AbraSilver Resource Corp. (ABRA:TSX.V; ABBRF:OTCQX) released more results of drilling in the JAC and Oculto zones at its Diablillos silver-gold project in Argentina, reported National Bank of Canada Analyst Don DeMarco in an Aug. 19 research note.
"JAC stepouts hint at resource accretion," DeMarco wrote.
108% Return on Investment
On the news, the National Bank reiterated its CA$5 per share target price on AbraSilver, trading now at about CA$2.40 per share, noted DeMarco. From the current price, the return to target is 108%.
AbraSilver remains rated Outperform.
"Our thesis is supported by a large silver-gold Measured & Indicated resource base, near-surface high-grade silver in the JAC deposit, prospective exploration upside and heightened mergers and acquisitions appeal," DeMarco wrote.
Continuity of Mineralization Noted
AbraSilver reported data from six holes, three drilled in the JAC zone, three in the Oculto zone, all part of the company's phase four, 20,000 meter (20,000m) exploration program at Diablillos.
The highlight intercepts, coming from two stepout holes, are:
- 277 grams per ton silver equivalent (277 g/t Ag eq) over 32m (hole DDH-24-018 in JAC South)
- 110 g/t Ag eq over 54m (hole DDH-24-016 in JAC)
Stepout drilling in the JAC zone confirms near-surface continuity, particularly toward the southern and western extensions, DeMarco pointed out, and this suggests the resource could be expanded.
The average grade of these newly released data, as calculated by the National Bank of Canda, is 132 g/t Ag eq over 19m, noted DeMarco. This is lower than the average grade in the financial institution's database, of 193 g/t Ag eq, despite similar widths.
"Additional drilling [is] planned," reported DeMarco.
What to Watch For
DeMarco listed the upcoming catalysts for AbraSilver and its projects.
As for Diablillos, the drill campaign and geophysical surveys now underway will be carried through to completion and followed by release of their respective results.
Moreover, a definitive feasibility study, receipt of construction permits and construction design are on track for completion by year-end 2025. Construction would follow in 2026.
As for AbraSilver's La Coipita copper porphyry project, also in Argentina, drill results are due out this year.
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