Outcrop Silver (OCGSF*) $0.19

Outcrop is a high grade silver discovery company, located in Columbia S.A. Grades are among the largest in the world. Outcrop activity is focused on defining the current discovery and expanding the scope of the discovery. Outcrop cost per ounce of silver in the ground is about $2.00. It is estimated that current resource is about $37 million ounces.

Notes

Market Cap is about $68 million – Shares outstanding are around 376.2 million.
10-day average trading vol is about 779,000 – Eric Sprott is a 21 percent owner.

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LOTM Perspective: Outcrop is a world class silver discovery. Santa Ana Project size is large at about 12 Kilometers (km) wide and 30 km long. The grades are very high. Columbia is an attractive jurisdiction for mining. The share count is larger than we like. A reverse split is not imminent, but I would expect one at some time in the future. The price at $0.19 and $68 million Mkt Cap is attractive. LOTM consider this a one to four-year buy and accumulate on weakness position. The price goal is to average 100% per year gain over the four years. Opportunities to tax manage by selling higher cost shares when above your average cost per share, and dollar-cost-average buying on price weakness when below your average cost. This is a speculative idea. Stop losses do not work in this situation. This company is subject to share issuance dilution to finance exploration and development. This ideas does not fit with a trading perspective. The goal is long-term capital gains that are more than a double on invested funds.

BarChart News Flow

Outcrop Silver & Gold Corporation is a Canada-based explorer and developer focused on advancing its flagship Santa Ana high-grade silver project in Colombia.

  • The 100% owned Santa Ana project comprises 27,000 hectares, 190 kilometers from Bogota, Colombia. Santa Ana consists of regional scale parallel vein systems across a trend 12 kilometers wide and 30 kilometers long covering a majority of the Mariquita District.
  • Its Mallama project comprises 9,036 hectares of titles located in Narino Department.
  • The Oribella project comprises 20,000 hectares and is located in Antioquia Department within the Middle Cauca Belt metallogenic province. The Oribella Gold Project lithology includes oceanic domains of deep-water pelagic and turbidite-laminated sediments, and submarine tuffs tectonically juxtaposed against basaltic volcanic rocks.
  • The Argelia project comprises 4,355 hectares of applications located in Antioquia Department. It is located approximately 75 kilometers southeast of Medellin.
  • Company website: https://outcropsilver.com/

Three year-weekly chart:

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