Andean Silver Hits Record Grades at Cerro Bayo, Targets Resource Upgrade and Growth

Record High-Grade Drilling Bolsters Resource Confidence

Andean Silver Limited (ASX:ASL) has punched through previous benchmarks with its latest drilling at the Cerro Bayo Silver-Gold Project in Chile, reporting an extraordinary intercept of 268 grams per tonne (g/t) gold and 3,045 g/t silver over 1.4 metres at the Trinidad vein. This translates to a staggering silver equivalent grade of 25,340 g/t, the highest ever recorded at the project. These results underscore the gold-rich nature of the mineralisation and reinforce the continuity of high-grade veins within the Laguna Verde mine complex.

The infill drilling campaign, focused on converting substantial Inferred Resources into higher-confidence Measured and Indicated categories, is yielding consistent high-grade results. For instance, multiple intercepts at Trinidad include 2.4m at 15,558 g/t AgEq and others ranging from 328 to over 1,100 g/t AgEq, confirming the robust mineralisation continuity that Andean Silver is leveraging to underpin its development plans.

First District-Wide Drilling in 20 Years to Expand Resources

Beyond the immediate mine complex, Andean Silver is gearing up for its first resource growth drilling campaign in the broader Cerro Bayo district in over two decades. Targeting priority deposits such as Guanaco, Raul, and Marcela, this expansion aims to unlock additional mineralisation and support the company’s strategic growth objectives.

Managing Director Matthew Allen highlighted the dual approach: “Our twin-pronged strategy of growing and upgrading the resource continues to create excellent results and will be incorporated into the upcoming feasibility and restart study.” The company’s aggressive exploration and resource definition campaign is designed to transition Cerro Bayo from exploration to production readiness.

Robust Resource Base and Strong Financial Position

The latest Mineral Resource Estimate, updated as of June 15, 2026, totals 20 million tonnes at 211 g/t silver equivalent, containing 136 million ounces of silver equivalent metal. Notably, the Indicated Resource category has expanded to 4.7 million tonnes at 395 g/t AgEq, representing 60 million ounces, while Inferred Resources stand at 15.3 million tonnes at 155 g/t AgEq for 76 million ounces.

Andean Silver’s cash reserves of A$53.4 million as of the March quarter end provide ample runway to fund the ongoing drilling programs and feasibility studies essential for advancing Cerro Bayo towards production. The company plans to potentially increase its drilling fleet beyond the current four rigs to accelerate progress.

Focused Drilling at Key Zones Supports Future Feasibility

Infill drilling at multiple zones within the Laguna Verde Mine Complex, including Temer, Coyita, and Appaloosa/Taitao, continues to intersect vein and breccia structures consistent with the known mineral system. These results not only bolster resource confidence but also provide updated geotechnical and metallurgical data critical for feasibility assessments.

Drilling at the Delia SE area further delineates high-grade shoots immediately below existing infrastructure, revealing stacked lodes that could support multiple mining fronts. Recent intercepts here include 3.1m at 3,356 g/t AgEq and 3.0m at 889 g/t AgEq, highlighting the potential to expand underground resources.

Strategic Outlook and Upcoming Catalysts

Looking ahead, Andean Silver aims to maintain momentum through 2026 and into 2027 by balancing exploration with restart planning. This includes ongoing brownfields drilling to grow existing resources, greenfield exploration over new targets, and advancing feasibility-level studies. The company’s strategy to upgrade resource categories while expanding the resource base is central to demonstrating Cerro Bayo’s strong cashflow potential.

With a significant resource base, record high-grade drill results, and a clear plan to transition towards production, Cerro Bayo is positioned as a compelling silver-gold asset. Investors will be watching the upcoming feasibility study milestones and the results from the first district-wide drilling campaign in two decades to gauge the project’s trajectory.