AbraSilver Resource Corp. has released the final drill results from its Phase IV exploration program at the Diablillos silver-gold project in Salta Pr

1. AbraSilver Resource Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000. 
2. James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
3.  This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

For additional disclosures, please click here.

AbraSilver Resource Corp. (ABRA:TSX; ABBRF:OTCQX) has released the final drill results from its Phase IV exploration program at the Diablillos silver-gold project in Salta Province, Argentina. The company reported multiple high-grade silver intercepts from the JAC Extension zone, located outside the boundaries of the current conceptual open pit design. These results will feed into an updated Mineral Resource estimate, anticipated in mid-2025, and form part of the ongoing Definitive Feasibility Study.

Among the most notable drill intercepts is Hole DDH 25-002, which returned 65.0 metres grading 162 grams per tonne (g/t) silver (Ag), including a subinterval of 12.0 metres at 405 g/t Ag. Hole DDH 25-005 intersected 63.0 metres at 139 g/t Ag, while DDH 25-012 reported 41.5 metres at 160 g/t Ag. All assays are uncut and undiluted and reflect drilled widths, not true widths.

“The latest drill results confirm the presence of strong silver grades over broad widths at shallow depths,” said Chief Geologist Dave O’Connor in the news release. President and CEO John Miniotis added, “We are very pleased with the final results from our highly successful Phase IV program, which continue to demonstrate significant growth potential beyond the current open pit boundaries.”

Phase IV drilling totalled 21,172 metres and focused on expanding mineralization at the JAC Extension zone. Mineralization remains open to the south and west. Phase V drilling is already underway, targeting several high-priority zones across the broader Diablillos property. Located in a region with established infrastructure and multiple adjacent mining projects, Diablillos comprises 15 contiguous concessions totaling significant mineralized acreage. Proven and Probable Reserves as of March 2024 stand at 42.3 million tonnes grading 91 g/t Ag and 0.81 g/t gold (Au), containing 123.5 million ounces of silver and 1.1 million ounces of gold.

Silver Sector Strengthening Amid Pressure and Upside Potential

Recent commentary and market analysis painted a complex picture for the silver sector in April, highlighting both structural constraints and signs of growing strength. On April 23, FX Empire emphasized that silver had resumed its upward pressure, particularly around the US$33 level. “This is in a bit of a divergence from gold markets, which have seen quite a bit of negative pressure,” wrote Christopher Lewis, who cited silver’s dual role as both a precious and industrial metal. The article noted that silver's behavior near its 50-day exponential moving average (EMA) continued to attract trader attention, with sustained bullish momentum driving sentiment.

On April 26, Kitco News published a report featuring Midas Touch Consulting’s Florian Grummes, who stated that “silver is extremely undervalued” and suggested that the metal could reach between US$40 and US$50 in the coming months. Grummes also pointed to the gold-silver ratio as a critical indicator of valuation. “We know that in the earth it’s 10 to 1. In production, it’s 7 to 1. Yet the market is trading above 100 to 1,” he said, arguing that silver had substantial room to close this historical disconnect.

On April 26, Clive Maund described what he called a “pressure cooker” scenario in the silver market. He pointed to a surge in short positions as a potential catalyst, writing, “This situation cannot go on… the expanding gap between the physical price and the paper price make it untenable.” Maund suggested that once market forces challenge the status quo, a rapid reversal could occur. He described the low level of retail participation as another signal that silver remained in an early-stage bull market, stating, “There is still hardly any retail interest in this market… the current low reading of the silver to gold ratio… means that this bull market is still in its early stages.”

Analyst Sees Expansion Opportunity at Diablillos After New Drill Results

On April 9, Peter Krauth of The Gold Advisor released an analysis of AbraSilver Resource Corp. in response to new Phase IV drilling results at the Diablillos silver-gold project in Salta, Argentina. Krauth called the results “superb” and pointed to multiple high-grade silver intercepts from step-out drilling at the JAC Extension and Oculto Northeast zones. He noted that several of these intercepts were located outside the current conceptual open pit, which suggested the potential for a larger resource in the upcoming mid-2025 estimate.

Krauth highlighted Hole DDH 24-084, which returned 63.5 metres grading 190 grams per tonne (g/t) silver, including 9.0 metres at 341 g/t silver. He also referenced other intercepts such as 70.0 metres at 147 g/t silver and 47.0 metres at 169 g/t silver, stating these could influence both the updated Mineral Resource estimate and the Definitive Feasibility Study.

He wrote that the results confirmed “silver mineralization extends farther south and southwest of the current pit outline,” describing the intervals as “wide and shallow.” Krauth suggested these characteristics may contribute to improved economic potential. He also noted that Hole DDH 24-074 intersected gold-dominant mineralization beyond the defined Oculto resource area, pointing to further exploration upside.

On the current drilling efforts, Krauth reported that the company had launched its 20,000-metre Phase V program targeting multiple zones across the Oculto-JAC epithermal district and the Cerro Viejo gold prospect. He quoted Chief Geologist Dave O’Connor, who remarked, “The continuity and consistency of the near-surface silver mineralization we are seeing south of the JAC open pit is quite remarkable.” O’Connor also said that ongoing results across priority zones positioned Phase V to “play a key role in unlocking further upside across the broader Diablillos system.”

Krauth concluded his report by noting that AbraSilver’s share price had fallen more than 30%, underperforming its peer group. He described the stock as “oversold,” and characterized its current valuation as a potential opportunity in light of the company’s recent exploration success and project development.

Pathway to Value: Key Catalysts and Growth Drivers

As outlined in its investor presentation, 

AbraSilver’s development plans at Diablillos are supported by strong project economics, a robust resource base, and a clear roadmap for growth. According to the December 2024 pre-feasibility study, the project carries a Net Present Value (NPV) of US$747 million at a 5% discount rate, based on base-case metal prices of US$25.50 per ounce silver and US$2,050 per ounce gold. The projected internal rate of return is 28% with a 2-year payback period. The average all-in sustaining cost (AISC) over the life-of-mine is US$12.67 per silver-equivalent ounce (AgEq), significantly below industry peer averages.

AbraSilver is fully funded to a construction decision by the end of 2026, with approximately CA$65 million in cash. The company’s capital structure includes 152 million basic shares outstanding and is supported by key shareholders such as Central Puerto (10%), Eric Sprott (8%), and Kinross Gold (4%). Management and the board collectively hold an additional 3%.

Current work includes a fully funded 20,000-metre Phase V drill program focused on expanding resources at the Oculto-JAC district and evaluating the Cerro Viejo gold target located 4 kilometers northeast of Oculto. Cerro Viejo’s first drill hole intersected 36.0 metres at 1.91 g/t Au, including 5.0 metres at 7.22 g/t Au, and the zone remains largely untested.

The company is also preparing to leverage Argentina’s new RIGI investment incentive regime, which offers significant tax and export duty savings for large-scale mining projects. Diablillos is eligible for these benefits, with the company estimating total savings of approximately US$430 million if the full RIGI package is utilized.

With a track record of resource growth—doubling measured and indicated resources since 2020 at a low discovery cost of US$0.11 per ounce AgEq, AbraSilver continues to build scale at Diablillos. The company’s development timeline remains aligned with key upcoming milestones, including environmental permitting, resource updates, and the completion of a Definitive Feasibility Study.

Ownership and Share Structure

AbraSilver's major shareholders, reported Stanley, are insiders (management and board members) with 3%, Central Puerto SA with 9.9% and Kinross Gold Corp. (K:TSX; KGC:NYSE) with 4%. (In AbraSilver's recent CA$58.5M financing, Central Puerto invested CA$25M and Kinross invested CA$3M.)

AbraSilver has 152.7 million shares outstanding. Its market cap is CA$517M. Its 52-week range is CA$1.33–3.58 per share.