VANCOUVER, BC, Jan. 13,
2025 /CNW/ -
Dear Fellow Shareholders,
As 2024 comes to a close, I am proud to reflect on what has been
a transformative year for Outcrop Silver. Santa Ana has further
cemented its position as one of the world's highest-grade primary
silver deposits, with over 73% of its value derived from silver and
simple metallurgy with over 96% recoveries. Its rich history,
dating back to Colombia's colonial
era, ties this project deeply to the heritage of the Mariquita
district.
Today, as we unlock its modern potential, we are building on
this legacy, demonstrating that Santa Ana is not only an economic
opportunity but also a source of pride and progress for the
communities and stakeholders we serve.
2024: A Year of Vision and Progress
At the start of 2024, we laid out a bold and ambitious plan: to
step beyond the comfort of the known resource area in the
northeast, along the 17-kilometre drill-permitted area, and expand
southward on the trend. Our goal was clear: to demonstrate how
Santa Ana could grow dramatically and solidify its position as one
of the world's premier primary silver projects. Achieving this
vision required significant step-outs into never before drilled
areas—testing the unexplored and expanding the project
boundaries.
A standout moment that symbolized this year's progress came from
the town of Falan, where municipal letters celebrating the essence
of the community were unveiled. The letter "L" highlighted Falan's
rich mining heritage and its vital role in the global silver
industry, as well as its future in sustainable energy. Falan also
proudly honored Camilo Aros, the
town's first geological engineer and an employee of Outcrop Silver,
as a bridge between its historical mining legacy and a future
rooted in innovation and responsibility.
This recognition is more than symbolic; it embodies the trust,
pride, and shared vision the community has in Santa Ana. It's a
treasure we hold dear, reaffirming that this project is not just
economically significant but a deeply valued part of the cultural
and social fabric of the region.
This foundation of trust and collaboration proved essential in
overcoming one of the most critical hurdles in our ambitious plan:
access to new areas for exploration. Through the dedication and
reputation of our team, we secured more than 100 right-of-way
agreements with local landowners—a remarkable achievement that
underscores the strength of the relationships and reputation we've
built over the years. These agreements allowed us to drill in
previously untouched areas, turning potential into opportunity and
demonstrating that technical excellence must always be paired with
meaningful community engagement to drive success.
Delivering Exceptional Results
In 2024, our primary goal was to demonstrate how the Santa Ana
resource could grow. This meant focusing on the most critical step:
testing as many drill-ready targets as possible and converting them
into discoveries.
By the end of 2024, we exceeded our initial targets, completing
16,135 metres of drilling. But more than just metres drilled—it was
about methodically stepping out across the 17-kilometre
drill-permitted trend to prove that Santa Ana's high-grade silver
mineralization extends far beyond the existing 37-million-ounce
resource in the northeast. By targeting previously undrilled areas,
we successfully demonstrated the continuity of high-grade primary
silver throughout the district.
Among the most significant discoveries this year are:
- Aguilar Vein System: Aguilar now extends to 650
metres along strike and 200 metres in depth, with additional
potential from parallel veins like Aguilar
North and Aguilar HW.
- Jimenez Vein System: High-grade mineralization has
been confirmed over 500 metres, with further upside from the
parallel Jimenez North vein.
- La Ye and La Lupe Veins: La Ye is now a confirmed
discovery with high-grade intercepts, while the La Lupe vein's
connection to La Ye further enhances the scalability of this
system.
- Los Mangos Vein: By the end of 2024, drilling
commenced at the Los Mangos target, marking the most substantial
step-out from the existing Mineral Resource area to date. This
represents a significant step toward demonstrating that high-grade
mineralization extends across the entire trend, highlighting the
substantial exploration potential within the Santa Ana
project.
These results validate our strategy: to step out, test new
targets, and convert them into discoveries while advancing the
economic potential of the project. Every discovery adds to an
inventory for future resource expansion.
In addition to these discoveries, we achieved a major
metallurgical milestone that solidifies Santa Ana's future as a
significant silver producer. Using gravity and flotation separation
methods, we delivered exceptional recovery rates of 96.3% for
silver and 98.5% for gold. What makes this achievement particularly
exciting is the high concentrate grade, which suggests Santa Ana
could produce a clean, highly marketable precious metal
concentrate. This points to the potential for direct smelting
on-site to create dore, reducing the need for complex, expensive
processing infrastructure and significantly enhancing future
project economics.
This metallurgical success highlights Santa Ana's trifecta of
high grade, high recovery, and high payables—a combination that
drives revenue, de-risks the project, and positions us as a future
high-margin silver producer.
The Foundation for Efficient Growth
At Outcrop Silver, our disciplined and systematic approach
continues to lay the foundation for efficient resource growth.
Every target tested and every vein discovered adds to an inventory
of high-grade opportunities, allowing us to expand the Santa Ana
resource base at costs well below our current valuation per ounce.
This disciplined methodology ensures that every dollar spent
translates into meaningful and sustainable value for our
shareholders.
A major milestone in 2024 was the vote of confidence from
Eric Sprott, who increased his
ownership in Outcrop Silver to over 19%. As one of the most
respected figures in the precious metals sector, his investment
underscores the quality of our asset, the capability of our team,
and the clarity of our vision. This endorsement highlights our
ability to execute on our ambitious goals and deliver measurable
progress.
2025: Building on Success
As we look to 2025, we are entering the year with momentum and
focus. Our strategy remains twofold:
- Transitioning to resource drilling: With a growing
inventory of high-grade discoveries, we are now poised to begin
focused resource drilling. This transition marks the next critical
phase in showcasing Santa Ana's scalability and efficiently
expanding its resource base.
- Continuing to generate and test new
targets: Exploration remains at the heart of our value
proposition. Each target successfully converted into a discovery
not only validates Santa Ana's potential but also strengthens our
ability to grow the resource. Each new discovery adds flexibility
to our resource expansion plans, allowing us to prioritize areas
that deliver the most ounces at the lowest cost. This approach
significantly de-risks our objectives, improves efficiency, and
maximizes shareholder value.
Outcrop Silver enters 2025 well-funded, well-positioned, and
with a disciplined strategy to unlock Santa Ana's full potential.
By maintaining a focus on both exploration and resource expansion,
we are building a project that is efficient and highly adaptable,
ensuring meaningful returns for our shareholders while continuing
to advance one of the world's highest-grade primary silver
projects.
Silver Market Outlook
As we enter 2025, the silver market appears poised for something
extraordinary. Many analysts predict a significant rise in silver
prices, driven by silver's unique dual role: a critical industrial
metal crucial for the energy transition and a safe-haven
investment.
One of the most striking dynamics in the silver market is the
persistent structural deficit. The Silver Institute estimates a
182-million-ounce shortfall in 2024, marking the fourth consecutive
year of deficits. Cumulatively, the past four years alone have
resulted in a staggering 725-million-ounce deficit—almost
equivalent to an entire year of global mine production.
Santa Ana stands as one of the most compelling undeveloped
high-grade primary silver projects globally. With its trifecta of
high grade, high recovery, and high payables potential, Santa Ana
is a cornerstone asset in the evolving silver market.
Closing Thoughts
As we embark on 2025, Outcrop Silver stands at the intersection
of extraordinary opportunity and proven achievement. The progress
made this past year has not only expanded the horizons of the Santa
Ana project but has also strengthened the foundation upon which we
will continue to build. With a disciplined strategy, dedicated
team, and a healthy treasury, we are poised to unlock the full
potential of one of the world's most compelling silver
projects.
Thank you for your unwavering trust and support. As partners in
this journey, your confidence inspires us to continue building
lasting value for all stakeholders while shaping the future of
silver.
Sincerely,
Ian Harris
President & CEO
Outcrop Silver & Gold Corporation
SOURCE Outcrop Silver & Gold Corporation
