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AbraSilver shares rise after new drilling boosts Diablillos prospects
The latest results included a hole intersecting 27 metres of 4.6 grams per tonne silver and 0.58 grams per tonne gold from 23 metres depth.
AbraSilver Resource says new drilling at its Diablillos precious metals project in Argentina supports potential resource growth beyond the company’s definitive feasibility study, and the stock moved higher in early trading. Mining.com reports the updates come from five new holes drilled at the Cerro Viejo target.
Among the highlights, hole DDH 26-037 cut 27 metres grading 4.6 grams of silver per tonne and 0.58 grams of gold per tonne, starting at only a 23-metre depth. Another hole, DDH 26-047, returned 32.0 metres grading 2.8 grams of silver per tonne and 0.29 grams of gold per tonne from just 9 metres downhole.
AbraSilver chief geologist Dave O’Connor said the results point to continuity of shallow gold mineralization, with mineralization beginning near the surface in several holes. According to Mining.com, the company plans to continue drilling to better define the scale and potential of the emerging target at Diablillos, located about 160 km south of Salta.
Mining.com adds that Diablillos is one of Argentina’s largest undeveloped precious metals projects, with AbraSilver having drilled more than 170,000 metres there. Shares rose 5.51% to C$15.50, and the project is projected to have an after-tax net present value of about $4.15 billion, with a 42% internal rate of return and a 1.7-year payback period.
Latest closeGold $4,431.70 ▲1.9%|Silver $65.91 ▲2.0%