Breakthroughs Ahead: Upcoming Catalysts Drive Silver Company's Growth

1. AbraSilver Resource Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.  In addition, Silver Crown Royalties has a consulting relationship with Street Smart an affiliate of Streetwise Reports. Street Smart Clients pay a monthly consulting fee between US$8,000 and US$20,000.
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AbraSilver Resource Corp. (ABRA:TSX.V; ABBRF:OTCQX) continues to generate discussion from investors and analysts due to its robust portfolio of silver, gold and copper projects, strategic partnerships, and a clear roadmap of upcoming milestones. The company's flagship Diablillos silver-gold project in Salta, Argentina, and its La Coipita copper porphyry project in San Juan province are key focus areas as AbraSilver positions itself for further growth. 

AbraSilver recently completed a private placement with Teck Resources Ltd. (TECK:TSX; TECK:NYSE). for US$1 million, aligning with the companies' agreement on the La Coipita project. Under the terms, Teck can earn an 80% interest in the project by investing US$20 million in exploration over five years, alongside staged equity and cash payments.

This financing underscores Teck's confidence in the project's potential, as AbraSilver's President, John Miniotis, noted in a recent discussion with Streetwise Reports, "We are delighted to welcome Teck as a key shareholder. Their ongoing partnership highlights the potential of the La Coipita project and reflects confidence in our team's ability to deliver significant shareholder value."

This strategic relationship complements a previous CA$10 million investment by Kinross Gold Corp. (K:TSX; KGC:NYSE), which provides regional exploration support and positions AbraSilver's Diablillos project as a significant development project in Argentina.  

The Diablillos Project: Key Developments

The Diablillos project remains the cornerstone of AbraSilver's operations. It features Proven and Probable mineral reserves of 210 million ounces of silver equivalent, according to its 2024 Pre-Feasibility Study (PFS). The study forecasts an average annual production of 13.4 million ounces of silver equivalent over a 14-year mine life, with a net present value (NPV5%) of US$747 million and an internal rate of return (IRR) of 27.6% at conservative base-case pricing. 

Exploration at Diablillos is ongoing, with ongoing results from the Phase Four drill program expected to be released in the coming weeks. Mr. Miniotis confirmed the significance of these developments: "The ongoing drill program, including step-out drilling at the JAC and Oculto zones, aims to further expand resources and demonstrate the project's scalability." Notably, assays from a cluster of porphyry targets northeast of the main deposit could present a game-changing opportunity, with results anticipated by late January or early February 2025. 

Analysts have highlighted the high-grade nature of recent discoveries at the JAC zone, such as intercepts of 244.9 grams per tonne (g/t) silver over 33.4 meters. Christopher Ecclestone of Hallgarten & Co. referred to Diablillos as "one of the most important silver projects coming down the pike at a global level," citing its economic robustness and exploration upside.

La Coipita Project: Copper Porphyry Potential

At the La Coipita project, AbraSilver's partnership with Teck Resources is pivotal. While early-stage exploration is underway, the project's location in Argentina's San Juan province — home to prominent copper-gold porphyry systems — positions it for significant discoveries. Teck has begun preliminary work, with drilling expected to accelerate in Q1/2025.

"La Coipita's district-scale potential and strategic partnerships with majors like Teck provide AbraSilver with additional growth opportunities," Miniotis explained in the call. If Teck's exploration yields results, AbraSilver's 20% retained interest in a potential large-scale discovery could become a major value driver.

Upcoming Catalysts and Strategic Outlook

AbraSilver has outlined a series of significant milestones expected over the next 12 months that could drive the company's growth. The Phase Four drill program at the Diablillos project is anticipated to deliver assay results in late January or early February 2025, including potential breakthroughs in the newly explored porphyry targets.

By mid-2025, AbraSilver plans to release an updated resource estimate for Diablillos, incorporating the latest drilling data and reflecting ongoing exploration successes. Additionally, a definitive feasibility study (DFS) for Diablillos is scheduled for early 2026. This study will integrate results from the current drill program and several other optimization opportunities to further improve the robust project economics. Meanwhile, exploration at the La Coipita project continues, with Teck Resources Ltd. advancing its drilling campaign as part of their option agreement. Results from this secondary project are expected to add further growth potential to AbraSilver's portfolio. 

AbraSilver's financial position remains strong, with an estimated US$10 million in cash as of September 30, 2024. This ensures the company is well-funded to execute its exploration and development plans while maintaining flexibility for future opportunities. Argentina's tax incentives under the RIGI program further enhance the project's financial metrics, potentially saving US$430 million over the mine's life. 

As Miniotis emphasized in the Streetwise discussion, "Our focus remains on unlocking value through strategic partnerships, disciplined exploration, and advancing our flagship Diablillos project. With a strong pipeline of catalysts, AbraSilver is well-positioned for sustained growth in the silver and gold markets." 

Expert Analysis Highlights Industry Potential

Recent analyses of AbraSilver have highlighted the company's strong potential and favorable positioning within the silver and gold exploration sector. According to The Daily Gold Premium on January 5, AbraSilver's Diablillos project, located in Salta, Argentina, has demonstrated promising metrics, with measured and indicated resources totaling 260 million ounces of silver equivalent at an impressive grade of 151 g/t.

The publication underscored the impact of the JAC Zone discovery, which added 36 million ounces of silver at 212 g/t, describing it as a "game changer." Notably, the November 2024 pre-feasibility study projected an NPV of US$1.29 billion and an IRR of 39.3%, based on a silver price of US$30.70 and gold price of US$2,650, further solidifying the project's economic appeal. The report also suggested that continued exploration success could lead to a higher NPV by incorporating additional high-grade resources from nearby satellite deposits, such as JAC North.

Christopher Ecclestone, in his January 2025 report for Hallgarten & Company, reiterated a positive outlook on AbraSilver, emphasizing its performance in 2024 and its strong resource base. He highlighted the Diablillos project's capability to produce 13.4 million ounces of silver equivalent annually at an all-in-sustaining cost of US$12.67 per ounce, with projected cash flows of US$300 million per year over the initial five years.

Ecclestone also noted the project's scalability, citing ongoing drilling programs that aim to extend the resource life and enhance production potential. He maintained a target price of CA$4.20 for AbraSilver, reflecting confidence in the company's ability to deliver value to shareholders through strategic resource expansion and project development.

Sector Insight on Silver's Outlook

Excelsior Prosperity, in their December 14 coverage, emphasized the value and growth potential within the junior silver exploration and development segment. The report highlighted the volatility inherent to this subsector but noted that such fluctuations create opportunities for strategic accumulation. The article underlined the importance of scalability, resource quality, and operational efficiency in positioning silver companies for success within the current bull market.

According to Midas Touch Consulting, on December 16, silver prices demonstrated impressive resilience throughout the year, recording a 31.75% increase in USD terms. This performance underscored silver's role as a safe haven in a turbulent economic landscape. The consultancy highlighted a technical bullish wedge pattern in the market, which they suggested limited downside risks for silver while positioning it for potential gains in the near term. They also pointed to strong support around the $30 level, driven by persistent supply tightness and increasing industrial demand, particularly in green technologies. Despite some recent volatility, the analysis indicated that silver prices were stabilizing within a narrow range, laying the groundwork for a potential upward breakout.

Meanwhile, in his December 19 article for 321Gold, Bob Moriarty noted that silver's Daily Sentiment Index (DSI) of 21 suggested substantial room for further price increases. Moriarty observed that historical peaks in silver required significantly higher DSI levels, implying that the current market was far from overbought. He projected that silver could surpass its all-time high of US$50.75 within six months, attributing this potential to seasonal strength and robust demand dynamics. Moriarty also emphasized the seasonal trend in the sector, with the ten-week period from mid-December to late February historically being the most favorable for precious metals.

With the start of the new year, Silver Crown Royalties Inc. (SCRI:CBOE; SLCRF:OTCQX; QS0:FSE) noted on January 6 that silver has historically stood out as a unique investment option with unparalleled attributes. Unlike other commodities or newer investment forms like cryptocurrencies, silver's atomic scarcity and extensive history as a currency underscore its enduring appeal. The analysis noted that silver fulfills critical investment criteria such as maintaining purchasing power, portability, and durability while remaining decentralized and fungible. It was highlighted as an alternative for crypto investors, offering physical security and real-world applications in electronics and green technologies — sectors increasingly dependent on this metal.

Supporting this perspective, Jaime Carrasco, Senior Investment Advisor and Senior Portfolio Manager at Canaccord Genuity Wealth Management emphasized, "Silver is my favorite asset class because the price has not inflated during the 35+ years of my career, and very few investors own any. In my opinion, this is about to change because of silver's strategic importance to electronics and a green future." He further noted that silver's current supply deficit positions it as a compelling monetary metal alongside gold, particularly with gold trading above US$2,500/oz.

Ownership and Share Structure

According to Refinitiv, the top six strategic entities own 21% of AbraSilver. The top 3 shareholders are: Eric Sprott with 9.9%, Kinross Gold with 4.0% and Central Puerto with 4.0%.   Additionally, the top 3 insiders are Chief Executive Officer (CEO) John Miniotis with 1.0% or 1.3M shares, Director Hernan Zaballa with 0.86% or 1.08M shares, and Chairman and Director Robert Bruggeman with 0.74% or 0.93M shares. 

Nine institutions hold 6.84% or 8.58M shares. The Top 3 are Mirae Asset Global Investments (USA) LLC with 2.1% or 2.63M shares, ETF Managers Group LLC with 1.74% or 2.18M shares, and Sprott Asset Management LP with 1.2% or 1.51M shares. 

The company has 129.51M outstanding shares. Its market cap is CA$318M. Its 52-week high and low are CA$3.18 and CA$1.30 per share, respectively.