Outcrop Silver & Gold Corp. (OCG:TSX.V; OCGSF:OTCQX; MRG1:DB) discovered an 11th high-grade shoot and hit two of the widest and highest grade intercepts to date via drilling at Santa Ana, reported Research Capital Corp. analyst Stuart McDougall in a June 13 research note. These findings are further good news for the explorer's upcoming initial resource estimate for the silver-gold project.
The Canadian explorer encountered this additional shoot in the Maras target, specifically where the Maras and Las Peñas vein sets intersect.
"With the other 10, this latest discovery brings to 2.8 kilometers the cumulative vein trend available for potential inclusion in the pending maiden resource estimate scheduled for later in the year," wrote McDougall.
So far, Outcrop has traced the Peñas vein from surface to a depth of 120 meters and along strike for about 60 meters. Mineralization there remains open.
Research Capital estimates Santa Ana's initial resource estimate will be at least 50,000,000 ounces of silver equivalent. Accordingly, the investment firm has a price target on Outcrop of CA$0.75 per share, and this reflects a significant potential return from the current share price, which is around CA$0.15.
Also noteworthy in Outcrop's recent news, two of the three drill holes for which the company just released results returned the thickest intercept to date, noted McDougall. Spanning 4.69 meters (4.69m), it returned assays of 840 grams per ton silver (840 g/t Ag) and 0.8 g/t ton gold (Au), including, in the final 1.1 meters, 2,873 g/t Ag and 1.78 g/t Au in the final 1.1 meters.
These numbers are close to those encountered historically in an intercept at the Robert Tovar shoot, 4.94 meters of average grades of 510 g/t Ag and 3.06 g/t Au.
McDougall highlighted that a second new hole returned the highest grades at Santa Ana so far, silver grades up to 11,792 grams per ton. The hole returned 7,412 g/t Ag and 1.82 g/t Au over 1.85 meters This included, over the first 0.3 meters, grades of 4,703 g/t Ag and 5.41 g/t Au. Grades over the next 1.01 meters were 5,875 g/t Ag and 1.36 g/t Au. Over the final 0.54 meter, they were 11,792 g/t Ag and 0.71 g/t Au.
In comparison, the second-highest grade shoot was Megapozo, which showed a silver grade of 5,550 g/t and a gold grade of 69.6 g/t, over 0.95 meter, indicated McDougall.
Results from this second new hole are similar to those from holes DH236 and DH239, reported earlier this month.
Research Capital Corp. maintains its Speculative Buy rating and CA$0.75 per share target price on Outcrop, the stock of which is currently trading at around CA$0.15 per share.
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Disclosures for Research Capital Corp., Outcrop Silver & Gold Corp, June 13, 2022
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