AbraSilver’s share price increased by 8.1% after successful high-grade drilling results at the Diablillos project in Argentina. Significant silver grades were reported, indicating strong exploration potential. The company plans further drilling and an updated resource estimate in mid-2023, amidst rising silver prices driven by industrial demand.
AbraSilver Resource (TSX: ABRA) has announced notable gains in its share price following substantial high-grade drilling results at the Diablillos project in northwest Argentina, with an 8.1% increase reported. Key highlights include results from the JAC Extension target, reporting 30 meters at 237 grams silver, including a remarkable interval of 11.5 meters at 417 grams silver from a depth of 125.5 meters. The mineralization continues to extend beyond the boundaries of the JAC open pit, providing optimism for future exploration.
The company’s president and CEO, John Miniotis, remarked on the promising exploration outcomes, stating, “The continued success of our exploration program highlights the significant remaining upside potential at Diablillos.” He emphasized that these results confirm the ongoing potential for high-grade silver and gold mineralization, reinforcing their confidence in the project’s future growth and profitability.
Current market conditions are favorable, with silver prices climbing to levels not observed since 2013, driven by robust industrial demand for the metal, particularly in green energy technologies. On Tuesday, silver prices rose by 2.4%, reaching $32.73 per ounce. AbraSilver’s shares were valued at C$3.38, contributing to a market capitalization of approximately C$516.3 million, within a 52-week trading range of C$1.42 to C$3.58.
Additional drilling results from the JAC Extension revealed various intervals of silver grades, including 22 meters at 168 grams and 35.5 meters at 56 grams silver from different drill holes. At the Sombra target, 17 meters grading 101 grams silver was also reported. Furthermore, results from the Oculto Northeast target showed potential for both gold and silver, with intervals indicating 1.80 grams gold and 39 grams silver from the drilling depths undertaken.
With the completion of 21,172 meters over 106 drill holes, AbraSilver anticipates the release of an updated resource estimate in the middle of the year. Future plans include a fifth stage of drilling with an additional 20,000 meters. The project currently holds proven and probable reserves totaling approximately 42.3 million tonnes, grading 91 grams silver and 0.81 grams gold, equating to 123.5 million ounces of contained silver and 1.1 million ounces of contained gold.
In summary, AbraSilver’s recent drilling achievements at the Diablillos project signify a positive trajectory for the company, with impressive silver grades and encouraging market conditions. The continued exploration efforts and upcoming resource updates are expected to bolster investor confidence and underline the project’s significant potential. With both silver and gold mineralization showing strong prospects, AbraSilver is poised for growth in the coming months, attracting sustained interest from investors.
Original Source: www.mining.com
