AbraSilver Resource Corp. (ABRA:TSX; ABBRF:OTCQX) announced "some splashy infill intercepts over wide intervals with readthrough for resource derisking," reported National Bank of Canada Analyst Don DeMarco in an April 29 research note. These are the final assay results from the phase four exploration program at the company's Diablillos silver-gold project in Argentina.
88% Return Implied
On the news, DeMarco reiterated National Bank's CA$5.75 per share target price on the Canadian explorer, now trading at about CA$3.06 per share. From this current price, the return to target is 88%.
AbraSilver remains rated Outperform.
Wide Mineralized Intercepts
DeMarco presented the result highlights, from 15 holes drilled in the JAC Extension at Diablillos. The standout intercepts included:
- 161.6 grams per ton silver (161.6 g/t Ag) over 65 meters (65m), hole DDH-25-002
- 138.6 g/t Ag over 63m, hole DDH-25-005
- 88.9 g/t Ag over 88m, hole DDH-25-006
The highlight intercept from hole DDH-25-002 reported more than 100m of silver equivalent (Au eq), the analyst pointed out.
The mineralization at JAC remains open toward the south and the west.
A Look at Grades
Of the 30 newly reported intercepts, National Bank calculated an average grade of 113.7 g/t Ag, or 1.14 g/t Au eq, over 22m (not true width), reported DeMarco. This is lower than the average of 143 g/t Ag in National Bank's database.
While grades in this latest batch of results overall are lower than those in this database, the wide intercepts offset the difference.
On the Horizon
Two catalysts are expected within the next 12 months for AbraSilver, noted DeMarco. One is an update to the Diablillos mineral resource, expected sometime in midyear 2025. The other is a definitive feasibility study, targeted for completion in Q1/26.
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