Andean Silver Ltd (ASX:ASL) has picked up assays grading as high as 4,649 grams per tonne in silver equivalent (AgEq) through maiden drilling at its first target at the Cerro-Bayo silver-gold project in Chile, identifying a large area of high-grade mineralisation outside its current mineral resource estimate (MRE).
Drilling work showed the presence of high-grade mineralisation over 600 metres of strike and to a depth of 300 metres which is open in all directions.
There was also evidence that the strong veining structures holding this mineralisation continues 1 kilometre along strike.
Assays from the Pegaso 7 target included 5.85 metres at 807 grams per tonne of AgEq (351.6 grams per tonne silver and 5.5 grams per tonne gold), including 0.9 metres at 4,649 grams per tonne AgEq (2,107 grams per tonne silver and 30.6 grams per tonne gold).
Andean now intends to concentrate exploration in two formats: drilling to increase the mineralised footprint at Pegaso 7, and infill drilling with the aim of targeting a maiden MRE at the prospect.
Andean Chief Executive Officer Tim Laneyrie said the maiden drilling at Cerro-Bayo showed significant potential for resource growth.
“We have outlined a large area of high-grade mineralisation which remains open in all directions,” he said.
“Importantly, the vein structures which host the mineralisation extend for 1km along surface, highlighting the huge potential to continue growing this mineralised footprint.
“Given this, we are planning an expanded drilling program which is aimed at growing this mineralised area.
“These results, and the large database of historic assays which we inherited, will form part of the resource upgrade we have planned for the current quarter.”
Andean has been trading at 99 cents.