AbraPlata Intersects Further High-Grade Silver, Gold and Copper Mineralisation Including 408 g/t AgEq Over 28 m and 23.8 g/t AuEq Over 2 m at Diablillos Project

2020-10-26 / @thenewswire

(TheNewswire)

Toronto - TheNewswire - October 26, 2020: AbraPlata Resource Corp. (TSXV:ABRA) (OTC:ABBRF) ("AbraPlata" or the “Company”) is pleased to announce significant high-grade assay results from diamond drill holes DDH 20-007 and DDH 20-008, recently completed at the Oculto deposit, located on its wholly-owned Diablillos in Salta Province, Argentina. The holes were designed to test extensions of mineralized zones beyond the known estimated mineral resources and to infill shallower mineralized zones.

Hole DDH 20-007 intersected a broad zone of silver mineralisation within oxides, as well as a substantial zone of gold mineralisation at the base of the oxide horizon. Beneath the oxide horizon, there is a zone of high-grade gold mineralisation associated with copper sulphides. This extends our knowledge of the mineralised system at depth, beneath the proposed Whittle Pit.

Hole DDH 20-008 was drilled south of the known mineralised system and obtained a silver intersection extending the zone in this direction. Complete assay results have not yet been received for this hole, with the deepest interval still pending (between 333.4 – 401.5 m).

Table 1 – Drill Result Highlights from DDH 20-007 and DDH 20-008:

----------------------------------------------------------------------------------- |Drill | |From |To |Type |Interval|Ag |Au | | | | |Hole | |(m) |(m) | |(m) | g/t |g/t |Cu |AgEq1 |AuEq1| | | | | | | | | |% |g/t |g/t | |---------------------------------------------------------------------------------| |DDH-20-007| |157 |218 |Oxides |61 |255.8|0.26|- |275.3 |3.67 | |---------------------------------------------------------------------------------| |DDH-20-007|including|178 |206 |Oxides |28 |383.2|0.34|- |408.7 |5.45 | |---------------------------------------------------------------------------------| |DDH-20-007| |226 |229 |Oxides |3 |131.7|0.62|- |178.2 |2.38 | |---------------------------------------------------------------------------------| |DDH-20-007| |236 |244 |Oxides |8 |61.7 |2.72|- |265.7 |3.54 | |---------------------------------------------------------------------------------| |DDH-20-007| |249 |255 |Sulphides|6 |- -- |1.52|n/a |n/a | |---------------------------------------------------------------------------------| |DDH-20-007| |258 |260 |Sulphides|2 |30.0 |1.42|- |136.5 |1.82 | |---------------------------------------------------------------------------------| |DDH-20-007| |260 |262 |Sulphides|2 |27.5 |23.4|- |1,782.5|23.77| |---------------------------------------------------------------------------------| |DDH-20-007| |265 |267 |Sulphides|2 |237.1|- |2.55|499.4 |6.66 | |---------------------------------------------------------------------------------| |DDH-20-007| |376 |377 |Sulphides|1 |51.6 |2.34|1.22|352.6 |4.70 | |---------------------------------------------------------------------------------| |DDH-20-008| |181 |184 |Oxides |3 |78.4 |- -- |78.4 |1.04 | |---------------------------------------------------------------------------------| |DDH-20-008|including|188 |194.5|Oxides |6.5 |123.4|0.15|- |134.6 |1.79 | |---------------------------------------------------------------------------------| |DDH-20-008| |272.5|287 |Sulphides|14.5 |- -- |0.51|n/a |n/a | -----------------------------------------------------------------------------------

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.

1 AgEq & AuEq calculations for reported drill results are based on USD $20.00/oz Ag, $1,500/oz Au and $3.00/lb Cu. The calculations assume 100% metallurgical recovery and are indicative of gross in-situ metal value at the indicated metal prices. Refer to Technical Notes below for metallurgical recoveries assumed in the 2018 PEA study on Diablillos.

John Miniotis, President and CEO, commented, “We are very pleased that our drilling program continues to identify intercepts of high-grade silver and gold mineralization. The multiple high-grade intercepts validate the geological model and confirm significant upside potential to grow the large existing resource base at Oculto. With high-grade mineralisation open at depth and laterally we keenly await additional results from the recently expanded drill program currently underway with two rigs now drilling on the property.”

Figure 1 – Drill Holes completed in 2019/20, with Proposed Drill Holes and Mapped Breccias in the Oculto Zone and Satellite Areas

Click Image To View Full Size

Hole DDH 20-007

The broad zone of silver mineralization in hole DDH 20-007 (61m @ 255.8 g/t Ag) intersected between 157 and 218m depth enhances the oxide silver resource, while the high grade gold mineralization (2m @ 23.4g/t Au between 260-262m) demonstrates the potential for underground mineable gold. The 2m zone between 265-267m grading 237.1g/t Ag and 2.55% Cu adds to our knowledge of the potential of the underlying sulphide resource.

Figure 2 - Cross-Section 8250 (Looking East) with Highlighted Intercepts in Hole DDH 20-007

Click Image To View Full Size

Further assay results from the two holes are included in Annex 1 below.

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 approximately 90,000 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: El Indio, Chile; Veladero, Argentina; and Pascua Lama, on the Chile-Argentine border.

Table 2 - 2018 Mineral Resource Estimate for the Oculto Deposit, Diablillos Project

--------------------------------------------------------- |Category |Tonnage|Ag |Au |Contained Ag|Contained Au| | |(000 t)|(g/t)|(g/t)|(000 oz Ag) |(000 oz Au) | |-------------------------------------------------------| |Indicated|26,900 |93.0 |0.85 |80,300 |732 | |-------------------------------------------------------| |Inferred |1,000 |46.8 |0.89 |1,505 |29 | ---------------------------------------------------------

Effective August 31, 2017. Full details of the Mineral Resources are available in a Company news release dated March 2, 2018. For additional information please see Technical Report on the Diablillos Project, Salta Province, Argentina, dated April 16, 2018, completed by Roscoe Postle Associates Inc, and available on www.SEDAR.com.

QA/QC and Core Sampling Protocols

AbraPlata applies industry standard exploration methodologies and techniques, and all drill core samples are collected under the supervision of the Company’s geologists in accordance with industry practices. Drill core is transported from the drill platform to the logging facility where drill data is compared and verified with the core in the trays. Thereafter, it is logged, photographed, and split by diamond saw prior to being sampled. Samples are then bagged, and quality control materials are inserted at regular intervals; these include blanks and certified reference materials as well as duplicate core samples which are collected in order to measure sample representivity. Groups of samples are then placed in large bags which are sealed with numbered tags in order to maintain a chain-of-custody during the transport of the samples from the project site to the laboratory.

All samples are received by the SGS offices in Salta who then dispatch the samples to the SGS preparation facility in San Juan. From there, the prepared samples are sent to the SGS laboratory in Lima, Peru where they are analyzed. All samples are analyzed using a multi-element technique consisting of a four acid digestion followed by ICP/AES detection, and gold is analyzed by 50g Fire Assay with an AAS finish. Silver results greater than 100g/t are reanalyzed using four acid digestion with an ore grade AAS finish.

Qualified Persons

David O’Connor P.Geo., Chief Geologist for AbraPlata, is the qualified person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects, has reviewed and approved the scientific and technical information in this news release.

Technical Notes

All results in this news release are rounded. Assays are uncut and undiluted. Intervals are drilled widths, not true widths. AgEq calculations for reported drill results are based on USD $20.00/oz Ag, $1,500/oz Au and $3.00/lb Cu. The calculations assume 100% metallurgical recovery and are indicative of gross in-situ metal value at the indicated metal prices. The most recent technical report for the Diablillos Project is the 2018 Preliminary Economic Assessment (PEA) authored by Roscoe Postle Associates Inc. The PEA assumes average metallurgical recoveries of 82% Ag and 86% Au. No metallurgical testwork has yet been completed on the recovery of copper.

ANNEX 1 – Drill Result Summary of Holes DDH 20-007 and DDH 20-008

------------------------------------------------------------- |Drill |From |To |Intercept|Thickness|Ag |Au |Cu | |Hole |(m) |(m) |(m) |(m) |(g/t)|(g/t)|(%) | |-----------------------------------------------------------| |DDH | | | | | | | | |20-007 | | | | | | | | |-----------------------------------------------------------| | |157 |218 |61 |49 |255.8|0.26 |- | |-----------------------------------------------------------| |Including|178 |206 |28 |22.5 |383.2|0.34 |- | |-----------------------------------------------------------| | |226 |229 |3 |2.4 |131.7|0.62 |- | |-----------------------------------------------------------| | |236 |244 |8 |6.4 |61.7 |2.72 |- | |-----------------------------------------------------------| | |249 |255 |6 |4.8 |- -- |1.52 | |-----------------------------------------------------------| | |258 |260 |2 |1.6 |30.0 |1.42 |- | |-----------------------------------------------------------| | |260 |262 |2 |1.6 |27.5 |23.4 |- | |-----------------------------------------------------------| | |265 |267 |2 |1.6 |237.1|- |2.55 | |-----------------------------------------------------------| | |376 |377 |1 |0.8 |51.6 |2.34 |1.22 | |-----------------------------------------------------------| |DDH | | | | | | | | |20-008 | | | | | | | | |-----------------------------------------------------------| | |47.5 |53 |5.5 |4.4 |11.8 |0.55 |- | |-----------------------------------------------------------| | |181 |184 |3 |2.4 |78.4 |- -- | |-----------------------------------------------------------| | |188 |194.5|6.5 |5.2 |123.4|0.15 |- | |-----------------------------------------------------------| | |272.5|287 |14.5 |11.6 |- -- |0.51 | |-----------------------------------------------------------| | |333.4|401.5|Assay results still pending | -------------------------------------------------------------

Collar Data

------------------------------------------------------------- |Hole Number|UTM Coordinates |Elevation|Azimuth|Dip|Depth | |-----------------------------------------------------------| |DDH 20-007 |X3418250|Y7201875|4,289 |0 |-60|397 m | |-----------------------------------------------------------| |DDH 20-008 |X3418226|Y7201817|4,257 |0 |-60|401.5 m| -------------------------------------------------------------

About AbraPlata

AbraPlata is a mineral exploration company with a diversified portfolio of silver-gold and copper exploration projects in Argentina and Chile. The Company is focused on advancing its 100%-owned Diablillos silver-gold project in the mining-friendly Salta province of Argentina, which is well-advanced, with more than US$40 million spent historically on exploration with drilling ongoing and an initial open pit PEA completed in 2018. The Company is led by an experienced management team and has long-term supportive shareholders including Mr. Eric Sprott, Altius Minerals and SSR Mining. In addition, AbraPlata owns the Arcas project in Chile where Rio Tinto has an option to earn up to a 75% interest by funding up to US$25 million in exploration. AbraPlata is listed on the TSX-V under the symbol “ABRA”.

For further information please visit the AbraPlata Resource website at www.abraplata.com or contact:

-------------------------------- |John Miniotis, President&CEO| | |john@abraplata.com | | |Tel: +1416-306-8334 | | | | | --------------------------------

Cautionary Statements

This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. All statements that address future plans, activities, events or developments that the Company believes, expects or anticipates will or may occur are forward-looking information. 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. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

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