Andean Silver has reported exceptional high-grade silver and gold drilling results at its Cerro Bayo Project in Chile, alongside a successful A$36 million capital raise to accelerate resource growth and development.
- Drilling assays up to 692g/t silver and 9.8g/t gold near processing facility
- Over 30,000m of diamond drilling completed in 2025 to feed resource update
- A$30m placement and upsized A$6m Share Purchase Plan boost cash reserves
- Four rigs actively exploring multiple new veins and extensions
- Advancing mining studies and permitting to support project restart
Exceptional Drilling Success at Cerro Bayo
Andean Silver Limited has delivered a standout quarter at its Cerro Bayo Silver-Gold Project in Chile, reporting some of the highest-grade silver and gold intersections seen in recent years. Drilling results revealed assays reaching up to 692 grams per tonne (g/t) silver and 9.8 g/t gold within 1 kilometre of the existing processing facility, underscoring the project's rich mineral potential.
Throughout 2025, the company completed over 30,000 metres of diamond drilling, focusing on expanding known mineralised veins and discovering new ones, particularly in the Laguna Verde and Cerro Bayo districts. These results will be incorporated into an updated Mineral Resource Estimate (MRE) expected in the first half of 2026, which is anticipated to reflect significant resource growth.
Robust Capital Raising Fuels Exploration and Development
Backing this exploration momentum, Andean successfully raised A$30 million through a placement to institutional and sophisticated investors at A$1.85 per share. Strong shareholder demand also saw the Share Purchase Plan (SPP) upsized from A$3 million to A$6 million, further bolstering the company’s cash position to over A$60 million. This financial strength positions Andean to accelerate drilling campaigns, pursue land acquisitions near Cerro Bayo, and advance permitting and project development activities.
Focused Strategy to Unlock Value
With four drill rigs currently active onsite, Andean is targeting extensive vein systems known to host high-grade mineralisation. The exploration strategy aims not only to grow and upgrade the resource base but also to underpin future mining studies and feasibility work. CEO Tim Laneyrie highlighted the company’s commitment to leveraging its significant undrilled opportunities, stating that ongoing drilling and resource updates will feed into initial economic studies to optimise the value of the mineral resource and existing infrastructure.
Recent discoveries include multiple new veins and extensions west of the Taitao open pit, an area previously untested, as well as high-grade intercepts at the Delia SE and Temer mine areas. The Appaloosa Breccia structure also remains a large-scale target with potential for both open pit and underground operations once further drilling and resource definition are completed.
Looking Ahead – Growth and Development
Andean’s aggressive exploration and resource growth campaign has already increased Cerro Bayo’s global Mineral Resources by over 340% since acquisition. The company plans to continue this trajectory through a combination of brownfields drilling, regional mapping, and greenfields target generation. Concurrently, internal studies and permitting efforts will support the next phases of project restart planning.
While no production timelines have been announced, the convergence of exceptional drilling results, strong financial backing, and a clear strategic roadmap positions Cerro Bayo as a compelling silver-gold asset to watch in 2026.
Bottom Line?
With high-grade discoveries and a robust war chest, Andean Silver is poised to redefine Cerro Bayo’s potential in the coming year.
Questions in the middle?
- How significantly will the upcoming Mineral Resource Estimate update increase Cerro Bayo’s total resources?
- What timelines and milestones will Andean set for advancing feasibility and restart studies?
- Could further capital raises be required to sustain the aggressive exploration and development plans?