Andean Silver Boosts Cerro Bayo Resources to 111Moz AgEq with 22% Growth

Resource Growth and Exploration Success

Andean Silver Limited has delivered a robust June 2025 quarter update, highlighting an 18% increase in mineral resource tonnage and a 22% rise in contained silver equivalent ounces at its Cerro Bayo silver-gold project in Chile. The updated Mineral Resource Estimate now stands at 9.8 million tonnes grading 353 grams per tonne silver equivalent, equating to 111 million ounces of contained silver equivalent. Notably, approximately 800,000 ounces of gold are included within this resource, underscoring the project's precious metals potential.

Drilling campaigns have successfully extended known mineralisation beyond the current resource boundaries, particularly at the Coyita, Cristal, and Pegaso 7 prospects within the Laguna Verde mining complex. These results underpin a planned resource update later this year, which aims to incorporate both resource growth and infill drilling to upgrade resource confidence from Inferred to Indicated categories.

Advancing Production Restart Plans

In parallel with exploration, Andean has initiated an internal restart scoping study to evaluate the feasibility of recommencing high-grade operations at Cerro Bayo. This study, expected to conclude by the fourth quarter of 2025, will define key parameters for a production restart and inform a more detailed feasibility study scheduled for completion in 2026. The company’s CEO, Tim Laneyrie, emphasized the strategic focus on resource growth, upgrading, and demonstrating production potential as core to creating shareholder value.

Exploration Pipeline and Geophysics Insights

Beyond brownfields drilling, Andean’s generative exploration team has identified substantial new high-grade vein systems west of the established Droughtmaster Corridor, including the Monserrat, Tamara, Sofia, and Pasquerito veins. These discoveries, supported by recent geophysical surveys, reveal extensive alteration zones and mineralisation potential concealed beneath shallow cover. The geophysics program has delineated deep-rooted targets extending up to 500 meters below surface, providing a strong foundation for future drilling campaigns.

Corporate and Financial Position

Financially, Andean completed a A$30 million placement in July 2025 to sophisticated and institutional investors, bolstering its capacity to fund ongoing exploration and development activities. The company’s shares commenced trading on the OTCQX Best Market in the United States under the symbol "ADSLF," expanding its investor reach. At the end of the June quarter, Andean held cash and cash equivalents of A$12.2 million, excluding the recent placement proceeds, providing a solid liquidity base as it advances its strategic objectives.

Operational readiness at Cerro Bayo continues with care and maintenance activities, ensuring the site remains primed for a potential restart. The company’s aggressive growth strategy over the past 18 months has seen a more than threefold increase in mineral resources and the discovery of multiple new vein systems, positioning Cerro Bayo as a globally significant silver-gold asset.