Amid its extensive drill program focused on expanding the resource with two rigs currently turning, Outcrop Silver & Gold (OCG.v OCGSF) poses a unique opportunity with an initial resource of 37 million ounces at one of the world's highest-grade silver projects, the Santa Ana Project, as detailed by CEO Ian Harris at the Metals Investor Forum late last month: https://www.youtube.com/watch?v=YKbp08T7uAk
Silver Market and Demand Drivers
- Key Demand: Silver demand for solar panels grew by 60% last year, now accounting for 20% of total silver demand.
- Supply Constraints: An estimated billion-ounce silver supply deficit has accumulated, equating to one year’s global supply, but few primary silver mines are available to meet this demand.
Santa Ana Project Overview
- Location: Santa Ana, Colombia, one of the few historic silver districts, previously a major colonial-era silver producer.
- Resource: Initial resource of 37 million ounces of silver, among the highest-grade silver deposits globally.
- Composition: 73% silver, with gold as the primary byproduct; free from lead and zinc, which simplifies processing.
Exploration and Expansion Strategy
- Drilling Focus: Recently resumed drilling to explore new veins and add to existing resources; successfully discovered high-grade ore at veins such as Aguilar and Jenis.
- Future Targets: Plans to explore further south and develop new drilling targets to expand the overall resource.
Metallurgical Advantages
- Mineralogy: 88% of silver is silver sulfide, enabling high recovery rates.
- Recovery: Achieves 96% recovery for silver and 98.5% for gold with flotation and gravity separation, producing high-grade concentrates.
- Direct Smelting Potential: High-grade concentrate quality could allow for direct smelting, increasing payout rates up to 98.9%.
Community Engagement and ESG Focus
- Local Involvement: The project has strong support from local communities and regional governments, with symbols of pride displayed in nearby towns.
- ESG Approach: Emphasis on building long-term, meaningful relationships with the community, integrating sustainable practices from the outset.
Management and Strategic Partnerships
- Leadership Team: Includes experienced figures in silver mining, such as the VP Exploration from Silver Corp and the president of Women in Mining Colombia.
- Major Shareholders: Eric Sprott serves as the cornerstone shareholder, supporting the project’s long-term potential.
Investment and Market Potential
- Silver Price: The project’s valuation shows significant leverage to silver price movements.
- Path to Value Creation: The high-grade, high-recovery deposit positions Santa Ana as one of the few primary silver projects, providing strong potential for shareholder value and exposure to future silver price increases.
For more information, refer to this deep dive: https://www.reddit.com/r/ValueInvesting/comments/1g9wndh/outcrop_silver_gold_ocgv_ocgsf_reports_highgrade/
Posted on Behalf of Outcrop Silver & Gold Corporation.