AbraSilver Resources Corp. [ABRA-TSXV, ABBRF-OTC] shares rallied in active trading Wednesday after the company released drill results from an ongoing Phase 11 program at the company’s wholly-owned Diablillos property in Salta Province, Argentina. The company also released a drilling update from a second Argentina project, known as La Coipita.
Diablillos drilling highlights include hole DDH 22-005, which returned a near-surface oxide interval of high grade gold and silver with 67.5 metres at 293.9 silver equivalent AgEq (or 4.20 g/t AuEq), consisting of 157 g/t silver and 1.95 g/t gold, including 17 metres at 756.8 g/t AgEq (or 10.81 g/t AuEq) consisting of 235 g/t Ag, and 7.46 g/t Au.
“Hole DDH 22-005 was drilled on the southwest margin of the conceptual open pit and clearly demonstrates the continuity of high-grade mineralization beyond what was previously estimated,’’ said AbraSilver President and CEO John Miniotis.
This latest step out hole is located southwest of the existing Oculto Mineral Resource and the mineralization now extends to an area of 600 metres by 2,000 metres and remains open along strike and at depth.
AbraSilver shares advanced on the news, rising 8.86% or $0.035 to 43 cents on volume of 553,780. The shares are currently trading in a 52-week range of 82 cents and 31.5 cents.
The 80 square kilometre Diablillos property is located in the Argentina Puna region – the southern extension of the Altiplano of southern Peru, Bolivia and northern Chile. The project was acquired from SSR Mining in 2026.
There are several known mineral zones on the property, with the Oculto zone being the most advanced, with 90,000 metres drilled to date. Oculto is a high-sulphidation silver-gold deposit derived from remnant hot springs activity.
It is estimated to host 90.2 million ounces of silver, and 1.0 million ounces of gold in the measured and indicated resource categories as well as 3.2 million ounces of silver and 66,000 ounces of gold in the inferred category.
The company said 16,630 metres has now been completed as part of the company’s ongoing 20,000 Phase 11 exploration program at Diablillos. Drilling is focused on expanding mineralization for inclusion in the next mineral resource estimate, which is expected by the third quarter of 2022. Another focus is in-fill drilling (estimated at 25-metre spacing) to reclassify existing indicated mineral resources to the measured category.
“To date, our Phase 11 drill results reveal the exceedingly high-grade nature of the Diablillos project and validates the company’s geological model,’’ the company said in a press release. Results are pending from an additional six holes in the next few weeks.
Meanwhile, the company said it has completed a maiden drill program a the La Coipita project, which is located in San Juan province, Argentina. Based on encouraging visual data at the time of drilling, the drill program was modified to test a deep porphyry target. Hole DDHC 22-001 was terminated at 865 metres, while DDHC 22-002 was terminated at just over 1,200 metres depth.