Diablillos is located in the Argentine Puna region, which is the southern extension of the Altiplano of southern Peru, Bolivia, and northern Chile. Credit: AbraSilver Resource
AbraSilver Resource (TSX: ABRA)(US-OTC: ABBRF) cut intervals grading higher than 205 grams silver per tonne in the completed stage four drilling at its Diablillos project in northwest Argentina. Shares gained 8.1%.
Highlights from the JAC Extension target, in the southwest part of Diablillos, are 30 metres at 237 grams silver from 125.5 metres depth in hole DDH 24-075, including 11.5 metres at 417 grams silver, the company reported Tuesday. That hole was drilled 25 metres beyond the JAC open pit boundary, and mineralization remains open south of JAC.
“The continued success of our exploration program highlights the significant remaining upside potential at Diablillos,” AbraSilver president and CEO John Miniotis said in a release. “These latest results confirm that high-grade silver and gold mineralization remains open for expansion across multiple target areas, reinforcing our confidence in the Project’s long-term growth and value.”
Silver’s rise to highs last seen in 2013 has been driven by industrial demand for the metal in green energy technology. Silver rose 2.4% to $32.73 per oz. on Tuesday morning.
AbraSilver shares traded for C$3.38 apiece on Tuesday, giving the company a market capitalization of C$516.3 million ($357m). The stock has traded in a 52-week range of C$1.42 to C$3.58.
JAC grades soar
Drilling at JAC Extension also returned 22 metres grading 168 grams silver from 102 metres depth in hole DDH 24-072, including 7.5 metres at 163 grams silver. Hole DDH 24-073 cut 35.5 metres at 56 grams silver from 105 metres depth, and 13.4 metres grading 72.7 grams silver.
At the Sombra target, east of JAC, drilling intersected 17 metres grading 101 grams silver from 38 metres depth in hole DDH 24-069, including 7 metres at 205 grams silver.
Drilling at the Oculto Northeast target, located on the northeast edge of the Oculto open pit and north of Sombra, pierced 17 metres at 1.80 grams gold and 39 grams silver from 151 metres depth in hole DDH 24-070. It included an interval grading 4.4 metres at 3.30 grams gold and 28 grams silver.
Oculto Northeast is a gold dominant trend and extends for several hundred metres northeast, AbraSilver said.
Resource update in months
With 21,172 metres of drilling completed across 106 holes in the program, results are to be incorporated into an updated resource scheduled for release in the middle of the year. Stage five is to comprise an additional 20,000 metres of drilling.
Diablillos hosts proven and probable reserves of about 42.3 million tonnes grading 91 grams silver and 0.81 grams gold for 123.5 million contained oz. silver and 1.1 million oz. contained gold.
