Silver Developer Discovers Extensive High-Grade Zones in Argentina

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AbraSilver Resource Corp. (ABRA:TSX; ABBRF:OTCQX) has released new assay results from its recently completed Phase IV drill program at the Diablillos silver-gold project in Salta Province, Argentina. The latest drilling targeted the JAC Extension and Oculto Northeast zones and yielded multiple high-grade silver intercepts beyond the existing conceptual open pit limits. These results are expected to contribute to an updated Mineral Resource estimate slated for mid-2025, which will support a Definitive Feasibility Study already underway.

Significant intercepts from the JAC Extension zone include hole DDH 24-084, which returned 63.5 meters grading 190 grams per tonne (g/t) silver, including 9.0 meters at 341 g/t silver, and hole DDH 24-088, which intercepted 70.0 meters at 147 g/t silver, including 9.0 meters at 331 g/t silver. Drill hole DDH 24-074 at Oculto Northeast intersected 10.0 meters grading 1.49 g/t gold and 56 g/t silver in oxides, 100 meters beyond the known resource boundary.

"These intercepts continue to confirm the presence of additional mineralization across Diablillos," said John Miniotis, President and CEO, in a company news release. "We look forward to incorporating these results into our upcoming Mineral Resource estimate." Chief Geologist Dave O'Connor noted the consistency of near-surface mineralization in the press release, adding that Phase V drilling will further test extensions across the Diablillos system.

The Diablillos property, acquired by AbraSilver in 2016, comprises 15 contiguous concessions and has seen over 150,000 meters of drilling to date. It includes multiple known mineralized zones, including Oculto, JAC, Laderas, Fantasma, and Sombra. The most recent Mineral Reserve estimate, dated March 7, 2024, outlines 42.3 million tonnes of Proven and Probable reserves averaging 91 g/t silver and 0.81 g/t gold, containing 123.5 million ounces of silver and 1.1 million ounces of gold.

According to the December 2024 pre-feasibility study, the Diablillos project has a net present value (NPV) of US$747 million (using a 5% discount rate and base-case prices of US$25.50/oz silver and US$2,050/oz gold) with an internal rate of return (IRR) of 28% and a two-year payback period. Average annual production over the first five years is expected to reach 13.4 million silver-equivalent ounces, with an all-in-sustaining cost (AISC) of US$12.67 per silver-equivalent ounce.

The Diablillos site benefits from year-round access and infrastructure, with easements in place for water supply and future energy solutions under evaluation. The project is also fully eligible for Argentina's RIGI program, which offers reduced corporate tax rates and export duty exemptions for large-scale investments. AbraSilver estimates RIGI could generate up to US$430 million in savings.

Persistent Deficits and Undervalued Supply Support Exploration Activity

Writing on March 26, Hubert Moolman analyzed long-term historical patterns between stock market peaks and silver rallies, noting that "after all of these peaks of the Dow there were significant silver rallies that followed." He identified 1929, 1966, 1973, and 1999 as key Dow Jones peaks that preceded extended growth periods for silver. In each case, silver began a strong upward trajectory within two years, with price peaks occurring roughly six to seven years after the Dow highs. He stated that the most recent nominal Dow peak in December 2024 could signal the early stages of a similar silver rally.

In a March 30 report for Ahead of the Herd, Richard Mills wrote that 2025 marked the fifth consecutive year of silver market deficits, citing a projected supply shortfall of 149 million ounces. He explained that only 40% of global silver is available for investment, with the remainder used in industrial applications, such as solar power, electronics, and automotive components. He added, "Spot silver gained 27% in 2024," largely due to strong physical demand from India and China. Mills also pointed to the gold-to-silver ratio, which remained elevated at 91, stating that "silver is currently at one of its most undervalued levels in history."

Peter Krauth of the Silver Stock Investor wrote, "AbraSilver Resource Corp.'s top-notch, globally significant project is about to get bigger and may even reveal new discoveries . . . I see massive additional potential despite the company's already significant market cap of CA$500M."

Also, on March 30, Technical Analyst Clive Maund suggested that speculative interest in silver remained minimal compared to gold despite bullish technical indicators. The report stated that "silver has struggled to make further progress as it has battled its way through more overhanging supply," but noted that a long-term cup-and-handle formation was in place, with resistance originating from 2011 highs around US$50. It emphasized that the silver-to-gold ratio remained near historical lows, suggesting the sector had only begun its current bull cycle.

On April 1, Christopher Lewis of FX Empire described the silver market as volatile but technically supported, citing recent price levels around US$33 to US$35 per ounce. He observed, "Silver, of course, is being dragged higher by gold overall," and noted that ongoing macroeconomic uncertainty and fluctuating global trade conditions had contributed to market instability. However, he also stated that dips were being viewed as potential entry points for cautious buyers.

Ongoing Exploration and Upcoming Milestones Support Development Path at Diablillos

According to AbraSilver's March 2025 investor presentation, the company is advancing its 20,000-meter Phase V drill campaign with a focus on expanding high-grade mineralization in several target zones across the Diablillos project. Priority areas include JAC South Extension, Sombra, Oculto East, and West, Laderas, and the Cerro Viejo gold target within the northeast epithermal-porphyry complex.

The updated Mineral Resource estimate, expected in mid-2025, is a key milestone and will underpin the ongoing Definitive Feasibility Study. Additional catalysts anticipated within the next twelve months include approval of the Environmental Impact Assessment (EIA) and eligibility certification under Argentina's RIGI investment framework, both of which could enhance project economics and reduce capital expenditure requirements.

AbraSilver is fully funded through to a construction decision, supported by an estimated CA$65 million in cash. As of late March 2025, the company had a market capitalization of approximately CA$530 million, based on a share price of CA$3.50. Strategic investors, including Central Puerto and Kinross Gold, hold a combined 25% stake.

The company reports that since 2020, its Measured and Indicated resource base at Diablillos has doubled at a low discovery cost of just US$0.11 per silver-equivalent ounce. This trend is expected to continue as drilling expands into new zones and tests depth extensions below existing oxide deposits, where copper and gold sulphide mineralization has already been identified.

With additional results from the Phase IV drill program still pending and exploration efforts accelerating, AbraSilver remains focused on delineating new mineral zones and optimizing the Diablillos development plan.

Analysts Cite Diablillos as Top Silver Development Asset in Updated Outlook

On March 14, Craig Stanley, an analyst with Raymond James, reiterated his Outperform rating on the stock and maintained a target price of CA$5. At the time, this represented a potential return of approximately 60% from the then-trading price of CA$3.13. Stanley pointed to promising new stepout drill results from the company's Phase IV program, which are expected to be incorporated into a revised Mineral Resource estimate scheduled for mid-2025. He cited strong assays from multiple zones, including intervals of 30 meters grading 237 grams per tonne (g/t) silver and 22 meters at 168 g/t silver. Commenting on the underexplored Sombra zone, Stanley stated, "Only five holes have been drilled to date at Sombra, where mineralization is covered by only approximately 40m of unconsolidated colluvium."

In a follow-up note on March 17, Stanley referred to Diablillos as "one of the best-undeveloped silver projects not held by a producer." He highlighted the results of the updated prefeasibility study, which showed a US$747 million after-tax Net Present Value using a 5% discount rate, a 28% internal rate of return, and a projected two-year payback period, based on base case metals prices of US$25.50/oz silver and US$2,050/oz gold. He also emphasized the potential financial impact of Argentina's RIGI investment program, which could provide an estimated US$430 million in savings through reduced taxes, royalties, and export duties.

Stanley identified several areas of potential upside not yet reflected in his valuation model, including drill results from the ongoing 20,000-meter program, alternative power strategies, and a possible heap-leach circuit for low-grade ore. He also commented on the strength of the company's leadership, referencing CEO John Miniotis' background in capital markets and Chief Geologist David O'Connor's 40-year track record, which includes founding multiple public exploration companies in South America.

On March 26, Peter Krauth of the Silver Stock Investor wrote, "AbraSilver Resource Corp.'s top-notch, globally significant project is about to get bigger and may even reveal new discoveries . . . I see massive additional potential despite the company's already significant market cap of CA$500M."

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.