Andean Silver (ASX:ASL) has increased the Cerro Bayo Silver-Gold Project’s resource estimate by 80% to 8.3 million tonnes at 342 grams per tonne silver-equivalent for 91 million ounces.
Cerro Bayo’s — which lies in the Aysen region of Southern Chile — latest resource estimate represents a 64% increase in tonnes and 10% increase in the overall grade from the March 2023 mineral resource, which totalled 50.2 million ounces at 311g/t silver-equivalent.
Andean Silver, which has a market capitalisation of $110.74 million, says this grade increase reflects the additional high-grade underground material being brought into current resources.
CEO Tim Laneyrie says the updated resource establishes the project as an “outstanding” silver asset with genuine scale and high-grades.
“Since taking ownership of this asset in early 2024 with an existing JORC mineral resource of 25 million ounces of silver-equivalent, we have nearly quadrupled the size by adding a further 66 million ounces at an average grade of 460g/t silver-equivalent,” Laneyrie says.
“While the rapid growth in the mineral resource is a remarkable achievement in its own right, we are nowhere near finished with a further resource update planned for early Q1 2025, which will include results from our drilling which are not included in today’s update.
“The mineralisation remains completely open and we have a pipeline of greenfields targets to drill. This all points to compelling potential for upgrades.”
Meanwhile, Laneyrie adds drilling conducted at the Pegaso 7 and Cristal prospects has shown the multi-shoot potential. Results received from these prospects are outside of the current mineral resource.
The company has also identified extensive mineral veining through high-grade rock chips in several areas, which will be drilled as part of ongoing exploration and resource growth activities.
Scout drilling at the Cristal Central Vein is ongoing, with initial results showing the anticipated vein halo zone enveloping a series of vein structures. Andean Silver says this demonstrates the capacity of the mineralised system to potentially generate bulk tonnage style targets.
Results to date suggest that the mineralised vein zones broaden with depth from the narrow surface veins as they system transitions in the mineralised system.
These initial results are being included into a geological model, which will direct follow-up drilling at the Cristal targets.
Andean Silver is an Australian mineral explorer and developer focused on advancing its wholly owned Cerro Bayo Project.
Write to Aaliyah Rogan at Mining.com.au
Images: Andean Silver
