 148 g/t Ag in hole DDH 23-070 from a downhole depth of only 41 m.
- Holes DDH 23-071 to DDH 23-075 were drilled to test the northeastern edge of the JAC zone. The holes encountered several narrower zones of silver mineralization, with hole DDH 23-075 intersecting 15.0 m at 93 g/t Ag and 0.78 g/t Au.
- Results from DDH 23-075 are highly encouraging as they demonstrate the continuity of mineralization between the JAC zone and the main Oculto deposit, and the possibility of a combined open pit.
- Hole DDH 23-065 was drilled beyond the northwestern edge of the JAC zone, into the recently discovered JAC North zone. The hole successfully encountered a near-surface intercept of 7 m grading 119 g/t Ag and 0.14 g/t Au, starting at a downhole depth of only 85 m.
- This encouraging result further confirms the presence of a new significant mineralized structure beyond the main JAC zone.
- As announced on August 9, 2023, the newly discovered JAC North zone is located over 900 m beyond the limit of the conceptual open pit that defines the current Mineral Resource estimate at Oculto and approximately 100 m northwest of the high-grade JAC zone.
- While hole DDH 23-075 represented the final drill hole at the main JAC zone as part of the Phase III drill campaign, the Company completed drilling of six additional holes at nearby exploration targets (namely JAC North, Alpaca and Fantasma).
- These results are expected to be received within the next few weeks and will help determine the highest-priority targets for the next phase of exploration.
- The Phase III drill program has now been successfully completed. The Company is preparing an updated MRE which remains on schedule to be completed within the next few weeks, to be followed by a PFS on the Diablillos project.
John Miniotis, President and CEO, commented, “We are delighted with the results of our highly successful Phase III drill campaign. The consistent, high-grade drill results encountered throughout the past year clearly demonstrate the large-scale silver-gold mineralization potential at our flagship Diablillos project. The completion of this drill campaign represents another major milestone for the Company and reinforces our belief in the tremendous value remaining to be unlocked through our ongoing exploration efforts.”
The latest assay result highlights are summarized in Table 1 below.
Table 1 – Summary of Diablillos Drill Results
Note: All results in this news release are rounded. Assays are uncut and undiluted. Widths are drilled widths, not true widths. True widths are estimated to be approximately 80% of the interval widths for oxides.
Figure 1 – Plan View of Latest Drill Holes
The Phase III drill program successfully achieved all of its key objectives, namely:
- Systematically grid drilling the silver-dominant mineralisation at the JAC zone in order to estimate Measured and Indicated Mineral Resources which can be incorporated into the planned overall Diablillos MRE update and PFS.
- Delineate the margins of the JAC zone and conduct geotechnical drilling necessary for a conceptual open pit design.
- Conduct reconnaissance drilling at other targets on the Diablillos land package, including the Fantasma, Alpaca and JAC North zones.
All Phase III drill holes from the JAC zone will be incorporated into an updated MRE and will be included in a PFS on the full Diablillos project. Our next phase of drilling (Phase IV) will explore additional targets which will all be prioritized based on distance from the probable porphyry progenitor beneath Oculto and favourability of structural trends reflected in magnetic surveys, with special reference to any historical drill data. Current priority targets in the area west of Oculto include JAC North, Alpaca and Fantasma, with additional targets also being developed to the east and north of Oculto.
Highlights of selected high-grade drill results reported from the Phase III drill program are summarized in Table 2 below:
Table 2 – Highlights of Phase III High-Grade Intercepts at JAC Zone
|Drill Hole||From (m)||To
|Au (g/t)||AgEq1 (g/t)|
Note: All results are rounded. Assays are uncut and undiluted. Widths are drilled widths, not true widths. True widths are estimated to be approximately 80% of the interval widths.
1 AgEq based on 81.9(Ag):1(Au) calculated using long-term prices of US$25.00/oz Ag and US$1,750/oz Au, and 73.5% process recovery for Ag, and 86.0% process recovery for Au as demonstrated in the Company’s PEA in respect of Diablillos dated January 13, 2022, using formula: AgEq g/t = Ag g/t + Au g/t x (Gold Price/Silver Price) x (Gold Recovery/Silver Recovery).
Results of Annual General and Special Meeting of Shareholders
The Company is also pleased to announce the results of its annual general and special meeting of shareholders held on August 28, 2023 (the “Meeting”). At the Meeting, each of the director nominees listed in the Company's management information circular dated July 18, 2023 (the "Circular") were elected as directors of the Company, including Robert Bruggeman, Stephen Gatley, Sam Leung, Jens Mayer, Nicholas Teasdale, Flora Wood and Hernan Zaballa. The shareholders of the Company also approved the re-appointment of Crowe MacKay LLP as the auditors of the Company for the ensuing year and authorized the board of directors to fix their remuneration and terms of engagement.
At the Meeting, the shareholders of the Company also approved amendments to the Company's share compensation plan (the “Plan”), in accordance with the TSX Venture Exchange rules and policies. The Plan is a “rolling 10% plan” and was amended to include a “net exercise” provision. A copy of the Plan is attached as a schedule to the Circular, which is available on the Company's SEDAR+ profile at www.sedarplus.ca.
Upcoming Milestones and Catalysts
The Company anticipates announcing several upcoming milestones over the next few months, including:
- Announcing assay results from the remaining six holes on regional exploration targets (JAC North, Alpaca and Fantasma (September 2023)
- Updated Mineral Resource estimate for the Diablillos project (October 2023)
- Conduct a CSAMT geophysical survey at Diablillos and prioritize exploration targets for the upcoming Phase IV drill campaign (Q4 2023).
- Pre-Feasibility Study completed for Diablillos project (December 2023)
|Hole Number||UTM Coordinates||Elevation||Azimuth||Dip||Depth (m)|
The 80 km2 Diablillos property is located in the Argentine Puna region - the southern extension of the Altiplano of southern Peru, Bolivia, and northern Chile - and was acquired from SSR Mining Inc. by the Company in 2016. There are several known mineral zones on the Diablillos property, with the Oculto zone being the most advanced with over 120,000 metres drilled to date. Oculto is a high-sulphidation epithermal silver-gold deposit derived from remnant hot springs activity following Tertiarty-age local magmatic and volcanic activity. Comparatively nearby examples of high sulphidation epithermal deposits include: Yanacocha (Peru); El Indio (Chile); Lagunas Nortes/Alto Chicama (Peru) Veladero (Argentina); and Filo del Sol (Argentina).
The most recent Mineral Resource estimate for the Oculto Deposit is shown in Table 3:
Table 3 - Oculto Mineral Resource Estimate – As of October 31, 2022
(000 oz Ag)
(000 oz Au)
|Measured & Indicated||51,314||66||0.79||109,370||1,297|
Notes: Effective October 31, 2022. Mineral Resources are not Mineral Reserves and have not demonstrated economic viability. The Mineral Resource estimate is N.I. 43-101 compliant and was prepared by Luis Rodrigo Peralta, B.Sc., FAusIMM CP(Geo), Independent Consultant. The mineralization estimated in the Mineral Resource is sub-horizontal with sub-vertical feeders and a reasonable prospect for eventual economic extraction by open pit methods. For additional information please see Technical Report on the Diablillos Project, Salta Province, Argentina, dated November 28, 2022, completed by Mining Plus, and available on www.sedarplus.ca.
QA/QC and Core Sampling Protocols
AbraSilver applies industry standard exploration methodologies and techniques, and all drill core samples are collected under the supervision of the Company’s geologists in accordance with industry practices. Drill core is transported from the drill platform to the logging facility where drill data is compared and verified with the core in the trays. Thereafter, it is logged, photographed, and split by diamond saw prior to being sampled. Samples are then bagged, and quality control materials are inserted at regular intervals; these include blanks and certified reference materials as well as duplicate core samples which are collected in order to measure sample representivity. Groups of samples are then placed in large bags which are sealed with numbered tags in order to maintain a chain-of-custody during the transport of the samples from the project site to the laboratory.
All samples are received by the SGS offices in Salta who then dispatch the samples to the SGS preparation facility in San Juan. From there, the prepared samples are sent to the SGS laboratory in Lima, Peru where they are analyzed. All samples are analyzed using a multi-element technique consisting of a four acid digestion followed by ICP/AES detection, and gold is analyzed by 50g Fire Assay with an AAS finish. Silver results greater than 100g/t are reanalyzed using four acid digestion with an ore grade AAS finish.
David O’Connor P.Geo., Chief Geologist for AbraSilver, is the Qualified Person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects, and he has reviewed and approved the scientific and technical information in this news release.
AbraSilver is an advanced-stage exploration company focused on rapidly advancing its 100%-owned Diablillos silver-gold project in the mining-friendly Salta province of Argentina. The current Measured and Indicated Mineral Resource estimate for Diablillos consists of 51.3 Mt grading 66g/t Ag and 0.79g/t Au, containing approximately 109Moz silver and 1.3Moz gold, with significant further upside potential based on recent exploration drilling. The Company is led by an experienced management team and has long-term supportive shareholders including Mr. Eric Sprott. In addition, AbraSilver owns a portfolio of earlier-stage copper-gold projects including the La Coipita copper-gold project in the San Juan province of Argentina. AbraSilver is listed on the TSX-V under the symbol “ABRA” and in the U.S. under the symbol “ABBRF”.
Alternatively please contact:
John Miniotis, President and CEO
Tel: +1 416-306-8334
This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. All statements that address future plans, activities, events or developments that the Company believes, expects or anticipates will or may occur are forward-looking information. 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. When considering this forward-looking information, readers should keep in mind the risk factors and other cautionary statements in the Company’s disclosure documents filed with the applicable Canadian securities regulatory authorities on SEDAR+ at www.sedarplus.ca. The risk factors and other factors noted in the disclosure documents could cause actual events or results to differ materially from those described in any forward-looking information. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
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