AbraSilver Resource Corp. (ABBRF)

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AbraPlata Increases 2020 Exploration Program at Diablillos Silver-Gold Project

Toronto - July 20, 2020: AbraPlata Resource Corp. (TSX.V:ABRA; OTCPK: ABBRF) ("AbraPlata" or the “Company”) is pleased to announce a significant increase to its ongoing 2020 exploration program at the Company’s 100% owned Diablillos silver-gold project with an additional 5,000 metres of diamond drilling planned. The expanded exploration program will increase the planned drilling for the 2019-2020 program to total approximately 8,000 metres in approximately 17 diamond drill holes.

The Company recently completed drilling the four-hole program announced on June 02, 2020, and expects initial assay results in early August, at which stage the Company will provide an update.

John Miniotis, President and CEO of the Company, stated “We are very pleased to announce a significant increase to our fully-funded exploration program at Diablillos. The expansion of the drill program allows us to continue to test the extension of high-grade gold mineralization beneath the current mineral resources and along strike. With assay results pending from recently drilled holes and drilling activities expected to continue for the next four months, we now eagerly anticipate steady news flow from the exploration program throughout the remainder of the year.”

Planned 5,000 Metre Drill Program Objectives

The additional 5,000 metres (approximately 10 holes) of diamond drilling will utilize a single drill from August to approximately November 2020. The main objective of the exploration program is to further expand known resources of the lower gold dominant zone located close to the andesite/basement unconformity at Oculto, which is a high sulphidation epithermal system. The planned program will consist of:

Several holes targeting a broadly horizontal zone of higher-grade gold mineralization which occurs at or near the contact of the Tertiary volcanic rocks and the Ordovician basement assemblage. The gold mineralization along this contact zone is approximately 30 meters thick and is one of the key targets for the upcoming drill program, as are the steeply-dipping hydrothermal breccias that extend into the basement below the contact zone (see block diagram in Figure 1).
As the sulphide related gold/silver/copper mineralization occurs immediately beneath the oxide gold mineralization, the drilling is designed to target the host breccia zones (feeders), while also intersecting the shallowly dipping oxide gold zone above them (Figure 1).
Drilling is also designed to expand the deeper gold zone to the east and relate drill intercepts to detailed outcrop mapping of silica breccia zones, as silver and gold mineralization at Oculto is associated with these breccias.
Selected deeper holes are planned to test the Laderas siliceous breccia zone immediately to the north of Oculto. In addition, these holes will test for new siliceous breccias between Laderas and Oculto.
One deeper hole is planned at Oculto to test for depth extensions of the Main Breccia on section 8225E where hole DDH 20-001 intersected 15m of 658g/t Ag, 2.35g/t Au and 5.1% Cu from 275 to 290m depth.
A ground magnetic survey is also planned in the next month to identify potential mineralizing structures under the colluvial covered plain between Oculto and Fantasma/Alpaca that may result in additional drill targets.

Figure 1 – Block Diagram Showing Position of Mineralized Zones

Figure 1

About Diablillos

The 80 km2 Diablillos property is located in the Argentine Puna region - the southern extension of the Altiplano of southern Peru, Bolivia, and northern Chile - and was acquired from SSR Mining Inc. by the Company in 2016. There are several known mineral zones on the Diablillos property, with the Oculto zone being the most advanced with approximately 85,000 metres drilled in 306 RC and diamond drill holes. Oculto is a high-sulphidation epithermal silver-gold deposit derived from remnant hot springs activity following Tertiarty-age local magmatic and volcanic activity. Comparatively nearby examples of high sulphidation epithermal deposits include: El Indio, Chile; Veladero, Argentina; and Pascua Lama, on the Chile-Argentine border.

Qualified Persons

David O’Connor P.Geo., Chief Geologist for AbraPlata, is the qualified person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects, has reviewed and approved the scientific and technical information in this news release.