Andean Silver (ASX:ASL) has reported a 230% increase in indicated resources at its Cerro Bayo Silver-Gold Project in Chile, with the category now standing at 60 million ounces (Moz) of silver equivalent.
This brings the company’s total mineral resource estimate to 20 million tonnes (Mt) at 211 grams per tonne silver equivalent for 136Moz silver equivalent.
This incorporates an underground resource of 7.9Mt at 362g/t silver equivalent for 92Moz silver equivalent, alongside an open pit resource of 12.1Mt at 112g/t silver equivalent for 44Moz silver equivalent.
It also includes 27,495m of drilling across the Laguna Verde district.
Calculations were based on metal price assumptions of US$45 ($66) per ounce silver and US$3,500 per ounce gold.
CEO Matthew Allen says focusing on upgrading the resource to the indicated category has proved successful.
“This result shows Cerro Bayo has genuine scale which will underpin feasibility studies, enabling us to demonstrate the project’s production and cashflow potential while ongoing drilling continues to target further resource growth,” Allen says.
Andean says it remains funded with $53.4 million cash at the end of the March quarter for the Cerro Bayo restart.
The company plans to commence a 60,000m resource drilling program focusing on the Laguna Verde district to upgrade resource categories and update data ahead of feasibility studies.
Resource growth drilling at the Cerro Bayo district — the first in the area in 20 years — is scheduled to begin in Q3 2026, with permitting underway for a greenfield exploration campaign at the Droughtmaster corridor slated for a 2027 start.
Andean Silver is a mineral explorer and developer focused on its flagship Cerro Bayo project in the Aysen region of Southern Chile.
Write to Paula Fabe at Mining.com.au
Images: Andean Silver
