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AbraSilver Reports Multiple Wide Silver Drill Intercepts, Including 103 Metres Grading 139 g/t Silver Near-Surface in New Southwest Zone at Diablillos

Toronto – December 15, 2022: AbraSilver Resource Corp. (TSX.V: ABRA; OTCQX: ABBRF) (“AbraSilver” or the “Company”) is pleased to announce new assay results from five diamond drill holes from the ongoing 15,000 metre Phase III exploration drilling program on the Company’s wholly-owned Diablillos property in Salta Province, Argentina (“Diablillos” or the “Project”).

Drilling activity remains focused on the recently discovered Southwest zone (JAC target) which is located several hundred metres southwest of the conceptual open pit that constrains the current Mineral Resource estimate on the main Oculto deposit.  Key takeaways from the latest drill results include:

  • Hole DDH 22-060 intersected a broad zone of silver mineralization in oxides, grading 40 metres grading 203 g/t Ag from 114 to 154 metres, including 15 metres at 483 g/t Ag. 
  • DDH 22-061 intersected a wide zone of silver mineralization in oxides consisting of 103 metres grading 139 g/t Ag starting at a down-hole depth of only 65 metres, including 9.0 metres grading 477 g/t Ag and 0.23 g/t Au.
  • DDH 22-062 intersected 51 metres grading 169 g/t Ag and 0.20 g/t Au from 119 to 170 metres, including 7.5 metres with 507 g/t Ag and 0.22 g/t Au. Drilling also encountered 45 metres grading 1.34% Cu and 33 g/t Ag in the underlying sulphide zone.  
  • DDH 22-063 encountered multiple zones of silver mineralization, including 33 metres grading 143 g/t Ag starting from only 56m down-hole.  Drilling also intersected 34.0 metres grading 119 g/t Ag and 0.08 g/t Au starting at a down-hole depth of 135 metres. 

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

Table 1 – Diablillos Drill Results in Southwest Zone
(Intercepts greater than 2,000 gram-metres Ag shown in bold text):

Drill Hole   From
(m)
To
(m)
Type Interval
(m)
Ag
g/t
Au
g/t
Cu
%
DDH-22-059   111.0 122.0 Oxides 11.0 129.8 - -
DDH-22-060   114.0 154.0 Oxides 40.0 203.4 - -
DDH-22-060 Includes 135.0 150.0 Oxides 15.0 483.1 - -
DDH-22-061   65.0 168.0 Oxides 103.0 138.7 - -
DDH-22-061 Includes 149.0 158.0 Oxides 9.0 477.1 0.23 -
DDH-22-062   70.5 86.0 Oxides 15.5 64.4 - -
DDH-22-062   102.0 115.0 Oxides 13.0 113.3 0.12 -
DDH-22-062   119.0 170.0 Oxides 51.0 169.4 0.20 -
DDH-22-062 Includes 148.5 156.0 Oxides 7.5 506.8 0.22 -
DDH-22-062   170.0 215.0 Sulphides 45.0 32.8 - 1.34
DDH-22-063   56.0 85.0 Oxides 33.0 143.4 - -
DDH-22-063   94.0 112.0 Oxides 18.0 102.6 - -
DDH-22-063   115.0 122.0 Oxides 7.0 84.9 - -
DDH-22-063   127.0 131.0 Oxides 4.0 120.0 0.55 -
DDH-22-063   135.0 169.0 Oxides 34.0 118.6 0.08 -
DDH-22-063 Includes 135.0 139.0 Oxides 4.0 333.4 0.56 -

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.

John Miniotis, President and CEO, commented, “Our ongoing drilling program at the new JAC target continues to intercept extensive near-surface, high-grade silver mineralization. Both drill rigs are rapidly advancing our understanding of this exciting exploration target in preparation for announcing a maiden Mineral Resource estimate for this new zone in H1/2023, followed by a Pre-Feasibility Study on the entire Diablillos project.”

Dave O’Connor, Chief Geologist, commented, “Drilling at the JAC target continues to encounter high-grade silver mineralization in oxides at relatively shallow depths.  Moreover, hole DDH 22-062 intersected a broad zone of copper sulphide mineralization with associated silver at the base of the oxide zone. We believe this may represent a feeder structure up which mineralization migrated into the JAC target and will be an aid to understanding the geology of this new zone.  Importantly, mineralization ascended up these steeply dipping, structurally controlled feeders from an underlying intrusion (porphyry) and then migrated laterally along permeability horizons. As such, the feeders are of primary importance in understanding the system and consequently in exploration for Mineral Resources.”

Figure 1 – Diablillos Plan View of Drill Results & Exploration Targets

Figure 1

Figure 2 below displays a long-section of the latest drill results from the Southwest zone.

Figure 2 – Long Section Through Newly Announced Drill Holes in JAC Target

Figure 2

Exploration Update

Systematic grid drilling of the JAC target continues to progress rapidly.  To date, assay results have been announced for a total of 14 holes in the JAC target, with all holes returning silver mineralization in oxides at reasonably shallow depths. The JAC target remains open in all directions, with a total of 30 holes having now been drilled in this new zone and assays currently pending for 16 holes. 

The JAC target was discovered by drilling a linear magnetic anomaly interpreted correctly as resulting from the introduction of mineralizing hydrothermal fluids. A new detailed ground magnetic survey is currently being conducted at site to further expand the magnetic coverage, and is expected to generate additional exploration targets on other potentially mineralized zones in the southwestern part of the project. Any new targets will be evaluated as part of the ongoing drill program.

To date, several of the holes drilled in the JAC Zone have intersected underlying sulphide mineralization which is interpreted as representing steeply dipping feeder structures up which mineralizing fluids ascended from an underlying porphyry intrusion source.  A CSAMT survey has been commissioned over the JAC target and the Oculto deposit to attempt to identify a resistivity-conductivity contrast which may be caused by an underlying mineralized porphyry.

At our La Coipita project, in the San Juan province of Argentina, the Company plans to drill three additional deep holes as part of a 3,600-metre drill campaign scheduled to commence by the end of January 2023.  The drilling is targeting the central potassic zone and the progenitor porphyry intrusion which the Company believes may contain higher grade copper and associated molybdenum mineralization.

Collar Data

Hole Number UTM Coordinates Elevation Azimuth Dip Depth (m)
DDH 22-059 E719622 N7198714 4,163 0 -60 147
DDH 22-060 E719723 N7198854 4,171 0 -58 182
DDH 22-061 E719601 N7198739 4,160 350 -59 200
DDH 22-062 E719698 N7198802 4,169 359 -59.5 236
DDH 22-063 E719649 N7198817 4,166 0 -60 191

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 120,000 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:

Table 2 - Oculto Mineral Resource Estimate – As of October 31, 2022

Category Tonnage
(000 t)
Ag
(g/t)
Au
(g/t)
Contained Ag
(000 oz Ag)
Contained Au
(000 oz Au)
Measured 19,336 98 0.88 60,634 544
Indicated 31,978 47 0.73 48,737 752
Measured & Indicated 51,314 66 0.79 109,370 1,297
Inferred 2,216 30 0.51 2,114 37

Notes: Effective October 31, 2022. Mineral Resources are not Mineral Reserves and have not demonstrated economic viability. The Mineral Resource estimate is N.I. 43-101 compliant and was prepared by Luis Rodrigo Peralta, B.Sc., FAusIMM CP(Geo), Independent Consultant. A full Technical Report in respect of the Mineral Resource will be prepared in accordance with NI 43-101 and will be filed on SEDAR within 45 days of the news release dated November 03, 2023. The mineralization estimated in the Mineral Resource is sub-horizontal with sub-vertical feeders and a reasonable prospect for eventual economic extraction by open pit methods.

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 an advanced-stage exploration company focused on rapidly advancing its 100%-owned Diablillos silver-gold project in the mining-friendly Salta province of Argentina.  The current Measured and Indicated Mineral Resource estimate for Diablillos consists of 51.3 Mt grading 66g/t Ag and 0.79g/t Au, containing approximately 109Moz silver and 1.3Moz gold, with significant further upside potential based on recent exploration drilling. 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. When considering this forward-looking information, readers should keep in mind the risk factors and other cautionary statements in the Company’s disclosure documents filed with the applicable Canadian securities regulatory authorities on SEDAR at www.sedar.com.  The risk factors and other factors noted in the disclosure documents could cause actual events or results to differ materially from those described in any forward-looking information. 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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