Andean Silver has boosted its Cerro Bayo silver-gold project Indicated Resource by 230%, reaching 60 million ounces silver equivalent, underpinning its push toward feasibility and production restart.
- 230% increase in Indicated Mineral Resource at Cerro Bayo
- 136Moz AgEq total Mineral Resource with strong underground component
- ~60,000m drilling program underway with four rigs active
- First district-wide resource growth drilling in 20 years targeting new corridors
- A$42.7 million cash supports exploration and feasibility studies
Resource Upgrade Signals Cerro Bayo Momentum
Andean Silver Limited (ASX:ASL) has delivered a striking 230% increase in the Indicated Mineral Resource at its Cerro Bayo silver-gold project in Chile, swelling it to 60 million ounces silver equivalent (AgEq). This surge drives the total Mineral Resource to 136Moz AgEq, positioning Cerro Bayo as a significant near-term silver-gold development candidate. The upgrade reflects successful drilling and exploration campaigns over the past year, with the company now embarking on a ~60,000-metre drilling program to further de-risk and expand the resource ahead of feasibility studies.
Drilling Campaign Targets Growth and Continuity
Four drill rigs are currently active, marking the first resource growth drilling across the wider Cerro Bayo district in two decades. The program focuses on extensional drilling of known vein systems at Marcela, Guanaco, and Cerro Bayo corridors, alongside greenfield exploration of the Droughtmaster corridor identified through recent mapping and geophysical surveys. The drilling aims to establish mineralisation continuity and support updated geotechnical and metallurgical data critical for upcoming economic studies assessing various restart scenarios.
High-Grade Intercepts Reinforce Resource Quality
Recent drill results underscore the quality of Cerro Bayo’s mineralisation. At the Trinidad corridor, assays include 1.4 metres grading 268.6g/t gold and 3,045g/t silver, while Delia SE returned intercepts such as 3.1 metres at 2,541g/t silver and 9.8g/t gold. Drilling within the Laguna Verde Mine Complex continues to intersect vein and breccia structures consistent with the known system’s tenor. Rock chip and channel sampling at the Taitao East area have revealed spectacular grades exceeding 1,100g/t silver equivalent over multiple metres, with some samples hitting over 5,000g/t silver equivalent.
Corporate Leadership and Financial Position
Supporting this technical momentum, Andean appointed Matthew Allen as Managing Director effective July 1, 2026. Allen, previously CEO, brings extensive global resources experience and is steering Cerro Bayo toward development and production. The company ended the June quarter with a robust cash balance of A$42.7 million, down from A$53.4 million in March, reflecting ongoing investment in exploration and study work but leaving a solid runway for planned activities.
Strategic Outlook Balances Exploration and Restart Planning
Andean’s strategy for 2026 blends aggressive resource growth with advancing restart feasibility. The company plans to maintain or increase its rig fleet to support extensive drilling campaigns while progressing mining, metallurgical, and geotechnical studies. The goal is to refine the production and economic outlook under multiple scenarios, leveraging Cerro Bayo’s substantial existing infrastructure. This dual approach aims to sustain strong news flow and create multiple avenues for shareholder value.
Bottom Line?
Andean Silver’s resource leap and active drilling set the stage for critical feasibility milestones, but the path to production remains contingent on ongoing study outcomes and exploration success.
Questions in the middle?
- How will ongoing drilling results influence Cerro Bayo’s feasibility study parameters and mine plan?
- What impact will updated metallurgical and geotechnical data have on project economics and restart timing?
- Could exploration of new corridors like Droughtmaster yield a transformative discovery beyond current resource estimates?