AbraSilver Resource Corp.'s (ABRA:TSX; ABBRF:OTCQX) final drill results from its phase four program, targeting the JAC Extension, at its Diablillos silver-gold project showed additional multiple high-grade, near-surface silver intercepts beyond the conceptual open pit, reported Scotiabank Analyst Eric Winmill in an April 29 research note.
"We view this news as positive for AbraSilver shares as we see potential for resource expansion based on drill success to date in areas located near planned mining areas and infrastructure," Winmill wrote.
85% Return Potential
The Canadian explorer is trading at about CA$2.98 per share, "below gold development peers at 0.41x and silver producers trading at 0.82x," noted Winmill.
In comparison, Scotiabank's target price on AbraSilver is CA$5.50 per share. This reflects a potential return for investors of 85%.
The company remains rated Outperform.
It has 169 million (169M) outstanding shares and 129M free float traded shares. Its market cap is CA$504 million.
High Grades Near Surface
These last reported results from the phase four, 21,172 meter (21,172m) exploration program were from the JAC Extension and returned high-grade, near surface mineralization, reported Winmill.
Some of the highlight intercepts were:
- 56m of 107.4 grams per ton gold (107.4 g/t Au) from 66m downhole (DDH-25-001)
- 63m of 138.6 g/t Au from 74m downhole, including 26m of 243.7 g/t Au from 100m downhole (DDH-25-005)
- 41.5m of 159.8 g/t Au from 56m downhole, including 7m of 398.5 g/t Au from 86m downhole (DDH-25-012)
The Next Step
AbraSilver plans to incorporate these data into an updated mineral resource estimate, due to be completed in mid-2025.
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