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AbraSilver Reports New High-Grade Gold, Silver and Copper Intercepts

Key Highlights:

  • DDH 21-019 & 21-020 are the final two drill holes from the highly successful Phase I drill program. All results from this program will now be incorporated in a new mineral resource estimate and PEA study, both of which are underway
  • DDH 21-019 extends the Tesoro Zone to the southwest and intersected high-grade gold and silver mineralization with 63m at 3.8 g/t AuEq (282 AgEq), including 33m at 5.6 g/t AuEq (422 AgEq)

Toronto - July 07, 2021: AbraSilver Resource Corp. (TSX.V:ABRA; OTCPK: ABBRF) ("AbraSilver" or the “Company”) is pleased to report new high-grade drill results received from the final two diamond drill holes completed as part of the Phase I drill program, on its wholly-owned Diablillos property in Salta Province, Argentina.

Table 1 – Drill Result Highlights (Intercepts greater than 2,000 gram-meter 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-21-019

 

45

48

Oxides

3.0

8.0

0.94

-

78.5

1.05

DDH-21-019

 

118

181

Oxides

63.0

159.6

1.63

-

281.9

3.76

DDH-21-019

Including

144

177

Oxides

33.0

195.3

3.02

-

421.8

5.62

DDH-21-019

Including

166

174

Oxides

8.0

212.6

7.72

-

791.6

10.55

DDH-21-020

 

149.5

169

Oxides

19.5

148.9

0.21

-

164.7

2.20

DDH-21-020

 

180.5

188.5

Oxides

8.0

164.3

0.43

-

196.6

2.62

DDH-21-020

 

283

292

Sulphides

9.0

-

-

0.54

55.5

0.74

DDH-21-020

 

302.5

322.5

Sulphides

20.0

27.4

1.45

1.89

330.6

4.41

DDH-21-020

Including

317.5

322.5

Sulphides

5.0

39.2

4.46

2.54

635.0

8.47

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.
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, “Our Phase I drill program was a remarkable success. I would personally like to congratulate our entire exploration team for all their efforts and the tremendous results achieved. With all the drill results from our Phase I drill program now in hand, and our Phase II program well underway, we are currently working on preparing an updated mineral resource estimate and preliminary economic assessment (“PEA”), which are expected to be released in Q3/2021 and Q4/2021, respectively.

David O’Connor, Chief Geologist, commented, “We are excited by the new drill results received from hole DDH 21-019 which continue to demonstrate the extension of high-grade silver and gold mineralisation beyond the western end of the Tesoro Zone, adding to the oxide resources. In addition, the copper-gold mineralisation intersected in hole DDH 21-020 shows continuity of high-grade sulphide mineralisation beneath the oxide zone, which will be systematically tested with follow-up drilling over the coming months.”

Figure 1 – Drill Hole Location Map and Proposed Drill Holes in the Oculto Zoneimage-20210707155420-1

Discussion of Drill Hole Results

Hole DDH 21-019 extends the Tesoro Zone to the southwest, while hole DDH 21-020 was drilled south of the Tesoro Zone to test the mineralised system at depth.

Hole DDH 21-019 intersected high-grade gold and silver mineralisation, with 63.0 metres of 159.6 g/t silver and 1.63 g/t gold from 118 to 181 metres, including 8.0 metres of 212.6 g/t silver and 7.72 g/t gold. This hole shows continuity of silver and gold rich mineralisation beyond the western end of the Tesoro Zone.

Hole DDH 21-020 tested the southern edge of the mineralised zone as well as the underlying sulphide root zone. The hole intersected 19.5 metres of 148.9 g/t silver and 0.21g/t gold from 149.5 to 169 metres. In addition, results from the sulphide zone intersected 20.0 metres of 27.4 g/t silver, 1.45 g/t gold and 1.89% copper from 317.5 to 322.5 metres, including 5.0 metres of 39.2 g/t silver, 4.46 g/t gold and 2.54% copper.

Hole DDH 21-020 demonstrates continuity of the high-grade copper-gold mineralisation underlying the oxide resources in the sulphide zone, which will be systematically explored over the coming months.

Figure 2 – Cross Section 8150 (Looking East) with Highlighted intercepts in Holes DDH 21-019image-20210707155420-2

Figure 3 - Cross Section 8250 (Looking East) with Highlighted intercepts in Hole DDH 21-020image-20210707155420-3

Exploration Program Update

Phase I drilling: The Company’s 15,000-meter Phase I drilling was completed in April, and all results from the laboratory have now been received and announced. The results from the Phase I program comprised several world-class intercepts including:

  • DDH 20-027: 103 m of 388.6 g/t silver and 1.70 g/t gold within oxides (from 141 to 244 m)
               Including 17 m of 1,466.7 g/t silver and 0.55 g/t gold within oxides (from 163 to 180 m)
  • DDH 21-012: 104 m of 216.2 g/t silver and 2.21 g/t gold within oxides (from 134 to 238 m)
  • DDH 20-009: 83 m of 289.4 g/t silver and 1.45 g/t gold within oxides (from 171 to 254 m)
  • DDH 21-009: 75 m of 166.7 g/t silver and 2.24 g/t gold within oxides (from 208 to 283 m)
  • DDH 20-001: 15 m of 658.0 g/t silver, 2.35 g/t gold and 5.10% copper within sulphides (from 275 to 290 m)

All of the drill results from the Phase I program will be incorporated into an updated resource estimate which is expected to be announced in Q3/2021. The Company’s total costs for the Phase I exploration program came in under the budget of US$4.5 million.

Phase II drilling: The Company has now completed approximately 4,000 metres (17 holes) as part of its Phase 2 drill program, which will consist of a minimum of 10,000-metres of diamond drilling. There are currently two drill rigs operating at site, testing the continuity of gold mineralisation at the Oculto zone to the northeast in support of an expansion of the Whittle Pit boundary, and other targets peripheral to the Oculto zone. Systematic deeper drilling to test the underlying sulphide mineralisation is planned as a follow-up to additional exploration for oxide resources. The budget for the Phase II exploration program is US$3.0 million, and the Company remains very well-funded to expand the program if warranted by results.

Collar Data

Hole Number

UTM Coordinates

Elevation

Azimuth

Dip

Depth

DDH 21-019

E720117

N7199234

4,233

0

-60

226

DDH 21-020

E720217

N7199220

4,256

0

-60

325.5

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
john@abrasilver.com
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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