(TheNewswire)
Toronto, ON - TheNewswire - February 21, 2023 - AbraSilver Resource Corp. (TSXV:ABRA ) ( OTC:ABBRF) (“ AbraSilver ” or the “ Company ”) ispleased to announce an expansion of the ongoing Phase III drillprogram on the Company’s wholly-owned Diablillos property in SaltaProvince, Argentina (“Diablillos” or the “Project”).
The Phase III drill program is now expected to consistof approximately 22,000 metres of diamond drilling, up from 15,000metres, using two diamond drill rigs. Phase III drilling is designedto delineate a maiden Mineral Resource estimate on the recentlydiscovered JAC zone, located several hundred metres southwest of theconceptual open pit that constrains the current Mineral Resourceestimate on the main Oculto deposit. Additional drill holes arerequired as mineralization at the JAC zone remains open in mostdirections.
To date, the Company has completed approximately 12,200metres of drilling, in 60 holes, as part of the Phase III program. The expanded program is expected to be completed in July 2023, andwill be followed by an updated Mineral Resource estimate (“MRE”)and a Pre-Feasibility Study (“PFS”) on the Diablillos project inQ4/2023.
The main objectives of the expanded Phase III drillprogram are listed below (see Figure 1):
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Systematically drill off silver-dominant mineralisationat the JAC zone in order to estimate Measured and Indicated MineralResources that can be incorporated into the planned MRE and PFS.
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Delineate the margins of the JAC zone and conductgeotechnical drilling necessary for a conceptual open pitdesign.
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Potentially conduct reconnaissance drilling at othertargets on the Diablillos land package, including Fantasma, Alpaca andthe Southern Zone.
Additionally, theCompany is pleased to announce the commencement of its second drillcampaign at the La Coipita Project (“La Coipita”), located in theSan Juan province of Argentina. Further details are provided in the‘Commencement of Drilling at La Coipita Project’ sectionbelow.
John Miniotis, President and CEO, commented, “OurPhase III exploration program is continuing to provide us withexcellent results on a very consistent basis, confirming thesignificant upside potential at our new JAC zone. To date, everyhole drilled in the JAC target has successfully intersectednear-surface, silver mineralization over substantial widths (seesummary in Table 1, below). As we have not yet delineated the limitsof mineralization at this impressive new silver discovery, we areexcited to expand the size of our current drill program which webelieve will lead to a significant Mineral Resource estimate at JAC. We expect the JAC target to significantly increase the silver in ourMRE and have a meaningful impact on project economics, which will beestimated in the PFS anticipated in Q4.”
JAC Target - Exploration Update
The discovery hole at the JAC target was announced in August 2022 . To date, assay results from 30 holes have been received in whichmultiple high-grade intercepts have been reported (see Table 1 below). Based on the highly encouraging results, the Company is expandingthe Phase III drill program from 15,000 to 22,000 metres. Theexpanded drill program will have a total cost of approximately US$6.6million, of which only US$3.0 million remains to be spent. TheCompany remains well-funded with a current cash balance ofapproximately CAD$15.0 million.
Table 1: JAC Target – Highlightsof Phase III Intercepts Announced to Date
Drill Hole | From (m) | To (m) | Type | Interval (m) | Ag g/t | Au g/t | AgEq 1 g/t |
DDH-22-019 | 89 | 176 | Oxides | 87.0 | 346.0 | 0.15 | 356.5 |
DDH-22-044 | 121 | 179 | Oxides | 58.0 | 208.8 | 0.20 | 222.8 |
DDH-22-046 | 123 | 165.5 | Oxides | 42.5 | 400.5 | 0.11 | 408.2 |
DDH-22-052 | 139.5 | 164.5 | Oxides | 25.0 | 754.4 | 0.12 | 764.2 |
DDH-22-053 | 140.5 | 168.5 | Oxides | 28.0 | 266.4 | 0.64 | 318.8 |
DDH-22-056 | 110.0 | 167.5 | Oxides | 57.5 | 141.4 | 0.27 | 163.5 |
DDH-22-057 | 144.0 | 164.0 | Oxides | 20.0 | 498.6 | 0.10 | 506.8 |
DDH-22-058 | 138.0 | 152.5 | Transition | 14.5 | 176.2 | - | 176.2 |
DDH-22-060 | 114.0 | 154.0 | Oxides | 40.0 | 203.4 | - | 203.4 |
DDH-22-061 | 65.0 | 168.0 | Oxides | 103.0 | 138.7 | - | 138.7 |
DDH-22-062 | 119.0 | 170.0 | Oxides | 51.0 | 169.4 | 0.20 | 185.8 |
DDH-22-063 | 56.0 | 85.0 | Oxides | 33.0 | 143.4 | - | 143.4 |
DDH-22-063 | 135.0 | 169.0 | Oxides | 34.0 | 118.6 | 0.08 | 125.2 |
DDH-22-065 | 83.0 | 118.0 | Oxides | 35.0 | 82.0 | - | 82.0 |
DDH-22-067 | 143.0 | 179.0 | Oxides | 36.0 | 463.3 | 0.71 | 521.5 |
DDH-22-067 | 179.0 | 206.0 | Sulphides | 27.0 | 745.0 | 1.54 | 871.1 |
DDH-22-072 | 92.0 | 122.0 | Oxides | 30.0 | 73.2 | 0.12 | 83.0 |
DDH-22-075 | 151.0 | 167.0 | Oxides | 16.0 | 604.4 | 0.82 | 671.5 |
DDH-22-076 | 147.0 | 169.0 | Oxides | 22.0 | 476.8 | 0.20 | 493.2 |
DDH-22-076 | 169.0 | 177.5 | Oxides | 8.5 | 1,952.8 | 6.66 | 2,498.3 |
DDH-22-077 | 60.0 | 92.0 | Oxides | 32.0 | 121.9 | - | 121.9 |
DDH-22-078 | 58.0 | 99.0 | Oxides | 41.0 | 103.5 | - | 103.5 |
DDH-22-079 | 144.0 | 179.0 | Oxides | 35.0 | 199.2 | 0.36 | 228.7 |
DDH-22-080 | 50.0 | 102.0 | Oxides | 52.0 | 125.1 | - | 125.1 |
DDH-22-081 | 128.0 | 165.0 | Oxides | 37.0 | 179.3 | - | 179.3 |
DDH-22-082 | 154.5 | 181.0 | Transition | 26.5 | 311.4 | 0.43 | 346.6 |
Note: All results in this news release arerounded. Assays are uncut and undiluted. Widths are drilled widths,not true widths. True widths are estimated to be approximately 80% ofthe interval widths.
1 AgEq based on 81.9(Ag):1(Au) calculated using long-termprices of US$25.00/oz Ag and US$1,750/oz Au, and 73.5% processrecovery for Ag, and 86.0% process recovery for Au as demonstrated inthe Company’s Preliminary Economic Assessment in respect ofDiablillos dated January 13, 2022, using formula: AgEq g/t = Ag g/t+ Au g/t x (Gold Price/Silver Price) x (Gold Recovery/SilverRecovery).
Figure 1 – Diablillos Plan MapShowing Magnetics (RTP), Recent Drill Holes & Exploration Targets
Updated Mineral Resource Estimate & Pre-Feasibility Study
While the maiden MineralResource estimate on the JAC target and the Diablillos PFS wereoriginally planned to be completed in H1/2023, the additional drillingat JAC, which is expected to positively impact the economics of theproject, will take longer than expected and will not be completeduntil July 2023. As a result, the updated MRE and PFS are nowexpected to be completed in Q4/2023 and will incorporate the assayresults from the expanded 22,000m Phase III drill program.
The Company continues to progress key aspects of thePFS, including advancing additional metallurgical testwork, optimizingprocess design and engineering, equipment sizing, advancing renewablepower generation alternatives, and updating capital and operating costestimates with market-sourced quotations.
Commencement of Drilling at LaCoipita Project
The La Coipita project is located in the San JuanProvince, Argentina, in a geological setting similar to world-classdeposits in the same belt, including the Filo del Sol and Los Azulesprojects, where porphyry style mineralisation is found immediatelybeneath epithermal mineralization.
On June 28,2022 , the Company announced thediscovery of a significant new copper-gold-molybdenum porphyry systemat La Coipita based on results from two initial deep drill holes. Thediscovery hole, DDHC 22-002, returned broad intervals ofcopper-gold-molybdenum porphyry mineralizationincluding 226 metres grading 0.34% copper, 0.07 g/t gold and 66 ppmmolybdenum. The hole also encountered a separate interval of 146metres grading 0.27% copper and 75 ppm molybdenum, with the holeending in mineralization at a down-hole depth of 1,202.5 metres.
This year’s follow-up drill campaign is expected toconsist of one deep hole (approximately 1,400m), targeting theanticipated higher-grade zone of the porphyry system intercepted inhole DDHC 22-002. Drilling has now commenced and is expected to becompleted in April 2023. Quartz-veinlet intensity (from 1 to >10per m) and presence of molybdenum (as molybdenite) indicate apotential dome-like feature that is believed to likely be centredabove the deeper copper system and will be targeted by this year’sdrilling (Figure 2).
Figure 2 – La Coipita Drill Section
Incentive Stock Option Grant
The Company announces, that pursuant to the Company’sShare Compensation Plan and regulatory approval, an aggregate of5,725,000 incentive stock options (“Options”), exercisable at aprice of $0.37 per share for a period of five years, has been grantedto officers, directors, employees and consultants of the Company. The Options vest in 25% instalments every 6 months, starting fromthe date of the grant.
Qualified Persons
David O’Connor P.Geo., Chief Geologist forAbraSilver, is the Qualified Person as defined by National Instrument43-101 Standards of Disclosure for Mineral Projects, and he hasreviewed and approved the scientific and technical information in thisnews release.
QA/QC and Core Sampling Protocols
AbraSilver applies industry standard explorationmethodologies and techniques, and all drill core samples are collectedunder the supervision of the Company’s geologists in accordance withindustry practices. Drill core is transported from the drill platformto the logging facility where drill data is compared and verified withthe core in the trays. Thereafter, it is logged, photographed, andsplit by diamond saw prior to being sampled. Samples are then bagged,and quality control materials are inserted at regular intervals; theseinclude blanks and certified reference materials as well as duplicatecore samples which are collected in order to measure samplerepresentivity. Groups of samples are then placed in large bags whichare sealed with numbered tags in order to maintain a chain-of-custodyduring the transport of the samples from the project site to thelaboratory.
All samples are received by the SGS offices in Saltawho then dispatch the samples to the SGS preparation facility in SanJuan. From there, the prepared samples are sent to the SGS laboratoryin Lima, Peru where they are analyzed. All samples are analyzed usinga multi-element technique consisting of a four acid digestion followedby ICP/AES detection, and gold is analyzed by 50g Fire Assay with anAAS finish. Silver results greater than 100g/t are reanalyzed usingfour acid digestion with an ore grade AAS finish.
For additional information regarding Mineral Resourcesplease see Technical Report on the Diablillos Project, Salta Province,Argentina, dated November 28, 2022, completed by Mining Plus, andavailable on www.SEDAR.com.
About AbraSilver
AbraSilver is an advanced-stage exploration companyfocused on rapidly advancing its 100%-owned Diablillos silver-goldproject in the mining-friendly Salta province of Argentina. Thecurrent Measured and Indicated Mineral Resource estimate forDiablillos consists of 51.3 Mt grading 66g/t Ag and 0.79g/t Au,containing approximately 109Moz silver and 1.3Moz gold, withsignificant further upside potential based on recent explorationdrilling. The Company is led by an experienced management team and haslong-term supportive shareholders including Mr. Eric Sprott. Inaddition, AbraSilver owns a portfolio of earlier-stage copper-goldprojects including the La Coipita copper-gold project in the San Juanprovince of Argentina. AbraSilver is listed on the TSX-V under thesymbol “ABRA” and in the U.S. under the symbol “ABBRF”.
For further information please visit the AbraSilverResource website at www.abrasilver.com , ourLinkedIn page at , and follow us on Twitter at
Alternatively please contact:
John Miniotis, President and CEO
Tel: +1 416-306-8334
Cautionary Statements
This news release includes certain"forward-looking statements" under applicable Canadiansecurities legislation. Forward-looking statements are necessarilybased upon a number of estimates and assumptions that, whileconsidered reasonable, are subject to known and unknown risks,uncertainties, and other factors which may cause the actual resultsand future events to differ materially from those expressed or impliedby such forward-looking statements. All statements that address futureplans, activities, events or developments that the Company believes,expects or anticipates will or may occur are forward-lookinginformation. There can be no assurance that such statements will proveto be accurate, as actual results and future events could differmaterially from those anticipated in such statements. Accordingly,readers should not place undue reliance on forward-looking statements. When considering thisforward-looking information, readers should keep in mind the riskfactors and other cautionary statements in the Company’s disclosuredocuments filed with the applicable Canadian securities regulatoryauthorities on SEDAR at www.sedar.com. The risk factors and otherfactors noted in the disclosure documents could cause actual events orresults to differ materially from those described in anyforward-looking information. The Company disclaims any intention orobligation to update or revise any forward-looking statements, whetheras a result of new information, future events or otherwise, except asrequired by law.
Neither the TSX Venture Exchange norits Regulation Services Provider (as that term is defined in thepolicies of the TSX Venture Exchange) accepts responsibility for theadequacy or accuracy of this news release
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