Drill Program Discovers Large-Scale Porphyry System With 621m Mineralized Corridor in San Juan

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AbraSilver Resource Corp. (ABRA:TSX; ABBRF:OTCQX) has released assay results from its ongoing drill program at the La Coipita copper-gold-molybdenum project in San Juan Province, Argentina. The program is fully funded and operated by a subsidiary of Teck Resources Limited under an existing earn-in and joint venture agreement signed in January 2024.

Drillhole DDH-LC25-006 intersected 621 meters of continuous mineralization within a large-scale porphyry system. The highlight was 114 meters grading 0.70% copper, 0.07 grams per tonne (g/t) gold, and 81 parts per million (ppm) molybdenum, interpreted as a secondary enrichment zone beginning at 410 meters downhole. This zone included a higher-grade section of 20 meters at 1.03% copper. Below this, 98 meters of hypogene porphyry mineralization graded 0.55% copper, and a deeper 409-meter section showed 0.25% copper with high-sulphidation epithermal overprinting.

According to John Miniotis, President and CEO of AbraSilver, in the news release, "These results confirm the presence of a well-developed porphyry system with large-scale potential." He noted that the discovery represents "a major step forward in unlocking the value of this underexplored district."

Teck's Vice President of Exploration, Stuart McCracken, stated, "We are encouraged by these early drill results from the La Coipita project," adding that the company is strengthening its regional presence and focusing on community and supplier relationships in Calingasta and San Juan.

The La Coipita property spans over 70,000 hectares in the Miocene porphyry-epithermal belt of Argentina and Chile, home to several world-class deposits. Elevations range from 3,500 to 4,500 meters above sea level. AbraSilver and Teck have completed 3,523 meters of drilling so far in 2025, including drillholes DDH-LC25-006, 007, and 008. Assays from holes 007 and 008 are pending.

The agreement grants Teck the option to earn an 80% interest by spending US$20 million on exploration and making up to US$6.3 million in additional payments to the project vendors. Teck has already made a US$500,000 upfront payment, a US$1.0 million equity placement, and a US$1.5 million payment due by January 31, 2028.

Drill core from La Coipita was processed following a rigorous QA/QC protocol, including blanks, standards, and duplicates, and sent to ALS Labs in Mendoza, Argentina.

Rising Prices and Structural Tailwinds Support Exploration Activity

On April 18, MarketWatch reported that silver may be regaining momentum after underperforming gold in recent months. At the time, silver prices had declined 5.4% from the previous month, while gold had gained nearly 11%. Despite this divergence, the article suggested that silver "may soon get another shot" at outperforming gold, especially in light of evolving trade policy and economic uncertainty.

By April 23, FX Empire noted that silver was once again challenging the US$33 resistance level, a zone that analyst Christopher Lewis described as "a major resistance barrier" dating back several years. While gold faced selling pressure, silver appeared to be building strength. Lewis explained that silver's divergence from gold may be due to its dual role as both a precious and industrial metal, adding that "people are looking at the potential demand of silver picking up" amid speculation of improved U.S.-China trade relations.

Also on April 23, Kitco News published an interview with Florian Grummes, Managing Director of Midas Touch Consulting, who projected that silver prices could rise to between US$40 and US$50 by early summer. Grummes described silver as "extremely undervalued" and cited the gold-to-silver ratio (then above 100) as misaligned with historical norms. "In the earth, it's 10 to 1. In production, it's 7 to 1. Yet the market is trading above 100 to 1," he said.

Grummes added that retail participation remained limited and that the silver market had likely flushed out speculative positions. He described a recent 3% daily price gain as significant, saying, "Today was the first day where silver took over and showed signs of life on its own." He emphasized that silver's historical underperformance relative to gold, coupled with structural tightness in supply, positioned the metal for a breakout.

Analyst Highlights Strong Expansion Potential at Diablillos Following New Drill Results

On April 9, Peter Krauth of The Gold Advisor issued a favorable analysis of AbraSilver Resource Corp. following the release of new Phase IV drilling results at its Diablillos silver-gold project in Salta, Argentina. Krauth described the results as "superb," emphasizing several high-grade silver intercepts from step-out holes at the JAC Extension and Oculto Northeast zones. He noted that many of the highlighted intervals were located outside the current conceptual open pit, pointing to the potential for a larger resource base in the forthcoming mid-2025 estimate.

Among the standout results, Hole DDH 24-084 returned 63.5 meters grading 190 grams per tonne (g/t) silver, including 9.0 meters at 341 g/t silver. Krauth also cited additional notable intercepts, including 70.0 meters at 147 g/t silver and 47.0 meters at 169 g/t silver, which he suggested could positively influence the upcoming resource update and Definitive Feasibility Study.

Krauth wrote that the latest assays confirmed that "silver mineralization extends farther south and southwest of the current pit outline," and he described the intercepts as "wide and shallow," factors that could improve economic viability. He also referenced hole DDH 24-074, which intersected gold-dominant mineralization outside the existing Oculto resource area, suggesting further upside potential from new zones.

Regarding ongoing exploration, Krauth reported that AbraSilver had begun its 20,000-meter Phase V drill program, focusing on the Oculto-JAC epithermal district and the Cerro Viejo gold prospect. He quoted Chief Geologist Dave O'Connor, who said, "The continuity and consistency of the near-surface silver mineralization we are seeing south of the JAC open pit is quite remarkable." O'Connor added that strong results across multiple targets and several untested zones position Phase V to "play a key role in unlocking further upside across the broader Diablillos system."

Krauth also addressed the company's share price performance, noting that AbraSilver stock had declined over 30%, a drop that exceeded the average for comparable peers. He concluded that the current valuation offered an attractive entry point, characterizing the stock as "oversold" relative to its recent exploration success and development progress.

Driving Value from Discovery to Development

AbraSilver's strategic direction includes parallel development of its flagship Diablillos silver-gold project in Salta Province and the Teck-partnered La Coipita exploration. The company has outlined several near-term catalysts across both assets in its April investor presentation.

At Diablillos, the company recently completed an updated Pre-Feasibility Study (PFS) that valued the project at US$747 million (NPV5%) using base-case prices of US$25.50 per ounce silver and US$2,050 per ounce gold. The project forecasts a 28% internal rate of return (IRR) and a two-year payback. AbraSilver holds approximately CA$65 million in cash and is fully funded to a construction decision by 2026.

A 20,000-meter Phase V drill program is currently underway at Diablillos, targeting the expansion of high-grade resources across multiple zones, including Oculto, JAC, and the Cerro Viejo gold target. The latter has already produced intercepts of 36.0 meters grading 1.91 g/t gold, including 5.0 meters at 7.22 g/t gold, from surface-level mineralization.

Additionally, AbraSilver is pursuing incentives through Argentina's RIGI program, which supports large mining investments with tax reductions, accelerated depreciation, and elimination of export duties. The company estimates these incentives could lead to savings of approximately US$430 million over the life of the Diablillos project.

The company's ownership base includes strategic investors such as Central Puerto, Kinross Gold, and Eric Sprott, who collectively own about 25% of shares outstanding. As of April 2025, AbraSilver had a market capitalization of approximately CA$402 million with no outstanding warrants and only 4.5 million options.

Ownership and Share Structure

AbraSilver's major shareholders, reported Stanley, are insiders (management and board members) with 3%, Central Puerto SA with 9.9% and Kinross Gold Corp. (K:TSX; KGC:NYSE) with 4%. (In AbraSilver's recent CA$58.5M financing, Central Puerto invested CA$25M and Kinross invested CA$3M.)

AbraSilver has 152.7 million shares outstanding. Its market cap is CA$517M. Its 52-week range is CA$1.33–3.58 per share.