Outcrop Silver Grows to 58Moz as Focus Shifts to Production
Summary
Outcrop Silver's updated Mineral Resource Estimate (MRE) at Santa Ana grew to ~58 Moz silver-equivalent (AgEq) across 13 vein systems, with 30 Moz indicated.
Las Maras averages 855 g/t AgEq (about 86% silver); El Dorado, Paraiso, and Guadual run 600-700 g/t — together about half of indicated.
Preliminary metallurgy returned 96% silver and 98.5% gold recoveries from gravity-plus-flotation; further testing and a pilot plant are next.
Plan is dual-track: advance a Preliminary Economic Assessment (PEA), likely a Pre-Feasibility Study (PFS), on known high-grade ounces while continuing to drill toward 100 Moz.
Colombia's new pro-mining administration wants mines producing within its four-year term; Outcrop plans to permit via ANLA and scale modularly from 500 to 2,000 tpd.
Key points on Outcrop Silver & Gold
- New resource totals about 58Moz (indicated plus inferred), roughly 50% growth from the 2023 maiden estimate of about 37Moz; indicated is about 30Moz silver equivalent (24% growth) and inferred about 29Moz (over 100% growth), with 73% of ounces as silver.
- Vein count rose from 7 to 13, with Las Maras the standout at 855 g/t silver equivalent (86% silver); El Dorado, Paraiso, and Guadal run 600-700 g/t and together make up about half the indicated resource.
- The estimate applies mining stope optimization and cut-off adjustments, dropping ounces unlikely to be mined so it can serve as a PEA basis.
- Preliminary metallurgy on two vein systems returned about 96% silver and 98.5% gold recovery via gravity plus flotation; the host mineral is dominantly argentite.
- Brueggemann frames the project as a candidate for fast permitting under Colombia's new pro-mining government, aiming at commercial production within the government's four-year term via a small-footprint underground mine.
Rob Brueggemann's takeaways
- Top takeaway Brueggemann argues the company has shifted from pure exploration to a production-first strategy: "grade is king" — narrow-vein, high-grade silver can support a small-scale, low-capex, fast-payback underground mine without needing to fully drill out the 100Moz target.
- He outlines a dual track: kick off a PEA on current resources in parallel with drilling to upgrade inferred ounces and test 12 priority untested vein targets, with the next resource update planned well before the next Colombian election cycle.
- He expects a staged operation starting around 500 tpd and scaling to 1,000-2,000 tpd as more veins are confirmed; a pilot plant is planned to de-risk execution and show the community the low-impact nature of the operation.
- He is optimistic on permitting under Colombia's new administration: ANLA may move faster than regional agencies, the government wants mines producing within its four-year term, and PTO, EIA, and social applications can now run in parallel.
- He stresses the project's infrastructure advantage — paved roads, electric power, water, a local workforce — and supportive relationships with regional and federal authorities that should help compress timelines.