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Argentina - Diabillos

Diablillos is an extensive 7,900 hectare property located in the mining friendly Province of Salta in the Argentine Puna region. There are currently seven known mineralized zones on the Diablillos property, with the Oculto zone being the most important and the most explored. Oculto is a deeply oxidized, high-sulfidation epithermal silver-gold deposit.

Operator AbraSilver Resource Corp. (TSX-V: ABRA, “AbraSilver”) has an option to acquire 100% of the Diablillos property, with one outstanding payment due on the earlier of the date on which commercial production occurs at Diablillos or July 31, 2025. A 2018 PEA reported historical Indicated Resources at Oculto of 26.85 million tonnes grading 93g/t silver and 0.85g/t gold, for 80.3 million ounces of contained silver and 732 thousand ounces of contained gold. Preliminary metallurgical tests indicate high recoveries from a crushing, grinding and agitated leach plant with a Merrill-Crowe circuit. High-grade copper intercepts have been discovered at depth and may suggest deeper porphyry-style potential.

AbraSilver continues to drill Oculto as well as advancing other targets on the property. An updated PEA is expected in Q3 2021, with a feasibility study slated for 2022.

Deposit

Category

Tonnage (000 t)

Ag (g/t)

Au (g/t)

Contained Au
(000 oz Au)

Contained Ag
(000 oz Ag)

Oculto

Indicated

26,900

93

0.85

80,300

732

Fantasma

Indicated

204

98.3

-

646

-

 

Total Indicated

27,100

93.1

0.84

81,000

732

Oculto

Inferred

1,000

46.8

0.89

1,505

29

Fantasma

Inferred

77

75.3

-

186

-

 

Total Inferred

1,080

48.8

0.83

1,690

29

Notes:

  1. CIM (2014) definitions were followed for Mineral Resources.
  2. Mineral Resources are estimated at a cut-off grade of 40 g/t AgEq for Oculto and 40 g/t Ag for Fantasma.
  3. Mineral Resources are estimated using long-term metal prices of US$1,500/oz Au and US$23/oz Ag.
  4. Average bulk density is 2.22 t/m3 for the Indicated category and 2.29 t/m3 for Inferred for Oculto and 2.00 t/ m3 for both Indicated and Inferred categories for Fantasma.
  5. The estimate is constrained by a pit shell for both Oculto and Fantasma.
  6. Numbers may not add due to rounding.

In RPA’s opinion, the Mineral Resources are classified and reported in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definitions Standards for Mineral Resources and Mineral Reserves dated May 10, 2014 (CIM (2014) definitions). RPA is not aware of any environmental, permitting, legal, title, taxation, socio-economic, marketing, political, or other relevant factors that could materially affect the Mineral Resource estimate. This resource was reviewed by Qualified Person David W. Rennie, P.Eng an Associate Principal Geologist with Roscoe Postle Associates (“RPA”) and registered as a Professional Engineer in the Province of British Columbia (Reg.#13572).

EMX has not performed sufficient work to verify the projects’ historical resource estimate but considers this information as reliable and relevant.

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