Santa Ana

Santa Ana Maiden Resource Estimate (MRE) – April 2023

Santa Ana Maiden Resource Estimate (MRE)

Santa Ana Mineral Resource Estimate NI 43-101 View PDF

Overview

The 100% owned Santa Ana project comprises over 27,697 hectares, 6,475 ha titled in the northern Tolima Department. The Santa Ana project is readily accessible by a combination of paved roads, and is located approximately 15 km southeast of the town of Mariquita and 190 km from Bogota.

The Santa Ana project consists of over twenty mapped or projected vein systems across a trend 12 kilometres wide and 30 kilometres long. Cumulatively, over 60 kilometres of mapped and inferred vein zones occur on the Santa Ana project.

History

The Santa Ana project covers a significant part of the Mariquita District where mining records date to at least 1585. Historically, the region is famous for producing native gold from unconsolidated sediments and underground mines. Following the Spanish Conquest, more formal mining commenced, with extraction of gold and, more importantly, silver specifically around the town of Falan to the north.

The Mariquita District is the highest-grade primary silver district in Colombia, with historic silver grades reported to be among the highest in Latin America. The Frias Mine on the south-central part of the project, 12 kilometres south of the Royal Santa Ana Mines produced 7.8 million ounces of silver post-production in the Spanish colonial era at a recovered grade of 1.3 kg Ag/t. The Frias Mine is considered an analogue to Outcrop’s Santa Ana project.

Geology

Quartz veins with variable amounts of carbonates containing sphalerite, galena, pyrite and silver sulfosalts conform the mineral deposits of Santa Ana. The veins dip either at low or high angle and have predominant strikes of NNE-SSW, NE-SW and NW-SE. Known structures can run for more than 2 km and host high-grade silver-gold shoots with some minor credits of lead and zinc. The host lithology is competent green or black schists of the Cajamarca Formation; the same metamorphic belt that hosts porphyry mineralization at La Colosa approximately 80 km SSW.

Exploration

Outcrop has conducted exploration drilling on approximately 30% of its titled surface, completing more than 600 diamond drill holes that have led to the discovery and mineral resource definition in thirteen mineralized vein systems within ~10 km of the historic Santa Ana mines vein system. Regional exploration work has led to the definition of additional drilling targets that are being prioritized and have yet to be drill tested.

Drilling is currently ongoing. For more details, see the Corporate Presentation.

Metallurgy

Outcrop Silver has made notable strides in metallurgical testing, enhancing the recovery of silver and gold, and ensuring environmental responsibility.

Flotation and Gravimetric Highlights:

Together with the gravimetric concentration, flotation tests achieved outstanding recovery rates of 96.3% for silver and 98.5% for gold in metallurgical testing conducted in 2024. The resultant high-quality concentrate boasts 4,187 grams per tonne of silver and 52.1 grams per tonne of gold, with low base metal presence, demonstrate the potential to produce a high value precious metals concentrate that is expected to have high precious metals payability. For more details, see the see news release dated June 25, 2024.

Table 1. Summary of Flotation Concentration Metallurgical Balance

The initial gravimetric concentration tests using a Falcon Gravity Concentrator has further demonstrate significant potential for enhancing our overall recovery. The combination of high recovery rates and high-grade concentrates truly sets Santa Ana apart as a unique project in the mining sector For more details, see the see News Release dated April 22, 2024.

This streamlined approach reflects Outcrop Silver’s commitment to improving efficiency and profitability at Santa Ana, while adhering to industry best practices and environmental standards.

Table 2. Summary of Gravimetric Concentration Metallurgical Balance