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AbraSilver drilling at Diablillos intersects high grade silver-gold
A standout hole reported 109 metres of 221.2 g silver per tonne and 0.72 g gold per tonne, pointing to potential resource growth beyond its DFS mine plan.
AbraSilver said new drilling at its Diablillos project in northwestern Argentina suggests potential silver-gold resource growth beyond the limits of the definitive feasibility study released last month, according to Mining.com.
In its Monday update, the company highlighted drill hole DDH-26-036, drilled into a previously untested gap in the Oculto West zone. The intercept reported 109 metres grading 221.2 grams silver per tonne and 0.72 gram gold from 114 metres downhole, including 14 metres grading 580 grams silver and 0.23 gram gold from 135 metres depth.
AbraSilver said the results highlight continuity of high-grade oxide silver-gold mineralization in a previously untested area at Oculto West and beyond the DFS mine plan. It added that Diablillos, its main asset and one of the country’s largest undeveloped precious metals projects, is about 160 km south of Salta, with drilling now covering five holes and additional assay results pending.
Scotia Capital mining analyst Eric Winmill said the release supports continuity in an area outside the DFS plan, and AbraSilver’s shares rose 3.4% to C$14.49 in Toronto, valuing the company at about C$2.3 billion, with the stock having traded between C$4.91 and C$19.89 over the past year. The company said its exploration work will focus on unlocking longer-term growth potential after completion of the DFS, while the current drill program follows weeks of geotechnical and condemnation work.
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