Andean Silver's Cerro Bayo Project Sees Significant Resource Growth
ASL (ASL) Share Update September 2024 Monday 9th
Andean Silver Announces Major Resource Increase at Cerro Bayo Project
Andean Silver Limited (ASX: ASL) has announced a substantial increase in the Mineral Resource Estimate at its Cerro Bayo Silver-Gold Project in Chile, marking an 80% rise in silver-equivalent ounces.
Instant Summary:
- Mineral Resource Estimate (MRE) expands to 8.3Mt @ 342g/t AgEq for 91Moz AgEq.
- 64% increase in tonnes and an 80% increase in total AgEq ounces.
- Average depth of the MRE is less than 300m.
- Updated MRE includes previous operating areas of the Cerro Bayo and Laguna Verde Mine Complexes.
- Drilling ongoing with potential for further resource growth.
- Conservative approach applied to MRE inputs.
Resource Expansion Details
The updated Mineral Resource Estimate (MRE) at Andean Silver's Cerro Bayo Silver-Gold Project has expanded significantly. The MRE now stands at 8.3 million tonnes at a grade of 342 grams per tonne silver-equivalent (AgEq), totaling 91 million ounces AgEq. This represents a 64% increase in tonnes and an 80% increase in total AgEq ounces compared to the March 2024 MRE.
The average depth of the MRE is less than 300 meters, where significant mining infrastructure is already established. The updated MRE includes previous operating areas of the Cerro Bayo and Laguna Verde Mine Complexes, which together comprise the overall Cerro Bayo Project.
Future Potential and Ongoing Drilling
There remains immense scope for further resource growth within the project. Andean's ongoing drilling programs at the Pegaso 7 and Cristal Prospects are yet to be included in the MRE. Notable results from these drilling programs include:
- 1.1m @ 1,100g/t AgEq (408g/t Ag & 8.3g/t Au) – Pegaso 7
- 3.3m @ 785g/t AgEq (83g/t Ag & 8.5g/t Au) – Cristal
- 1.1m @ 620g/t AgEq (34g/t Ag & 7.1g/t Au) – Cristal
- 2.5m @ 296g/t AgEq (85g/t Ag & 2.6g/t Au) – Cristal
The mineralization remains open, and drilling is ongoing. Andean has also identified a pipeline of greenfields drilling targets.
Conservative Approach
Andean has applied a conservative approach to the MRE with regards to inputs such as resource categories, historic depletion modeling, and cut-off grades. This approach ensures that further material is available for re-evaluation as Andean's understanding of the MRE matures.
CEO's Statement
Andean Chief Executive Officer Tim Laneyrie commented, 'The updated Resource establishes Cerro Bayo as an outstanding silver asset with genuine scale and high grades. Since taking ownership of this asset in early 2024, we have nearly quadrupled the size by adding a further 66Moz at an average grade of 460g/t AgEq.'
Laneyrie added, 'While the rapid growth in the Mineral Resource is a remarkable achievement in its own right, we are nowhere near the finish 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 substantial increase in the MRE at Cerro Bayo is likely to positively impact Andean Silver's stock price as it demonstrates significant growth potential and resource expansion. The conservative approach to the MRE inputs also adds credibility to the reported figures, potentially boosting investor confidence.
Investor Reaction:
Analysts are likely to view the 80% increase in silver-equivalent ounces positively, as it indicates strong growth potential. The ongoing drilling and future resource updates could further enhance the project's value, making Andean Silver a more attractive investment.
Conclusion:
Investors should keep an eye on Andean Silver's future updates, particularly the planned resource update in early Q1 2025. The company's strategic approach and ongoing drilling programs suggest continued growth and value creation for shareholders.