Andean Silver Extends High-Grade Veins at Cerro Bayo with Resource Update Imminent

Bonanza-Grade Veins Near Processing Plant Signal Growth Potential

Andean Silver Limited (ASX:ASL) has reported a fresh wave of high-grade silver-gold vein discoveries at its Cerro Bayo Project in Chile, with assays revealing spectacular grades within 200 metres of the Laguna Verde processing facility. Vein chip samples returned eye-watering silver equivalent grades up to 5,643g/t; equivalent to 68g/t gold; and channel samples showed consistent widths with grades exceeding 1,100g/t silver equivalent. These results underscore the immediate potential to expand resources close to existing infrastructure, a critical factor for accelerating project development.

Chief Executive Matthew Allen emphasised the direct connection between resource growth and shareholder value, noting that the company is aggressively drilling to convert these discoveries into mineable resources. With four rigs currently turning and plans to increase this fleet, Andean Silver is clearly prioritising rapid advancement from exploration to mine restart planning.

Extensions at Taitao and Marcela-Guanaco Corridors Highlight Scale

The expansion is not limited to a single zone. Exploration south of the Taitao open pit has extended known mineralised veins, while the Marcela and Guanaco corridors have seen vein outcrops lengthen by up to 300 metres, pushing the total strike length of the Marcela/Guanaco 1 vein system to approximately 3 kilometres. Rock chip samples from Guanaco delivered staggering grades, including a 31,750g/t silver equivalent assay (382.5g/t gold equivalent), indicating exceptional bonanza-grade mineralisation.

This extensive strike and high-grade mineralisation support the company's strategy to build a robust pipeline of drilling targets beyond existing resources. The geological work, including mapping and sampling, continues to unlock the structural complexity of the district, revealing multiple new veins and extensions that were historically underexplored. These developments follow the company’s recent high-grade drilling results that laid the groundwork for the upcoming resource update.

Resource Update and Economic Studies Set to Inform Feasibility

Andean Silver is set to release a Mineral Resource Estimate update in June 2026, which will incorporate these latest exploration results. This update will feed directly into ongoing economic and feasibility studies aimed at advancing the Cerro Bayo Project towards a restart. The company has outlined a clear 12-month strategy that balances aggressive exploration with detailed mine planning, including infill drilling, geotechnical assessments, and metallurgical studies.

The resource base currently stands at 9.8 million tonnes grading 353g/t silver equivalent for 111 million ounces of contained silver equivalent, with historical production adding another 100 million ounces. The upcoming update is expected to reflect substantial growth, given the scale and grade of the new discoveries near the plant and across the district. This momentum builds on Andean Silver’s recent robust drilling results that reinforced the continuity and expansion of mineralisation across key zones.

From Exploration to Restart: A Focused 2026 Campaign

Beyond resource growth, Andean Silver’s 2026 plan includes transitioning from exploration to restart planning. This involves feasibility-level work supported by a broad infill drilling campaign to convert inferred resources into higher confidence categories. The company is also advancing permitting and geophysical surveys on greenfield targets within the 330km² Cerro Bayo mine district, aiming to sustain long-term growth beyond the core assets.

With a well-funded balance sheet and a growing profile following inclusion in the VanEck Junior Gold Miners ETF, Andean Silver is positioning Cerro Bayo as a globally significant silver-gold asset. The coming months will be pivotal as the resource update and economic studies provide clearer visibility on project economics and development timelines.