AbraSilver Reports Additional Multiple Broad Gold Intercepts Near-Surface at Diablillos Including 19 Metres at 5.06 g/t Gold-Equivalent
Toronto - April 20, 2021: AbraSilver Resource Corp. (TSX.V:ABRA; OTCPK: ABBRF) ("AbraSilver" or the “Company”) is pleased to announce assay results received from four additional diamond drill holes completed at the Oculto Zone on its wholly-owned Diablillos property in Salta Province, Argentina. The holes were designed to develop additional shallow resources within the Whittle pit shell as well as to infill and extend the current estimated mineral resources.
All four holes intercepted significant near-surface gold and silver mineralisation. Hole DDH 21-005 intersected 19 meters of 5.06 g/t Gold-Equivalent (“AuEq”) starting from a depth of only 58 meters down hole. These results continue to identify previously undefined shallow resources within the Whittle Pit which are expected to contribute significantly to the early economics of open pit mining.
Table 1 – Drill Result Highlights (Intercepts greater than 2,000 gram-meter AgEq shown in bold text):
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.
John Miniotis, President and CEO, commented, “We are very pleased with the continued positive drill results, which demonstrate the potential to define a shallow gold zone and could substantially improve the early economics of an open pit operation. We continue to encounter extensive mineralization outside of the existing resource, providing a clear path to further resource growth at Diablillos.”
Figure 1 – Drill Hole Location Map and Proposed Drill Holes in the Oculto Zone
Discussion of Drill Hole Results
Hole DDH 21-005 was drilled to a depth of 440 metres and intersected several zones of high grade gold mineralization, both above, and well below, the existing mineral resource. In addition, holes DDH 21-006, DDH 21-007 and DDH 21-008 also intersected broad zones of gold and silver mineralization that are expected to be included in a shallow resource. These holes demonstrate continuity of shallow resources within the Whittle pit shell which should contribute substantially to the economics of early mining at Oculto by upgrading areas previously categorized as waste. Systematic drilling of this previously undefined shallow mineralised zone has been completed, and further results are waiting to be received from the laboratory.
Figure 2 - Cross Section 8350 (Looking East) with Highlighted intercepts in Hole DDH 21-005
Hole DDH 21-006 was drilled to a depth of 200 metres in order to test between the Main and West breccias at the western end of the mineralised system.
Figure 3 - Cross Section 8175 (Looking East) Highlighted Intercepts in Hole DDH 21-006
Hole DDH 21-007 was drilled to a depth of 200 metres to test between the Main and West breccias.
Figure 4 - Cross Section 8200 (Looking East) Highlighted Intercepts in Hole DDH 21-007
Hole DDH 21-008 was drilled to a depth of 128 metres, and intersected 12.5 meters at 2.63g/t gold and 38.0 g/t silver between 84 - 96.5 meters, which is expected to augment the shallow resources.
Figure 5 - Cross Section 8250 (Looking East) Highlighted Intercepts in Hole DDH 21-008
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: El Indio, Chile; Veladero, Argentina; and Pascua Lama, on the Chile-Argentine border.
Table 2 - 2018 Mineral Resource Estimate for the Oculto Deposit, Diablillos Project
(000 oz Ag)
(000 oz Au)
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.
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.
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.
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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, Altius Minerals 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
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. 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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