Insightful panel discussion from PDAC 2024 titled "The Rediscovery of the Discovery" regarding what makes commodities so attractive, sector trends and the future outlook of the mining industry with three leaders in the mining space including Outcrop Silver & Gold's (OCG.v OCGSF) Ian Harris: https://youtu.be/vkUMjvbK0ho?si=8Gk6JcYtd9rgWxen In the mining sector, getting the market's attention is a huge challenge these days as discussed by, however, this provides a significant opportunity for investors to get in early.
Outcrop Silver & Gold's Santa Ana Project
Boasting one of the highest grade undeveloped primary silver projects in the world amid the growing demand for silver, Outcrop Silver & Gold's (OCG.v OCGSF) Santa Ana High-Grade Silver Deposit has a 37.5M oz resource grading over 600 g/t AgEq comprised of just 7 of 22 known and tested veins.
As spotlighted in the latest Crux Investor, OCG provides a significant opportunity within the precious metals market with an investment thesis that underscores several key points:
-
One of the highest grade primary silver projects globally with 37 Moz at 614 g/t AgEq and strong potential to grow to 100+ Moz
-
Excellent metallurgy enables multiple production options from concentrate to dor with 93%+ recoveries and without cyanide
-
Pilot mine strategy to demonstrate profitability and de-risk project while keeping valuation as an explorer-developer
-
Colombia is a favorable, low-cost jurisdiction with government support for mining to diversify from oil & coal
-
Highly leveraged to rising silver price with 75% of resource value from silver
Proving the Metallurgy and Payability
Significantly, OCG's metallurgical testing shows the silver sulfide ore can produce a high-grade concentrate with 93%+ recovery using only flotation.
In successfully producing silver directly from concentrate without cyanide, this demonstrates the potential for profitable on-site production of silver dore which pays out 98-99% of the silver value compared to 60-70% when sold as lead or zinc concentrate, providing a significant economic advantage.
Low-Risk Path to Production & Resource Expansion
OCG's primary value creation strategy is to continue aggressive exploration to expand the current resource. As the trend shows significant potential to reach 100M oz, OCG plans to take big step-outs to make new discoveries along 20km prospective.
With the potential to be a gamechanger in demonstrating the economic viability of Santa Ana in the near term, OCG's secondary strategy is to build a small-scale pilot mine as starting small and scaling up over time significantly de-risks the project from both a technical and permitting perspective.
This is viable as the high-grade nature of the deposit enables small-scale pilot mine to demonstrate permitting, production and economics with lower risk.
However, OCG wants to keep initial mine very small to avoid being valued as a producer rather than an explorer-developer growing the resource. Attesting to its viability, this model was used to build some of the biggest mines in Colombia.
Silver's Macro Opportunity
Amid the world starting to wake up to the importance of critical metals in the clean energy transition, OCG is highly leveraged to a rising silver price with 75% of its resource value in silver.
Being advanced by a highly disciplined and seasoned professional team with decades of experience in Colombia, OCG is focus on value creation amid developing one of the few high-grade primary silver development projects in the world amid the global push for net zero emissions driving silver's growth.
As the current resource is on less than 10% of the property and most of the resource veins remain open at depth and laterally, with less than 25% of the concession area mapped, substantial discovery potential remains at the project.
OCG's right combination of high-grade silver, excellent metallurgy and unique development approach to create significant value for shareholders amid difficult market environment for precious metal companies.
Posted on Behalf of Outcrop Silver & Gold Corporation.