Abrasilver Resource drills 148.1 g/t silver over 64 metres at Diablillos, Argentina

Abrasilver Resource Corp. [ABRA-TSXV; ABBRF-OTCQX] reported assay results for the final set of drill holes completed as part of the company’s successful phase 3 drill program on its wholly owned Diablillos property in Salta province, Argentina.

The reported holes were designed to delineate the margins of the JAC zone, ahead of the upcoming Mineral Resource estimate (MRE) and a Pre-Feasibility Study (PFS) on the Diablillos project. Key takeaways include:

Holes DDH 23-066 to DDH 23-070 were drilled to determine the northwestern edge of the JAC zone. All holes encountered silver mineralization, with a broad intercept of 64 metres grading 148 g/t silver in hole DDH 23-070 from a downhole depth of only 41 metres.

Holes DDH 23-071 to DDH 23-075 were drilled to test the northeastern edge of the JAC zone. The holes encountered several narrower zones of silver mineralization, with hole DDH 23-075 intersecting 15.0 metres at 93 g/t silver and 0.78 g/t gold. Results from DDH 23-075 are highly encouraging as they demonstrate the continuity of mineralization between the JAC zone and the main Oculto deposit, and the possibility of a combined open pit.

Hole DDH 23-065 was drilled beyond the northwestern edge of the JAC zone, into the recently discovered JAC North zone. The hole successfully encountered a near-surface intercept of 7 metres grading 119 g/t silver and 0.14 g/t gold, starting at a downhole depth of only 85 metres.

This encouraging result further confirms the presence of a new significant mineralized structure beyond the main JAC zone. As announced on August 9, 2023, the newly discovered JAC North zone is located over 900 metres beyond the limit of the conceptual open pit that defines the current Mineral Resource estimate at Oculto and approximately 100 metres northwest of the high-grade JAC zone.

While hole DDH 23-075 represented the final drill hole at the main JAC zone as part of the phase 3 drill campaign, the Company completed drilling of six additional holes at nearby exploration targets (namely JAC North, Alpaca and Fantasma). These results are expected to be received within the next few weeks and will help determine the highest-priority targets for the next phase of exploration.

The phase 3 drill program has now been successfully completed. The company is preparing an updated MRE which remains on schedule to be completed within the next few weeks, to be followed by a PFS on the Diablillos project.

John Miniotis, president and CEO, commented: “We are delighted with the results of our highly successful phase 3 drill campaign. The consistent, high-grade drill results encountered throughout the past year clearly demonstrate the large-scale silver-gold mineralization potential at our flagship Diablillos project. The completion of this drill campaign represents another major milestone for the Company and reinforces our belief in the tremendous value remaining to be unlocked through our ongoing exploration efforts.”

Exploration update: The phase 3 drill program successfully achieved all of its key objectives, namely: systematically grid drilling the silver-dominant mineralisation at the JAC zone in order to estimate Measured and Indicated Mineral Resources which can be incorporated into the planned overall Diablillos MRE update and PFS; delineate the margins of the JAC zone and conduct geotechnical drilling necessary for a conceptual open pit design; and conduct reconnaissance drilling at other targets on the Diablillos land package, including the Fantasma, Alpaca and JAC North zones.

All phase 3 drill holes from the JAC zone will be incorporated into an updated MRE and will be included in a PFS on the full Diablillos project. Our next phase of drilling (Phase IV) will explore additional targets which will all be prioritized based on distance from the probable porphyry progenitor beneath Oculto and favourability of structural trends reflected in magnetic surveys, with special reference to any historical drill data. Current priority targets in the area west of Oculto include JAC North, Alpaca and Fantasma, with additional targets also being developed to the east and north of Oculto.

At the annual general and special meeting of shareholders held on August 28, 2023, each of the director nominees listed in the company’s management information circular dated July 18, 2023 were elected as directors of the company, including Robert Bruggeman, Stephen Gatley, Sam Leung, Jens Mayer, Nicholas Teasdale, Flora Wood and Hernan Zaballa. Shareholders of the company also approved the re-appointment of Crowe MacKay LLP as the auditors of the company for the ensuing year and authorized the board of directors to fix their remuneration and terms of engagement.

Shareholders also approved amendments to the company’s share compensation plan. The Plan is a “rolling 10% plan” and was amended to include a “net exercise” provision.

The company anticipates announcing several upcoming milestones over the next few months, including: announcing assay results from the remaining six holes on regional exploration targets (JAC North, Alpaca and Fantasma (September 2023); updated Mineral Resource estimate for the Diablillos project (October 2023); conduct a CSAMT geophysical survey at Diablillos and prioritize exploration targets for the upcoming Phase IV drill campaign (Q4 2023)’ and Pre-Feasibility Study completed for Diablillos project (December 2023).

The current Measured and Indicated Mineral Resource estimate for Diablillos consists of 51.3 Mt grading 66 g/t silver and 0.79 g/t gold, containing approximately 109Moz silver and 1.3Moz gold, with significant further upside potential based on recent exploration drilling.