Andean Silver Limited reports robust drilling results from its Cerro Bayo project, revealing new high-grade mineral zones and expanding its tenement holdings. The company has mobilized a third drill rig and launched a major geophysical program, setting the stage for multiple resource updates in 2025.
- Strong high-grade silver-gold intercepts at Cristal and Pegaso 7 prospects
- Third drill rig mobilized to accelerate resource extension drilling
- Major geophysical campaign underway covering key structural corridors
- Expansion of tenement holdings targeting extensions of major mineralised zones
- Cash position remains healthy at $26 million to fund aggressive exploration
Robust Drilling Advances Cerro Bayo Prospects
Andean Silver Limited (ASX:ASL) has delivered a compelling December quarter update, highlighting significant progress at its flagship Cerro Bayo Silver-Gold Project in Chile. The company reported multiple high-grade intercepts from ongoing drilling campaigns at the Cristal and Pegaso 7 prospects, both of which remain outside the current resource envelope. Noteworthy results include intercepts such as 4.5 meters at 584 g/t silver equivalent (AgEq) at Cristal and 13.1 meters at 332 g/t AgEq at Pegaso 7, underscoring the potential for substantial resource growth.
These results come as Andean has mobilized a third drill rig to site, intensifying efforts to extend and infill resources, particularly at the Coyita North project area near the Laguna Verde processing facility. The expanded drilling capacity reflects management's confidence in the project's upside and the company's commitment to accelerating resource definition.
Strategic Tenement Expansion and Geological Insights
Beyond drilling, Andean has strategically expanded its tenement holdings to cover extensions of two major structural corridors within the Cerro Bayo project area. This includes acquiring tenure previously held by Goldcorp (now part of Newmont), which shares geological characteristics with the high-priority Sinter Hill system. Early-stage exploration activities such as mapping, geochemical sampling, and hyperspectral analysis are planned to evaluate these new areas.
An internal geological review conducted during the quarter, supported by external consultants, has refined the understanding of Cerro Bayo’s mineralisation styles. The findings suggest multiple overlapping mineralisation systems, including polymetallic credits beyond the primary silver-gold zones, potentially enhancing the project's overall value proposition.
Major Geophysical Campaign to Unlock New Targets
Complementing the drilling and tenement growth, Andean has launched the largest geophysical program ever undertaken at Cerro Bayo. Utilizing over 200 line kilometers of Controlled Source Audio Magnetotellurics (CSAMT), this campaign aims to delineate structural corridors and identify new drill targets down to 300 meters depth across a 10 km by 5 km corridor. The integration of geophysical data with surface mapping and geochemistry is expected to refine targeting and support a multi-year exploration strategy.
Financial Position and Corporate Developments
Andean Silver ended the quarter with a solid cash balance of $26 million, down from $31.1 million in the previous quarter, reflecting ongoing exploration and corporate activities. The company successfully negotiated a reduced final payment for the Cerro Bayo acquisition, easing capital demands. Key executive appointments, including a new Joint Company Secretary and Chief Financial Officer, have strengthened the management team to support the company’s growth trajectory.
Looking ahead, Andean has outlined an aggressive 12-month strategy encompassing resource extension drilling, regional exploration campaigns, and ongoing geophysical surveys. Multiple resource updates are anticipated throughout 2025, positioning the company to potentially elevate Cerro Bayo into a globally significant silver-gold asset.
Bottom Line?
With high-grade discoveries and strategic expansions underway, Andean Silver is poised for a transformative 2025 at Cerro Bayo.
Questions in the middle?
- How will the upcoming resource updates quantify the impact of new drilling results on Cerro Bayo’s overall resource?
- What are the potential timelines and capital requirements for advancing Cerro Bayo towards production?
- How might the new geophysical data reshape exploration priorities and target generation across the district?