AbraSilver Resource Corp. has reported encouraging drill results from its Diablillos project in Argentina, showing high-grade silver and gold mineralization. The ongoing exploration and upcoming feasibility study, combined with favorable market conditions for silver, position the company for long-term growth. Analysts have issued positive ratings on the stock, highlighting a significant investment opportunity.
AbraSilver Resource Corp. has recently announced promising drill results from its Diablillos project in Argentina. The results from the phase four drill program demonstrate substantial high-grade silver and gold mineralization across various zones, including Oculto Northeast, JAC Extension, and the newly identified Sombra. President and CEO John Miniotis emphasized, “The continued success of our exploration program highlights the significant remaining upside potential at Diablillos,” which reinforces their confidence in the project’s growth potential.
Specific new intercepts revealed significant findings such as hole DDH 24-069 at the Sombra target, which demonstrated 101 grams per ton of silver over 17 meters, with peaks of 205 g/t over a 7m interval. Additionally, in the JAC Extension area, hole DDH 24-075 intercepted 237 g/t of silver over a depth of 30 meters, suggesting the mineralization extends beyond previously established boundaries, further indicating the potential for increased resource growth as stated by Chief Geologist Dave O’Connor.
The phase four drill program comprised 106 holes, totaling 21,172 meters. These results are expected to contribute to an updated resource estimate projected for mid-2025. In related developments, Boris Caro has been appointed as the full-time project director for Diablillos, effective from April 2025. His extensive experience in feasibility studies will support the completion of a definitive feasibility study anticipated for Q1 2026.
AbraSilver is committed to converting exploration potential into value, as it seeks to advance its extensive Diablillos project, identified as one of the most significant undeveloped silver assets. The existing Proven and Probable reserves are estimated to be 42.3 million tons featuring 91 g/t of silver and 0.81 g/t of gold, amounting to nearly 124 million ounces of silver and approximately 1.1 million ounces of gold.
Future strategies may include enhancements to the project’s economics, such as integrating heap leaching to recover additional gold, which Miniotis estimates could yield several hundred thousand ounces over the mine’s lifespan. Furthermore, anticipated long-term power contracts may lead to reduced operating costs, and there are prospects for inclusion in Argentina’s Large Investment Incentive Regime, which could save the company approximately $430 million.
As for the silver market, analysts express a positive outlook regarding its future. There is ongoing demand fueled by industrial applications and technological advancements anticipated to maintain upward pressure on silver prices. Various forecasts predict silver prices could reach between $29.50 and $40 per ounce in 2025, with broader projections suggesting even higher values over the next few years.
With several key milestones ahead for Diablillos, including a new drilling program and a feasibility study completion in 2026, AbraSilver is well-positioned for future advancements. Analysts remain bullish on the company’s stock, with target prices indicating considerable upside potential, some suggesting ratings of Buy or Outperform, indicating confidence in AbraSilver’s trajectory as a promising miner in the years to come.
In summary, AbraSilver Resource Corp. has demonstrated significant progress with its Diablillos project in Argentina, evidenced by high-grade mineralization from its recent drilling programs. The appointment of Boris Caro as project director and the positive market outlook for silver further enhances the company’s potential for growth. Analysts remain optimistic, with strong ratings and target prices reflecting the confidence in AbraSilver’s upward trajectory in the mining sector. Consequently, the company is poised to transition successfully from exploration to production in the near future.
Original Source: www.streetwisereports.com
