AbraSilver advances flagship silver-gold project in Argentina with strong economics and exploration upside

AbraSilver Drills Best-Ever Gold Intercept at Diablillos; 31.0 Metres Grading 10.0 g/t Gold Including 6.0 Metres at 41.9 g/t Gold

Canadian-based AbraSilver Resource Corp. (TSX: ABRA, OTCQX: ABBRF) is rapidly progressing its Diablillos silver-gold project in Salta Province, Argentina, positioning it as one of Latin America's premier precious metals developments.

According to the company’s latest corporate presentation, Diablillos holds proven and probable reserves of 123 million ounces of silver and 1.1 million ounces of gold, equivalent to 209 million silver-equivalent ounces (AgEq). AbraSilver has nearly doubled its measured and indicated resources since 2020, achieving one of the industry’s lowest discovery costs at only US$0.11/oz AgEq.

AbraSilver’s Updated Preliminary Feasibility Study (PFS) from December 2024 highlights strong project economics based on conservative metal prices ($25.50/oz Ag and $2,050/oz Au). The study outlines a Net Present Value (NPV5%) of US$747 million, a 28% internal rate of return (IRR), and a payback period of just two years. Under current spot prices, the project’s NPV surges to over C$2.4 billion, offering a major re-rating opportunity for investors.

The company is currently undertaking a 20,000-meter Phase V drill program to expand its high-grade mineralization at key targets including JAC, Oculto, and the newly identified Cerro Viejo gold zone. Recent results at Cerro Viejo include a standout intercept of 36.0 meters at 1.91 g/t gold, including 5.0 meters at 7.22 g/t gold.

AbraSilver is also exploring significant optimization opportunities for its upcoming Definitive Feasibility Study (DFS). These include potential cost savings through grid power connection, outsourced waste handling, and a reengineered tailings storage facility (TSF)—initiatives that could save over US$200 million in combined capex and opex.

Adding to its financial strength, AbraSilver benefits from the Argentine RIGI incentive regime for large-scale investments, potentially reducing taxes and export duties by up to US$430 million over the project’s life.

The company also holds a promising copper-gold project, La Coipita, in San Juan, Argentina, with early drill results suggesting large-scale potential and ongoing assay results expected.

Backed by strategic shareholders including Central Puerto, Eric Sprott, and Kinross Gold, AbraSilver maintains a strong balance sheet with approximately C$60 million in cash, fully funding the company through its construction decision, anticipated in H2 2026.