Advance Metals Limited has announced its first JORC-compliant Mineral Resource Estimate for the Yoquivo Silver-Gold Project in Mexico, revealing a substantial inferred resource of 33 million ounces silver-equivalent. The resource's broad, shallow mineralisation supports potential bulk mining methods, with further exploration planned to expand the deposit.
- Initial JORC Inferred Mineral Resource Estimate of 8.8Mt at 120g/t silver-equivalent
- Resource contains 23Moz silver and 140,000oz gold, totaling 33Moz silver-equivalent
- Mineralisation supports both open cut and underground mining scenarios
- Resource remains open at depth and along strike with further drilling planned
- Advance Metals’ total Mexican portfolio now totals 116Moz silver-equivalent
Significant JORC Resource Confirms Scale at Yoquivo
Advance Metals Limited (ASX:AVM) has delivered its inaugural JORC (2012) Mineral Resource Estimate (MRE) for the 100%-owned Yoquivo Silver-Gold Project located in Chihuahua, Mexico. The estimate reports an inferred resource of 8.8 million tonnes grading 120 grams per tonne (g/t) silver-equivalent (AgEq), equating to 33 million ounces AgEq, comprising 23 million ounces of silver and 140,000 ounces of gold. This milestone confirms Yoquivo as a large-scale silver-gold system with broad, shallow, and contiguous mineralisation that could support bulk mining operations.
The MRE is based on a comprehensive dataset of 99 diamond drill holes totaling over 26,000 metres, including 21 holes drilled recently by Advance Metals. The resource estimate was reported at a 50g/t AgEq cut-off grade, reflecting assumed metal prices of US$52 per ounce for silver and US$3,910 per ounce for gold, with metallurgical recoveries of 85% for both metals based on prior test work. The mineralisation extends from surface and demonstrates strong continuity, particularly within the Pertenencia deposit, which accounts for over 93% of the contained metal.
Potential for Bulk Mining and Resource Growth
The resource's geometry, with mineralisation extending over 750 metres strike and up to 250 metres width at Pertenencia, supports the potential for both bulk open cut and underground mining scenarios. The Esperanza deposit, located approximately 2.5 kilometres west, contributes a smaller portion of the resource but remains open at depth and along strike. Advance Metals is evaluating further drilling to extend and convert resources, with multiple additional high-potential zones identified in the broader project area.
Managing Director and CEO Dr Adam McKinnon highlighted the resource as a significant achievement less than 18 months after acquiring Yoquivo, noting the low discovery cost of approximately US$0.10 per ounce AgEq. He emphasised the resource's broad zones of shallow mineralisation as supportive of lower-cost development pathways. Dr McKinnon also pointed to the strengthened Mexican portfolio, which now totals 116 million ounces silver-equivalent across three high-grade projects.
Technical and Geological Details
The Yoquivo Project is situated within the Sierra Madre Occidental volcanic belt, characterised by low-sulphidation epithermal quartz vein systems. The mineralisation comprises multiple veins with associated lower-grade halos, controlled by stratigraphy and structural features. The resource estimate employed ordinary kriging methods with detailed geological modelling, supported by rigorous sampling and assay protocols. Validation checks indicate the estimates are reasonable relative to the drill data, though approximately 26% of the inferred tonnage is extrapolated beyond drill spacing.
Metallurgical test work conducted by previous owners indicated favourable recoveries for both silver and gold through flotation and cyanide leaching, although these tests were performed on higher-grade samples than the current average resource grades. Environmental baseline studies have not yet been undertaken, and the company assumes responsible on-site disposal of waste and process residues in compliance with regulatory requirements.
Next Steps and Broader Portfolio Context
Advance Metals plans to continue refining geological models, prioritise resource extension drilling, and undertake preliminary technical studies to assess mining and processing scenarios. Drilling is also expected to commence at the Gavilanes Project, following a similar pathway toward a JORC resource upgrade including historic core sampling.
This resource announcement follows a series of recent drill results at Yoquivo that confirmed broad, high-grade silver-gold zones, underpinning the maiden JORC resource. The company’s ongoing exploration efforts at Yoquivo and other Mexican projects, including the recent Advance Metals Unveils Exceptional Silver-Gold Drill Results at Yoquivo, reinforce the potential for further resource growth and development opportunities.
Bottom Line?
While the initial JORC resource confirms Yoquivo’s scale and bulk mining potential, the inferred classification and extrapolated tonnage underline the need for further drilling and technical studies to better define economic viability.
Questions in the middle?
- How will upcoming drilling programs refine the resource classification and expand the mineralisation at Yoquivo?
- What technical and economic factors will influence the choice between open cut and underground mining scenarios?
- How might metallurgical recoveries vary across different grade zones within the resource, and what impact could this have on project economics?