AbraSilver Says AgEq Ounces up 30% in Latest Resource Estimate

Why It Matters

The resource boost strengthens AbraSilver’s development case, improving project economics and positioning the company for a near‑term construction decision. It also highlights a sizable heap‑leach opportunity that could lower capital costs and accelerate cash flow generation.

Key Takeaways

• Measured & indicated resources now 454 M AgEq ounces, up 30%
• Silver ounces increased 25% to 248 M, gold up 48% to 2.54 M
• Additional 13,270 m drilling expands database to 170,000 m total
• Oculto deposit tonnage up 45%, silver +15%, gold +31%
• DFS and PEA slated for Q2 2026, supporting construction decision

Pulse Analysis

AbraSilver’s refreshed resource estimate for the Diablillos project marks a pivotal moment for the company and the broader Argentine mining sector. By integrating over 13,000 metres of new drilling, the firm has expanded its geological model, delivering 454 million ounces of AgEq—a 30% uplift from the July 2025 baseline. This scale of growth not only validates the high‑grade nature of the deposit, with an average of 33 g/t silver, but also reinforces the project's flexibility to pursue both conventional tank‑leach and lower‑cost heap‑leach processing routes.

The deposit’s five pillars—Oculto, JAC, Fantasma, Laderas and Sombra—each contributed to the resource expansion, with Oculto standing out for a 45% increase in tonnage and notable gains in both silver and gold grades. Such improvements stem from refined geological understanding and updated economic assumptions that factor in current metal prices and operating cost benchmarks. The enhanced resource base improves the project's net present value, making the forthcoming definitive feasibility study (DFS) and preliminary economic assessment (PEA) critical for quantifying capital expenditures, payback periods, and potential returns under different leach scenarios.

Market reaction has been swift; AbraSilver’s shares jumped nearly 6% on the announcement, reflecting investor confidence in the project's upside and the company’s execution track record. With the DFS and PEA targeted for completion by the second quarter of 2026, the firm is positioned to make a construction go‑ahead decision that could unlock significant cash flow, especially given Argentina’s favorable mining incentives. The Diablillos update thus serves as a bellwether for junior miners seeking to leverage extensive drilling campaigns to de‑risk assets and attract capital in a competitive precious‑metal landscape.