Andean Silver has delivered robust drilling results at Cerro Bayo, reinforcing resource continuity and growth prospects ahead of a June mineral resource update and ongoing restart studies.
- Strong drilling extends known mineralisation at Cerro Bayo
- Approximately 30,000m drilled to support resource upgrade
- High-grade intercepts reported at Coyita North, Appaloosa Breccia, and Temer
- Share Purchase Plan raises A$6 million, cash at A$53.4 million
- Inclusion in VanEck Junior Gold Miners ETF enhances profile
Drilling Success Reinforces Resource Growth Strategy
Andean Silver Limited (ASX:ASL) has reported a strong March quarter at its Cerro Bayo Silver-Gold Project in Chile, with drilling results that extend and confirm the continuity of key mineralised zones. The company has completed around 30,000 metres of drilling, which will feed into an updated Mineral Resource Estimate (MRE) due in the June quarter. This update aims to both grow the overall resource and upgrade a significant portion of the inferred resource to the indicated category, providing a firmer foundation for ongoing economic studies assessing mining restart scenarios.
Chief Executive Matthew Allen highlighted the value of the drilling campaign, which is focused on brownfields targets close to existing infrastructure. "We have four rigs working to extend known mineralisation, test new targets and infill the inferred resource to upgrade more of it to the valuable indicated category," Allen said. The emphasis on drilling near infrastructure is a key differentiator for Andean, potentially lowering development risk and costs.
Key Targets Deliver High-Grade Intercepts
The drilling program concentrated on several critical areas within the Laguna Verde Mining Complex, the heart of Cerro Bayo's current mineral resources. At Coyita North, conversion drilling continues to confirm the consistent and predictable nature of the mineralisation, with recent intercepts including 1.7 metres at 930g/t silver equivalent (AgEq) and 5.5 metres at 207g/t AgEq. This shoot was historically a high-grade underground feed to the Laguna Verde processing plant, and ongoing drilling aims to expand and deepen the mineralised system.
Meanwhile, the Appaloosa Breccia has emerged as a significant bulk-tonnage target, with intercepts such as 68.3 metres at 65g/t AgEq, including a high-grade 1.3 metres at 1,523g/t AgEq. Positioned adjacent to the processing facility, Appaloosa's scale and grade profile suggest it could underpin both open pit and underground mining scenarios, enhancing Cerro Bayo's feed flexibility.
At Temer, located just 750 metres from the mill, drilling has intersected exceptional grades, including 11.4 metres at 144g/t AgEq with a 1-metre interval hitting 1,353g/t AgEq, and a standout 0.8 metres at 4,131g/t AgEq. These results bolster Temer’s potential as a low-cost, near-term feed source for a future restart.
Corporate Moves Support Growth and Visibility
On the corporate front, Andean successfully raised A$6 million through a Share Purchase Plan in December 2025, issuing over 3.2 million shares at A$1.85 each. The company ended the quarter with a healthy cash balance of A$53.4 million, positioning it well to fund ongoing drilling and feasibility activities. Additionally, Andean was added to the VanEck Junior Gold Miners ETF (GDXJ) in March 2026, a move expected to enhance its global profile and liquidity among institutional investors.
The company also announced a management restructure in February 2026, promoting Matthew Allen to CEO and appointing Tim Laneyrie as Technical Director to focus on resource conversion and exploration. This leadership alignment is intended to accelerate the transition from exploration to project development and restart planning.
Advancing Toward Feasibility and Restart
Andean plans to maintain its four-rig drilling campaign beyond the June resource update, balancing resource growth with conversion drilling to reduce geological risk. Parallel economic studies are underway to evaluate various restart scenarios at Cerro Bayo, leveraging the project's extensive infrastructure and historical production pedigree.
The company’s strategy reflects a dual focus on expanding the resource base while increasing confidence in existing mineralisation, which is critical for supporting future feasibility studies. The Cerro Bayo Project, with a current resource estimate of 9.8 million tonnes grading 353g/t AgEq for 111 million ounces silver equivalent, has seen resource growth exceeding 340% since Andean’s acquisition two years ago, alongside multiple new vein discoveries.
These developments build on the momentum from the company's high-grade drilling results reported last quarter, which also laid the groundwork for the upcoming resource update. Meanwhile, inclusion in the VanEck Junior Gold Miners ETF is expected to broaden investor interest and support trading liquidity as Andean advances its Cerro Bayo ambitions.
Bottom Line?
Andean Silver’s drilling success and strategic corporate moves position Cerro Bayo for a pivotal resource update and feasibility phase, but the market awaits the June resource figures and economic study outcomes to gauge the project's restart viability.
Questions in the middle?
- Will the June resource update confirm a significant upgrade from inferred to indicated categories?
- How will ongoing economic studies shape the feasibility and timing of a Cerro Bayo restart?
- Could further drilling expand the Appaloosa Breccia into a major mill feed source?