AbraSilver Resource Corp. announced promising results from its phase four drill program at the Diablillos project in Argentina, revealing high-grade silver and gold mineralization. Plans for further exploration aim to enhance resource estimates, with significant milestones planned including a definitive feasibility study and market-positive economic approaches. Analysts express strong confidence in AbraSilver’s potential for growth and investment returns.
AbraSilver Resource Corp. has reported encouraging results from its recent phase four drill program at the Diablillos project in Argentina, indicating substantial high-grade silver and gold mineralization across multiple zones. Notable discoveries include significant results at the Sombra target, where drill DDH 24-069 revealed 101 grams per ton of silver over 17 meters, with higher-grade intersections of 205 g/t silver within that interval.
In the JAC Extension area, drill hole DDH 24-075 revealed high mineralization, registering 237 g/t silver over 30 meters, prompting plans for further exploration to better understand the mineral continuity. Charles Geologist Dave O’Connor emphasized the importance of these results in expanding known mineralization beyond established boundaries, thereby enhancing the project’s geological potential.
The phase four drill program encompassed 106 holes and totaled 21,172 meters, with a resource estimate update expected by mid-2025. Furthermore, AbraSilver has appointed Boris Caro as the full-time project director, effective April 1, 2025, to lead the completion of the definitive feasibility study scheduled for release in Q1/26.
Caro brings extensive expertise, having successfully completed feasibility studies for various mining projects, including those for lithium in Argentina. His strategic oversight is anticipated to facilitate AbraSilver’s developmental milestones and position the Diablillos project favorably for investment decisions.
The Diablillos project is recognized as a significant potential asset in the silver market, with current Proven and Probable reserves approximating 124 million ounces of silver and over 1 million ounces of gold. Continued exploration is expected to enhance these figures further. In line with positive output, the exploration company aims to conduct a comprehensive evaluation in the upcoming definitive feasibility study.
A recent robust pre-feasibility study indicates potential silver production of approximately 7.5 million ounces annually over a 14-year lifespan. Notably, AbraSilver is exploring additional economic strategies, including heap leaching for gold recovery to enhance production potential.
Regarding renewable energy, potential long-term contracts for favorable power rates may considerably lower operating expenses up to 15%. Furthermore, potential eligibility for Argentina’s Large Investment Incentive Regime could yield savings of approximately $430 million, contingent on timely construction decisions.
Alongside Diablillos, AbraSilver also oversees earlier-stage copper-gold assets, including the La Coipita project, where drilling activity is being undertaken. In the context of the silver market, robust demand indicators and limited supply are contributing to a positive outlook for future silver prices, with predictions reaching as high as $40 per ounce this year.
Upcoming project milestones for AbraSilver include results from a new 20,000-meter drill program, which has just commenced, as well as environmental assessment permits anticipated by Q4/25. Analysts project further developments, including completion of the definitive feasibility study next year and subsequent investment decisions.
Lastly, analysts maintain positive views on AbraSilver, citing strong potential for share price appreciation. The company currently has a market capitalization of CA$492 million, supported by a solid shareholder base.
This summary outlines the significant advancements and financial implications concerning AbraSilver’s ongoing endeavors, exemplifying the company’s commitment to enhancing its position within the competitive landscape of silver and gold mining.
In conclusion, AbraSilver Resource Corp. appears to be on a promising trajectory with its Diablillos project, bolstered by significant drill results indicating high-grade mineralization, strategic hires for project leadership, and overall optimistic market conditions for silver. With ongoing exploration and developmental studies, coupled with favorable economic strategies, the company is well-positioned to enhance its resource base and attract investment. Analysts’ positive assessments further highlight the potential for significant growth and profitability in the coming years, reflecting confidence in the company’s future value.
Original Source: www.streetwisereports.com
