AbraSilver Resource Corp. announced new assay results from four diamond drill holes from the ongoing 15,000 metre Phase III program on the Company’s wholly-owned Diablillos property in Salta Province, Argentina (“Diablillos” or the “Project”).
Drilling is now concentrated in the recently discovered Southwest zone (JAC target) which is located several hundred metres southwest of the edge of currently defined Mineral Resources on the main Oculto deposit. Systematic grid drilling of the near-surface, high-grade silver mineralization is progressing and the Company anticipates announcing a maiden Mineral Resource estimate for this new zone in H1/2023. Key takeaways from the latest drill results include:
Hole DDH 22-056 drilled in between the Oculto deposit and the JAC target intersected a broad zone of silver mineralization in oxides, with 57.5 metres grading 141 g/t Ag (and 0.27 g/t Au), starting from 110m down-hole, including 11.0 metres grading 549 g/t Ag and 0.72 g/t Au.
Hole DDH 22-057 drilled in the JAC target intersected multiple zones with high-grade silver mineralization in oxides, with 20.0 metres grading 499 g/t Ag, starting from 144m down-hole, including 7.0 metres grading 1,261 g/t Ag.
Hole DDH 22-058 was drilled ~800m southwest of the Oculto deposit boundary towards the expected SW limit of the JAC target. The hole intersected 14.5 metres grading 176 g/t Ag in the transition zone beneath the oxide mineralization. The latest assay result highlights are summarized in Table 1 below.
Table 1 – Diablillos Drill Results in Southwest Zone
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.
1AgEq 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 Preliminary Economic Assessment 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).
John Miniotis, President and CEO, commented, “While we have lots of drilling yet to do, our new JAC target is rapidly growing into the type of high-grade discovery that can have game-changing potential for our Company. We remain very encouraged by all the results received to date from this new mineralized zone, and it is our expectation that the JAC target will contribute greatly towards the Company’s goal of increasing the overall size and attractiveness of the Diablillos project.”
Dave O’Connor, Chief Geologist, commented, “Once again, the latest drill results from our new JAC target continue to return extensive high-grade, near-surface silver mineralization. Hole DDH 22-058, returned 14.5 metres at 176 g/t Ag and is located approximately 800 metres beyond the current Oculto Mineral Resource, demonstrating the large extent potential of this target. The JAC discovery was made by drilling a magnetic anomaly and we plan to complete additional magnetic studies in order to potentially identify additional exploration targets across the Diablillos property over the next few months.”
Figure 1 – Diablillos Plan View of Drill Results & Exploration Targets
Discussion of Drill Hole Results
Hole DDH 22-056, located in between the JAC target and the conceptual Oculto open pit boundary, intersected a broad zone of silver mineralization including 11 metres at 549 g/t Ag and 0.72 g/t Au. The gold content in this intercept suggests that the mineralization may be a continuation of the Oculto system, whereas mineralization encountered to date in holes further southwest (within the JAC target) has been predominantly silver with minimal gold.
Hole DDH 22-057 was designed to test the centre of the JAC target and intersected 20 metres at 498 g/t Ag. Together with adjacent holes, the data indicates a sub-horizontal mineralized zone in the JAC target measuring over 100 metres wide. Ongoing drilling will continue to determine the dimensions of the JAC mineralized system.
Hole DDH 22-058, located approximately 700 metres southwest of hole DDH 22-056, intercepted 14.5 metres at 176 g/t Ag, highlighting the considerable length potential of the JAC mineralized zone. Additional drilling will test whether mineralization continues further southwest, beyond hole DDH 22-058.
To date, assay results have been announced for a total of nine holes in the JAC target, with all holes returning silver mineralization in oxides at reasonably shallow depths. The JAC target remains open in all directions, with a total of 22 holes having now been drilled with assays currently pending for 13 holes. Both drill rigs are rapidly advancing our understanding of this new exploration target in preparation for an updated Mineral Resource estimate in H1/2023, which will be followed by a Pre-Feasibility Study on the entire project.
EDITOR’S COMMENTARY
“The AbraSilver company has had good results with these 4 drill holes, from the current drilling campaign that consists of 15,000 meters of the JAC target which is located 300 meters southwest of the “Oculto” deposit, where the main mineralization is silver, concentrated mainly between the oxide and transition zones. This target is mainly characterized by the lower occurrence of gold compared to the “Oculto” deposit, it could be due to the presence of a structural control such as the “Oculto” fault, and it is possible that the same occurs with the “Fantasma” and “Alpaca” targets located further west.
With this information, the subhorizontal mineralized zone of approximately 100 meters wide of the “JAC” target could be better defined, although its dimensions could vary slightly by the end of the drilling campaign.”
Figure 2 – Long Section Through Newly Announced Drill Holes in the JAC Target
The mineralization in the Southwest zone is related to a large, linear magnetic anomaly which appears to be open for approximately 800 metres along strike and has never been drill tested. Figure 3 below, shows the magnetic anomaly of the JAC target.
Figure 3 –Magnetic Anomaly in JAC Target
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).
(Source: Press Releases – www.abrasilver.com/news-releases/abrasilver-drills-499-gt-silver-over-20-metres-including-1261-gt-silver-over-7-metres-in-new-southwest-zone-at-diablillos)
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