-- Published: Tuesday, 19 June 2018 | Print | Disqus
By Nicholas LePan, GoldSeek.com
Abraplata Resource Corp. (TSX-V: ABRA) acquired the Diabillos silver-gold project in Salta province, Argentina from SSR Mining (TSX: SSRM) at the bottom of the mining cycle in 2016. The project includes the Oculto Deposit which is one of nine mineral occurrences located on the Diablillos Property.
The Diablillos project already has a substantial mineral resource due to 87,711 metres of historical drilling. The current Indicated Resource for the Oculto Deposit, as estimated in April 2018, amounts to 27.1 million tonnes at 93.1g/t Ag and 0.84g/t Au containing 80.9 million ounces Ag and 732k oz Au (ie, 1.8 million oz AuEq or 139 million oz AgEq).
The Occulto deposit formed the bulk of the basis for the recent Preliminary Economic Assessment together with the smaller Fantasma satellite deposit; however, recent drilling is revealing the large potential of the property package with new zones of mineralization.
The presence of these zones opens the potential for additional high-grade gold mineralization both below as well as lateral to the currently defined Oculto silver-gold deposit.
“These breccias represents a new satellite prospect that has the potential to dramatically expand the gold resource in the Oculto deposit and could improve the already robust economics disclosed in our recent Diablillos PEA report,” commented Willem Fuchter, President and CEO of AbraPlata.
“It also begs the question of whether Diablillos will ultimately prove to be a primary silver deposit or a gold deposit with a silver cap. In order to answer this question, we are planning to conduct approximately 2,000 metres of drilling.”
The company is currently completing a financing for $1.5 million to fund further drilling at these new zones with a preliminary exploration drill program of 2,000 metres. The holes are designed to intersect the breccia bodies at a depth of 100 metres to 150 metres, which is the shallowest known level of gold mineralization in other parts of the Diablillos deposit.
The company stated that if these holes intersect significant gold mineralization as expected, a substantial drilling program will be required to fully define the new resources.
The company’s objective is to deliver a fully permitted, construction-ready project by the end of 2019. This means that it needs to complete a pre-feasibility study by the end of 2018, which will require additional engineering work, further drilling at Oculto and its satellite deposits, as well as continuing with environmental work.
The company recently outlined a preliminary economic study that outlined a 6,000 tonne per day processing facility with annual average production of 9.8 million ounces of silver equivalent with a potential life of mine of eight years. This is solely based on drilling completed and does not include any exploration potential.
With shares trading near six-month lows, silver prices poised for a rally and with several important catalyst events on the horizon such as drilling and the delivery of a pre-feasibility study, AbraPlata’s Diabillos is showing potential.
According to the company’s recent corporate presentation, the market capitalization values the company at $0.07 (USD) per ounce AgEq, while comparable companies trade at four times this valuation.
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-- Published: Tuesday, 19 June 2018 | E-Mail | Print | Source: GoldSeek.com