Silver Co. Finds More High-Grade Veins at Colombia Project
Outcrop Silver & Gold Corp. (OCG:TSX.V; OCGSF:OTCQX; MRG1:DB) announced that its drilling program at its 100%-owned Santa Ana primary silver project in Colombia continues to discover "additional non-outcropping veins." One analyst says the property contains one of the country's "richest historic silver mines."
Outcrop Silver & Gold Corp. (OCG:TSX.V; OCGSF:OTCQX; MRG1:DB) announced that its exploration drilling program at La Ye vein at its 100%-owned Santa Ana primary silver project in Colombia continues to return high-grade results, "including the discovery of additional non-outcropping veins."
Drill hole DH405 intercepted 0.96 meters at 628 grams per tonne silver equivalent (g/t Ag Eq) in La Ye North vein, the company said in a release. La Ye was first intercepted by hole DH402 with 0.60 meters at 1,136 g/t Ag Eq.
Outcrop said the drilling at La Ye confirmed the occurrence of multiple parallel and non-outcropping veins, similar to the Aguilar vein system.
"The latest drill results from La Ye continue delivering consistent high-grade silver and gold intercepts," said Guillermo Hernandez, Vice President of Exploration. "These results confirm the vein's remarkable grade potential and highlight the continuity of mineralization down dip. La Ye is rapidly emerging as a cornerstone of the Santa Ana project, reinforcing our confidence in the district's capacity for substantial resource expansion."
In addition, Outcrop said it has started drilling at the highly prospective Los Mangos target, a significant step-out approximately 8 kilometers south of the initial mineral resource and 4 kilometers south of the new discoveries at Aguilar and La Ye.
"This integrated exploration strategy positions Santa Ana for transformative resource growth by unlocking the untapped potential of these promising new zones," Hernandez said.
La Ye is "a high-grade silver-gold vein system with a verified strike length of 350 meters and a potential extension of 500 meters," the company said. Surface samples have returned "exceptional high-grade results," according to Outcrop, with assays up to 2,553 g/t Ag Eq, positioning La Ye as "one of the most promising targets within the Santa Ana project."
Potential for 'Additional Undiscovered Vein Trends'
La Ye runs parallel to the Aguilar vein system, "indicating potential for additional undiscovered vein trends in its vicinity," Outcrop said in its release.
"This potential, combined with its geological continuity and high-grade nature, establishes the La Ye as a key target for near-term drilling and long-term resource development," the company said.
Analyst Stuart McDougall of Research Capital Corp. wrote that the "Santa Ana property contains among what are considered the country's richest historic silver mines, if not in all of Latin America."Outcrop has a National Instrument 43-101 technical report for Santa Ana's maiden resource estimate (MRE) showing an initial indicated resource estimated at 1.23 million tonnes grading 614 g/t Ag Eq, containing 24.2 million ounces (Moz) Ag Eq. Initial inferred resources were estimated at 966,000 tonnes grading 435 g/t Ag Eq, containing 13.5 Moz Ag Eq.
Analyst Stuart McDougall of Research Capital Corp., who gave the stock a Speculative Buy rating with a CA$0.50 per share target price, wrote that the "Santa Ana property contains among what are considered the country's richest historic silver mines, if not in all of Latin America."
This summer, Technical Analyst Clive Maund wrote* that the stock had the "potential to ascend to much higher levels against the background of robust demand for silver and a shortfall of supply that promises to drive silver's price much higher regardless of any big bank manipulation as Eastern markets take precedence."
Outcrop is "regarded as a worthy core holding in any precious metals and especially silver portfolio," he wrote.
The Catalyst: 'Bigger Things' to Come for Silver?
As the most conductive element in nature, silver is essential to the green energy transition in addition to being a precious metal. It's used to coat electrical contacts in computers, phones, cars, and appliances and is also an important element in solar technology.
The silver market "rallied a bit during the early hours of Tuesday," Christopher Wright wrote for FX Empire. "If the market were to continue going higher, I don't see much stopping it from going to the US$32 level, and then possibly even as high as US$35."
"Gold has been rallying, and that typically will drag silver right along with it," Wright wrote. "So, at this point in time, it looks like we are, in fact, trying to continue the overall uptrend in what has been a pretty bullish asset since March of this year. If we were to somehow break above the US$35 level, and I don't expect that to happen in the short term, that could lead to much bigger things."
Mordor Intelligence has said silver is expected to register a compound annual growth rate (CAGR) of more than 5% between 2024 and 2029.
Newsletter editor Brien Lundin encouraged investors not to get discouraged, as any price drop-off is temporary, he said.
Streetwise Ownership Overview*
Outcrop Silver & Gold Corp. (OCG:TSX.V; OCGSF:OTCQX; MRG1:DB)
*Share Structureas of 11/26/2024Source: RefinitivBased on silver's charts, Ron Struthers of Struthers Resource Stock Report also predicted a major run-up in the silver price.
"Back in April or early May, I highlighted the breakout from a cup and handle formation and [that] that would lead to a major upside move. This is now confirmed," he wrote on Oct. 23.
Ownership and Share Structure
Refinitiv provided a breakdown of the company's ownership and share structure, where management and insiders own approximately 7.53% of the company.
According to Refinitiv, Executive Chairman Ian Slater owns 6.82%, Director Joseph Hebert owns 0.65%, Director Kevin Nishi owns 0.03%, and President, Chief Executive Officer, and Director Ian Harris owns 0.02%.
2176423 Ontario Ltd. owns 21.42% of the company as a strategic investor, stated Refinitiv. Institutional investors own 0.06%. The rest is retail.
The company has 297.7million shares outstanding and 211.51 million free float traded shares, while the company has a market cap of CA$69.96 million and trades in a 52-week range between CA$0.13 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 Ouctrop Silver & Gold Corp.Steve Sobek 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.
* Disclosure for quotes from the Clive Maund article published on July 3, 2024
For the quoted article (published on July 3), the Company has paid Street Smart, an affiliate of Streetwise Reports, between US$1,500 and US$2,250.Author Certification and Compensation: [Clive Maund of clivemaund.com] is being compensated as an independent contractor by Street Smart, an affiliate of Streetwise Reports, for writing the article quoted. Maund received his UK Technical Analysts' Diploma in 1989. The recommendations and opinions expressed in the article accurately reflect the personal, independent, and objective views of the author regarding any and all of the designated securities discussed. No part of the compensation received by the author was, is, or will be directly or indirectly related to the specific recommendations or views expressedClivemaund.com Disclosures
The quoted article represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks cannot be only be construed as a recommendation or solicitation to buy and sell securities.