AbraSilver shares rally on Argentina resources estimate
AbraSilver Resources Corp. [TSXV-ABRA, OTC-ABBRF] has announced a substantial increase in the mineral resource estimate for its wholly-owned Diablillos property in Salta Province, Argentina.
The new estimate consists of updated estimates for the Oculto deposit, plus estimates for the JAC, Fantasma and Laderas deposits, all of which are located to the west/southwest of Oculto. All four deposits are located on the Diablillos property.
The estimate includes a 36% increase in the contained silver in measured and indicated mineral resources to 148 million ounces (up from 109 million ounces in an earlier estimate), and is primarily attributed to maiden estimate for the JAC deposit.
Other highlights include a 32% increase in the average silver grades in measured and indicated resources to 87 g/t silver, up from 66 g/t. This is due to higher silver grades in the JAC deposit and higher equivalent cut-off grades at Oculto.
AbraSilver shares advanced on the news, rising 9.7% or $0.03 to 34 cents on volume of 388, 420. The shares trade in a 52-week range of 45.5 cents and 25 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 2016.
There are several known mineral zones on the property, with the Oculto zone being the most advanced. Oculto is a high-sulphidation silver-gold deposit derived from remnant hot springs activity.
“We are delighted to announce that the measured and indicated resources at Diablillos are now estimated to contain 260 million ounces of silver equivalent (AgEq),’’ said AbraSilver President and CEO John Miniotis. The estimate is based on a cut-off grade of 45 g/t silver (up from 35 g/t
Miniotis said the updated mineral resource estimate will form the basis for the pre-feasibility study, which remains on track to be completed in (first quarter) of 2024.
AbraSilver chief geologist David O’Connor said the updated estimate represents a major milestone for the company. He said the company is pleased to see a significant increase in both the quantity and grade of silver mineralization, stemming from the discovery of the high-grade ZAC zone.
ZAC contains a measured and indicated resource of 36.2 million ounces of AgEq. By comparison, Oculto hosts a measured and indicated resource of 218.3 million ounces of AgEq.
“Looking forward, we are very excited by the upside potential of the future near-pit and regional exploration programs at Diablillos, where we have already identified multiple new mineralized zones that we expect could further significantly enhance our mineral inventory beyond the current mineral resource estimate,’’ “O’Connor said.
The latest estimate is the result of 133,000 metres of drilling in 630 drill holes (historical and current). This includes the latest phase 3.0 drill campaign, conducted in 2022/2023, which totalled 24,077 metres.
Future drilling will focus on exploration targets which include JAC North, Alpaca and the Oculto-Fantasma trends, each of which has the potential to continue to increase and add additional gold/silver mineralization, the company said.