Silver Company Delivers Breakthrough Resource in Salta, Argentina

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AbraSilver Resource Corp. (ABRA:TSX; ABBRF:OTCQX) announced a major update to the Mineral Resource estimate for its wholly owned Diablillos silver-gold project in Salta, Argentina. As of July 29, 2025, the Measured and Indicated (M&I) Mineral Resources now total 104 million tonnes of oxide material grading 59 grams per tonne (g/t) silver and 0.51 g/t gold, containing approximately 199 million ounces of silver and 1.72 million ounces of gold, or 350 million ounces silver-equivalent (AgEq).

The new estimate includes both tank and heap leach resources. The tank leach component alone accounts for 73 million tonnes at 79 g/t silver and 0.66 g/t gold, totaling 327 million ounces AgEq. This represents a 27% increase in silver-equivalent ounces over the previous estimate from November 2023. Notably, the company also reported a maiden heap leach Mineral Resource of 31 million tonnes grading 13 g/t silver and 0.16 g/t gold, equivalent to 23 million ounces AgEq.

The M&I estimate incorporates five oxide deposits — Oculto, JAC, Fantasma, Laderas, and Sombra — all constrained within conceptual Whittle open pits. The largest contribution to resource growth came from the JAC deposit, where additional drilling led to a 148% increase in tonnage and a 70% increase in contained silver.

In a company news release, President and CEO John Miniotis stated, "We are very excited to report that M&I Mineral Resources at Diablillos have now grown to nearly 200 Moz of silver and over 1.7 Moz of gold." Chief Geologist David O'Connor added, "The updated MRE demonstrates both the large-scale and high-quality of Diablillos."

Silver Sector Gains Traction as Prices Rise and Strategic Interest Grows

The silver market attracted increased investor attention in mid-July as prices reached their highest levels in over a decade, supported by both technical momentum and broader economic factors. On July 16, analyst Peter Krauth reported that silver had surged to a 13-year high of US$38 per ounce, reflecting a 31% increase since the beginning of the year. Krauth noted that silver had shown notable strength while gold remained in a trading range since April, emphasizing the significance of silver's breakout above the US$34 mark.

While Krauth acknowledged short-term technical signals such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) that could point to potential near-term consolidation, he underscored persistent demand as a core driver. Citing Silver Institute data, he noted that silver exchange-traded funds recorded 95 million ounces in net inflows by June 30, already exceeding inflows for all of 2024. He linked this activity to continued geopolitical tensions and economic uncertainty, factors often associated with increased demand for safe-haven assets like silver.

Additional commentary from analysts echoed the positive sentiment. In a July 18 note, Morris Hubbartt of Super Force Signals described silver as entering a "blastoff" phase, supported by bullish chart patterns and strong momentum indicators. He identified silver as one of the top-performing assets in the current market based on its technical setup.

That same day, Chen Lin, writing in his What's Chen Buying? What's Chen Selling? newsletter, discussed silver's growing strategic importance. Lin highlighted emerging reports that Russia's 2026 budget includes silver accumulation, suggesting potential central bank interest in the metal. He noted that if sovereign accumulation of silver were to materialize more broadly, it could add a new layer of support to the market.

On July 20, technical analyst Captain Ewave applied Elliott Wave Theory to silver's price action, identifying the market as being in a "wave iii" rally phase. This phase, typically associated with strong directional movement, was described as having several subwaves with upward momentum. Price targets were projected at US$41.71, US$44.28, and US$48.63, though resistance was expected along the way. The analysis pointed to continued strength within silver's current market cycle.

Adding to the growing wave of institutional interest in silver, UBS raised its price target to US$42 on July 28, citing strong year-to-date performance and macroeconomic tailwinds, as reported by VBL. "Silver has been one of the best-performing metals this year, surging 34%," the firm noted in its analysis. The bank pointed to a combination of investment flows, a weakening U.S. dollar, and renewed industrial demand as key drivers behind the rally. UBS added that the current environment supports further gains, even after a nearly 8% increase in July. The upgrade places silver firmly within a broader trend of institutional rotation into hard assets amid geopolitical and economic uncertainty.

Analysts Highlight Major Resource Growth at Diablillos

In a July 30, analysis, Peter Krauth of The Gold Advisor provided a favorable assessment of AbraSilver Resource Corp. following its updated Mineral Resource estimate for the Diablillos project. Krauth highlighted that the company's Measured and Indicated Mineral Resources had increased by 92 million silver-equivalent ounces (AgEq) from the previous year, bringing the total to 350 million ounces AgEq. He stated that "Abra's resource estimate skyrockets to 350 Moz AgEq including 199 Moz silver," and called the update a "blowout of drastic proportions."

Krauth noted that even when excluding the newly introduced heap leach resource, the tank leach component alone reflected a 25 percent increase in contained silver and a 27 percent increase in silver-equivalent ounces compared to the company's November 2023 estimate. He attributed much of the expansion to continued drilling success at the JAC zone, where tonnage grew by 148 percent and contained silver increased by 70 percent.

The analysis also referenced recent high-grade gold intercepts at the Oculto deposit, specifically a 31-meter interval grading 10.0 grams per tonne (g/t) gold, including 6 meters at 41.9 g/t gold. Krauth emphasized that this shallow oxide-hosted mineralization is "easier and cheaper to process," which he noted could contribute to maintaining low all-in sustaining costs.

According to The Gold Advisor, these developments have elevated Diablillos from a significant silver-gold project to a "globally significant" asset. Krauth concluded that "Abra is delivering on its promises" and reiterated the publication's decision to include AbraSilver in its Silver Advisor portfolio. He stated that the company's strong resource growth, combined with its advancement toward a Definitive Feasibility Study and regulatory milestones, warranted continued monitoring and full portfolio weighting.

Project Momentum and Development Outlook

AbraSilver is progressing with its Phase V drill program, which is fully funded and includes 20,000 meters of planned drilling. This work targets several zones, with a particular focus on the Oculto East area. According to the company's investor presentation, this zone recently yielded a 31-meter intercept averaging 10.0 g/t gold, including 6 meters at 41.9 g/t gold. Additional near-surface silver mineralization has also been confirmed.

The Diablillos project has grown its M&I resource base by over 170% since 2020 at a reported discovery cost of US$0.11 per ounce AgEq. As of July 2025, AbraSilver had an estimated CA$37 million in cash, which the company stated is sufficient to fund the project through a construction decision expected in the second half of 2026.

AbraSilver intends to complete a Definitive Feasibility Study (DFS) in the first quarter of 2026, following its updated December 2024 Pre-Feasibility Study, which outlined a 14-year mine life and initial capital expenditures of US$544 million. Average annual production over the life of mine was projected at 13.4 million ounces AgEq at an all-in sustaining cost (AISC) of US$12.67 per ounce AgEq.

Additional potential cost savings and operational efficiencies are being evaluated as part of the DFS process. These include connection to the national power grid, tailings facility optimization, and revised mine fleet plans. The project is also eligible for Argentina's RIGI investment regime, which offers reduced tax rates, eliminated export duties, and 30 years of fiscal stability for large-scale investments exceeding US$200 million.

AbraSilver reported that the Environmental Impact Assessment (EIA) permit and RIGI approval are anticipated in the coming months. These developments, along with the DFS, represent the next major milestones for the company.=

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$810M. Its 52-week range is CA$2.06–6.15 per share.