Andean Silver Unveils Stunning High-Grade Veins Near Cerro Bayo Mill

• Discovery of multiple high-grade silver-gold veins near existing mill
• Exceptional assay results including up to 7,344g/t silver and 85g/t gold
• Drilling campaign planned for Q3 2025 targeting six principal veins
• Resource base now at 111Moz silver equivalent with historic production of ~100Moz
• Company advancing internal studies for mining restart with strong funding

Discovery Near Infrastructure

Andean Silver Limited has revealed a series of stacked, high-grade silver-gold veins at its Cerro Bayo project in Chile, located just one kilometre west of the existing processing mill. This discovery, part of the Temer vein corridor, represents an untested extension of mineralisation west of the Taitao open pit, a historically productive area within the Laguna Verde mining complex.

The veins exhibit remarkable grades, with surface channel sampling returning values as high as 7,344 grams per tonne (g/t) silver and 85 g/t gold. Rock chip assays have confirmed these exceptional grades, highlighting the potential for near-term resource growth close to existing infrastructure.

Strategic Exploration and Drilling Plans

This discovery aligns with Andean’s strategy to focus exploration efforts near the mill to maximise resource growth efficiency. The company plans to commence drilling in the third quarter of 2025, targeting at least six principal veins identified over a one-kilometre corridor. Currently operating three drill rigs, Andean is considering expanding its fleet to accelerate exploration given the strong cash position and multiple growth opportunities.

CEO Tim Laneyrie emphasised the abundance of “low-hanging fruit” at Cerro Bayo, noting the plant is on warm idle awaiting restart. Internal studies on mine planning and infrastructure are underway, aiming to complete later this year, which will inform the next phase of development.

Robust Resource Base and Historical Context

The Cerro Bayo project currently hosts an indicated and inferred mineral resource of 9.8 million tonnes grading 353 g/t silver equivalent, equating to 111 million ounces of contained silver equivalent. This builds on a rich mining history with approximately 100 million ounces silver equivalent mined historically. The newly discovered veins are hosted within major structural corridors known to contain high-grade mineralisation, reinforcing the district-scale potential of the project.

Andean’s exploration campaign over the past 18 months has already increased mineral resources by over 340%, with multiple new vein systems discovered. The company’s comprehensive approach includes regional mapping, geophysical surveys, and a growing pipeline of drill-ready targets to underpin long-term growth.

Outlook and Market Implications

With a well-funded balance sheet and a clear path towards restarting mining operations, Andean Silver is positioning Cerro Bayo as a globally significant silver-gold asset. The proximity of the new discoveries to existing infrastructure could translate into lower development costs and faster project advancement. However, the economic viability and continuity of these veins await confirmation from upcoming drilling results.

As the company advances its internal studies and exploration programs, investors will be watching closely for drilling outcomes and resource updates that could reshape the project’s valuation and regional mining dynamics.

Bottom Line?

Andean Silver’s near-mill high-grade vein discovery could accelerate Cerro Bayo’s mining restart, but drilling results will be pivotal.

Questions in the middle?

• Will drilling confirm the continuity and economic viability of the newly discovered veins?
• How might the planned expansion of the drilling fleet impact exploration timelines and costs?
• What are the implications of royalty arrangements and environmental permits on project development?