AbraSilver Consolidates its La Coipita Copper-Gold Project in San Juan, Argentina, and Announces Initial Exploration Plans for the Project
(TheNewswire)
Toronto – TheNewswire - August 17, 2021 - AbraSilver Resource Corp. (TSXV:ABRA); (OTC:ABBRF) ("AbraSilver" or the “Company”) is pleased to announce that it has executed an Option to Purchase agreement (the “Agreement”) through its wholly-owned subsidiary, AbraPlata Argentina SA, to acquire additional prospective claims (the “Claims” or “Yaretas Claims”) near its La Coipita project (“La Coipita” or the “Project”) located in the San Juan province of Argentina. In addition Abraplata Argentina SA requested, through the original owners of La Coipita, New Areas of additional mining tenure consolidating the two main blocks of the property (the “New Areas”).
John Miniotis, President and CEO of AbraSilver, commented, “We are excited to be able to consolidate a strategic part of the prospective La Coipita copper-gold project. Consolidation of the claims creates a single, large property package with numerous exploration targets in one of the world’s most endowed copper-gold belts. This transaction enhances our project pipeline with an additional drill-ready exploration project, where we expect to commence an initial drill program by year-end.”
La Coipita Project Overview
On March 2, 2020, the Company entered into an option agreement to acquire a 100% interest at La Coipita for total payments of US$4.27 million, over a period of five years. To date, the first two payments totaling US$165,000 have been made. The Project is located in the mining-friendly San Juan Province of Argentina adjacent to the Chilean border.
With the addition of the new prospective Claims and New Areas, the consolidated Project now encompasses a large area totaling approximately 70,000 hectares in the western portion of Calingasta Department. Access to the area is via Calingasta, the nearest town, along 125 km of unpaved road to the Los Azules Cu-Mo porphyry project (1) and then north along a dirt road to the La Coipita copper-gold project. Elevation across the property ranges between 3,500 and 4,500 MASL with moderate to high relief.
Highlights of the Project
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- The Yaretas Claims add a strategic 250 hectares of prospective mineral claims in the middle of the large La Coipita land package
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- The new mining properties added to La Coipita/Valle Hermoso original agreement add more than 10,000 hectares consolidating the two main property blocks.
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- The consolidated project now encompasses over 70,000 hectares in the prolific world-class Miocene porphyry-epithermal belt
-
- Located approximately 16 km north of the Los Azules deposit (McEwen Mining Inc.) and 90 km from Los Pelambres (60% Antofagasta PLC) (1) which is located across the border in Chile
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- The Yaretas Claims cover the most prospective parts of the La Coipita mineralised system. Potassic, intermediate argillic and silicic alteration with widespread iron oxides occur, with strong leaching of primary minerals and copper oxides in places outcrop at the target areas.
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- Historic drill intercepts up to 127m @ 0.42% Cu and 0.22 g/t Au, including 41m @ 1.08%Cu and 0.35g/t Au (2) from shallow drilling at the Yareta high sulphidation target.
Figure 1 – Consolidated La Coipita Map (New Yaretas Claims in Red & New Areas in Orange)
Click Image To View Full Size
Transaction Summary
The Company entered into the Option Agreement with an arm’s length private owner (the “Vendor”). In order to exercise the option to acquire a 100% interest in the Yaretas Claims, the Company is required to complete the following payments:
|
Timing |
Payments (US$) |
|
Paid upon signing |
$50,000 |
|
August 2022 |
$75,000 |
|
August 2023 |
$200,000 |
|
August 2024 |
$400,000 |
|
August 2025 |
$800,000 |
|
August 2026 |
$1,500,000 |
As per the terms of the Agreement, the Vendor will retain a 1.10% net smelter return royalty on the Yaretas Claims and AbraSilver has an exclusive right to repurchase the royalty for US$5,000,000 at any time.
New Areas added to the original La Coipita Option Agreement
The Company filed, through the original owners of La Coipita, seven additional discovery claims and one exploration permit, adding more than 10,000 hectares of mining tenure (“New Areas”) to the Project. The New Areas were incorporated to the original Option Agreement executed with said owners in 2020, with no further payments than those stipulated therein.
La Coipita Exploration Update
AbraSilver is currently defining an initial exploration program and budget at La Coipita for the 2021-2022 field season. The geological potential will be further assessed and drill sites selected in preparation for an initial 2,000m drill program expected to commence in Q4/2021.
The target areas identified on the La Coipita project have coincident geological, geochemical and geophysical features that are consistent with the presence of a copper-gold mineralised porphyry intrusive either at depth, beneath a gold-copper high sulphidation epithermal system as at Yareta, or as marginal inter-mineral porphyry phases such as Dona Rosa North and Quebrada Yareta south targets.
Previous exploration work on the Project was completed by subsidiaries of the following companies: Viceroy Resource Ltd (1995-1997), Vale S.A. (2007- 2009), and Teck Resources Ltd (2009- 2016). Numerous target areas have been identified on the Project from the previous work. The Yareta high sulphidation target is the only area that has been tested by drilling. The best intercepts are in hole 97-Y-3, with 127m @ 0.42% copper, 0.22g/t gold and 12.2g/t silver; including 41m @ 1.08% copper,0.35g/t gold and 24.2g/t silver, as shown in Table 1 below.
Table 1 – Historical Drill Results(2)
|
Hole ID |
From (m) |
To (m) |
Interval (m) |
Cu (%) |
Au (g/t) |
Ag (g/t) |
CuEq* |
|
97-Y-3 |
40 |
167 |
127 |
0.42 |
0.22 |
12.2 |
0.69 |
|
including |
136 |
167 |
41 |
1.08 |
0.35 |
24.2 |
1.55 |
|
97-Y-5 |
195 |
237 |
42 |
0.60 |
0.26 |
9.26 |
0.87 |
|
97-Y-8 |
228 |
238 |
10 |
0.97 |
0.12 |
4.53 |
1.10 |
|
97-Y-9 |
27 |
64 |
37 |
0.24 |
0.05 |
3.03 |
0.30 |
*Note: CuEq calculated using $1500/oz Au, $3/lb Cu, $18/oz Ag.
Figure 2 – La Coipita Exploration Targets
Click Image To View Full Size
Notes:
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(1)Mineralization contained on nearby properties is not indicative of similar mineralization being found on the La Coipita Project
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(2)The historic drill results presented in the table above have not been independently verified by the Qualified Person for this release, and remain subject to independent verification. The drill results were originally published in a news release by Oro Belle Resources Corporation dated June 24, 1997. Oro Belle Resources Corporation was a 50% owner at the time of the announcement, through a wholly owned subsidiary who held a 50% Joint Venture interest.
Technical information in this news release has been approved by David O’Connor P.Geo., Chief Geologist for AbraSilver, and a Qualified Person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects.
About AbraSilver
AbraSilver is a well-funded silver-gold focused advanced-stage exploration company. The Company is rapidly advancing its 100%-owned Diablillos silver-gold project in the mining-friendly Salta province of Argentina, which has an Indicated resource base of over 140Moz on a silver-equivalent basis and an initial open pit PEA study completed in 2018. The Company is led by an experienced management team and has long-term supportive shareholders including Mr. Eric Sprott and SSR Mining. In addition, AbraSilver owns a portfolio of earlier-stage copper-gold projects, including 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. AbraSilver is listed on the TSX-V under the symbol “ABRA” and in the U.S. under the symbol “ABBRF”.
For further information please visit the AbraSilver Resource website at www.abrasilver.com, our LinkedIn page at AbraSilver Resource Corp., and follow us on Twitter at www.twitter.com/abrasilver
Alternatively please contact:
John Miniotis, President and CEO
Tel: +1 416-306-8334
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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