Advance Metals has delivered promising maiden drilling results at its Gavilanes Silver Project in Mexico and moved toward full ownership of its Victorian gold projects, supported by strong gold recoveries and high-grade assays.
- Maiden drilling at Gavilanes yields broad high-grade silver intercepts
- Polymetallic mineralisation confirmed in deeper drill holes
- Move toward 100% ownership of Myrtleford and Beaufort gold projects
- High gravity recoveries at Happy Valley support low-cost processing
- Cash position stands at $4.3 million at quarter end
Strong Start to Maiden Drilling at Gavilanes
Advance Metals (ASX:AVM) kicked off its maiden diamond drilling program at the 100% owned Gavilanes Silver Project in Durango, Mexico, with a robust first hole returning a broad zone of high-grade silver mineralisation. Drill hole GV-26-001 intersected 33.9 metres at 220 grams per tonne (g/t) silver from 117.6 metres, including a standout 6.2 metres at 718 g/t silver from 133 metres. This substantial intercept lies approximately 80 metres down dip from previously defined high-grade zones, underscoring the potential for extensions to the existing mineralised system.
Deeper in the hole, the company encountered polymetallic mineralisation, including 3.3 metres grading 270 g/t silver, 0.2 g/t gold, 0.7% copper, 0.7% lead, and 1.1% zinc from 164.6 metres, highlighting the complex metal assemblage at Gavilanes.
Further Drill Results Confirm Polymetallic Potential
Subsequent drill holes GV-26-002 and GV-26-003, reported after the quarter ended, reinforced the project's promise. GV-26-002 delivered 8.4 metres at 245 g/t silver near surface, with a deeper 54.6-metre interval averaging 0.6% copper, 22 g/t silver, and 0.3 g/t gold from 180 metres. Meanwhile, GV-26-003 intersected shallow high-grade silver zones including 15.6 metres at 309 g/t silver from 24 metres, alongside the strongest polymetallic interval to date: 37.5 metres grading 83 g/t silver, 0.8 g/t gold, 0.6% copper, 0.6% zinc, and 0.3% lead starting at 205.8 metres downhole.
These results support Advance’s strategy to upgrade the JORC Mineral Resource at Gavilanes, targeted for early Q4 2026, with ongoing drilling and geological modelling expected to refine the deposit’s scale and grade profile.
Progress Toward Full Ownership of Victorian Gold Projects
On the Australian front, Advance advanced its position in Victoria by moving toward 100% ownership of the Myrtleford and Beaufort Gold Projects. The company amended its agreement with 1548043 B.C. Ltd to acquire the remaining 20% interest for C$1 million, bringing total consideration to C$4 million payable over three years. This deal grants Advance full operational control and exclusive working rights over the tenements, alongside a 1% net smelter return royalty to the vendor on future gold production.
High-Grade Gold and Strong Recoveries at Happy Valley
Exploration at the Happy Valley deposit within Myrtleford yielded encouraging results. Drilling returned high-grade gold intercepts, including 1 metre at 22.3 g/t gold from 95.7 metres, with a notable 0.2 metre portion grading 108.5 g/t gold. These intersections represent some of the shallowest high-grade zones identified to date and remain open for expansion.
Complementing the drilling, initial gravity recoverable gold testwork demonstrated total gold recoveries of up to 96.1%, indicating the deposit’s amenability to low-cost gravity concentration processing methods. Gold concentrate grades from test samples ranged between 1,483 g/t and 2,058 g/t gold, bolstering the project's economic potential.
Regional Exploration and Financial Position
Advance also initiated regional mapping and rock chip sampling along the 16-kilometre Magpie-Barwidgee trend, a historically underexplored corridor within its Victorian portfolio. This work aims to generate new drill targets beyond the current project areas.
Financially, Advance closed the quarter with $4.326 million in cash and cash equivalents. The company reported operating cash outflows of approximately $3 million for the quarter, primarily driven by exploration activities. Management indicated ongoing plans to assess capital raising options to sustain exploration momentum, including potential equity placements.
Bottom Line?
Advance Metals is building on promising drill results and ownership consolidation to position itself for a resource upgrade and further exploration success in the second half of 2026.
Questions in the middle?
- Will upcoming assay results from GV-26-004 and GV-26-005 confirm further extensions to the high-grade silver system?
- How will Advance balance exploration expenditure with capital raising to maintain momentum through 2027?
- What are the next steps for advancing processing options at Happy Valley given the strong gravity recoveries?