Outcrop Silver & Gold Corp.'s (OCG:TSX.V; OCGSF:OTCQX; MRG1:DB) latest drill results from the Los Naranjos vein at its Santa Ana gold-silver project in Colombia show "spectacular grades," reported Research Capital Corp. analyst Stuart McDougall in a Feb. 14 research note. Los Naranjos is 300 meters (300m) east of the core El Dorado vein.
"Los Naranjos bears more fruit," wrote McDougall.
Significant Return Potential
The Canadian exploration company is trading now at about CA$0.24 per share, much lower than Research Capital's target price for the stock of CA$0.75 per share. This price difference indicates a 206% projected return for Outcrop investors. The company is rated Speculative Buy.
What Is Known So Far
Outcrop has drilled 31 holes in Los Naranjos so far, relayed McDougall. Of this total, results for one hole are pending.
Through the data for 30 drill holes, Outcrop delineated the Los Naranjos vein over a northeasterly strike of 250m and a western dip of 300m. Mineralization remains open in these directions.
The results of 18 of the drill holes yield a weighted average grade of 926 grams per ton (926 g/t) silver equivalent over an average estimated true width of 0.75m.
More Exceptional Grades
The new Los Naranjos drill data come from 15 additional holes. They returned grades as high as 4,376 g/t for silver (Ag) and 11.88 g/t for gold (Au), McDougall reported, and provided new highlight intercepts. They include:
- 1.53m of 444 g/t Ag and 1.31 g/t Au, including two subintervals:
- 0.25m of 981 g/t Ag and 1.98 g/t Au
- 0.39m of 1,074 g/t Ag and 3.49 g/t Au
These are from hole SARN22DH312, placed in the central part of Los Naranjos.
"The intercept starts more than 250m from surface, at an elevation of 630m, or 120m lower than what is now considered to be the top of the favorable mineralized horizon," wrote McDougall.
- 0.65m of 2,919 g/t Ag and 7.95 g/t Au, including:
- 0.43m of 4,376 g/t Ag and 11.88 g/t Au
Hole 296, collared in the northeastern end of Los Naranjos, returned these results.
- 0.76m of 668 g/t Ag and 1.73 g/t Au
This intercept is from hole 278, drilled in Los Naranjos' southwestern end.
Outcrop continues to drill at Los Naranjos, in its northern portion, testing for mineralized extensions at depth, noted McDougall.
On the Horizon
Accordingly, investors can expect more Santa Ana exploration results in the near term as well as a resource estimate update, to include Los Naranjos, sometime this quarter. Any of these could move up Outcrop's stock price.
| Want to be the first to know about interesting Gold and Silver investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter. | Subscribe |
Disclosures:
1) Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Outcrop Silver & Gold Corp. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Outcrop Silver & Gold Corp., a company mentioned in this article.
Disclosures For Research Capital Corp., Outcrop Silver & Gold Corp., February 13, 2023
Analyst Certification: I, Stuart McDougall, certify the views expressed in this report were formed by my review of relevant company data and industry investigation, and accurately reflect my opinion about the investment merits of the securities mentioned in the report. I also certify that my compensation is not related to specific recommendations or views expressed in this report. Research Capital Corporation publishes research and investment recommendations for the use of its clients. Information regarding our categories of recommendations, quarterly summaries of the percentage of our recommendations which fall into each category and our policies regarding the release of our research reports is available at www.researchcapital.com or may be requested by contacting the analyst. Each analyst of Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.
Relevant Disclosures Applicable to Companies Under Coverage: Relevant disclosures required under IIROC Rule 3400 applicable to companies under coverage discussed in this research report are available on our website at www.researchcapital.ca
General Disclosures: The opinions, estimates and projections contained in all Research Reports published by Research Capital Corporation ("RCC") are those of RCC as of the date of publication and are subject to change without notice. RCC makes every effort to ensure that the contents have been compiled or derived from sources believed to be reliable and that contain information and opinions that are accurate and complete; RCC makes no representation or warranty, express or implied, in respect thereof, takes no responsibility for any errors and omissions which may be contained therein and accepts no liability whatsoever for any loss arising from any use of or reliance on its Research Reports or its contents. Information may be available to RCC that is not contained therein. Research Reports disseminated by RCC are not a solicitation to buy or sell. All securities not available in all jurisdictions.
Company Specific Disclosures: Within the past 12 months, Research Capital has provided investment banking services to the issuer.
Potential Conflicts of Interest: All Research Capital Corporation ("RCC") Analysts are compensated based in part on the overall revenues of RCC, a portion of which are generated by investment banking activities. RCC may have had, or seek to have, an investment banking relationship with companies mentioned in this report. RCC and/or its officers, directors and employees may from time to time acquire, hold or sell securities mentioned in our Research Reports as principal or agent. RCC makes every effort possible to avoid conflicts of interest, however readers should assume that a conflict might exist, and therefore not rely solely on this report when evaluating whether or not to buy or sell the securities of subject companies.
RC USA INC: Information about Research Capital Corporation’s Rating System, the distribution of our research to clients and the percentage of recommendations which are in each of our rating categories is available on our website at www.researchcapital.com. The information contained in this report has been drawn from sources believed to be reliable but its accuracy or completeness is not guaranteed, nor in providing it does Research Capital Corporation assume any responsibility or liability. Research Capital Corporation, its directors, officers and other employees may, from time to time, have positions in the securities mentioned herein. Contents of this report cannot be reproduced in whole or in part without the express permission of Research Capital Corporation. US Institutional Clients – Research Capital USA Inc., a wholly owned subsidiary of Research Capital Corporation, accepts responsibility for the contents of this report subject to the terms and limitations set out above. US firms or institutions receiving this report should effect transactions in securities discussed in the report through Research Capital USA Inc., a Broker – Dealer registered with the Financial Industry Regulatory Authority (FINRA).
