Silver Company Finds Major Boost at Colombian Project
Outcrop Silver & Gold Corp. (OCG:TSX.V; OCGSF:OTCQX; MRG1:DB) reported a 20% grade lift and near-total metal recovery at Santa Ana during a sensor-based ore sorting test conducted on mineralized material from the La Porfia vein, part of the high-grade Santa Ana primary silver project in Colombia, adding a third drill rig to expand its high-grade footprint. Read more about how the company's ore sorting breakthrough and expanded drilling campaign are unlocking new value at one of Colombia's richest silver districts.
Outcrop Silver & Gold Corp. (OCG:TSX.V; OCGSF:OTCQX; MRG1:DE) has reported notable technical advancements at its Santa Ana silver project in Colombia, highlighting both improved ore processing potential and an expanded exploration campaign. On June 17, the company announced the results of a sensor-based ore sorting test on material from the La Porfia vein at Santa Ana. Conducted by Steinert Latinoamericana in Brazil, the test utilized a STEINERT KSS CLI XT sorter equipped with X-ray transmission (XRT), 3D laser profiling, and RGB optical sensors. The sorted product demonstrated a 20% increase in silver-equivalent (AgEq) grade while rejecting 17% of the coarse feed as waste, and retaining 99.2% of silver and 99.7% of gold.
In the news release, President and CEO Ian Harris described the results as "exceptional," noting that the technology could enable low-impact pre-concentration, reduce operating costs, and potentially shrink the environmental footprint of the project. The ore sorting trial processed approximately 250 kilograms of mineralized and barren material collected from underground workings and prepared into two size fractions (25-75 mm and 12-25 mm) for testing. Assays were completed by SGS-Geosol laboratories in Brazil.
Santa Ana's maiden resource estimate, outlined in April 2023 NI 43-101 report by AMC Mining Consultants, includes an indicated resource of 24.2 million ounces silver equivalent at 614 grams per tonne silver equivalent (g/t AgEq) and an inferred resource of 13.5 million ounces at 435 grams per tonne silver equivalent (g/t AgEq). These resources span seven vein systems across a 27,697-hectare property in Colombia's Mariquita District.
A week later, on June 24, Outcrop Silver announced it had added a third drill rig at Santa Ana. The new rig will support expanded discovery drilling outside of the current 24,000-meter campaign, which has already reached the halfway point with over 12,300 meters drilled 107% of forecast. The campaign remains fully funded, on time, and on budget. The added capacity will allow the company to test new targets along Santa Ana's fully permitted 17-kilometer corridor, including historically significant zones such as Frias.
The move follows Outcrop Silver's success in securing 170 land-use agreements in 2025 alone, surpassing the total agreements signed during all of 2024. These agreements facilitate continued exploration through expanded access for soil sampling, mapping, and drill platform development.
Momentum Builds in the Silver Market
According to a June 24 report by Christopher Lewis, the silver market showed resilience despite an early downturn triggered by geopolitical developments. He noted that silver had rebounded from a drop to US$35.50 and described the market as appearing "bullish more than anything else." While acknowledging silver's dual nature as both a safety asset and an industrial metal, he emphasized its strength in current trading patterns and added that there appeared to be "no real reason to short this market."
Taylor Combaluzier of Red Cloud Securities also addressed silver's valuation in a June 30 commentary. He observed that the metal continued to lag gold, with the gold-to-silver ratio sitting at approximately 91:1 and the silver price at around US$36 per ounce. Combaluzier wrote, "Although the silver price is influenced by many of the same drivers as gold, it typically lags the gold price and has greater price volatility largely driven by its smaller market size." He added that silver was "still inexpensive compared to gold," citing a historical ratio of 70:1 and estimating that silver was priced at a 23% discount relative to gold. He calculated that the current gold price implied a silver value of approximately US$47.40 per ounce.
On the same day, Brett Eversole emphasized silver's relative performance in 2025 in a sector review. He reported that silver had gained 26% year-to-date, trailing only slightly behind gold's 30% increase. Eversole highlighted the elevated gold-to-silver ratio and wrote, "The metal's price recently hit one of its highest levels ever compared with silver. And according to history, that means silver is set to soar from here." He supported his analysis with historical data showing that after similar setups, silver had historically posted one-year returns averaging nearly 40%.
A sector recap published June 30 by VBL underscored the strength of silver's market position. The report noted that silver had just recorded "its second-highest quarterly close in history" and emphasized that this was "the highest half-year close for silver of all time." The analysis characterized the performance as unusual during periods of market suppression and suggested that this milestone could attract attention from macro funds that previously moved into gold.
Analyst Highlights Discovery Focus and Expansion Strategy
On June 18, Research Capital analyst Stuart McDougall reaffirmed a "Speculative Buy" rating and CA$0.50 target price for Outcrop Silver & Gold Corp., citing strong results from recent metallurgical tests and drilling at the Santa Ana project. He highlighted a 19 to 20 percent lift in grades and minimal metal loss from sensor-based ore sorting at La Porfia, calling the combined recovery performance "an exceptional project in the making."
McDougall also noted recent high-grade intercepts at Guadual and Los Mangos, which are not yet included in the resource estimate of 27 million ounces of silver and 140,000 ounces of gold. He based his valuation on a 75 percent expansion in both metals, using US$3 per ounce for silver and US$75 per ounce for gold.
On June 24, Jeff Clark of The Gold Advisor provided a positive assessment of Outcrop Silver following the company's announcement that it had added a third drill rig at its Santa Ana project in Colombia. Clark described the move as "compelling" and noted that the additional rig would be "dedicated exclusively to new discovery drilling," highlighting that this expansion went beyond the company's fully funded, on-time, and on-budget 24,000-meter drill program. According to Clark, the expansion was driven by "exceptional results in resource drilling to date" and the company's success in securing 170 new land-use agreements in the first half of the year, which exceeded the total agreements signed during all of 2024. He emphasized that this progress was a testament to "strong community relationships and local team leadership."
Clark quoted CEO Ian Harris, who stated, "Adding a third rig reflects the strength of our results to date and allows us to accelerate discovery drilling beyond the current resource update. With growing local support and expanding access, we're putting ourselves in position to deliver value well into the future." Clark added that the company's 2025 exploration strategy aims to show "a clear path to substantially expand the resource," and he viewed the anticipated Q1 2026 resource update as a significant milestone. He concluded by describing Outcrop Silver as an "overweight position" in his portfolio and characterized it as a long-term hold in a bullish silver market, noting that dips in the stock presented buying opportunities.
What's Driving the Next Phase at Santa Ana
According to Outcrop Silver's April 2025 investor presentation, the Santa Ana project is underpinned by what the company refers to as the "Silver Trifecta": high-grade silver resources, high metallurgical recoveries, and high-quality precious metal concentrate. The indicated resource contains 614 g/t AgEq, including 446 g/t silver and 2.3 g/t gold. Metallurgical tests support 96.3% silver and 98.5% gold recovery, with concentrate grades reaching 4,187 g/t silver and 52.1 g/t gold.
The 2025 exploration plan is focused on resource expansion through its 24,000-meter drill program. Discoveries made in 2024 and 2025 at Aguila, Jimenez, Los Mangos, Guadual, and La Ye are among the new veins being evaluated for inclusion in an updated mineral resource estimate, targeted for the first quarter of 2026. The company notes its drilling strategy is aimed at defining additional high-grade zones across multiple targets within the district's extensive 30-kilometer mineralized trend.
Streetwise Ownership Overview*
Outcrop Silver & Gold Corp. (OCG:TSX.V; OCGSF:OTCQX; MRG1:DE)
*Share Structureas of 7/3/2025Source: RefinitivOutcrop Silver's shareholder base includes prominent investor Eric Sprott, who owns 21% of the company. As of April 2025, the company held approximately CA$9 million in cash, with a fully diluted share count of 489.8 million and a market capitalization of CA$79 million.
With an established resource, ongoing drilling success, and recent processing innovations, the Santa Ana project continues to position itself as a high-grade silver development opportunity in Latin America.
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.
Eric Sprott. owns 21% of the company as a strategic investor, stated Refinitiv. Institutional investors own 0.22%. The rest is retail.
The company has 376.2million shares outstanding and 276.2 million free float traded shares, while the company has a market cap of CA$92 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 CorpJames 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.