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Andean Resources (ASX:ASL) has announced it’s boosted its mineral resource estimate (MRE) at the Cerro Bayo project by 80% to 91Moz of silver equivalent (AgEq).
The updated MRE excludes results of drilling conducted since Andean acquired the project in Chile’s Aysen Region – all but locking in future MRE upgrades.
Looking at ore, Cerro Bayo has 8.3Mt of ore at a grade of – get this – 342g/t AgEq. The 80% increase in ounces stands against a 64% increase in overall tonnage.
The updated resource covers areas at Cerro Bayo where mining has formerly taken place as well as an area of interest called the Laguna Verde Mine Complexes.
The company also highlighted a series of brief drill hits pulled from the project which boast remarkably high AgEq grades – including a 1m section at over 1,000g/t AgEq (408g/t silver and 8.3g/t gold.)
Mineralisation remains open and the company reported on Tuesday it has further targets ready to fire up the rigs over.
“Since taking ownership of this asset in early 2024 with an existing JORC Mineral Resource of 25Moz AgEq, we have nearly quadrupled the size by adding a further 66Moz at an average grade 460g/t AgEq,” Andean CEO Tim Laneyrie said.
“Our drilling includes the outstanding results from the Pegaso 7 area, all of which sits outside the Mineral Resource.
We have also identified extensive mineralised veining through high-grade rock chips in several areas which will be drilled as part of our ongoing exploration and resource growth campaign.”
ASL last traded at 96cps.
