Analyst: Mining Co. Hits More Spectacular Grades
Source: Stuart McDougall
February 17, 2023 (Investorideas.com Newswire) Another set of drill results from one vein at this exploration project returned silver grades as high as 4,376 g/t and gold grades up to 11.88 g/t, noted a Research Capital Corp. report.
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.
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.
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Disclosures For Research Capital Corp., Outcrop Silver & Gold Corp., February 13, 2023
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