(TheNewswire)
Maiden M&I Resource Estimate atHigh-Grade JAC Zone: 5.3 Mt at 212 g/t AgEq Containing 36 Moz AgEq
Toronto, ON - TheNewswire - November 2 7 , 2023 - AbraSilver Resource Corp. (TSX.V:ABRA ) ( OTC:ABBRF) ("AbraSilver" or the “Company”) is pleased to announce a substantialincrease to the Mineral Resource estimate (“MRE”) on theCompany’s wholly-owned Diablillos property in Salta Province,Argentina (“Diablillos” or the “Project”). The MRE comprisesan updated estimate for the Oculto deposit plus estimates for the JAC,Fantasma and Laderas deposits, all of which are located to thewest/southwest of Oculto. All four deposits are located atDiablillos.
Key Highlights of the Updated MRECompared to the MRE Announced November 3, 2022 :
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A 36% increase in total containedsilver in Measured Indicated (“M”) MineralResources to 148 millionounces (“Moz”) Ag (from 109 Moz Ag),primarily due to the recently discovered JAC deposit.
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Significant contained gold resourcetotaling 1.36 Moz Au in MI, representing a 5%increase in contained Au.
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A 32% increase in average silver grades in MI Mineral Resources to 87 g/t Ag (from 66g/t Ag), due to higher silver grades at the JAC deposit and higherequivalent cut-off grades at Oculto.
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Maiden MI MRE for the JAC deposit of 5.3 million tonnes at 202g/t Ag and 0.13 g/t Au, containing 34 Moz silver and 22 kozgold.
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The increased contained metal in the MRE comes despitethe adoption of a Net Value per Block methodology and an increasedequivalent average cut-off grade of 45g/t silver-equivalent(“AgEq”) compared to the 35g/t AgEq used previously, and furtherdemonstrates the robustness and high grade of the mineralization atDiablillos.
Key Highlights of the UpdatedMRE:
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Significant Growth: I Mineral Resources at Diablillos now contain an estimated 258 Moz AgEq , and the Inferred Mineral Resource contains an additional 8 Moz AgEq
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Four Conceptual Open Pits: The addition of the new high-grade JAC deposit,which will ultimately join the Oculto deposit, has further enhanced the overall qualityof the Mineral Resource and is expected to boostflexibility and the economic strength of the Project in the upcomingPre-Feasibility Study (“PFS”).
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Industry-Leading Discovery Costs: The Phase III drill program cost ~ US$7.3M and added ~43 Moz AgEq to the MI Mineral Resources, representing an impressivecost of only US$0.17 per ounce AgEq added.
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Extensive Exploration UpsidePotential: Future drilling will focus onexploration targets which include: JAC North, Alpaca, and theOculto-Fantasma trends, each of which has the potential to continue toincrease and add additional silver/gold mineralization.
John Miniotis, President and CEO, commented, “We aredelighted to announce that M&I Mineral Resources at Diablillos arenow estimated to contain approximately 260 Moz AgEq. The substantialincrease in contained silver, despite the increased cut-off grade, isa testament to the exceptional quality of our Diablillos asset, andthe ability of our technical team to consistently add value throughour exploration efforts. The updated MRE will form the basis for thePFS which remains on track to be completed early in Q1 2024.”
David O’Connor, Chief Geologist, stated, “Theupdated MRE at Diablillos represents a major milestone for theCompany, and we are very pleased to see a significant increase in boththe quantity and grade of silver mineralization, stemming from ourdiscovery of the high-grade JAC zone. Looking forward, we are veryexcited by the upside potential of future near-pit and regionalexploration programs at Diablillos where we have already identifiedmultiple new mineralized zones that we expect could furthersignificantly enhance our mineral inventory beyond the current MineralResource estimate.”
November 2023 Mineral ResourceEstimate
Table 1 – Diablillos MineralResource Estimate – As of November 22, 2023
Notes for November 2023 MRE:
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Mineral Resources are not Mineral Reserves and have notdemonstrated economic viability.
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The formula for calculating AgEq is as follows: SilverEq oz = Silver oz + Gold oz x (Gold Price/Silver Price) x (GoldRecovery/Silver Recovery).
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The Mineral Resource model was populated using OrdinaryKriging grade estimation within a three-dimensional block model andmineralized zones defined by wireframed solids, which are acombination of lithology and alteration domains. The 1m compositegrades were capped where appropriate.
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The Mineral Resource is reported inside a conceptualWhittle open pit shell derived using US$ 24.00/oz Ag price, US$1,850/oz Au price, 82.6% process recovery for Ag, and 86.5% processrecovery for Au. The constraining open pitoptimization parameters used were US $1.94/t mining cost, US $22.97/tprocessing cost, US $3.32/t GA cost, and average 51-degree open pitslopes.
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The MRE has been categorized in accordance with the CIMDefinition Standards (CIM, 2014).
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A Net Value per block(“NVB”) cut-off was used to constrain the Mineral Resource withthe conceptual open pit. The NVB was based on "Benefits =Revenue-Cost" being positive, where, Revenue = [(Au Selling Price(US$/oz) - Au Selling Cost (US$/oz)) x (Au grade (g/t)/31.1035)) x AuRecovery (%)] + [(Ag Selling Price (US$/oz) - Ag Selling Cost(US$/oz)) x (Ag grade (g/t)/31.1035)) x Ag Recovery (%)] and Cost =Mining Cost (US$/t) + Process Cost (US$/t) + Transport Cost (US$/t) +GA Cost (US$/t) + [Royalty Cost (%) x Revenue]. The NVB methodresulted in an average equivalent cut-off grade of approximately 45g/tAgEq.
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The Mineral Resource is sub-horizontal withsub-vertical feeders and a reasonable prospect for eventual economicextraction by open pit methods.
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In-situ bulk density was assigned to each model domain,according to samples averages of each lithology domain, separated byalteration zones and subset by oxidation.
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All tonnages reported are dry metric tonnes and ouncesof contained gold are troy ounces.
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Mining recovery and dilution factors have not beenapplied to the Mineral Resource estimates.
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The Mineral Resource was estimated by Mr. Luis RodrigoPeralta, B.Sc., FAusIMM CP (Geo), Independent Qualified Person underNational Instrument 43-101 - Standards of Disclosure for MineralProjects (“NI 43-101”).
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Mr. Peralta is not aware of any environmental,permitting, legal, title, taxation, socio-political, marketing, orother relevant issues that could materially affect the potentialdevelopment of the Mineral Resource.
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All figures are rounded to reflect the relativeaccuracy of the estimates. Minor discrepancies may occur due torounding to appropriate significant figures.
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Totals may not agree due to rounding.
Figure 1 – View of Conceptual OpenPits and Proposed Site Infrastructure at Diablillos
Mineral Resource Estimate Methodology
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The November 2023 MRE was completed by Luis RodrigoPeralta, B.Sc., FAusIMM CP (Geo), Independent Consultant, inaccordance with Canadian Institute of Mining, Metallurgy and Petroleum(“CIM”) Definition Standards incorporated, by reference, and incompliance with NI 43-101, and has been reviewed internally byAbraSilver.
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The MRE is the result of approximately 133,000 metresof drilling in 630 drill holes (historical and current). This includesthe latest Phase III drill campaign, conducted in 2022/23, whichtotaled 24,077 metres.
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The MRE is based on the Oculto, JAC, Fantasma andLaderas deposits within the broader Diablillos property and isreported inside a conceptual Whittle open pit shell. The cut-offgrade was calculated using a Net Block Value calculation, based on theeconomic parameters outlined in the footnotes to Table 1above.
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Gold and silver grades were estimated into the blockmodel using reverse circulation drill holes, diamond drill holesincluding the recent drilling between 2019 to July 30 th , 2022. Theywere estimated applying the industry-standard estimation methodologyof ordinary kriging and bias was reviewed using an inverse distancesquared estimate for comparison. Drill hole intervals have beencomposited to a length of 1 m, which is the average sampling lengthfor core sampling.
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Grade capping has been applied to composited gradeintervals on a case-by-case basis within each estimation domain. Theestimation domains were defined using a combination of lithologydomains, alteration domains, and oxide / sulphides state, defining aset of 24 domains for gold and silver.
Significant Exploration UpsidePotential
Numerous opportunities exist to further expand theMineral Resources within the existing deposits, in addition todefining new mineralized zones through a step-out exploration drillcampaign. The Company is currently prioritizing and sequencing thevarious targets ahead of the next exploration campaign which isexpected to commence in Q1/2024.
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Oculto: MRE isbased on a total of 457 drill holes, or approximately 104,800 metres. Additional drilling would focus on expansion of the highest-gradeportion of Oculto, the Tesoro Zone, and exploration of potentialcontinuation of mineralization along known zones towards thenortheast.
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JAC: The newhigh-grade JAC deposit was discovered in August 2022 and the maidenMRE is based on a total of 112 drill holes, or approximately 20,800metres. Additional drilling would focus additional mineralizedzones within the JAC magnetic low zone.
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Fantasma: MREis based on a total of 39 drill holes, or approximately 4,300 metres. Additional drilling would focus on the potential continuity ofmineralization along the approximately one kilometre zone connectingthe Fantasma body to the Oculto deposit.
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Laderas: MRE isbased on a total of 22 drill holes, or approximately 3,200 metres. Additional drilling would focus on continuity of the higher gradeparts of the zone, as well as northeast extensions.
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OtherPriority Targets Beyond the Current MRE : Reconnaissance exploration, in combination with structural mappingand magnetic surveys, continues to generate new targets in otherunderexplored areas of Diablillos. These targets include JAC Northand Alpaca, neither of which have been included in the MRE due toinsufficient drilling, as well as other zones with similar geologicalcharacteristics, where additional drilling is also warranted.
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JAC North :Initial drilling on the northern edge of the JAC deposit intersected anew zone of silver mineralization, JAC North, suggesting thepossibility of a structure within the magnetic low anomaly parallel tothe JAC deposit. This new target will be followed up in the next drillprogram.
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Alpaca : Historical drilling intersected silver mineralisation in the Alpacaarea, located several hundred meters northwest of JAC. Aninterpretation of the magnetic signature suggests that a perpendicular zone of silver mineralisationmay connect JAC with Alpaca. This is a high priority for the nextdrilling campaign.
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Figure 2 – Long Section ofMineralized Zones at Oculto & JAC
Comparison of 2023 and 2022 MineralResource Estimate
Table 2 – Comparison of theNovember 2023 MRE to the October 2022 MRE
Notes to Mineral Comparison Table
1. Key Assumptions in 2023MRE:
• Ag price: $ 24.00/oz & Au price:$1,850/oz
• Average recovery rates: 82.6% Ag and 86.5%Au
• Cut-off grade: based on Net Value per Block, withan average cut-off grade equivalent to ~45 g/t AgEq
• Open pit optimization parameters: Mining cost;$1.94/t; Processing cost; $22.97/t; G&A cost $3.32/t
2. Key Assumptions in 2022MRE:
• Ag price: $25.00/oz & Au price:$1,750/oz
• Average recovery rates: 73.5% Ag and 86.0%Au
• Cut-off grade: based on straight AgEq formula, 35g/t AgEq
• Open pit optimization parameters: Mining cost;$3.00/t; Processing cost; $24.45/t; G&A cost $2.90/t
Figure 3 – Visualization of Current& Prior MRE at Diablillos
Supporting TechnicalInformation
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Metallurgical recoveries: Metallurgical recoveries usedin the MRE and open pit optimization were based on a newgeo-metallurgical model built using recent metallurgical test worksperformed at the SGS Laboratory in Vancouver. This new modelincorporates five domains, based on a master composite for each,comprised of approximately 15 samples per domain. A fixed value ofmetallurgical recovery has been applied to each domain. Overallweighted average recoveries of these five domains are 82.6% for silverand 86.5% for gold.
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Open pit slopes: Open pit shell slope angles at Ocultoare based on the 2022 geotechnical drilling and subsequent modelling.Six geotechnical sectors have been defined for use in the open pitoptimization with the angles varying between 35 degrees in theunconsolidated overburden to 55 degrees in the granitic rock type,with the average overall angle being 51 degrees. As the JAC deposit iscovered with unconsolidated colluvium a conservative pit slope angleof 35 degrees was used. Importantly the overburden at the JAC depositis expected to be free-digging, resulting in lower mining costs.
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Updated operating cost estimates from the ongoing PFShave been used in the Net Value per Block method, totalingUS$28.23/tonne processed, and these have been based on 73% firmquotations.
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A full Technical Report in respect of the November 2023MRE will be prepared in accordance with NI 43-101 and will be filed onSEDAR+ within 45 days of this news release.
QA/QC and Core SamplingProtocols
AbraSilver applies industry standard explorationmethodologies and techniques, and all drill core samples are collectedunder the supervision of the Company’s geologists in accordance withindustry best practices. Drill core is transported from the drillplatform to the logging facility where drill data is compared andverified with the core in the trays. Thereafter, it is logged,photographed, and split by diamond saw prior to being sampled. Samplesare then bagged, and quality control materials are inserted at regularintervals at site; these include blanks and certified referencematerials as well as duplicate core samples which are collected inorder to assess sampling precision and reproducibility. Groups ofsamples are then placed in large bags which are sealed with numberedtags in order to maintain a chain-of-custody during the transport ofthe samples from the project site to the laboratory.
All samples are received by the SGS preparationlaboratory in Salta, where they are prepared and then the pulp sachetsare dispatched directly to their facility in Lima, Peru, for analysis.All samples are analyzed using a multi-element technique consisting ofa four-acid digestion followed by ICP/AES detection, and gold isanalyzed by 50g Fire Assay with an AAS finish. Silver results greaterthan 100g/t are reanalyzed using four acid digestion with an ore gradeAAS finish.
Qualified Persons and TechnicalInformation
The site visit, reviewof various geological aspects including sampling techniques, drillcore, logging, assay laboratory, secondary laboratory check samplesand November 2023 MRE were done by Mr. Luis Rodrigo Peralta, B.Sc.,FAusIMM CP (Geo). Mr. Peralta is an independent Qualified Person asdefined by the NI 43-101. Mr. Peralta has reviewed and approved thetechnical content of this news release.
The full Technical Report, supporting the November 2023MRE, which is being prepared in accordance with NI 43-101 by Mr.Peralta, will be available on SEDAR+ (www.sedarplus.ca) under theCompany’s issuer profile within 45 days from this news release. Theeffective date of the MRE is November 22, 2023.
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 53.3 Mt grading 87 g/t Ag and 0.79 g/t Au,containing approximately 148Moz silver and 1.4Moz 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 this forward-looking information, readers should keepin mind the risk factors and other cautionary statements in theCompany’s disclosure documents filed with the applicable Canadiansecurities regulatory authorities on SEDAR+ at www.sedarplus.ca. Therisk factors and other factors noted in the disclosure documents couldcause actual events or results to differ materially from thosedescribed in any forward-looking information. The Company disclaimsany intention or obligation to update or revise any forward-lookingstatements, whether as a result of new information, future events orotherwise, except as required by law.
Neither the TSX Venture Exchange nor its RegulationServices Provider (as that term is defined in the policies of the TSXVenture Exchange) accepts responsibility for the adequacy or accuracyof this news release.
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