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AbraSilver unveils more high-grade results from Diablillos

Well-funded explorer AbraSilver Resource Corp has outlined more high-grade gold and silver intercepts from Diablillos, including 82m at 305g/t silver-equivalent, or 4.07g/t gold-equivalent.
AbraSilver unveils more high-grade results from Diablillos AbraSilver unveils more high-grade results from Diablillos AbraSilver unveils more high-grade results from Diablillos AbraSilver unveils more high-grade results from Diablillos AbraSilver unveils more high-grade results from Diablillos

Drilling continues at AbraSilver Resource’s Diablillos silver-gold project in Argentina

Ngaire McDiarmid

Reporter

The company has wrapped up phase one drilling at the project in Argentina's Salta province and phase two drilling is underway.

It expects to announce an updated resource and preliminary economic assessment next quarter.

A 2018 PEA had envisaged an eight-year openpit mine producing an average annual 9.8 million ounces silver-equivalent. 

Diablillos' current resource is 140Moz Ag-eq or 1.7Moz Au-eq.

Results reported last month included 104m at 382g/t Ag-eq, or 216g/t silver and 2.21g/t gold.

Other highlights yesterday included 77m at 202g/t Ag-eq or 2.7g/t Au-eq from 79m.

"These latest results demonstrate the continuity of high-grade silver and gold mineralisation in the Tesoro Zone, as well as the strong potential to add resources in the Northeast gold zone, well beyond the existing openpit margin," president and CEO John Miniotis said.

AbraSilver had about C$20.5 million in cash at May 26.

The company, formerly AbraPlata, had acquired the project from SSR Mining in 2016.

Eric Sprott and SSR are among its major shareholders, with 15% and 9% respectively, according to a May presentation.

Rio Tinto can earn up to 75% of its Arcas project in Chile under a US$25 million deal and was expected to start drilling this quarter.

AbraSilver also has the La Coipita and Aguas Perdidas projects in Argentina.

Its shares (TSXV: ABRA) have ranged from C10-82c over the past 12 months and closed down 0.8% yesterday to 63c, valuing it at $280 million (US$232 million).