Diablillos drilling reveals encouraging near-surface mineralization

AI desk brief

AbraSilver’s latest drilling at Diablillos in Argentina points to additional near-surface gold-silver mineralization and supports the case for resource growth beyond the current DFS. Key intercepts included DDH 26-037 with 27m at 4.6g/t silver and 0.58g/t gold from 23m depth, and DDH 26-047 with 32.0m at 2.8g/t silver and 0.29g/t gold from just 9m downhole.

Management highlighted the continuity of shallow gold mineralization, with the chief geologist saying mineralization starts essentially at surface in several holes. AbraSilver has now drilled more than 170,000m at Diablillos, and the current Phase VI program has already covered about 12,000m across 54 diamond holes since January, with two rigs active and a third due later this month.

For the metals desk, this is mostly a project-level positive for an emerging silver-gold developer rather than an immediate pricing catalyst. The main takeaway is that Diablillos is still expanding, with further drilling at Cerro Viejo, Oculto West, Oculto East and the JAC–Oculto trend likely to drive the next resource and valuation re-rate if continuity holds. The project’s stated after-tax NPV of about $4.15bn and 42% IRR remain supportive, but any market impact on silver/gold is likely indirect and longer term.