High-Grade Silver Discovery Expands Potential at Diablillos
AbraSilver Resource Corp. (ABRA: TSX.V; ABBRF:OTCQX) has reported significant findings from its Phase IV drill program at the wholly owned Diablillos project in Salta Province, Argentina. Read more to explore the latest high-grade findings and their impact on the Diablillos project.
AbraSilver Resource Corp. (ABRA: TSX.V; ABBRF:OTCQX)has reported significant findings from its Phase IV drill program at the wholly owned Diablillos project in Salta Province, Argentina. The program, which spans 20,000 meters, continues to uncover high-grade silver mineralization, particularly at the JAC Zone, alongside promising results from the Oculto area.
Key highlights include Hole DDH 24-044, which intersected 37 meters grading 152 grams per tonne (g/t) silver, starting at a shallow depth of 92 meters. Another standout, Hole DDH 24-045, encountered multiple mineralized intervals, including 12 meters at 107 g/t silver. The Oculto area also demonstrated strong potential, with Hole DDH 24-043 returning 11 meters at 109 g/t silver and 0.50 g/t gold, including a high-grade zone of 3 meters at 596 g/t silver in sulfides.
John Miniotis, President and CEO, remarked in the news release, "These results highlight the growth potential at Diablillos, with continued high-grade silver intercepts extending the mineralized footprint at JAC. Together with gold and silver mineralization at Oculto, these findings reinforce the project's world-class status."
The Diablillos project boasts measured and indicated resources of 148 million ounces of silver and 1.4 million ounces of gold, with reserves estimated at 123 million ounces of silver and 1.1 million ounces of gold. Notably, Phase IV drilling has already completed approximately 15,940 meters across 80 holes, with assays for additional holes pending. The program aims to expand the mineral resource estimate and refine the economic model for an updated prefeasibility study.
Additionally, AbraSilver's recent exercise of 97% of its outstanding warrants generated US$4.96 million, supporting further exploration and development activities. The company has no remaining warrants, streamlining its capital structure and enhancing its financial flexibility.
Silver Mining and Precious Metals Trends
On November 26, The Daily Gold highlighted that silver had reached an 11-year high at US$35 per ounce after breaking through a four-year resistance level. Despite these gains, the analysis noted that silver, along with gold, remains undervalued in real terms, particularly relative to traditional investment portfolios such as the 60/40 portfolio. The report argued that the ongoing secular bull market in U.S. equities and the emerging cryptocurrency bubble have overshadowed silver's progress, leaving it on "ground floor territory."
Shortly after, on November 28, Sprott Money provided insights into the relationship between silver prices and market positioning, as reflected in the Commitment of Traders (COT) reports. According to this data, price peaks and troughs align with shifts in the positions of major market participants. The report detailed how net positions by large speculators, often referred to as "dumb money," tend to expand at price peaks, while banks, considered the "smart money," reduce their net short positions aggressively during price declines. This positioning data for silver suggested the potential for further price adjustments as market dynamics evolved.
On October 28, Peter Krauth of Silver Stock Investor emphasized the promising results of AbraSilver's 20,000-meter drill program at the Diablillos project in Argentina.In a December 2 report, SilverWars drew attention to the persistent global shortage of silver, noting its critical role in modern technologies due to its unparalleled electrical and thermal conductivity. The report cited a 2023 Hunan Geological Survey that described silver as "indispensable" and contrasted this with the omission of silver from the U.S. Department of Energy's Critical Materials Assessment. This divergence, the report suggested, highlights the potential underestimation of silver's strategic importance, particularly in light of escalating shortages.
Finally, on December 8, 321Gold provided a technical analysis of silver's price trajectory. This forecasted further upward movement within a broader bullish wave pattern. The analysis noted recent corrections but emphasized the likelihood of higher prices based on nested bullish waves. This technical perspective underscored the sector's potential for price volatility and growth in the coming months.
Key Drivers For AbraSilver's Growth
AbraSilver has outlined several near-term catalysts poised to create shareholder value. The Diablillos project's ongoing Phase IV drill program is expected to yield further updates on high-grade mineralization and resource expansion. Upcoming milestones include the release of additional assay results and the completion of an updated prefeasibility study in December 2024, which aims to integrate recent drilling successes into the economic framework.
Strategically located in Salta, ranked as Latin America's most attractive mining jurisdiction in 2023, Diablillos benefits from excellent infrastructure, including paved road access and proximity to a natural gas pipeline. AbraSilver is also exploring solar energy solutions to enhance project sustainability.
Looking ahead, the company's robust financial position and streamlined share structure provide a foundation for advancing toward feasibility studies and a potential construction decision in late 2026. With an estimated net present value (NPV) of US$747 million at base-case metal prices, Diablillos remains a standout asset in the silver-gold mining sector.
Third-Party Research on AbraSilver
On October 28, Peter Krauth of Silver Stock Investor emphasized the promising results of AbraSilver's 20,000-meter drill program at the Diablillos project in Argentina. He noted that the ongoing drilling, particularly at the Oculto northeast area and the JAC zone, has successfully expanded shallow mineralization and extended mineral resources beyond the current conceptual open pit boundary. Krauth pointed to highlights such as Hole DDH 24-017, which intersected 28.5 meters grading 87 grams per tonne (g/t) silver, including 7.5 meters grading 190 g/t silver. He stated that the results from step-out holes, like DDH 24-020, demonstrated significant resource potential with intervals such as 53 meters grading 58 g/t silver.
In his commentary, Krauth also drew attention to the TITAN geophysical survey conducted northeast of Oculto, which revealed a large chargeability anomaly beneath Cerro Blanco. This anomaly is interpreted as a potential porphyry intrusion, with historical sampling identifying anomalous gold, copper, and molybdenum. He underscored the importance of this finding, suggesting that it positions the Diablillos project for a new phase of exploration and potential resource growth.
Streetwise Ownership Overview*
AbraSilver Resource Corp. (ABRA: TSX.V;ABBRF:OTCQX)
*Share Structureas of 12/13/2024Source: Refinitiv & AbraSilverAdding to the analysis, AbraSilver's President and CEO, John Miniotis, remarked on the success of the drill campaign and the significance of the geophysical survey. "The survey indicates strong geophysical anomalies that suggest the potential for a substantial porphyry system, which could unlock an exciting new phase of exploration moving forward," he stated. Miniotis further highlighted that the ongoing campaign reflects the company's commitment to maximizing the exploration potential at Diablillos.
Ownership and Share Structure
According to Refinitiv, the top six strategic entities own 21% of AbraSilver. The top 3 shareholders are: Eric Sprott with 9.9%, Kinross Gold with 4.0% and Central Puerto with 4.0%. Additionally, the top 3 insiders are Chief Executive Officer (CEO) John Miniotis with 1.0% or 1.3M shares, Director Hernan Zaballa with 0.86% or 1.08M shares, and Chairman and Director Robert Bruggeman with 0.74% or 0.93M shares.
Nine institutions hold 6.84% or 8.58M shares. The Top 3 are Mirae Asset Global Investments (USA) LLC with 2.1% or 2.63M shares, ETF Managers Group LLC with 1.74% or 2.18M shares, and Sprott Asset Management LP with 1.2% or 1.51M shares.
The company has 122.29M outstanding shares and 121.09M free float traded shares. Its market cap is CA$323M. Its 52-week high and low are CA$3.18 and CA$1.30 per share, respectively.
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Important Disclosures:
AbraSilver Resource Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000. James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.For additional disclosures, please click here.