In a previous update on AbraPlata Resource Corp. (ABRA.V), we explained how the Fantasma zone could boost the potential economics of the Diablillos silver-gold property. As the strip ratio of the main zone would require substantial pre-stripping capex, the company wanted to investigate the possibility to define a resource at the Fantasma zone which could subsequently be mined first to fund the pre-strip of the larger Oculto open pit.
Fantasma was never expected to be large, and even just a few million ounces of silver could already go a long way to generate a double digit amount of cash flow to reduce the initial capex associated with Oculto. The first assay results have now been received and with 52 meters of 98.3 g/t silver (including 11.47m of 239.8 g/t silver), the first hole is already confirming the resource potential at Fantasma where the strike length of the alteration has now been traced for over 200 meters whilst it remains open in both directions (east and west) as well as at depth. This is a good start of the exploration program, and the assay results of more holes should be released soon.
Additionally, Abraplata doesn’t want to waste any time as it has already engaged RPA to complete a Preliminary Economic Assessment of the Diablillos project. This PEA will obviously include a first (but preliminary) mine plan which should give us a better idea of the economics of the project. On a standalone basis, the economics of Oculto will be ‘so-so’, but we really believe the Fantasma zone could be the key to unlock a lot of additional value.