Outcrop Silver & Gold Corp. (OCG:TSX.V; OCGSF:OTCQX; MRG1:DE) also has two high-grade mineralized systems that could expand Santa Ana's existing resource, noted a Research Capital Corp. report.
Outcrop Silver & Gold Corp. (OCG:TSX.V; OCGSF:OTCQX; MRG1:DE) released more favorable metallurgical results from Santa Ana in Colombia, bolstering the outlook for the gold-silver project, reported Research Capital Corp. Analyst Stuart McDougall in a June 18 research note.
"The results, when combined with more than 95% recoveries achieved in integrated gravimetric and flotation tests released a year ago, suggest an exceptional project in the making," McDougall wrote.
Research Capital reiterated its CA$0.50 per share target price on Outcrop, trading at the time of McDougall's report at about CA$0.23 per share, the analyst noted. From there, the return to target is 117%.
Outcrop is a Speculative Buy.
The company has 376.2 million shares outstanding. Its market cap is CA$86.52. Its 52-week range is CA$0.16-CA$0.35 per share.
The new metallurgical data are from a fourth phase of tests, on samples from the La Porfia vein system at Santa Ana, conducted by the Brazilian unit of Steinert Elektromagnetbau, reported McDougall. For the testing, 390 kilograms of ore from Porfia were separated into two size ranges, one from 12-25 millimeters (12-25mm), the other from 25-77 mm. Then the samples underwent x-ray transmission and three-dimensional laser profiling, with secondary optical sorting. The purpose was to see if preconditioning could be done technically. If so, a smaller mill could be used, resulting in lower costs and environmental benefits.
It turns out the samples were amenable to sensor-based ore sorting. During the process, 17% of coarse feed material was rejected. This led to a 19% increase in the silver grade and a 20% increase in the gold grade. Recoveries were 99.17% for silver and 99.7% for gold.
The average grades of the Porfia samples were less than the vein's average resource grades of 360 grams per ton silver (360 g/t Ag) and 4.12 g/t gold (Au), meaning that further testing could yield additional upside.
"The same can be said for the other veins, with only two grading less than the tested sample," wrote McDougall.
Outcrop recently reported new positive drill results from the Guadual and Los Mangos targets at Santa Ana, where drilling continues.
At Guadual, the drill bit hit up to 1,825 g/t Ag and 3.99 g/t Au over 0.55 meters (0.55m). Guadual North showed 387 g/t Ag and 0.63 g/t Au over 1.01m.
Drilling at Los Mangos returned 2.41m of 433 g/t Ag and 2.51 g/t Au, as well as 12.03m of 736 g/t Ag and 3.41 g/t Au, including 3.44m of 1,809 g/t Ag and 9.69 g/t Au.
McDougall pointed out that both the La Porfia vein system and the Guadual/Los Mangos system could expand the current (prepared in 2023) Santa Ana resource estimate as it includes neither of them. The existing resource is 2,190,000 tons of 387 g/t Ag and 1.98 g/t Au, for 27,000,000 ounces of contained silver and 140,000 ounces of contained gold. The resource does encompass drill results from seven of multiple veins.
"Accordingly, our target price continues to reflect 75% expansions in both metals, valued at US$3 per ounce (US$3/oz) Ag and US$75/oz Au, adjusted for options, warrants and our future equity financing assumptions, priced in the context of the current market," McDougall wrote.
McDougall reported that since Outcrop acquired Santa Ana in 2019, the company drilled more than 80,000m and collected 4,000-plus channel samples from multiple veins. These veins span more than 15 kilometers of prospective trend.
"Since then, the company has shown the potential to produce exceptionally high-grade concentrates using gravity separation followed by flotation of the gravimetric tails," wrote the analyst.
Investors should watch for additional project updates in the H2/25, McDougall indicated. Subsequently, an updated mineral resource estimate for Santa Ana is expected in Q1/26.
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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.Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. 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.
Disclosures for Research Capital Corp., Outcrop Silver & Gold Corp., June 18, 2025
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