AbraPlata Resource Corp. (TSXV:ABRA) has announced the latest drill results from the Fantasma mineralized zones at the Diablillos project in Argentina.
Results were highlighted by 89.6 g/t Ag over 9 meters and 227.0 g/t Ag over 2 meters (DDH-17-152). Drilling at Fantasma has indicated mineralization
and alteration over a 400-meter zone orientated along a west-north-west trend. The identified high-grade core of the mineralized zone appears to have
a strike of 200 meters and a width of about 30 meters (Figure 1). This zone is open towards the Oculto deposit, which currently hosts an indicated
resource of 27.7 Mt at 91.2 g/t Ag and 0.85 g/t Au. The Oculto deposit is one of nine mineral occurrences on the Diablillos property with the Fantasma
zone located 800 meters to the west. These results from the shallower Fantasma zone are important, as we expect a maiden resource to be included in
the pending PEA, likely providing lower pre-strip than the deeper Oculto deposit.
Diablillos moving along the path to production. The company acquired the project from Silver Standard Resources (TSX:SSO;NASDAQ:SSRI)
in November 2016 after a competitive bidding process for cash payments of $14.5M per year over 5 years, 19.9% of AbraPlata along with a 1% NSR on the
project. In the past, BHP, PacRim and Barrick have all worked on the property. The Diablillos property hosts both an epithermal Ag-Au mineralization
and an associated Cu-Au porphyry system. The company’s current diamond drill program is expected to add the additional mineralization in the Fantasma
zone to the indicated resource of 27.7Mt at 150.7 g/t AgEq (or 2.15 g/t AuEq) at the nearby Oculto orebody. This drill program is ongoing and a maiden
resource on the satellite Fantasma zone is expected to be included in the PEA to be released later this year.
This unknown company trades at a steep discount to peers.
AbraPlata currently trades at a significant discount to peers at $6/oz (peers
$30/oz). We continue to believe that the current valuation does not reflect the current value of the company’s indicated resources at the Diablillos
project nor does it reflect the exploration upside of the Fantasma zone. We expect continued exploration drilling, along with the pending PEA in November
to be important catalysts for the stock.
Derek Macpherson | VP Mining Analysis
Victoria Ellis Hayes | Associate
Alex Pitcher | Associate
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