Outcrop Gold Provides Corporate Activity Update Relating to COVID-19
Vancouver, British Columbia--(Newsfile Corp. - April 7, 2020) - Outcrop Gold Corp. (TSXV: OCG) ("Outcrop") advises that the planned Phase 2 drilling campaign on the 100% owned Santa Ana Project in North Tolima, Colombia, has been temporarily delayed due to the Colombian government decision to restrict travel within Colombia during the current COVID-19 crisis. Currently travel restrictions are in place until April 13, 2020 - but may be extended. All Outcrop employees and contractors are working at home. Outcrop in consultation with and as advised by the municipality of Falan, is providing basic food items and contributing to a local COVID-19 general response fund managed by officials in Falan. "It is important that we all do our part to help contain the spread of the COVID-19 virus and help local communities where we can", commented Joseph Hebert, Chief Executive Officer.
Outcrop plans to drill approximately 120 holes for a total of 13,000 metres in the Phase 2 drilling campaign. The La Ivana ore-shoot discovered in Phase 1 will be delineated at depth and along strike. Subsequently an additional 8km of vein strike will be tested with widely spaced holes (including the El Dorado, Megapozo and Roberto Tovar vein zones). Outcrop continues to closely monitor the situation and once the travel ban has been lifted the drilling program will recommence immediately.
During Phase 1 the Company discovered a new high-grade gold and silver vein system, at La Ivana (News Release dated March 2, 2020). La Ivana had never been drilled before and for the nine holes reported in that Phase 1 the average downhole intercept length is 0.52 m with a weighted average grade of 21.7 g Au/t and 1,329 g Ag/t. The weighted average for equivalent gold is 36.9 g Eq Au/t and the weighted average for equivalent silver is 3,224 Eq Ag/t. With highlights including:
- 1.0 metre of 21.3 grams gold per tonne and 4,680 grams silver per tonne
- 0.50 metre of 58.1 grams gold per tonne and 876 grams silver per tonne
- 0.50 metre of 5.8 grams gold per tonne and 1,445 grams silver per tonne
- 0.61 metre of 29.0 grams gold per tonne and 1,675 grams silver per tonne
- 0.58 metre of 36.2 grams gold per tonne and 325 grams silver per tonne
- 0.85 metre of 21.4 grams gold per tonne and 373 grams silver per tonne
Phase 1 drilling provided an "ore-shoot" model for La Ivana. The close-spaced drilling by Outcrop in La Ivana and historically in the Royal Mines area suggests "ore-shoots" are likely to have dimensions of approximately 200 m strike by 300 m depth and with 0.80 m width with grades between 12 and 16 g Eq Au/t (1,044 to 1,392 g Eq Ag/t). It is important to note that drilling encountered voids that represented historic mining. Where unmined, generally at depth, these areas may contribute to a higher average vein width - in general mined areas will be near surface due to primitive methods and groundwater flooding. Targets outside of La Ivana will be advanced by systematic soil sample profiles and mapping, trenching, and locating all historic workings that may provide vein grades and geometry. The objective of Phase 2 is to identify a minimum of seven new "ore-shoots".
Significant intercepts in the La Ivana vein system from the Phase 1 drill program are provided in the table below (previously released):
|Hole ID||From (m)||To (m)||Width (m)||g Au/t||g Ag/t||g Eq Au/t||g Eq Ag/t||Vein|
- Silver equivalent and gold equivalent values are calculated using metal prices of $1,580/oz for gold and $18/oz for silver, using total contained gold. Silver to gold equivalents are 87:1. It is too early to estimate true thicknesses.Significant intercepts are assay intervals equal to or greater than 150 g Eq Ag/t.
About Santa Ana Project
The Santa Ana project comprises 3,538 ha located in the Municipality of Falan, Tolima Department, Colombia, approximately 15 km southeast of the of the town of Mariquita, and 190 km from Bogota, Colombia's capital city. The Santa Ana project covers a significant part of the Mariquita District where mining records date to at least 1585. The Mariquita District is the highest-grade primary silver district in Colombia. Under colonial Spanish era control of the mines, silver grades were reported to be among the highest in Latin America with the fourteen mines of Santa Ana producing average smelter returns of 4,300 g Ag/t from veins averaging 1.4 m wide.
Historic mining depths support a geologic and exploration model for a composite mesothermal and epithermal vein system having mineralization that likely extends to great depth. At Santa Ana it is unlikely that there is sharp elevation restriction common to high-grade zones in many epithermal systems with no mesozonal component.
At least seven principle vein zones are recognized on the project that cumulatively provide 14 km of strike length - La Ivana (including the La Porfia, La Manta and Guanabana veins), Santa Ana (Royal Mines), El Dorado, Palomo, Murillo, Culebra and Megapozo. The zones commonly each contain multiple parallel veins. The veins can show both high-grade gold and high-grade silver mineralization. Silver-gold ratios are variable - probably related to local prevalent styles of gold mineralization as free gold, sulfide-associated gold and possible silver-gold alloys. Higher grade gold-silver intercepts commonly show from 1.1% to 3.8% zinc associated with sphalerite.
About Outcrop Gold
Outcrop is a gold prospect generator active in Colombia acquiring gold exploration projects with world-class discovery potential. Outcrop performs its own grass roots exploration and then employs a joint venture business model on its projects to maximize investor exposure to discovery and minimize financial risk. Outcrop has seven primary projects in Colombia with three at an advanced stage of exploration. Outcrop will conduct focused drilling on flagship properties such as Santa Ana to create its own catalysts for value creation and to receive full value for future joint ventures or dispositions.
The technical information in this news release has been approved by Joseph P Hebert, a qualified person as defined in NI43-101 and President and Chief Executive Officer to the Company.
ON BEHALF OF THE BOARD OF DIRECTORS
Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Certain information contained herein constitutes "forward-looking information" under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "potential", "we believe", or variations of such words and phrases or statements that certain actions, events or results "will" occur. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Outcrop to be materially different from those expressed or implied by such forward-looking statements or forward-looking information, including: the receipt of all necessary regulatory approvals, capital expenditures and other costs, financing and additional capital requirements, completion of due diligence, general economic, market and business conditions, new legislation, uncertainties resulting from potential delays or changes in plans, political uncertainties, and the state of the securities markets generally. Although management of Outcrop have attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Outcrop will not update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/54202