discovered more high-grade vein targets via sampling at Santa Ana in Colombia and guided to release of the project's maiden resource estimate in Q1/23, reported Research Capital Corp. analyst Stuart McDougall in a Jan. 3 research note.
The Canadian precious metals explorer is currently trading at about CA$0.29 per share, and Research Capital's price target is CA$0.75 per share. The price difference implies a potential 154% return for investors.
Mineralization Boasts High Grade
The newest results from sampling at Santa Ana are noteworthy for grades as high as 40 grams per ton (40 g/t) for gold (Au) and 4,259 g/t for silver (Ag), wrote McDougall. Highlights included:
- Up to 39.73 g/t Au and 3,748 g/t Ag from quartz vein float collected in the Las Lajas area
- Up to 10.98 g/t Au and 92 g/t Ag from a channel sample of vein outcrop in the Cavadia area
- Up to 3,203 g/t Ag from vein float taken from the Topacio area
- Up to 19.51 g/t Au and 4,259 g/t Ag from quartz vein float procured from the previously identified Aguilar vein area
Resource Estimate Imminent
As for the pending resource estimate, the analyst noted that metallurgical testing at SGS Labs pushed back its release from year-end 2022.
McDougall explained, "The ongoing metallurgical studies are designed to augment the preliminary ones with locked cycle floatation data, as well as concentrate gold screening and mineralogical characterization."
So far, testing using conventional milling methods resulted in 96% gold and 94% silver recoveries on average to a concentrate of about 83 g/t Au and 6,540 g/t Ag, McDougall noted.
Completion of the initial resource estimate for Santa Ana, a potential catalyst for Outcrop's stock, is now expected in Q1/23. In the meantime, other potential stock-moving events include additional drill results from Santa Ana, where three rigs remain active.
Two More Holes Reported
In other news, results from two additional holes from Santa Ana extended the mineralization in Las Maras or the Las Peñas vein. DH308 and stepout DH306, drilled to follow up on southern hole DH290, returned:
DH308: 0.87 meters (0.87m) of 2.72 g/t Au and 537 g/t Ag, including 0.38m of 4.11 g/t Au and 801 g/t Ag
DH306: 0.71m of 0.78 g/t Au and 194 g/t Ag, including 0.29m of 1.7 g/t Au and 453 g/t Ag; the hole showed a high-grade splay off of the main vein
To date, Las Maras has returned the deepest mineralization, as far down as 350m, versus the other veins' 170m on average.
Research Capital rates Outcrop Speculative Buy.
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Disclosures For Research Capital Corp., Outcrop Silver & Gold Corp., January 3, 2023
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