Resource Upgrade and Restart Risks Loom as Cerro Bayo Drilling Extends Mineralisation
Andean Silver Limited has reported exceptional drilling results at its Cerro Bayo Silver-Gold Project in Chile, with assays revealing grades up to 1,523g/t silver equivalent. These findings support a resource upgrade and underpin ongoing restart studies.
- High-grade drilling results with assays up to 1,523g/t AgEq
- Resource update scheduled for June quarter 2026
- Strong continuity and extension of mineralisation at key targets
- Restart studies to be informed by updated resource and drilling
- Company well funded with A$56.1 million cash post recent capital raising
Strong Drilling Results at Cerro Bayo
Andean Silver Limited (ASX:ASL) has announced a series of compelling drilling results from its Cerro Bayo Silver-Gold Project in Chile’s Aysen region. The assays, which include spectacular grades reaching as high as 1,523 grams per tonne silver equivalent (AgEq), reinforce the company’s strategy to both grow and upgrade its mineral resource base. These results will be incorporated into a resource update planned for the June quarter of 2026, a critical milestone that will feed directly into the mine’s restart studies.
Extending Known Mineralisation and Confirming Continuity
The drilling campaign has successfully extended mineralisation across multiple targets within the Laguna Verde Mine Complex, notably the Appaloosa Breccia, Temer vein complex, and Coyita North vein. Infill drilling has demonstrated strong continuity of mineralisation, with consistently thick and high-grade intercepts that bode well for both open pit and underground mining scenarios. For instance, the Appaloosa Breccia returned a standout intercept of 68.3 metres at 65g/t AgEq, including a high-grade 1.3-metre section grading 1,523g/t AgEq.
Strategic Importance of Key Targets
The Temer vein complex, located just 750 metres from the processing facility, continues to show increasing vein widths and robust grades, including an 11.4-metre intercept at 144g/t AgEq with a 1-metre section grading 1,353g/t AgEq. Coyita North also delivered impressive results, reinforcing its potential as a reliable high-grade feed source for future operations. Meanwhile, the Appaloosa Breccia is emerging as a significant bulk-tonnage target, strategically positioned adjacent to existing infrastructure and poised to support higher mill throughput.
Advancing Restart Studies and Resource Confidence
Chief Executive Matthew Allen emphasised the momentum building at Cerro Bayo, highlighting the dual focus on resource growth and upgrading the confidence category of the resource. The upcoming resource update aims to increase the Indicated Resource portion, which is crucial for economic modelling and feasibility assessments. The company is concurrently advancing restart studies, supported by ongoing drilling and geotechnical work, with feasibility-level activities expected to commence later in 2026.
Well Funded for Aggressive Exploration and Development
Andean Silver remains well capitalised, holding approximately A$56.1 million in cash following a recent capital raising. This financial strength underpins the company’s aggressive exploration and resource definition campaign planned for 2026, including potential expansion of the drilling fleet to accelerate progress. The company’s comprehensive approach combines brownfields resource growth with greenfields exploration across its extensive 330 square kilometre Cerro Bayo project area.
Bottom Line?
As Andean Silver prepares its resource update and restart studies, Cerro Bayo’s high-grade drilling results set the stage for a potentially transformative phase in the project’s development.
Questions in the middle?
- How will the upcoming resource update affect Cerro Bayo’s mine life and production profile?
- What are the key economic assumptions underpinning the restart feasibility studies?
- Could further drilling reveal additional high-grade zones beyond current targets?
