AbraSilver Intersects 109 Metres of 221 g/t Silver and 0.72 g/t Gold at Oculto West, Including 14 Metres of 580 g/t Silver
AbraSilver’s high-grade step-out at Oculto West supports its growth thesis, though the single hole lacks the scale to re-rate the DFS-stage developer.
AbraSilver Resource Corp. has released assay results from Phase VI drilling at its 100%-owned Diablillos project in Argentina. The most significant result came from hole DDH 26-036 at Oculto West, which returned 109.0 m grading 221.2 g/t Ag and 0.72 g/t Au from 114 m downhole. This interval includes a higher-grade segment of 14.0 m @ 580 g/t Ag and 0.23 g/t Au.
Beneath the oxide zone, the same hole encountered copper mineralization, reporting 7.6 m @ 0.73% Cu and 15.0 m @ 0.54% Cu, which indicates sulphide potential. Other holes reported modest results at JAC-Oculto, with 63 m @ 32.8 g/t Ag, and short intercepts of gold and silver at Oculto East. The company states that the drilling is filling a gap in previously undrilled ground, extending mineralization beyond the DFS pit.
AbraSilver Resource Corp. holds a 454 moz AgEq measured and indicated resource, a 25-year mine plan, and a definitive feasibility study projecting a C$4.2 billion after-tax net present value and a 42% internal rate of return. The company’s stock, trading at C$14.01, already reflects high market expectations.
The recent drill hole represents a step-out in a new zone and does not alter the project’s economics overnight. To materially impact the project, AbraSilver would need to demonstrate a large, contiguous extension that meaningfully increases reserves or mine life. While the single hole is encouraging, it does not constitute proof of such an extension.
The stock has been consolidating around $14 following a sharp run-up, indicating the market had already priced in ongoing exploration success.
AbraSilver Resource Corp. (ABRA) holds the Diablillos Ag-Au project in Argentina, which it owns 100%. The advanced-stage asset is fully permitted and has a completed definitive feasibility study (DFS). The company reports a mineral resource of 454 moz AgEq in measured and indicated categories, alongside 366 moz AgEq in proven and probable reserves.
The DFS outlines a 25-year mine life with an after-tax net present value (NPV) of C$4.2 billion and an internal rate of return (IRR) of 42%. The estimated all-in sustaining cost (AISC) is approximately $20/oz AgEq. AbraSilver also holds the La Coipita Cu-Au-Mo project, which is subject to a Teck earn-in arrangement.
The company’s management team includes former executives from Lundin Mining, Barrick, and Kinross. Strategic shareholders include Eric Sprott, Kinross, and Central Puerto, alongside strong institutional backing.