AbraSilver Resource (TSXV:ABRA) Completes Phase III Drilling at Diablillos Property, Reports Final Assay Results

Figure 1 – Plan View of Latest Drill Holes. Source: AbraSilver Resource

AbraSilver Resource (TSXV:ABRA) has reported assay results from the final set of drill holes conducted under its Phase III drilling program at its wholly-owned Diablillos property in Salta Province, Argentina. The drill holes were aimed at defining the scope of the JAC zone ahead of an upcoming Mineral Resource Estimate (MRE) and Pre-Feasibility Study (PFS) on the Diablillos project.

John Miniotis, President and CEO, commented in a press release: “We are delighted with the results of our highly successful Phase III drill campaign.  The consistent, high-grade drill results encountered throughout the past year clearly demonstrate the large-scale silver-gold mineralization potential at our flagship Diablillos project.  The completion of this drill campaign represents another major milestone for the Company and reinforces our belief in the tremendous value remaining to be unlocked through our ongoing exploration efforts.”

Drill holes DDH 23-066 to DDH 23-070 focused on mapping the northwestern edge of the JAC zone and consistently showed signs of silver mineralization. Notably, hole DDH 23-070 recorded a 64-meter intercept grading 148 grams per tonne (g/t) of silver at a downhole depth of 41 meters. Further, holes DDH 23-071 to DDH 23-075 were drilled to explore the northeastern edge of the JAC zone and also revealed varying degrees of silver mineralization. For example, hole DDH 23-075 intersected 15 meters grading 93 g/t of silver and 0.78 g/t of gold.

Results from DDH 23-075 were particularly noteworthy for demonstrating a continuity of mineralization between the JAC zone and the main Oculto deposit, raising the possibility of a combined open pit. Meanwhile, hole DDH 23-065 was drilled into the recently discovered JAC North zone, situated beyond the northwestern edge of the JAC zone. The hole intersected a near-surface layer of 7 meters grading 119 g/t of silver and 0.14 g/t of gold at a downhole depth of 85 meters, confirming a new significant mineralized structure in the area.

As of August 9, 2023, the JAC North zone is located over 900 meters beyond the conceptual open pit’s current Mineral Resource estimate at Oculto and approximately 100 meters northwest of the high-grade JAC zone. The company has also drilled six additional holes at nearby exploration targets, including JAC North, Alpaca, and Fantasma, the results of which are expected in the coming weeks.

With the successful completion of the Phase III drill program, AbraSilver Resource Corp. is now preparing an updated MRE, scheduled for completion within the next few weeks. This will be followed by a PFS on the Diablillos project. The Phase III program aimed to systematically grid drill the silver-dominant mineralization at the JAC zone, delineate its margins, and conduct necessary geotechnical drilling for a conceptual open-pit design. It also included reconnaissance drilling at other targets on the Diablillos land package.

The next phase of drilling, Phase IV, will prioritize targets based on a range of factors including distance from the probable porphyry progenitor beneath Oculto and structural trends revealed in magnetic surveys. Targets in the area west of Oculto such as JAC North, Alpaca, and Fantasma are currently the focus, with additional targets being developed to the east and north of Oculto.

Highlights from the results are as follows:

Table 1 – Summary of Diablillos Drill Results

Drill Hole Area From (m) To (m) Type Interval (m) Ag g/t Au g/t
DDH-23-065 JAC North 85.0 92.0 Oxides 7.0 119.1 0.14
DDH-23-065 101.0 117.0 Oxides 16.0 63.4
DDH-23-066 JAC 140.0 159.0 Oxides 19.0 68.9
DDH-23-068 JAC 36.0 44.0 Oxides 8.0 175.4
DDH-23-068 62.0 91.0 Oxides 29.0 69.6
DDH-23-069 JAC 39.0 42.0 Oxides 3.0 58.4
DDH-23-069 46.0 50.0 Oxides 4.0 36.4
DDH-23-070 JAC 41.0 105.0 Oxides 64.0 148.1
DDH-23-070 135.0 139.0 Oxides 4.0 93.9
DDH-23-071 JAC 72.0 76.0 Oxides 4.0 32.2
DDH-23-072 JAC 90.0 96.0 Oxides 6.0 56.1
DDH-23-073 JAC 94.5 112.0 Oxides 17.5 68.9 0.20
DDH-23-074 JAC 163.0 165.0 Oxides 2.0 41.8
DDH-23-075 JAC/Oculto 94.5 102.0 Oxides 7.5 42.7
DDH-23-075 112.0 127.0 Oxides 15.0 93.1 0.78

Note:  All results in this news release are rounded. Assays are uncut and undiluted. Widths are drilled widths, not true widths. True widths are estimated to be approximately 80% of the interval widths for oxides.

Table 2 – Highlights of Phase III High-Grade Intercepts at JAC Zone

Drill Hole From (m) To (m) Type Interval (m) Ag (g/t) Au (g/t) AgEq1 (g/t)
DDH-22-019 89.0 176.0 Oxides 87.0 346.0 0.15 356.5
DDH-22-044 121.0 179.0 Oxides 58.0 208.8 0.20 222.8
DDH-22-046 123.0 165.5 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-22-060 114.0 154.0 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-22-067 143.0 179.0 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-22-075 151.0 167.0 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
DDH-22-083 159.0 184.0 Transition 25.0 773.8 0.28 796.7
DDH-22-086 158.0 167.0 Sulphides 9.0 342.3 342.3
DDH-23-002 148.0 165.0 Transition 17.0 288.6 0.14 300.1
DDH-23-003 155.8 161.5 Sulphides 5.8 502.2 502.2
DDH-23-004 136.0 150.0 Oxides 14.0 3,024.5 0.21 3,041.7
DDH-23-007 115.0 119.0 Oxides 4.0 2,320.0 2,320.0
DDH-23-009 161.0 169.5 Oxides 8.5 479.2 0.15 491.5
DDH-23-010 132.0 177.5 Oxides 45.5 233.4 233.4
DDH-23-014 127.0 173.5 Oxides 46.5 185.0 0.50 226.0
DDH-23-017 92.0 104.0 Oxides 12.0 876.1 876.1
DDH-23-021 161.5 193.5 Oxides 32.0 530.8 0.60 579.9
DDH-23-024 144.0 161.0 Oxides 17.0 828.9 828.9
DDH-23-025 100.0 179.0 Oxides 79.0 237.6 0.15 249.9
DDH-23-036 140.0 150.0 Oxides 10.0 520.0 0.04 523.3
DDH-23-039 105.0 124.0 Oxides 19.0 253.4 253.4
DDH-23-046 157.0 160.0 Oxides 3.0 2,070.0 0.27 2,092.1
DDH-23-061 134.0 153.5 Oxides 19.5 272.8 272.8
DDH-23-070 41.0 105.0 Oxides 64.0 148.1 148.1

Note: All results are rounded. Assays are uncut and undiluted. Widths are drilled widths, not true widths. True widths are estimated to be approximately 80% of the interval widths.
AgEq based on 81.9(Ag):1(Au) calculated using long-term prices of US$25.00/oz Ag and US$1,750/oz Au, and 73.5% process recovery for Ag, and 86.0% process recovery for Au as demonstrated in the Company’s PEA in respect of Diablillos dated January 13, 2022, using formula:  AgEq g/t = Ag g/t + Au g/t x (Gold Price/Silver Price) x (Gold Recovery/Silver Recovery).  

Collar Data

Hole Number UTM Coordinates Elevation Azimuth Dip Depth (m)
DDH 23-065 E719351 N7198699 4,141 0 -60 152
DDH 23-066 E719425 N7198702 4,147 0 -60 182
DDH 23-067 E719526 N7198780 4,155 0 -60 155
DDH 23-068 E719599 N7198852 4,162 0 -60 170
DDH 23-069 E719625 N7198879 4,164 0 -60 152
DDH 23-070 E719625 N7198840 4,165 0 -60 191
DDH 23-071 E719728 N7198918 4,173 0 -60 175
DDH 23-072 E719250 N7198710 4,135 0 -60 173
DDH 23-073 E719800 N7198941 4,178 0 -60 170
DDH 23-074 E719850 N7198928 4,182 0 -60 176
DDH 23-075 E719849 N7198982 4,182 0 -60 179

About Diablillos

The 80 km2 Diablillos property is located in the Argentine Puna region – the southern extension of the Altiplano of southern Peru, Bolivia, and northern Chile – and was acquired from SSR Mining Inc. by the Company in 2016.  There are several known mineral zones on the Diablillos property, with the Oculto zone being the most advanced with over 120,000 metres drilled to date.  Oculto is a high-sulphidation epithermal silver-gold deposit derived from remnant hot springs activity following Tertiarty-age local magmatic and volcanic activity. Comparatively nearby examples of high sulphidation epithermal deposits include: Yanacocha (Peru); El Indio (Chile); Lagunas Nortes/Alto Chicama (Peru) Veladero (Argentina); and Filo del Sol (Argentina).

The most recent Mineral Resource estimate for the Oculto Deposit is shown in Table 3:

Table 3 – Oculto Mineral Resource Estimate – As of October 31, 2022

Category Tonnage (000 t) Ag (g/t) Au (g/t) Contained Ag (000 oz Ag) Contained Au (000 oz Au)
Measured 19,336 98 0.88 60,634 544
Indicated 31,978 47 0.73 48,737 752
Measured & Indicated 51,314 66 0.79 109,370 1,297
Inferred 2,216 30 0.51 2,114 37

Notes: Effective October 31, 2022. Mineral Resources are not Mineral Reserves and have not demonstrated economic viability. The Mineral Resource estimate is N.I. 43-101 compliant and was prepared by Luis Rodrigo Peralta, B.Sc., FAusIMM CP(Geo), Independent Consultant. The mineralization estimated in the Mineral Resource is sub-horizontal with sub-vertical feeders and a reasonable prospect for eventual economic extraction by open pit methods. 

 

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.

By Matthew Evanoff

I specialize in the mining industry, focusing on top global mining stocks. My reporting covers the latest industry news, company/project developments, and profiles of key players. Beyond my professional pursuits, I have a keen interest in global business and a love for travel.

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