Exploration Surge at Cerro Bayo Raises Questions on Resource Growth Risks

Exploration Breakthrough at Cerro Bayo

Andean Silver Limited (ASX: ASL) has announced a major advancement in its Cerro Bayo Silver-Gold Project located in Chile’s Aysen region. The company’s recent exploration efforts have unveiled a substantial new 1.2-kilometre mineralised vein system, effectively extending the well-known Droughtmaster Corridor. This discovery is underscored by rock chip samples exhibiting extraordinary silver and gold equivalent grades, with assays reaching as high as 30,202 grams per tonne silver equivalent (AgEq).

New Vein Systems and Geophysical Insights

The newly identified veins, Monserrat, Tamara, Sofia, and Pasquerito, represent significant additions to the project’s mineralised footprint. The Monserrat vein alone extends approximately 1.2 kilometres as a splay off the Claudia vein, which itself spans about 3 kilometres. Notably, the Pasquerito vein, detected through geophysical methods, remains unassayed but extends the corridor boundary by an additional kilometre to the west.

Complementing these surface discoveries, advanced geophysical surveys employing controlled-source audio-frequency magnetotellurics (CSAMT) and audio-frequency magnetotellurics (AMT) have delineated zones of enhanced resistivity indicative of epithermal alteration. These anomalies extend up to 500 metres below the surface, suggesting a deep-rooted mineralisation system with considerable upside potential.

Implications for Resource Growth and Development

These findings build on the Cerro Bayo Project’s already impressive Mineral Resource Estimate of 111 million ounces silver equivalent, as reported in April 2025. The high-grade nature of the new veins, combined with the geophysical data, provides a robust pipeline of exploration targets that could materially increase the project’s resource base.

Meanwhile, drilling continues at the Laguna Verde mine district within the project, focusing on expanding high-grade underground resources and bulk open pit areas. Results from these programs are anticipated in the coming weeks and will be critical in validating the exploration upside suggested by surface sampling and geophysics.

Strategic Outlook and Next Steps

Andean Silver’s CEO, Tim Laneyrie, emphasised the company’s aggressive growth strategy, highlighting the deployment of multiple drill rigs and a dedicated geological team to accelerate resource expansion. The company plans to complete its extensive geophysical campaign post-winter, advance permitting, and initiate drilling on high-priority greenfield targets. These efforts are designed to underpin long-term growth and support future project restart planning.

With a 330 square kilometre tenure and a history of significant production, Cerro Bayo is positioned as a globally significant silver-gold asset. The recent discoveries and ongoing exploration activities reinforce Andean Silver’s potential to unlock substantial value for investors and stakeholders.