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News Releases

AbraSilver Announces Initial Drill Results from Phase II Exploration Program, Extending Gold Mineralization Well Beyond the Oculto Zone, With 53 Metres Grading 2.9 g/t AuEq

Key Highlights:

  • All three initial holes of the Phase II program reported broad gold intercepts demonstrating extension of substantial mineralisation for hundreds of metres beyond the Whittle Pit boundary
  • DDH 21-022 intersected 53m at 2.9 g/t AuEq, including 14m at 5.5 g/t AuEq, within oxide mineralisation in the Northeast Gold Zone where ongoing drilling continues to extend the deposit

Toronto - August 09, 2021: AbraSilver Resource Corp. (TSX.V:ABRA; OTCPK: ABBRF) ("AbraSilver" or the “Company”)  is pleased to report significant drill results received from the initial three diamond drill holes of the Company’s ongoing Phase II drill program, on its wholly-owned Diablillos property in Salta Province, Argentina.

Table 1 – Drill Result Highlights (Intercepts greater than 2,000 gram-metre AgEq shown in bold text):

Drill Hole   From
(m)
To
(m)
Type Interval
(m)
Ag
 g/t
Au
g/t
Cu
%
AgEq1
g/t
AuEq1
g/t
DDH-21-021   161 167 Oxides 6.0 15.7 1.03 - 93.0 1.24
DDH-21-021   182 202.5 Oxides 20.5 24.4 2.82 - 235.9 3.15
DDH-21-021   210 214.5 Oxides 4.5 11.0 1.16 - 98.0 1.31
DDH-21-021   238.5 240 Oxides 1.5 7.6 1.05 - 86.4 1.15
DDH-21-021   246 249 Oxides 3.0 15.3 2.24 - 183.3 2.44
DDH-21-021   260 261 Oxides 1.0 14.9 1.85 - 153.7 2.05
DDH-21-021   286 289 Oxides 3.0 13.5 1.59 - 132.8 1.77
DDH-21-021   310.5 312.5 Sulphides 2.0 22.0 1.11 1.26 234.9 3.13
DDH-21-021   327 341 Sulphides 14.0 7.6 0.43 0.29 69.7 0.93
DDH-21-022   126 137 Oxides 11.0 42.3 0.08 - 48.3 0.64
DDH-21-022   141 149 Oxides 8.0 31.7 0.05 - 35.5 0.47
DDH-21-022   192 245 Oxides 53.0 33.3 2.49 - 220.5 2.93
DDH-21-022 Including 230 244 Oxides 14.0 47.2 4.84 - 410.2 5.47
DDH-21-022   253 257 Oxides 4.0 34.3 2.21 - 200.1 2.67
DDH-21-022   262 264 Oxides 2.0 27.5 1.88 - 168.5 2.25
DDH-21-022   270 271 Oxides 1.0 35.6 1.66 - 160.1 2.13
DDH-21-022   281.5 284 Oxides 2.5 32.6 1.33 - 132.4 1.76
DDH-21-022   344.5 348.5 Sulphides 4.0 6.4 0.31 0.46 77.0 1.03
DDH-21-023   137.5 157 Oxides 19.5 41.0 0.01 - 41.8 0.56
DDH-21-023   167.5 170.5 Oxides 3.0 102.4 0.95 - 173.7 2.32
DDH-21-023   179.0 185.5 Oxides 6.5 23.4 1.20 - 113.4 1.51
DDH-21-023   196.0 199.0 Oxides 3.0 26.1 1.61 - 146.9 1.96
DDH-21-023   268 282 Oxides 14.0 17.2 1.35 - 118.5 1.58
DDH-21-023   317 321.5 Sulphides 4.5 22.4 1.32 0.10 131.7 1.76
DDH-21-023   385 386 Sulphides 1.0 12.4 1.57 1.25 258.7 3.45
DDH-21-023   392 393 Sulphides 1.0 12.0 2.08 0.50 219.4 2.93

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.
1 AgEq & AuEq calculations for reported drill results are based on USD $20.00/oz Ag, $1,500/oz Au and $3.00/lb Cu. The calculations assume 100% metallurgical recovery and are indicative of gross in-situ metal value at the indicated metal prices. Refer to Technical Notes below for metallurgical recoveries assumed in the 2018 PEA study on Diablillos.

David O’Connor, Chief Geologist, commented, “We are excited by the initial drill results received from the Phase II drill program which demonstrate the extension of substantial gold mineralisation for hundreds of metres beyond the Whittle Pit boundary in the Oculto Northeast Gold Zone. Together with the ongoing systematic drilling of the area, these holes continue to expand our knowledge of the Oculto mineralised system well beyond the limits of the current Whittle Pit margin and the resource estimate currently in progress. In addition, the underlying copper-gold mineralisation will be systematically tested with follow up drilling to develop an initial sulphide resource.”

Figure 1 – Drill Hole Location Map

Discussion of Drill Hole Results

Holes DDH 21-021, DDH 21-022 and DDH 21-023 were step-out holes drilled between 250 to 400 metres  beyond the Whittle pit to explore for possible northeast extensions of mineralisation. All holes intersected significant gold mineralisation and systematic drilling continues in the Oculto northeast zone aimed at expanding the mineral resources beyond the Whittle Pit.  

DDH 21-021 has various mineralised intervals including 20.5 metres of 2.82 g/t gold and 24.4 g/t silver from 182.0 to 202.5 metres, together with numerous narrow gold and silver intercepts within the oxide and underlying sulphide zone where mineralisation is associated with copper sulphides.

Hole DDH 21-022 intersected 53 metres of oxide mineralisation grading 2.49g/t gold and 33.3g/t silver from 192 to 245 metres, including 14 metres grading 4.84g/t Au and 47.2g/t Ag.  The gold dominant mineralisation is hosted in a siliceous breccia zone to the north of and sub-parallel to those that intersect in the Tersoro Zone of the Oculto resource, demonstrating the potential for substantial extension of the mineralised system in this area.

Hole DDH 21-023 intersected numerous zones of gold and silver mineralisation with oxides down to 317 metres and mineralisation associated with copper in sulphides below that. These are considered to be the peripheral parts of a robust mineralised system which extends for at least half a kilometre to the northeast of Oculto where high grade gold mineralisation was intersected in previous drilling.

Systematic drilling is ongoing and aimed and continuing to extend the deposit's established mineralized zones in the Northeast Gold Zone.  The target in Oculto Northeast is the gold dominant oxide mineralisation hosted in several structurally prepared zones which extend well beyond the margin of the current Whittle pit as demonstrated by recent mapping an trenching of surface siliceous breccia outcrops. 

Figure 2 – Schematic Long Section Showing Mineralized Zones at the Extended Oculto Deposit

Figure 3 – Cross Section 8500 (Looking East) with Highlighted intercepts in Holes DDH 21-021

Figure 4 - Cross Section 8550 (Looking East) with Highlighted intercepts in Hole DDH 21-022

Figure 5 - Cross Section 8600 (Looking East) with Highlighted intercepts in Hole DDH 21-023

Collar Data

Hole Number UTM Coordinates Elevation Azimuth Dip Depth
DDH 21-021 E720478 N7199890 4,259 180 -60 353
DDH 21-022 E720537 N7199864 4,269 180 -60 350.2
DDH 21-023 E720578 N7199898 4,272 180 -60 401

About Diablillos

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 approximately 90,000 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)

Table 2 - 2018 Mineral Resource Estimate for the Oculto Deposit, Diablillos Project

Category Tonnage
(000 t)
Ag
(g/t)
Au
(g/t)
Contained Ag
(000 oz Ag)
Contained Au
(000 oz Au)
Indicated 26,900 93.0 0.85 80,300 732
Inferred 1,000 46.8 0.89 1,505 29

Effective August 31, 2017. The resource estimate and supporting technical report are N.I. 43-101 compliant. Full details of the Mineral Resources are available in a Company news release dated March 2, 2018.  For additional information please see Technical Report on the Diablillos Project, Salta Province, Argentina, dated April 16, 2018, completed by Roscoe Postle Associates Inc, and available on www.SEDAR.com

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.

Qualified Persons

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, has reviewed and approved the scientific and technical information in this news release.

Technical Notes

All results in this news release are rounded. Assays are uncut and undiluted. Intervals are drilled widths, not true widths. AgEq calculations for reported drill results are based on USD $20.00/oz Ag, $1,500/oz Au and $3.00/lb Cu. The calculations assume 100% metallurgical recovery and are indicative of gross in-situ metal value at the indicated metal prices.  The most recent technical report for the Diablillos Project is the 2018 Preliminary Economic Assessment (PEA) authored by Roscoe Postle Associates Inc.  The PEA assumes average metallurgical recoveries of 82% Ag and 86% Au.  No metallurgical testwork has yet been completed on the recovery of copper.

About AbraSilver

AbraSilver is a well-funded silver-gold focused advanced-stage exploration company. The Company is rapidly advancing its 100%-owned Diablillos silver-gold project in the mining-friendly Salta province of Argentina, which has an Indicated resource base of over 140Moz on a silver-equivalent basis and an initial open pit PEA study completed in 2018.  The Company is led by an experienced management team and has long-term supportive shareholders including Mr. Eric Sprott and SSR Mining.  In addition, AbraSilver owns a portfolio of earlier-stage copper-gold projects, including the Arcas project in Chile where Rio Tinto has an option to earn up to a 75% interest by funding up to US$25 million in exploration.  AbraSilver is listed on the TSX-V under the symbol “ABRA” and in the U.S. under the symbol “ABBRF”.

For further information please visit the AbraSilver Resource website at www.abrasilver.com, our LinkedIn page at AbraSilver Resource Corp., and follow us on Twitter at www.twitter.com/abrasilver

Alternatively please contact:

John Miniotis, President and CEO
[email protected]
Tel: +1 416-306-8334

Cautionary Statements

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. 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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release

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