Drilling Uncovers Strong Silver-Gold Grades in Colombia, Extending Major Discovery
Outcrop Silver & Gold Corp.'s (OCG:TSX.V; OCGSF:OTCQX; MRG1:DB) latest high-grade discovery at Los Mangos expands the Santa Ana project's potential. Drilling results signal more to come as investors look ahead.
Outcrop Silver & Gold Corp. (OCG:TSX.V; OCGSF:OTCQX; MRG1:DB) has reported a high-grade silver-gold discovery at Los Mangos, located four kilometers south of its previous La Ye discovery within the Santa Ana high-grade silver project in Colombia. The company's exploration strategy of making large step-outs along the fully permitted 17-kilometer mineralized corridor has resulted in notable intercepts, further confirming the scalability of the project.
Recent drilling at Los Mangos returned significant silver-equivalent grades. Hole DH444 intercepted 1.92 meters grading 586 grams per tonne (g/t) silver equivalent (AgEq) at the Mangos SE vein, while hole DH442 returned 2.36 meters at 404 g/t AgEq at Los Mangos. These results highlight the continuity of high-grade mineralization and reinforce the potential for further resource expansion within the Santa Ana project. According to Guillermo Hernandez, Vice President of Exploration, in the news release, "Hitting strong grades more than 8 kilometers south of the closest resource vein proves the great potential of this system and validates our exploration strategy."
Los Mangos is located in the central portion of the Santa Ana project and has a confirmed strike length of over 350 meters. The mineralized vein system dips southeast and is associated with strong structural and lithological controls. Historic underground workings at the El 20 mine within the Los Mangos zone provide further geological evidence supporting the continuity of the high-grade silver system. Drilling in the area continues to validate the project's potential, with Outcrop Silver focusing on extending known mineralization both laterally and at depth.
The Santa Ana project has a historical legacy as Colombia's largest and highest-grade primary silver district, with mining records dating back to 1585. A maiden resource estimate published in June 2023 outlined an indicated resource of 24.2 million ounces silver equivalent at 614 g/t AgEq and an inferred resource of 13.5 million ounces at 435 g/t AgEq. The latest drilling results support Outcrop Silver's strategy to systematically expand the project's resource base through targeted exploration across multiple high-potential zones.
Analysis Highlights Strong Growth Potential for Santa Ana Silver Project
A February 13 update from Research Capital noted Outcrop Silver's ongoing drilling success at Santa Ana and how it continues to support expectations for significant resource expansion. The firm reiterated its SPECULATIVE BUY rating and maintained a C$0.50 price target, citing promising results from recent drilling at Aguilar, La Ye, and Jimenez. Analysts highlighted the project's potential for bonanza-grade mineralization along the fully permitted 17-kilometer corridor, emphasizing that high-grade intercepts reinforce the scalability of the deposit. Research Capital further noted that the company's methodical approach to exploration is systematically unlocking new opportunities, with the latest discoveries underscoring Santa Ana's long-term upside.
According to newsletter writer Jeff Clark of The Gold Advisor on March 12, Outcrop Silver's recent discovery at Los Mangos reinforced the company's ability to expand the Santa Ana project's resource footprint. Clark noted that two of the six drill holes at Los Mangos confirmed high-grade silver-gold mineralization, including 586 grams per tonne (g/t) silver equivalent over 1.92 meters. He emphasized that "anything over 1,000 gram-meters is generally considered bonanza grade," positioning this discovery as a significant milestone. Clark further highlighted the step-out nature of the discovery, stating that it "proves the great potential of this system and validates our exploration strategy," referencing comments from Vice President of Exploration Guillermo Hernandez.
Clark also underscored the scalability of the Santa Ana project, noting that the discovery at Los Mangos located eight kilometers south of the nearest resource vein confirmed the potential of the fully permitted 17-kilometer mineralized corridor. He stated that the company's 2025 drilling strategy is focused on "demonstrating a clear pathway to substantially expand the resource," reinforcing the long-term value proposition for investors. Clark maintained a positive outlook on Outcrop Silver, suggesting that "the stock has not yet taken off, but in my opinion, that day is coming," and reiterated his overweight position in the company.
Market Shifts Propel the Gold and Silver Sector Forward
Gold and silver prices surged as investors sought safe-haven assets amid escalating trade tensions and economic uncertainty. According to a February 25 report from the Investing News Network, silver has maintained a strong price floor above US$30 per ounce since late 2024, with notable spikes that tested US$35 per ounce in October. Keith Neumeyer, CEO of First Majestic Silver, has long been a proponent of triple-digit silver, reiterating his belief that the metal could reach US$100 per ounce or higher due to its persistent supply deficit, growing industrial demand, and undervaluation compared to gold. Neumeyer has also emphasized that silver's increasing role in renewable energy technologies particularly in solar panels and electric vehicles has strengthened its long-term investment case.
In a March 10 Excelsior Prosperity article, it was highlighted that both gold and silver are viewed as strategic investments. The report stressed that silver's industrial applications in solar panels, electric vehicles, and medical technologies positioned it for sustained demand growth, making it an attractive asset beyond its role as a monetary metal. The analysis suggested that while silver was often overshadowed by gold in mainstream investment discussions, its supply-demand fundamentals and increasing relevance in emerging technologies made it a critical component of a well-diversified portfolio.
According to a March 11 report from Kitco, gold futures rose by 0.81% to US$2,923.10 per ounce, while silver gained support from the broader market trend, reflecting its dual role as both an industrial metal and a store of value. The dollar's decline further supported both metals, with the dollar index falling to its lowest level since November 2024. Analysts noted that "these escalating trade measures have strengthened genuine concerns about a potential U.S. economic contraction," reinforcing demand for precious metals.
On the same day, 321Gold emphasized the potential for both gold and silver to benefit from an economic downturn, particularly if market volatility increased. The report noted that gold was targeting US$3,075 based on technical indicators, while silver remained well-positioned to follow gold's trajectory, with strong support at US$28 and momentum favoring higher prices. The analysis pointed to a stagflationary cycle that could last decades, arguing that in such an environment, "gold, silver, and miners surge" while traditional financial markets stagnate.
Outcrop Silver Expands High-Grade Potential at Santa Ana with Continued Drilling Success at Los Mangos
Outcrop Silver's continued drilling success at Los Mangos aligns with its broader strategy to enhance the Santa Ana project's overall resource potential. In its investor presentation, the company has outlined an extensive exploration program for 2025, aiming to maximize ounces per meter drilled along the 17-kilometer permitted corridor. With Los Mangos emerging as a key target, upcoming drill campaigns will focus on extending mineralized zones along strike and at depth.
Metallurgical studies have also demonstrated strong silver and gold recoveries from Santa Ana ore, with recent test work indicating 96.3% silver and 98.5% gold recovery rates. These favorable metallurgical results enhance the project's economic viability by confirming the production of a high-quality silver-gold concentrate.
Streetwise Ownership Overview*
Outcrop Silver & Gold Corp. (OCG:TSX.V; OCGSF:OTCQX; MRG1:DB)
*Share Structureas of 3/12/2025Source: RefinitivAdditionally, Outcrop Silver benefits from Colombia's well-established mining infrastructure, with highway access, grid power, and a supportive regulatory environment. Silver's increasing demand in industrial and renewable energy sectors further positions Santa Ana as a project with long-term market relevance.
Looking ahead, Outcrop Silver's drilling campaigns will continue to delineate new high-grade mineralized zones while advancing the Santa Ana project toward an updated resource estimate. With Los Mangos representing a significant step-out discovery, the company remains focused on unlocking further exploration upside across its prospective land package.
Ownership and Share Structure
Refinitiv provided a breakdown of Outcrop Silver & Gold Corp.'s ownership and share structure, where management and insiders own approximately 6.88% of the company.
According to Refinitiv, Executive Chairman Ian Slater owns 5.94%, Director Joseph Hebert owns 0.78%, Director Kevin Nishi owns 0.03%, and President, Chief Executive Officer, and Director Ian Harris owns 0.01%.
2176423 Ontario Ltd. owns 18.67% of the company as a strategic investor, stated Refinitiv. Institutional investors own 6.88%. The rest is retail.
The company has 341.6million shares outstanding and 254.31 million free float traded shares, while the company has a market cap of CA$69.26 million and trades in a 52-week range between CA$0.16 and CA$0.35.
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Important Disclosures:
As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Outcrop Silver & Gold Corp.James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.For additional disclosures, please click here.