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- Emphasis on upgrading MRE proves highly successful
- Provides strong foundation for feasibility studies
- Upcoming resource drilling program targeted for mine planning
- Drilling program to further de-risk the resource
Andean Silver (ASX:ASL) has unveiled a 230% increase in the Indicated resource at its Cerro Bayo silver-gold project in Chile. The upgrade follows ongoing drilling success with the results paving the way for feasibility studies to now demonstrate the project’s production and cash flow potential.
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“Our emphasis on upgrading the resource to the valuable Indicated category has proved very successful,” CEO, Matthew Allen, said.
“This result shows Cerro Bayo has genuine scale which will underpin feasibility studies, enabling us to demonstrate the project’s production and cashflow potential while ongoing drilling continues to target further Resource growth.”
Mr Allen said an upcoming 60,000m resource drilling program is designed to continue targeting areas within the economic mine plan to convert to Measured and Indicated resource categories and will remain focused on the near-mine Laguna Verde district
It will also support an initial ore reserve with the feasibility study.
“Drilling is about to commence at the second major district on the project, the Cerro Bayo district, where no drilling has occurred in nearly 20 years. Andean has successfully built a strong inventory of drilling targets and will commence drilling in Q3 CY26.
“The ongoing prospect generation and permitting for the large greenfield drilling program at the Droughtmaster to Sinter Hill corridor is on track for drilling to commence in CY27.
“Andean has a large work program underway at the Cerro Bayo project and looks forward to being able to bring regular updates on this successful program to shareholders.”
The MRE demonstrates the success of the drilling and exploration campaigns conducted over the previous 12 months. The latest increase takes the Indicated and Inferred MRE to a total of 136 million ounces (Moz) silver equivalent (AgEq), comprised of open pit Resources of 44 Moz AgEq and underground Resources of 92 Moz AgEq.
Mr Allen said Andean continues to effectively execute an aggressive exploration and resource growth and definition campaign throughout its 330 sq. km project.
During the remainder of 2026 and into 2027, the Andean team aims to advance the project from a predominantly exploration focus to a combination of exploration and restart planning.
ASL is down 0.79% to $1.90. Mkt cap $406.1M.
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