John Miniotis, President and CEO and David O’Connor, Chief Geologist of AbraSilver Resource Corp (TSX.V:ABRA – OTCQX:ABBRF), join me to review the next batch of drill assays returned from 2 new regional targets from the ongoing 20,000 meter Phase 4 diamond drill campaign on their wholly-owned Diablillos property in Salta Province, Argentina. We also get an update on the financial health of the company with $58.5 million having been successfully raised to fund future work programs including the Phase 5 drill program, a resource update, permitting, and upcoming Definitive Feasibility Study next year taking things to a construction decision.
John and Dave outline the key takeaways from high-grade gold and silver assay results from initial drilling at the new Oculto East target, previously referred to as Cerro Bayo, represents the prospective eastern extension of the Oculto deposit.
- Hole DDH 24-058, located approximately 600 metres east of the current limit of the existing Oculto deposit, intersected 24.5 m at 107 g/t Ag, starting at a downhole depth of 201.5 metres (“m”). This included a high-grade interval of 3.0 m at 465 g/t Ag, indicating localized zones of higher-grade silver mineralization.
- Hole DDH 24-064, located 300 m south of hole 24-058, returned 22.0 m grading 2.78 g/t Au starting from a downhole depth of 307 m, including a higher-grade section of 9.0m grading 5.35 g/t Au in oxides.
We also discuss results from the Sombra Target in Hole DDH 24-062, which encountered 23.0 m at 55 g/t Ag starting at a shallow down-hole depth of only 40.0 meters. Dave outlines the thesis that the corridor between Sombra and Oculto East could be a parallel trend to the Oculto Main and JAC deposit. They are awaiting 2 more holes from Phase 4 in this area, and then will be drilling 15 more holes into this zone in the coming Phase 5 drill program.
We also reviewed that there would be more drilling to come in Cerro Viejo and Cerro Blanco targets to the East that both intersected broad zones of gold, silver, and copper porphyry-style mineralization, with epithermal mineralization closer to surface.
Additionally, the upcoming resource estimate update in mid-2025 will feed into the Definitive Feasibility Study (DFS), which will be managed by a team of experienced engineers and consultants, supported by the Company’s technical team. The Company will undergo a competitive tendering process to select qualified Engineering, Procurement, Construction and Management firms, with the award anticipated by no later than April 2025. Regular progress updates will be provided by the Company as the DFS advances forward for release in 2026, with results expected to further showcase the Company’s potential to become a key low-cost silver-gold producer.
If you have any follow up questions for John or Dave regarding at AbraSilver, then please email me at Shad@kereport.com.
- In full disclosure, Shad is a shareholder of AbraSilver at the time of this recording.
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