Focus on Drilling the High-Grade Santa Ana Silver and Gold Project in Colombia - FEBRUARY 2021 - Outcrop Gold
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Focus on Drilling the High-Grade Santa Ana Silver and Gold Project in Colombia FEBRUARY 2021
FORWARD LOOKING STATEMENT
This presentation contains forward-looking statements and factual information that are current as of the date the presentation was originally
delivered. Outcrop Gold Corp disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise. Forward-looking statements include, but are not limited to, statements with respect to the timing and
amount of estimated future exploration, success of exploration activities, expenditures, permitting, and requirements for additional capital and
access to data.
Forward looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or
achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the
forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project
parameters as plans continue to be refined; the ability to enter into joint ventures or to acquire or dispose of properties; future prices of mineral
resources; accidents, labor disputes and other risks of the mining industry; ability to obtain financing; and delays in obtaining governmental
approvals of financing.
The qualified person for any technical information in this presentation is Joseph Hebert, President and Chief Executive Officer and Qualified
Person.
The information in this presentation has been obtained by from its Outcrop own records and from other sources deemed reliable. However, no
representation or warranty is made as to its accuracy or completeness.
2
MANAGEMENT
JOSEPH HEBERT, B.S. Geology ALEX TONG
President, Chief Executive Officer and Director Chief Financial Officer
Mr. Hebert is credited with team participation in multiple gold discoveries in Nevada and Mr. Tong is a highly qualified finance professional with extensive senior management
Utah over the course of his 36-year career and was instrumental in assembling the experience in the mining industry. Most recently he held the position of Director of
company's Colombian exploration staff and portfolio. In 2004 Mr. Hebert drilled the first Finance at diamond producer Lucara Diamond Corp. Prior to Lucara, Mr. Tong held
hole in ET Blue, now Goldrush on the Barrick’s Cortez Mine Project. He is also credited senior finance roles at resource development public companies (including Energy Metals
with the Mallaha Creek discovery at Jerrit Canyon, NV, and discoveries in the Goldstrike and NovaGold) where Mr. Tong was responsible for achieving operational performance,
District, UT. Prior to Outcrop, Mr. Hebert worked overseas by contract in Generative leading mergers and acquisitions while being involved with various financing initiatives.
Exploration in Mongolia, Colombia and Suriname. Mr. Tong is a Chartered Professional Accountant and holds a Bachelor of Business
Administration from Simon Fraser University.
CHRIS CROUCHLEY
Exploration Manager JUDY A. MCCALL
Mr. Crouchley brings over 10 years of experience as an exploration geologist in Latin
Corporate Secretary
America and Western Australia. He has held various roles senior roles at several public Ms. McCall brings over 13 years’ experience as a corporate and securities Paralegal
companies including, Neometals, Resources & Energy Group, Gold Road Resources and working in both the private and public natural resource sector. She is responsible for
Millennium Minerals. Mr. Crouchley is also an experienced Investment Advisor and supporting the board of directors and its executives in regulatory, governance, and
former Analyst. Mr. Crouchley speaks fluent Spanish, is a Chartered Financial Analyst and corporate secretarial management. She has an active role in shareholder and
holds an MBA from the University of Maryland. stakeholder engagement as well has obtained proficient experience in providing
corporate assistance to companies who operate within multiple jurisdictions such as US,
BVI and various parts of Latin American. Ms. McCall has been a member of the Canadian
Society of Corporate Secretaries since 2015.
3
DIRECTORS
IAN SLATER KEVIN NISHI
Executive Chairman Director
Mr. Slater is an entrepreneur who has founded numerous companies and been involved Mr. Nishi is a Chartered Professional Accountant and holds a Bachelor of Business
in the mining industry for over twenty-five years, including the last ten in Colombia. Administration from Simon Fraser University. He has held several director positions with
Previously, Mr. Slater was the Managing Partner of both Ernst & Young's Canadian and exploration stage mining companies. Mr. Nishi is a partner with Smythe LLP working
Arthur Andersen's Central Asian Mining Practices. Mr. Slater is a Chartered Accountant. with several public companies listed on the TSX and TSX Venture exchanges in Canada,
and in the United States.
JOSEPH HEBERT, B.S. Geology
President, Chief Executive Officer and Director
JAY SUJIR
Director
Mr. Sujir is a securities and natural resources lawyer who has twenty-three years of
experience in advising and assisting public companies. He is a senior partner with Farris,
Vaughan, Wills & Murphy LLP. Mr. Sujir is a member of the Law Society of British
Columbia, the Canadian Bar Association, and the British Columbia Advisory Committee
of the TSX Venture Exchange.
4
CAPITAL AND SHARE STRUCTURE
CAPITAL STRUCTURE OCG SHARE PRICE YTD
Shares Issued & Outstanding: 109,597,453 $0.90
$0.80
Warrants: 50,663,715 $0.70
$0.60
Options: 9,990,000 $0.50
$0.40
Fully Diluted 170,251,168 $0.30
$0.20
$0.10
Cash (August 31, 2020 ) C$5.9M $-
Recent Financing (June 17, 2020) C$5.75M
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TOP SHAREHOLDERS TRADING SUMMARY*
Eric Sprott 19.9% TSX:OCG
Sprott Asset Management 3M Av. Daily Vol: 556,881
52-Week Range: $0.88-0.09
MMCap
Market Cap: C$49M
Regal Funds
Terra Capital
Alpha North Asset Management
Outcrop Management: 25%.
*As of February 10, 2021
5
TWO ADVANCED EXPLORATION PROJECTS
Santa Ana Project COLOMBIA
● FLAGSHIP PROJECT: Highest-grade silver project in Colombia.
● Seven parallel vein zones with a total strike length of 14 km.
● Drill intercepts up to 0.95 m at 69.6 g Au/t and 5,550 g Ag/t.
● Five discoveries of large high-grade shoots.
● Weighted average grade of over 55 significant drill holes is 1,456 g Eq Ag/t.
Mallama Project
● Located in one of the largest vein districts in Colombia.
● Multiple parallel vein-packages of up to eight – 1 metre veins that trend 4 to 6 km.
● Adjacent to the Diamante Mine – highest grade historic gold mine in Colombia
(and still operating).
6
Flagship Asset: Colonial-era high-grade silver
and gold district
Reports of 14 mines producing average of 4 kg silver over average
1.4m width – up to 17 kg silver per tonne.
7
SANTA ANA PROJECT
Project ● 100% owned, over 25,000 hectares.
● 190 km WNW of Bogota.
● Historic Mariquita Silver District – Royal Santa Ana mines.
● Prolific colonial mining camp with up to 17 kg Ag/t over 1.4 m recorded.
Infrastructure ● Highway access, grid power, water, strong community support, excellent security conditions.
Drilling ● Five discoveries in 2020 and early 2021.
● Weighted average grade for all significant drill holes equals 1,456 grams equivalent silver per tonne.
● 67holes totaling 11,460 metres drilled from December 2019 – December 2020 by Outcrop.
● Drill intercepts up to 0.95 m of 70 g Au/t and 5,550 g Ag/t or 10.8 kilogram eq Ag/t.
Mineralization ● Later epithermal overprinting early orogenic fold-thrust belt for great depth
NEAR-TERM FOCUS
potential. Veins and mineralization outcrop. Classic “pinch and swell”.
• Core drill program currently
underway to continue
Targets ● Ten target areas identified: 12,000 metres drilling expected by January 2021. through 2021: a 24,000
● Another 12,000 metre program to commence in February 2021. metre target.
Investment Highlights ● Project expanded to control 30 km long and 12 km wide zone of vein systems.
● Acquisition is well timed for silver prices and increased market interest for high-grade silver projects.
8
SANTA ANA PROJECT
Historic 2012 Drill Intercepts – north northeast high-angle veins
Locally 3 veins and wall rock composited show up to 18m at 450 eq g Ag/t.
• Historic drilling shows three parallel veins averaging 1 m.
• All eight holes hit high-grade silver mineralization.
• Possible to composite close-spaced veins in same stope.
Native Silver: 11.2 g Au/t and 2,820 g Ag/t (0.15 m of 0.70
Potentially minable with long-hole stopes and or m) vein with silver sulfosalts + pyrite+ galena + sphalerite.
mechanized jumbo and LHD where veins can be composited Inferred IS epithermal system with orogenic precursor.
together in 10 to 18 metre wide stopes locally. A balance of
wide and narrow stopes for potential future production.
9
SANTA ANA PROJECT
5 High-grade Shoots Discovered – less than 30% of projected vein system tested
Five shoots discovered in 2020 and early 2021:
• La Ivana
• Megapozo
• Roberto Tovar
• El Dorado
• San Juan
1. Drilling started in El Dorado and 600 metre
length of Paraiso vein to where it hosts
Megapozo.
2. San Antonio target will test open
mineralization south from Roberto Tovar.
3. Exploration objective is to identify five to
seven new shoots in 2021. Including Paraiso
vein, five more targets are ready to drill.
4. A total of ten to twelve shoots discovered may
provide decision point for delineation and
preliminary resource estimates.
10SANTA ANA PROJECT
Recent drilling at El Dorado remains open and high-grade drilled in Paraiso vein.
11SANTA ANA PROJECT
El Dorado shoot: A package of four veins open at 200 metres depth
12SANTA ANA PROJECT
West northwest generally low angle veins (La Ivana shoot cross-section)
● Low angle veins between high-angle veins
commonly stacked. High-wall or foot-wall to
primary vein.
● Relationship between low and high-angle veins
are poorly understood both provide large high-
grade shoots.
● Intersections or convergence may produce
relatively higher grades.
● Potentially minable with very long 1.2 to 2.2
metre long-holes stopes with slushers or
gravity move “ore” to mechanized surface
transport.
● Local resue stopes for 0.5 or less metre but
very high-grade veins (same methods as
SilverCorp)
13SANTA ANA SILVER PROJECT
2020 and Early 2021 Program Highlights
Drill Assay Highlight:
● Best Outcrop drill intercept of 0.95 m of 69.6 g Au/t and 5,550 g
Ag/t (10.8 kilogram Eq Ag/t )
Other Highlights:
● 1.0 m of 21.3 g Au/t and 4,680 g Ag/t.
● 0.50 m of 58.1 g Au/t and 876 g Ag/t.
● 0.50 m of 5.8 g Au/t and 1,445 g Ag/t.
● 0.61 m of 29.0 g Au/t and 1,675 g Ag/t.
Five Discoveries of High-Grade Shoots:
● New La Ivana discovered in March 2020.
● New Megapozo discovered in July 2020.
● Historic Roberto Tovar confirmed in September 2020.
● New EL Dorado discovered in December 2020. La Ivana Ore Shoot: DH04 (2020) 1.0 m of 21.3 g Au/t and 4,680 g Ag/t
● New San Juan discovered in January 2021.
● Shoots are large with good grade continuity up to +300 metre along
strike and +400 metre down dip with average grade of 15 g Au/t and
1.3 kg Ag/t by volume modelled in La Ivana shoot.
14SANTA ANA GRADE – 10.8 kilogram Eq Ag/t
0.95m at 69.6 g Au/t, 5,550 g Ag/t, 2.53% Pb and 3.15% Zn
Banded sulfides
Massive sulfide EPITHERMAL TEXTURES
(Pyrite- Sphalerite-Galena) &
Sulfide breccia
OROGENIC AT DEPTH
Veinlets and drusy vugs in vein halo +/- lower grades Au + Ag
15SANTA ANA HIGH GRADE
0.4 m at 6.6 g Au/t and 1,030 g Ag/t
Core detail of coarse banded sulfide
16SANTA ANA PROJECT
Over 14 km cumulative strike of vein zone projections
17SANTA ANA SILVER PROJECT
2020 Exploration Plan – 14 kilometres projected vein zones – 10 Target Areas
● 14,000 m of vein zones mapped or projected, 10 targets.
● 6,000 - soil and trench samples planned ahead of drilling.
● 12,000 metre plan completed with two drill rigs operating.
● For 2021 up to 12,000 additional metre program planned.
● Expected results by end of 2021 is 10 to 12 high-grade shoots of ~12 to
15 g Eq Au/t or 960 to 1,200 g Eq Ag/t.
VEIN Median Median High High Potential
TARGET AREA SYSTEM SAMPLES g Au/t g Ag/t g Au/t g Ag/t Strike (m)
EL DORADO 40 0.50 61.15 7.36 442.00 230
EL DORADO
SEWER 3 6.89 12.10 12.80 23.40 220
LA PORFIA 34 2.86 94.95 82.60 838.00 500
LA PORFIA
LA IVANA HW 0 515
SEWER 17 7.45 56.90 68.60 422.00 250
MIRAFLORES 3 1.18 16.60 2.09 22.10 400
GUANABANERA SANTA ANA 2 0.59 317.23 0.73 623.00 1,600
SEWER 8 0.48 84.90 21.30 338.00 450
SANTA ANA 2 0.02 1.59 0.04 3.11 1,100
MEGAPOZO
MIRAFLORES 2 2.01 119.04 4.01 238.00 360
LA PORFIA 0 215
ROBERTO SANTA ANA 99 0.17 14.70 2.99 100.00 1,650
TOVAR MIRAFLORES 1 0.03 0.70 460
MORALES EL DORADO 6 0.23 5.41 0.55 38.00 400
POLLERA EL DORADO 11 0.36 14.30 1.25 122.00 260
SANTA ANA 3 0.15 4.14 0.15 4.17 500
SAN ANTONIO
MIRAFLORES 15 0.01 0.23 94.30 93.80 500
PALOMOS PALOMOS 2 0.17 7.01 5.26 713.00 480
Total 248 10,090
Table 1: Nine targets are supported by 248 samples with highlighted values. The nine target areas offer a potential
of 10,000 metres of vein zone. Compared to drill assays, silver values may be depleted at surface.
18SANTA ANA SILVER PROJECT
2020 Ground Geophysics expands number of target areas.
• Good correlation of vein structures to IP and Resistivity.
• Best reflection of high-angle veins probably due to wider
exposed zones of sulfidic alteration.
• Good correlation with anomalous soils geochem.
• Resistivity (quartz vein) will screen IP (sulfide and clay
alteration) and be combined with soils geochem and
trenching to generate numerous target areas.
• Currently 5 for 5 or 100 percent success target to shoot
discovery.
• Extreme target-rich environment – potential for high-
density shoot distribution.
19SANTA ANA SILVER PROJECT
La Porfia high-grade shoot still open at depth – low angle vein system.
Preliminary 3D solid modeling provides:
● Robust > 10 g Eq Au/t (>800 g Eq Ag/t) grade
contours.
● Well defined, contiguous shoot.
● 0.6 m average thicknes x 200 m x 210 m; open to
northeast at surface and to west depth.
● Shoot by volume has grade of 15.2 g Au/t and 1,289 g
Ag/t and 1.05% Zn and 0.6% Pb.
● Equivalent grades 28 g Au/t or 2,800 g Ag/t.
● Stacked veins add cumulative volume to primary vein.
● Recent drilling to west shows down dip extension to
400 metres.
20SANTA ANA SILVER PROJECT
Megapozo shoot projected to surface – low angle vein system
Drilling Indicates:
● 300 metres along surface and 310 metres down-dip.
● 0.75 metres average intercept width.
● Weighted average of 11 g Au/t and 780 g Ag/t by
volume.
● Significantly larger than first La Ivana discovery.
● Some secondary stacked veins and diverging vein
splays.
● High-grade open in all directions.
21SANTA ANA SILVER PROJECT
Roberto Tovar Long Section – High Angle Veins - values equivalent g Au/t
Drilling and preliminary modeling indicate:
● 1.3 metre average intercept width; high of 3.52
metres width intercept width.
● Weighted average grade of 18.1 Eq g Au/t for all
significant intercepts.
● Slightly better grade distribution for equivalent gold
compared to equivalent silver.
● Similar shoot geometries and characteristics
whether looking at gold or silver equivalent values
distribution.
● Large high-quality, high-grade shoots, sub vertical
and occurs as packages of parallel veins.
22SANTA ANA SILVER PROJECT
Roberto Tovar Long Section – High Angle Veins - values equivalent g Ag/t
Drilling and preliminary modeling
indicate:
● Weighted average grade of 1,443 equivalent
g Ag/t for significant intercepts.
● High-angle, closed spaced veins, some veins
can be composited together with wall rock to
provide up to 18m at 450 e g Ag/t locally.
23EXPANDED SANTA ANA SILVER PROJECT
2020 acquisition – captures five new vein trends up to 30 kilometres long
• Numerous workings with
high-grade
mineralization.
• Frias mine that produced
over 10 million ounces
Ag.
• District and regional
scale.
• Primary trend anchored
by Santa Ana and El
Porvenir Mines: 30
kilometres apart.
• El Porvenir with plus 3 m
veins.
24Large epithermal vein system
25MALLAMA PROJECT
Bombona Zone: 3 or more active production portals and 3 operating mills on different veins.
• Numerous operating artisan mines and mills.
• Resources could be quickly blocked out
working under ground on four or more veins.
• Known stope areas could be quickly
expanded with targeted offset drilling.
• Simultaneous exploration of entire district
but start in artisan mine areas under
legalization agreement for low-risk and high-
grade results.
• Non-selective mining at over 22 g Au/t and
200 g Ag/t in vein swarms 4 to 6 km long.
26MALLAMA PROJECT
Bombona Zone
● Numerous high-grade artisan mines
in Bombona Zone that are accessible
for sampling.
● Systematic sampling shows non-
selective mined grade of 22.3 g Au/t.
● Similar grades reported by local
artisan miners in numerous workings.
● All mineralization shown is open along
strike and dip. More sampling would
show 200 m of continuous
mineralization in adit illustrated.
● Central sampling is from different
levels 30 m vertical extent open-up
and down dip and open along strike.
● Bombona Zone production area
extensively underground sampled by
Outcrop.
27MALLAMA PROJECT
Bombona Zone: Numerous vein packages inferred from soils (JICA) and historic workings
● High vein density of seven to twelve parallel
veins.
● 3km strike by 1km width vein swarms
(reflected in historic workings and soils)
● Remarkable grade and physical vein continuity
in district.
28MALLAMA PROJECT
Huge Epithermal Vein System because of Cascable to Colossa Trend
● Consistent high-grade veins in five main groups within
district footprint of over 100 sq km.
● Multiple parallel vein-packages of 4 to 6 km strike.
● Recon Au/g samples from 11-73 g Au/t and 75 to
1,400 g Ag/t.
● Adjacent to Diamante Mine (plus 30 g Au/t producer)
● 1 m veins in packages 8 or more veins.
● Entire land package provides targets.
29SCALE AND NARROW VEIN COMPARISONS
Multiple exploration and operating projects worldwide
Outcrop – Santa Ana Vizsla – Panuco Silver Corp – Ying Mine Areas
Stage Exploration Exploration Production
Market Capitalization CAD$54M CAD$147M CAD$1.36B
Average Vein Width 0.80 m 3.25 m 0.70 m – 0.80 m
1,456 Eq Ag/t 866 Eq Ag/t 415 Eq Ag/t
Average Grades
(undiluted) (undiluted) (diluted head grade)
Average Shoot Scale 250 m X 350 m; open 175 m X 130 m; open 40 m X 80 m
Shoot Count 5 with drill definition One with drill definition (Napoleon) Numerous in large mine area
Shrinkage stop 1.2 to 2.2 m;
Mining Methods - -
resue stopes 0.5 m
AISC - - US $7.00 per Eq oz Ag
30OUR SOCIAL RESPONSIBILITY PILLARS
● We strive to build and maintain solid relations through stakeholder engagement, permanent dialogue and our contribution to the progress and
sustainable development of our communities.
● Cooperation with private non-profits to provide wheelchairs to disabled; supporting micro cap business start ups.
● Success in quick two months to receive permits to drill Santa Ana and forecast drill permits Mallama by June 2021.
CSR PILLARS:
BUILD TRUST BUILD OPPORTUNITIES BUILD FUTURE
Build and maintain relations of Maximize the positive impacts of our Boost and promote the
respect and collaboration with the operations in the community, development of the community
community through the generation promoting the development of local contributing the improvement of
of trust, doing things right. economy. its quality of life.
31CORPORATE CATALYSTS
Santa Ana: Other Projects:
● Finish 12,000 m exploration drill program underway. ● Mallama - Drill permits in Bombona Zone mid 2021.
Outcrop will scout drill previous to joint venture decision.
● Continue with another 12,000 m program in 2021.
● Simultaneous drilling high grade veins Santa Ana and
● Continuous drill results and news from drill program of Mallama.
high-grade veins.
● Advance Mid Cauca Belt projects especially Oribella next
● Discover five to seven additional high-grade shoots as to Newmont/Agnico Eagle ANZA joint venture.
targets are advanced and drilled.
● Make joint venture agreements with major companies to
● Evaluate accretive acquisition opportunities for Santa Ana advance two to four other projects in 2021. Especially
silver-gold belt. Antares next to B2 Gold Anglo Ashanti Gramalote.
● Generate and drill targets in numerous additional veins
zones on 25,000-hectare acquisition – possible 90 km of
veins.
● Resource delineation drilling decision in 2021. Other Objectives 2021
● Acquire additional projects to joint venture.
● Produce compliant inferred and indicated resource in 18
months. ● Secure funding Colombia exploration alliance with Major
Company.
32Head Office Joe Hebert
905 – 1111 West Hastings Street President & CEO
Vancouver, B.C. +1 775 340 0450
Canada V6E 2J3
hebert@outcropgoldcorp.com
+1 604 638 2545
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