AbraSilver Resource (TSXV: ABRA) has updated a September 2021 resource estimate for its Diablillos project in Argentina's Salta province, significantly expanding the high-grade Tesoro zone, which is the highest-grade area in the Oculto deposit.
The company says it expects to complete a pre-feasibility study on the project in the first half of 2023.
The project, about 160 km southwest of the city of Salta, has measured and indicated resources of 51.3 million tonnes grading 66 grams silver per tonne and 0.79 gram gold per tonne (131 grams silver-equivalent per tonne) for about 109.37 million oz. contained silver and 1.29 million oz. gold. Inferred resources stand at 2.22 million tonnes grading 30 grams silver and 0.51 gram gold (72 grams silver-equivalent) for 2.11 million oz. silver and 37,000 oz. gold.
The resource used a cut-off grade of 35 grams silver-equivalent and was based on drilling through July 30 totalling 104,888 metres in 457 drill holes.
Metallurgical recoveries were assumed as 73.5% for silver and 86% for gold as outlined in a preliminary economic assessment completed in January.
The property hosts several zones of high-sulphidation epithermal alteration and mineralization with supergene overprinting, the company says. Diablillos contains several known mineralized areas, with the Oculto zone hosting the principal silver-gold deposit.
The dimensions of the optimized Whittle open pit shell measure 1,350 metres in length, 750 metres in width and extends to a maximum depth of about 300 metres.
The company says two drill rigs are exploring the project's Southwest zone at the JAC target and management expects to announce its first resource estimate for this zone in the first half of next year.