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AbraSilver Announces Additional High-Grade Drill Results in the Oculto Northeast Zone; Near-Surface Intercepts Include 43.5 Metres Grading 196 g/t AgEq (2.8 g/t AuEq)

Near-Surface, Intercept Includes Bonanza Silver Grades of 1,423 g/t AgEq (20.3 g/t AuEq) over 4m

Toronto – August 11, 2022: AbraSilver Resource Corp. (TSX.V: ABRA; OTCQX: ABBRF) ("AbraSilver" or the “Company”) is pleased to announce assay results from three new diamond drill holes from the Phase II drill program located on the Company’s wholly owned Diablillos property in Salta Province, Argentina.

All three holes were located in the Oculto Northeast zone.  Key takeaways include:

  • DDH 22-021 intersected a near-surface, high-grade silver interval of 17m at 365 g/t AgEq (5.2 g/t AuEq - comprised of 355 g/t Ag and 0.14 g/t Au) in oxides starting at a down-hole depth of only 53 metres. This included a bonanza-grade 5m interval of 1,037 g/t AgEq (14.8 g/t AuEq – comprised of 1,022 g/t Ag & 0.21 g/t Au);
  • DDH 22-022 intersected multiple zones of high-grade gold mineralization, including a broad intercept of 34m at 156 g/t AgEq (2.2 g/t AuEq - comprised of 18 g/t Ag and 1.98 g/t Au);
  • DDH 22-024 intersected near-surface, high-grade silver mineralization including a broad intercept of 43.5m grading 196 g/t AgEq (2.8 g/t AuEq - comprised of 188 g/t Ag and 0.11 g/t Au) in oxides starting at a down-hole depth of only 68.5 metres. The hole included a bonanza-grade interval of 4m at 1,423 g/t AgEq (20.3 g/t AuEq – comprised of 1,410 g/t Ag & 0.18 g/t Au);

John Miniotis, President and CEO, commented, “We are very encouraged by the numerous near-surface, high-grade silver results intersected in the Northeast zone by these latest drill holes, as well as the underlying high-grade gold intercepts. These results will be included in the updated Mineral Resource estimate which will be announced later this year. It is evident that the multiple zones of mineralisation being encountered in the Northeast zone should add substantially to our overall Mineral Resource estimate which continues to grow rapidly.”

Dave O’Connor, Chief Geologist, commented, “These new results, drilled in the Oculto Northeast zone, help clearly demonstrate the continuity of numerous mineralized breccia zones in this highly prospective area. What is particularly encouraging is the newly discovered shallow, high-grade silver mineralization encountered in holes 21 and 24, which is expected to allow for a substantial expansion of the conceptual open pit towards the northeast.

Furthermore, these latest intercepts are located over 1km along strike from the newly discovered Southwest zone, announced on August 3rd, highlighting that we are successfully expanding high-grade mineralisation in both directions beyond the current Oculto Mineral Resource and along multiple breccia zones.”

The latest assay result highlights are summarized in Table 1 below.

Table 1 – Diablillos Drill Result Highlights
(Intercepts greater than 2,000 gram-metres AgEq shown in bold text):

Drill Hole   From
(m)
To
(m)
Type Interval
(m)
Ag
g/t
Au
g/t
Cu
%
AgEq1
g/t
AuEq1
g/t
DDH-22-021   53 70 Oxides 17.0 355.2 0.14 - 365.0 5.21
DDH-22-021 Includes 56 61 Oxides 5.0 1,022.4 0.21 - 1,037.1 14.82
DDH-22-021   77 87 Oxides 10.0 79.3 0.65 - 124.8 1.78
DDH-22-021 Includes 85 86 Oxides 1.0 438.2 2.31 - 599.9 8.57
DDH-22-021   101.5 111 Oxides 9.5 24.8 0.72 - 75.2 1.07
DDH-22-021   119 131 Oxides 12.0 24.0 0.10 - 31.0 0.44
DDH-22-021   140 141 Oxides 1.0 69.4 17.26 - 1,277.6 18.25
DDH-22-021   212 221 Oxides 9.0 11.0 0.80 - 67.0 0.96
DDH-22-021   243 248 Oxides 5.0 20.4 1.23 - 106.5 1.52
DDH-22-021   260 264 Oxides 4.0 72.8 0.86 - 133.0 1.90
DDH-22-021   305 306 Sulphides 1.0 66.8 1.26 2.49 359.9 5.14
DDH-22-022   115 119 Oxides 4.0 5.4 1.54 - 113.2 1.62
DDH-22-022   243 245 Oxides 2.0 26.1 2.75 - 218.6 3.12
DDH-22-022   272 306 Oxides 34.0 17.5 1.98 - 156.1 2.23
DDH-22-022 Includes 275 285 Oxides 10.0 26.1 3.39 - 263.4 3.76
DDH-22-022   309 310 Oxides 1.0 23.0 3.54 - 270.8 3.87
DDH-22-022   314 315 Oxides 1.0 5.6 18.61 - 1,308.3 18.69
DDH-22-022   333 336 Oxides 3.0 17.8 5.69 - 416.1 5.94
DDH-22-022 Includes 334 335 Oxides 1.0 17.5 16.00 - 1,137.5 16.25
DDH-22-022   356 359 Oxides 3.0 17.0 1.65 - 132.5 1.89
DDH-22-022   377 378.5 Oxides 1.5 0.9 2.13 - 150.0 2.14
DDH-22-022   386 388 Sulphides 2.0 24.4 3.86 0.61 344.8 4.93
DDH-22-022   391 393 Sulphides 2.0 8.4 0.79 1.22 164.1 2.34
DDH-22-024   68.5 112 Oxides 43.5 187.8 0.11 - 195.5 2.79
DDH-22-024 Includes 105 112 Oxides 7.0 902.5 0.31 - 924.2 13.20
DDH-22-024 Includes 105 109 Oxides 4.0 1,410.2 0.18 - 1,422.8 20.33
DDH-22-024   122 170 Oxides 48.0 35.0 0.88 - 96.6 1.38
DDH-22-024 Includes 141 170 Oxides 29.0 42.0 1.38 - 138.6 1.98
DDH-22-024   176 195 Oxides 19.0 31.8 1.42 - 131.2 1.87
DDH-22-024   208 212 Oxides 4.0 29.8 1.78 - 154.4 2.21
DDH-22-024   236 238 Oxides 2.0 42.1 1.52 - 148.5 2.12
DDH-22-024   243 245 Oxides 2.0 32.8 1.07 - 107.7 1.54
DDH-22-024   260 275 Oxides 15.0 44.2 3.21 - 268.9 3.84

Note:  All results in this news release are rounded. Assays are uncut and undiluted. Widths are drilled widths, not true widths. True widths are estimated to be approximately 80% of the interval widths.
1AgEq & AuEq calculations for reported drill results are based on USD $1,750/oz, $25.00/oz Ag & $3.00/lb Cu. The calculations assume 100% metallurgical recovery and are indicative of gross in-situ metal value at the indicated metal prices.

Discussion of Drill Hole Results

Hole DDH 22-021 intersected numerous zones of high-grade oxide mineralisation, commencing with a near-surface, high-grade silver zone consisting of 17 metres grading 355 g/t Ag and 0.14 g/t Au starting from a down hole depth of only 53 metres. The hole was stopped in sulphide mineralization and encountered a high-grade copper and gold interval of 67 g/t Ag, 1.26 g/t Au and 2.49% Cu over 1 metre, at a down-hole depth of 305 metres. 

Hole DDH 22-022 was drilled outside of the proposed open pit shell and successfully intersected multiple zones of high-grade gold mineralization.  The highlight intercept consisted of 34 metres grading 18 g/t Ag and 1.98 g/t Au, including 10 metres of 26 g/t AG and 3.39 g/t Au.  The hole was terminated when it reached sulphide mineralization, with high-grade copper and gold intercepts, consisting of 2 metres at 24 g/t Ag, 3.72 g/t Au and 0.61% Cu, and an additional 2 metres grading 8 g/t Ag, 0.79 g/t Au and 1.22% Cu. 

Hole DDH 22-024 intersected multiple zones of high-grade silver and gold mineralization, including 43.5 metres grading 188 g/t Ag and 0.11 g/t Au, starting from a down hole depth of only 68.5 metres. The hole intersected numerous broad zones of high-grade mineralization which is expected to help further expand the Mineral Resources in this area.  

Mineralisation in the Northeast zone is controlled by several structures hosting siliceous breccias, including the North Breccia Zone, the West Breccia Zone and the Main breccia Zone, see Figure 1 below. These mineralised zones are open towards the northeast where historical drilling indicates that they have considerable strike extent. The structures are particularly well mineralised where the breccias coalesce and these areas represent our main drill targets for higher grade mineralization. The newly discovered shallow silver zone also represents a prime exploration target as this is expected to allow for an expansion of the conceptual open pit.

Figure 1 – Plan View of Drill Results

Figure 2 – Cross Section (Looking Northeast) with Highlighted Intercepts in Hole DDH 22-021

Figure 3 – Cross Section (Looking Northeast) with Highlighted Intercepts in Hole DDH 22-022

Figure 4 – Cross Section (Looking Northeast) with Highlighted Intercepts in Hole DDH 22-024

Collar Data

Hole Number UTM Coordinates Elevation Azimuth Dip Depth (m)
DDH 22-021 E720374 N7199763 4,257 180 -60 400
DDH 22-022 E720600 N7199761 4,293 180 -60 396
DDH 22-024 E720348 N7199648 4,263 0 -60 302

About Diablillos

The 80 km2 Diablillos property is located in the Argentine Puna region - the southern extension of the Altiplano of southern Peru, Bolivia, and northern Chile - and was acquired from SSR Mining Inc. by the Company in 2016.  There are several known mineral zones on the Diablillos property, with the Oculto zone being the most advanced with over 100,000 metres drilled to date.  Oculto is a high-sulphidation epithermal silver-gold deposit derived from remnant hot springs activity following Tertiarty-age local magmatic and volcanic activity. Comparatively nearby examples of high sulphidation epithermal deposits include: Yanacocha (Peru); El Indio (Chile); Lagunas Nortes/Alto Chicama (Peru) Veladero (Argentina); and Filo del Sol (Argentina).

The most recent Mineral Resource Estimate for the Oculto Deposit is shown in Table 2 below:

Table 2 - 2021 Mineral Resource Estimate for the Oculto Deposit, Diablillos Project

Category Tonnage
(000 t)
Ag
(g/t)
Au
(g/t)
Contained Ag
(000 oz Ag)
Contained Au
(000 oz Au)
Measured 8,235 124 0.98 32,701 259
Indicated 32,958 54 0.70 57,464 744
Measured & Indicated 41,193 68 0.76 90,165 1,002
Inferred 2,884 34 0.70 3,181 66

Effective September 8, 2021. The Mineral Resource estimate and supporting Technical Report are N.I. 43-101 compliant. Full details of the Mineral Resources are available in a Company news release dated September 15, 2021.  For additional information please see Technical Report on the Diablillos Project, Salta Province, Argentina, dated October 28, 2021, completed by Mining Plus, and available on www.SEDAR.com.

QA/QC and Core Sampling Protocols

AbraSilver applies industry standard exploration methodologies and techniques, and all drill core samples are collected under the supervision of the Company’s geologists in accordance with industry practices. Drill core is transported from the drill platform to the logging facility where drill data is compared and verified with the core in the trays. Thereafter, it is logged, photographed, and split by diamond saw prior to being sampled. Samples are then bagged, and quality control materials are inserted at regular intervals; these include blanks and certified reference materials as well as duplicate core samples which are collected in order to measure sample representivity. Groups of samples are then placed in large bags which are sealed with numbered tags in order to maintain a chain-of-custody during the transport of the samples from the project site to the laboratory.

All samples are received by the SGS offices in Salta who then dispatch the samples to the SGS preparation facility in San Juan. From there, the prepared samples are sent to the SGS laboratory in Lima, Peru where they are analyzed. All samples are analyzed using a multi-element technique consisting of a four acid digestion followed by ICP/AES detection, and gold is analyzed by 50g Fire Assay with an AAS finish. Silver results greater than 100g/t are reanalyzed using four acid digestion with an ore grade AAS finish.

Qualified Persons

David O’Connor P.Geo., Chief Geologist for AbraSilver, is the Qualified Person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects, and he has reviewed and approved the scientific and technical information in this news release.

About AbraSilver

AbraSilver is a well-funded silver-gold focused advanced-stage exploration company. The Company is rapidly advancing its 100%-owned Diablillos silver-gold project in the mining-friendly Salta province of Argentina, which has a current Measured and Indicated Mineral Resource of over 90 million ounces of silver and 1.0 million ounces of gold.  The updated PEA study completed in November 2021 demonstrates that Diablillos has the potential to be a highly-economic project. The Company is led by an experienced management team and has long-term supportive shareholders including Mr. Eric Sprott.  In addition, AbraSilver owns a portfolio of earlier-stage copper-gold projects including the La Coipita copper-gold project in the San Juan province of Argentina. AbraSilver is listed on the TSX-V under the symbol “ABRA” and in the U.S. under the symbol “ABBRF”.

For further information please visit the AbraSilver Resource website at www.abrasilver.com, our LinkedIn page at AbraSilver Resource Corp., and follow us on Twitter at www.twitter.com/abrasilver

Alternatively please contact:

John Miniotis, President and CEO
[email protected]
Tel: +1 416-306-8334

Cautionary Statements

This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. All statements that address future plans, activities, events or developments that the Company believes, expects or anticipates will or may occur are forward-looking information. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release

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