Andean Silver (ASX:ASL) has defined a “large” area of silver mineralisation sitting outside of the Cerro-Bayo Silver-Gold Project’s resource estimate in Chile.
The assays from the Pegaso Seven prospect, which is 2km from the existing resource and processing plant, outlined a mineralised area of 600m along strike to a depth of 300m.
Assays were returned from a drilling program conducted at Cerro-Bayo, returning up to 4,649 grams per tonne (g/t) silver-equivalent.
Andean Silver, which was previously known as Mitre Mining Corporation and has a market capitalisation of $112.76 million, reports assays also include 1.6m @ 642g/t silver-equivalent, including 0.75m @ 1,093g/t silver-equivalent ; and 0.3m @ 1,654g/t silver-equivalent.
CEO Tim Laneyrie says the latest drilling results show the potential for substantial resource growth.
“We have outlined a large area of high-grade mineralisation which remains open in all directions,” he says.
“Importantly, the vein structures which host the mineralisation extend for 1km along surface, highlighting the huge potential to continue growing this mineralised footprint.
“Given this, we are planning an expanded drilling program which is aimed at growing this mineralised area. These results, and the large database of historic assays which we inherited, will form part of the resource upgrade we have planned for the current quarter.”
Andean Silver plans to test the potential for future open pit resources at Pegaso Seven, via systematic surface channel sampling, followed by a series of shallow drillholes.
The company is also planning a second phase of drilling to test extensions of intercepts from historic drillholes, as well as an infill drilling campaign into the current dacite dome contact area to support a future maiden resource and an extensional drilling campaign.
Andean currently has two rigs drilling, with the focus on building its initial base resource estimate, near mine extensional drilling targets, and greenfield opportunities which have already been uncovered.
An updated resource estimate is on track and planned for the September quarter of this year.
Write to Aaliyah Rogan at Mining.com.au
Images: Andean Silver
