News
Canada’s AbraSilver Resource is making steady progress on its Diablillos gold-silver project in the Argentine province of Salta.
A prefeasibility study, completed in the first quarter of the year, estimated net present value after taxes of US$494mn, an after-tax rate of return of 25.6%, and a 2.6-year payback, AbraSilver said in a corporate presentation.
The study is based on prices of US$23.50/oz silver and US$1,850/oz gold.
AbraSilver began a new 20,000m diamond drilling program on the property, the company said in a statement on Monday.
The resources identified to date are 258Moz of silver equivalent in the measured and indicated categories, corresponding to 148Moz of silver and 1.4Moz of gold, which represents an increase of 20% compared to November 2022 and close to 100% compared to 2020 studies. Proven and probable reserves are put at 210Moz of silver equivalent.
In the first five years of production, Diablillos would produce 14.5Moz/y of silver and 44,000oz/y of gold and average 7.7Moz/y silver and 71,000oz/y gold over a 13-year life of mine, according to the study. Initial capex is put at US$373mn.
AbraSilver has already drilled approximately 150,000m at the property.
Along with advancing the drilling program, the company said it will begin a technical study and development plan for Diablillos this year, with the aim of completing a feasibility study and making a construction decision in 2025.
Additional Insight:
AbraSilver’s progress on the Diablillos project showcases the company’s commitment to developing resources in Argentina despite the challenges posed by the current economic landscape.
Future Outlook:
With the completion of a feasibility study and a construction decision expected in 2025, AbraSilver is poised to further solidify its presence in the Argentine mining sector and contribute to the country’s growing reputation as a hub for precious metals exploration.
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