Outcrop Silver Announces High Grade Santa Ana Maiden Indicated Resource Estimate

2023-04-26

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VANCOUVER, BC , April 26, 2023 /CNW/ - Outcrop Silver & Gold Corporation (TSXV: OCG) (OTCQX: OCGSF) (DE: MRG1) ("Outcrop Silver") announces that AMC Consultants (AMC) has completed an independent mineral resource estimation of the Santa Ana high-grade silver project in Colombia . Initial Indicated Resources are estimated at 1,226,000 tonnes grading 614 grams per tonne silver equivalent, containing 24.1 million ounces of silver equivalent. Initial Inferred Resources are estimated at 966,000 tonnes grading 435 grams per tonne silver equivalent, containing 13.5 million ounces of equivalent silver (Table 1). Resources were calculated using a 158 grams per tonne equivalent silver cut-off grade and minimum vein width of 1.0 metre. In light of the project's excellent exploration and growth potential, Outcrop Silver advanced Santa Ana quickly to the resource stage to demonstrate that the exceptionally high silver grades cut in exploration drilling translate directly to an Indicated Resource and to exhibit the project's excellent metallurgy. Only 17% of mapped veins have been drilled to date, and each of the veins drilled is open at depth and along strike.

Highlights

Indicated Resource of 24.1 million ounces of silver equivalent grading 614 grams per tonne silver equivalent and an Inferred Resource of 13.5 million ounces of silver equivalent grading 435 grams per tonne silver equivalent.

Indicated Resource grade of 614 grams per tonne silver equivalent demonstrates high-grade potential of the Santa Ana deposit.

64% of the equivalent silver ounces are categorized as Indicated.

Only seven veins included in the initial Resource Estimate. Each of the veins continues to be open at depth and along strike.

High success in exploration with 628 equivalent silver ounces discovered per drilled meter.

Significant exploration upside. Dozens of additional veins have been identified with high-grade samples from outcrop and historical workings. These additional veins have been drill permitted and will be drilled in 2023.

Excellent metallurgy. Highly commercial flotation concentrate grades of 12,133 grams per tonne silver and 172 grams per tonne gold with recoveries of 93.4% silver and 96.7% gold (see press release dated April 5, 2023 ).

"Outcrop Silver's maiden Mineral Resource Estimate at Santa Ana is a significant milestone for our team, local communities, Colombia's energy transition plan and shareholders. Sixty-four percent of the equivalent silver ounces are categorized as an Indicated Resource with robust grade and continuity, creating the measurable potential for a sizeable project," comments Guillermo Hernandez , Vice President of Exploration. "As we advance, we will continue significantly enhancing our resource endowment. We are confident in the strong resource growth potential with multiple targets in the next phase of our exploration drilling."

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| Category | Veins Area | Tonnage | Average Grades | Metal Content | | | | | | AgEq | Ag | Au | AgEq | Ag | Au | | | | | Units | t (x1000) | g/t | g/t | g/t | oz (x1000) | oz (x1000) | oz (x1000) | | | Indicated | El Dorado | 318 | 579 | 436 | 1.9 | 5,915 | 4,448 | 19.4 | | Las Maras | 261 | 767 | 666 | 1.4 | 6,430 | 5,584 | 11.3 | | | Santa Ana | 202 | 344 | 289 | 0.7 | 2,233 | 1,876 | 4.7 | | | Paraiso | 186 | 969 | 515 | 6.1 | 5,793 | 3,077 | 36.5 | | | Los Naranjos | 126 | 443 | 363 | 1.1 | 1,788 | 1,467 | 4.4 | | | La Porfia | 119 | 495 | 265 | 3.1 | 1,887 | 1,010 | 12.0 | | | La Isabela | 15 | 287 | 213 | 1.0 | 140 | 104 | 0.5 | | | Total Indicated | 1,226 | 614 | 446 | 2.3 | 24,187 | 17,567 | 88.8 | | | Inferred | El Dorado | 180 | 523 | 382 | 1.9 | 3,025 | 2,211 | 11.1 | | Las Maras | 27 | 482 | 423 | 0.8 | 424 | 373 | 0.7 | | | Santa Ana | 390 | 291 | 244 | 0.6 | 3,651 | 3,061 | 7.5 | | | Paraiso | 172 | 471 | 312 | 2.1 | 2,600 | 1,723 | 11.6 | | | Los Naranjos | 78 | 337 | 274 | 0.8 | 846 | 688 | 2.0 | | | La Porfia | 102 | 866 | 471 | 5.3 | 2,827 | 1,536 | 17.3 | | | La Isabela | 18 | 226 | 149 | 1.0 | 130 | 86 | 0.6 | | | Total Inferred | 966 | 435 | 312 | 1.6 | 13,504 | 9,677 | 50.9 | |

Table 1. Santa Ana Resource Estimate

| Notes: | | | | | | 1. | Effective date of this Mineral Resource Estimate (MRE) is April 26, 2023. | | 2. | Rod Webster, MAusIMM(CP) of AMC Consultants has conducted the Santa Ana Silver Project MRE and is independent Qualified Persons as defined in the NI 43-101 Standards of Disclosure for Mineral Projects. | | 3. | The Mineral Resources disclosed in this Statement were estimated following the 2014 CIM Definition Standards for Mineral Resources and Mineral Reserves and the 2019 CIM Estimation of Mineral Resources and Mineral Reserves Best Practices Guidelines. | | 4. | Mineral Resources were reported within potentially mineable shapes, assuming an underground mining method with a minimum mining width of 1.0 m, which is common practice in Colombia. | | 5. | Mineral Resources are not mineral reserves and do not have demonstrated economic viability. | | 6. | Geologic interpretation and modelling of the veins were completed by Outcrop Silver & Gold Corporation's team in Colombia using Leapfrog Geo software which was subsequently reviewed by AMC's QPs. AMC's Mineral Resource Specialist, Rod Webster, MAusIMM(CP), completed the MRE using Datamine Studio software. | | 7. | The resource estimate is reported for an underground mining scenario using a Silver Equivalent (AgEq) cut-off grade. The cut-off grade of 158.0 g/t Ag was calculated using a silver price of USD 25.0/oz, Gold price of USD 1,800.0/oz; a mining cost of USD 69.0/t, processing cost of USD 32.0/t and G&A costs of USD 13.0/t and metallurgical recoveries of 93% for Ag and 96% for Au. | | 8. | The AgEq was calculated using the prices (P), recoveries (R) and grades of each element using the following formula: AgEq g/t = Ag g/t + (((AuP*AuR)/(AgP*AgR))*Au g/t). No sales or marketing costs were considered. | | 9. | Bulk density values were interpolated for each of the mineralized veins with the global average at reporting AgEq cut-off for the entire Santa Ana deposit is 2.7 t/m 3 . | | 10. | 2D Accumulation method using Ordinary Kriging (OK) into blocks generally 10 m in size across and vertically down the vein. The block size along the dip direction covered the whole vein. | | 11. | The Mineral Resource results are presented in-situ. Estimations used metric units (metres, tonnes, g/t, %). The number of rock tonnes and contained metal are rounded to the nearest thousand. Any discrepancies in the totals are due to rounding effects. | | 12. | The QP is not aware of any known environmental, permitting, legal, title-related, taxation, socio-political, marketing or other relevant issues that could materially affect the mineral resource estimate other than those disclosed in this Statement. |

A technical report prepared by AMC in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (NI 43-101) will be filed on SEDAR within 45 days.

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Exploration Potential

Santa Ana has excellent exploration upside potential based on the distribution of known high-grade silver veins. Veins with similarly high grade x thickness characteristics exist along strike toward the south, forming a high-grade silver enriched trend that extends for 30 kilometres (Maps 1 and 2). Outcrop Silver's exploration team has identified dozens of additional veins based on high-grade samples from outcrop and historical workings that have yet to be drill tested. Outcorp Silver remains focused on identifying new vein targets and adding high-grade potential, derisked mineralized silver-bearing veins to the established resource. Recent exploration success has included the following targets, which will be drilled in 2023.

New discoveries have been drilled but not included in the initial resource, as they have limited initial scout drill holes, including the Alaska shoot along the Santa Ana vein and the Espiritu Santo vein.

| Hole | From | To | Vein | Intercept | True Width* | Au g/t | Ag g/t | AgEq g/t | Release Date | | DH242 | 84.43 | 85.95 | Alaska | 1.52 | 1.07 | 0.26 | 584 | 564 | Current | | DH220 | 145.87 | 146.61 | Espiritu Santo | 0.74 | 0.72 | 2.92 | 352 | 568 | May 9, 2022 |

_Table 2. Discovery holes from the Alaska and Espiritu Santo targets. These targets are not part of the Mineral Resource Estimate.*Estimated True width. _

Frias Mine

Life of mine production from the Frias Mine from 1891 to 1900 was reported to be 7.8 million ounces of silver at a recovered grade of 1.3 kg Ag/t. Before the Frias mine ended production, at least two vein outcrops approximately 300 metres from the Frias mine portal were developed by exploration adits and shafts and not mined. The Frias mine is within a parallel vein package. These veins are spaced approximately 200 metres apart, similar to the grouping of parallel veins hosting the Royal Santa Ana mines. At least three parallel veins are observed in the underground workings, with two showing stoping activities defining the high-grade shoot. Silver mineralization and trace gold mineralization are strongly associated with galena and sphalerite in quartz veins and shear zones (Table 3).

The highest value assays from several channel samples taken underground in the Frias mine by Outcrop Silver are 11,055 grams per tonne of silver, 10,216 grams per tonne of silver and 7,944 grams per tonne of silver, all collected from the main level. The weighted average for all underground channel samples with significant assays is 3,371 grams per tonne of silver. See the press release dated December 7, 2022 .

| Sample | Sample Type | Length | Lithology | Ag g/t | Pb % | Zn % | Release Date | | 15944 | UG Channel | 0.22 | QuartzVein | 5,644 | 5.67 | 1.33 | December 7, 2022 | | 16219 | Dump Grab | | QuartzVein | 2,216 | 10.48 | 18.49 | December 7, 2022 | | 16222 | UG Channel | 0.35 | QuartzVein | 3,572 | 5.57 | 59.65 | December 7, 2022 | | 16223 | UG Channel | 0.50 | QuartzVein | 1,222 | 3.86 | 18.78 | December 7, 2022 | | 16224 | UG Channel | 0.45 | QuartzVein | 10,216 | 12.49 | 19.15 | December 7, 2022 | | 16225 | UG Channel | 0.90 | QuartzVein | 4,576 | 9.62 | 3.29 | December 7, 2022 | | 16226 | UG Channel | 0.40 | ShearZone | 3,804 | 8.52 | 6.91 | December 7, 2022 | | 16243 | UG Channel | 0.20 | QuartzVein | 5,263 | 8.02 | 20.00 | December 7, 2022 | | 16245 | UG Channel | 0.50 | QuartzVeinlet | 1,237 | 1.70 | 9.43 | December 7, 2022 | | 16247 | UG Channel | 0.35 | ShearZone | 11,055 | 9.79 | 7.04 | December 7, 2022 | | 16250 | Chip | | ShearZone | 5,992 | 12.41 | 4.86 | December 7, 2022 | | 16251 | Chip | | QuartzVein | 7,944 | 11.91 | 20.00 | December 7, 2022 | | 16262 | UG Channel | 1.00 | QuartzVein | 5,545 | 4.18 | 14.56 | December 7, 2022 |

Table 3. Significant rock samples from the historical Frias Mine underground workings. Gold only occurs in trace amounts at the Frias Mine. Initially reported results on December 07, 2022 were re-assayed at SGS Lima for over limits based on discrepancies between SGS Medellin and SGS Lima during the routine check assays QAQC protocol.

Lajas Target

The Lajas target comprises a series of outcrops and vein float forming a well-defined north-northeast surface trace 750 metres long. The Lajas target could represent lateral continuity to the southwest from La Isabela vein, a distance of over 2 kilometres.

Assays from quartz vein float show up to 39.73 grams of gold per tonne and 3,477 grams of silver per tonne and 16.20 grams of gold per tonne and 2,296 grams of silver per tonne (Table 4). The Lajas target shows low base metal and high silver and gold values, potentially indicating favorable metal zonation. See press release dated January 3, 2023 .

| Sample | Sample Type | Length | Lithology | Au g/t | Ag g/t | Release Date | | 16073 | Float | | QuartzVein | 39.73 | 3,477 | January 3, 2023 | | 16074 | Float | | QuartzVein | 16.20 | 2,296 | January 3, 2023 | | 16079 | Float | | QuartzVein | 5.18 | 2,976 | January 3, 2023 | | 16086 | Float | | QuartzVein | 7.24 | 307 | January 3, 2023 | | 16087 | Float | | QuartzVein | 5.69 | 1,773 | January 3, 2023 | | 16211 | Float | | QuartzVein | 9.02 | 3,748 | January 3, 2023 |

Table 4. Significant rock samples from Las Lajas target.

Cavandia and Topacio Targets

The Cavadia and Topacio targets were generated through regional geologic mapping. A surface trace of three kilometres is mapped suggesting Topacio and Cavadia are part of a larger parallel vein zone. Cavadia shows values from vein outcrop and related float up to 10.98 and 8.68 grams of gold per tonne. Topacio shows values up to 7,046 and 3,203 grams of silver per tonne and 29.63 grams of gold per tonne (Table 5).

| Sample | Sample Type | Length | Lithology | Au g/t | Ag g/t | Release Date | | 15571 | Float | | QuartzVein | 29.63 | 83 | August 23, 2022 | | 16161 | Outcrop Grab | 0.20 | QuartzVein | 0.02 | 1,181 | August 23, 2022 | | 16022 | Float | 0.22 | QuartzVein | 8.68 | 337 | January 3, 2023 | | 16024 | Channel | 0.50 | QuartzVein | 10.98 | 92 | January 3, 2023 | | 16271 | Float | | QuartzVein | 7.25 | 96 | January 3, 2023 | | 15943 | Float | | QuartzVein | 0.10 | 7,046 | January 3, 2023 | | 17038 | Float | | QuartzVein | 0.00 | 3,203 | January 3, 2023 | | 17037 | Float | | QuartzVein | 0.03 | 2,030 | January 3, 2023 | | 16270 | Float | | QuartzVein | 0.03 | 1,342 | January 3, 2023 |

Table 5. Significant rock samples from the Cavadia-Topacio target.

Aguilar Vein

Exploration of the Aguilar vein extends its lateral continuity in outcrop and floats 500 metres to the southwest, to a total of two kilometres with the Aguilar, Jimenez and El Guadual targets identified. The Aguilar vein is notable for local vein boulders up to 4.7 metres wide and veins over 2 metres wide in outcrop and numerous historical workings. Results from the Aguilar vein show assays up to 18.47 and 16.87 grams of gold per tonne and up to 3,712 and 1,915 grams of silver per tonne (Table 6).

| Sample | Sample Type | Length | Lithology | Au g/t | Ag g/t | Release Date | | 15630 | Float | | QuartzVein | 5.74 | 1,020 | May 9, 2022 | | 15653 | Float | | QuartzVein | 5.98 | 1,282 | May 9, 2022 | | 15654 | Channel | 0.25 | QuartzVein | 5.64 | 1,045 | May 9, 2022 | | 15805 | Float | 0.20 | QuartzVein | 10.14 | 386 | May 9, 2022 | | 15808 | Float | 2.00 | QuartzVein | 16.87 | 1,703 | May 9, 2022 | | 15811 | Float | 0.28 | QuartzVein | 6.46 | 772 | May 9, 2022 | | 15812 | Float | 0.20 | QuartzVein | 13.07 | 1,915 | May 9, 2022 | | 15814 | Float | 0.62 | QuartzVein | 4.46 | 1,050 | May 9, 2022 | | 15576 | Float | | QuartzVein | 18.47 | 3,712 | January 3, 2023 |

Table 6. Significant rock samples from the Aguilar vein.

El Guadual and Jimenez Targets

Regional generative exploration identified the Jimenez target through mapping and samplings, connecting El Guadual and Aguilar veins. Jimenez consists of parallel to subparallel veins, some observable in groups of historical adits. The El Guadual and Jimenez vein zone is complex, with multiple parallel and intersecting vein sets. The parallel veins, vein splays, and intersecting veins often occur within an interval 100 to 200 metres wide.

In El Guadual, several rock samples returned high grade up to 19.51 g/t Au and 4,259 g/t Ag (Table 7). In Jimenez, significant channel samples assay over 1,000 g/t AgEq, for a weighted average on channel samples of 2,410 g/t AgEq and with all significant channel samples assays averaging 1,373 g/t AgEq (Table 7). See the press releases dated July 5, 2022 and January 3, 2023 .

| Sample | Sample Type | Length | Lithology | Au g/t | Ag g/t | Release Date | | 15450 | UG Mine Channel | 0.30 | QuartzVein | 6.22 | 2,436 | July 5, 2022 | | 15682 | Float | | QuartzVein | 5.34 | 664 | July 5, 2022 | | 15836 | Channel | 15.00 | QuartzVein | 0.40 | 315 | July 5, 2022 | | 15483 | Float | | QuartzVein | 19.51 | 4,259 | January 3, 2023 | | 16331 | UG Mine Channel | 0.35 | QuartzVein | 12.35 | 1,082 | Current | | 16332 | UG Mine Channel | 0.30 | QuartzVein | 22.99 | 5,722 | Current |

Table 7. Significant rock samples from the Jimenez and Guadual targets.

Alaska Target

The Alaska target is the northernmost extension of the Santa Ana vein system (Map 2) and is a series of veins and veinlets that can be as wide as 2.09 metres. Surface exploration works have confirmed the extension of the vein system for more than 500 metres along strike. Channel samples have returned high-grade assays up to 13.78 grams per tonne of gold and 3,415 grams per tonne of silver (Table 8).

| Sample | Sample Type | Length | Lithology | Au g/t | Ag g/t | Release Date | | 13629 | Float | 0.20 | QuartzVein | 8.21 | 1,170 | Current | | 13635 | Channel | 0.30 | QuartzVein | 13.78 | 27 | Current | | 14852 | Float | 2.00 | QuartzVein | 0.36 | 1,151 | Current | | 14853 | Float | | QuartzVein | 0.85 | 1,037 | Current | | 14858 | Float | 2.00 | QuartzVein | 7.20 | 3,415 | Current | | 14859 | Float | 3.00 | QuartzVein | 0.67 | 2,559 | Current | | 14860 | Grab | | ShearZone | 1.53 | 1,626 | Current |

Table 8. Significant rock samples from the Alaska target.

Los Mangos Vein

The main Los Mangos vein can be up to 1.20 metres wide, showing lateral continuity for more than 650 metres based on vein outcrops, historic mines, vein float mapping, and sampling (Map 2). Channel samples from historic workings returned up to 4,545 g/t Ag and 1,053 g/t Ag (Table 9), and samples from surface exploration returned up to 27.71 and 21.38 g/t Au in floats.

| Sample | Sample Type | Length | Lithology | Au g/t | Ag g/t | Release Date | | 15491 | Dump Grab | | QuartzVein | 8.07 | 234 | August 23, 2022 | | 15492 | Float | | QuartzVein | 1.45 | 1,601 | August 23, 2022 | | 15498 | Grab | | QuartzVein | 7.46 | 281 | August 23, 2022 | | 16011 | Float | 5.00 | QuartzVein | 27.71 | 1,320 | August 23, 2022 | | 16012 | Float | 10.00 | QuartzVein | 11.23 | 2,603 | August 23, 2022 | | 16013 | Float | 2.00 | QuartzVein | 1.90 | 9,738 | August 23, 2022 | | 16138 | Channel | 0.30 | QuartzVein | 0.37 | 1,053 | August 23, 2022 | | 16145 | Channel | 0.55 | QuartzVein | 0.60 | 4,545 | August 23, 2022 | | 16190 | Float | | QuartzVein | 21.38 | 648 | Current | | 16300 | Float | 0.70 | QuartzVein | 7.70 | 47 | Current |

Table 9. Significant rock samples from Los Mangos vein.

La Ye Vein

The La Ye vein is up to 1.0 metre wide with high silver and gold grades showing continuity for more than 500 metres in outcrop, float mapping, and samplings (Map 2). Vein float assays show up to 13.21 and 11.39 g/t Au. Outcropping shear zones and sheared material in float show up to 4,043 and 2,141 silver grams per tonne, respectively (Table 10). It is significant for exploration potential to see high-grade values in both veins and shear zones.

| Sample | Sample Type | Length | Lithology | Au g/t | Ag g/t | Release Date | | 15488 | Float | | QuartzVein | 2.95 | 1,796 | August 23, 2022 | | 15489 | Float | | QuartzVein | 7.46 | 1,332 | August 23, 2022 | | 15604 | Float | | QuartzVein | 13.21 | 462 | August 23, 2022 | | 15605 | Channel | 0.40 | ShearZone | 5.48 | 2,141 | August 23, 2022 | | 15606 | Float | | QuartzVein | 5.68 | 954 | August 23, 2022 | | 15611 | Float | | QuartzVein | 7.11 | 458 | August 23, 2022 | | 16182 | Float | | QuartzVein | 5.55 | 1,013 | August 23, 2022 | | 16187 | Float | | QuartzVein | 11.39 | 4,043 | August 23, 2022 | | 16009 | Float | 0.25 | QuartzVein | 5.88 | 795 | Current |

Table 10. Significant rock samples from La Ye vein.

Espiritu Santo Vein

Espiritu Santo shows several outcropping veins ranging from 0.6 to 2.8 metres wide and float areas, including vein boulders up to 4 metres wide. Samples in the area returned high grades for gold and silver up to 8.47 g/t Au and 5,242 g/t Ag (Table 11). The veins are sub vertical and can be traced for over 350 metres. Espiritu Santo is located 250 metres east of Las Maras (Map 2).