AbraSilver Resource Corp. (ABRA:TSX; ABBRF:OTCQX) new results from the recently finished phase four drill program at its flagship Diablillos project in Argentina confirm significant high-grade silver and gold mineralization in multiple zones, including the Oculto Northeast, the JAC Extension and the newly discovered Sombra, a March 11 news release noted.
"The continued success of our exploration program highlights the significant remaining upside potential at Diablillos," President and Chief Executive Officer John Miniotis said in the release. "These latest results confirm that high-grade silver and gold mineralization remains open for expansion across multiple target areas, reinforcing our confidence in the project's long-term growth and value."
The release highlighted specific new intercepts. For example, at the Sombra target, hole DDH 24-069 intersected 101 grams per ton silver (101 g/t Ag) over 17 meters (17m), starting shallowly at 38m downhole. This included 205 g/t Ag over 7m.
In the JAC Extension, several holes drilled beyond the JAC zone's open-pit boundary encountered mineralization. One highlight was from DDH 24-075, 237 g/t Ag over 30m, starting 125.5m downhole. AbraSilver intends to do more drilling there to delineate the continuity and extent of mineralization south of JAC.
"These drill results continue to extend known mineralization beyond existing conceptual open-pit boundaries, supporting further mineral resource growth and strengthening the project's geological potential," AbraSilver Chief Geologist Dave O'Connor commented in the release.
The phase four drill program consisted of 106 holes for 21,172m, reported Raymond James Analyst Craig Stanley in a March 11 research report. The results will be incorporated into the resource estimate update, which is on track for mid-2025.
Feasibility Study Due Q1/26
In other news, AbraSilver engaged Boris Caro, principal of Caro & Navarro Ltd., to serve as full-time project director of Diablillos starting April 1, 2025, according to a March 10 news release. Caro will help oversee the completion of the definitive feasibility study, slated for release in Q1/26.
"[Caro's] extensive experience in feasibility studies and project execution will be instrumental in advancing the project towards development," Jeremy Weyland, AbraSilver's senior vice president of projects and development, said in the release. "With his leadership, we are confident in meeting key milestones and positioning the Diablillos project for a successful investment decision in H2/26."
Caro is a mining engineer with a master's degree in mineral economics who is bilingual in English and Spanish. His international experience in hardrock mining operations and project development in the high Andean region spans 20-plus years. It includes holding key positions at global mining companies, including Newcrest Mining Ltd. (NCM:ASX), former Orocobre Ltd. and Galan Lithium Ltd. (GLN:ASX).
Most recently, Caro successfully completed definitive feasibility studies for lithium projects in northern Argentina for Rio Tinto Plc (RIO:NYSE; RIO:ASX; RIO:LSE; RTPPF:OTCPK) and Galan Lithium (the HMW project). Previously, he did project studies for major operating mines, including BHP Billiton Ltd.'s (BHP:NYSE; BHPLF:OTCPK) Escondida (Chile), Newcrest's Cadia East (Australia), as well as for then-emerging mines, such as Bonikro (Ivory Coast) and San José (Mexico).
Converting Exploration to Value
Canadian-based AbraSilver is a silver and gold exploration company laser-focused on advancing the large-scale Diablillos project.
"We believe Diablillos is one of the best-undeveloped silver projects not held by a producer," Raymond James' Stanley wrote in his Feb. 20 initiation report on AbraSilver.
A high-sulphidation epithermal silver-gold deposit in the mining-friendly Salta province, Diablillos has a large existing resource and significant exploration upside potential. Its Proven and Probable reserve is estimated at 42,300,000 tons of 91 g/t Ag and 0.81 g/t gold (Au), containing approximately 124,000,000 ounces (124 Moz) Ag and 1.1 Moz Au, according to the company's website. Plus, there is significant potential for additional upside through exploration.
The updated pre-feasibility Study outlined a robust project capable of producing an average of 7.5 Moz of Ag per year over its 14-year life of mine, Beacon Securities Analyst Michael Curran highlighted in his Feb. 27 research report. Last month, AbraSilver reported additional drill results from Diablillos, which showed high grades and two new targets not included in the current resource estimate: Oculto East and Sombra. Oculto East demonstrated 107 g/t Ag over 24.5m. Sombra returned 55 g/t Ag over 23m.
Diablillos' economics likely can be further enhanced, and AbraSilver will evaluate the possible ways in the definitive feasibility study, President/CEO Miniotis noted in his presentation at Red Cloud Securities' Pre-PDAC (Prospectors and Developers Association of Canada) 2025 Mining Showcase, summarized in a March 3 report. Under consideration is a heap leaching could be added to recover additional gold, which Miniotis estimates could add several hundred-thousand ounces of additional gold production, over the life-of-mine.
In terms of power, Stanley reported, AbraSilver may be able to contract long-term power prices from a potential grid connection at a lower rate than the one in the prefeasibility study, ultimately reducing total opex by about 11−15%. AbraSilver's largest shareholder, utility company Centro Puerto SA, is investigating the prospect of building a high-voltage power line to supply up to 400 megawatts of renewable energy to Diablillos and the surrounding projects.
Further, if Diablillos gets accepted into Argentina's Large Investment Incentive Regime (RIGI), it would result in total savings of about US$430 million (US$430M), according to the Corporate Presentation. The company must submit the application before July 2026 and, for maximum benefits, make a construction decision by H2/27. At the recent Red Cloud event, Miniotis said he expects Diablillos to be approved for RIGI in early 2026.
Along with Diablillos, AbraSilver owns a portfolio of earlier-stage copper-gold assets, one being La Coipita porphyry project in San Juan, Argentina. According to a definitive option and joint venture agreement inked earlier this year, Teck Resources Ltd. (TECK:TSX; TECK:NYSE) has the option to acquire an 80% interest in La Coipita, noted Stanley. Teck plans to drill 3 kilometers there this quarter, including two holes in the Yaretas target and two holes in the Quebrada del Viento target.
Silver Outlook Remains Strong
"Silver is the new gold," The Economist wrote and presented several supporting points, in a March 5 article. Silver nearly kept pace with gold during the past 12 months and outperformed it during the previous five years. Investment flows now are following returns. This year, some central banks started buying silver, and traders in New York have been accumulating more silver than gold. The expanding gap between supply and demand continues to fuel these trends.
"Since mining capacity cannot be expanded quickly, the imbalance should continue to boost silver's price for some time," the article purported. "It is time for silverites to come in from the cold."
Emkay Wealth Management Ltd. indicated that a handful of factors will continue to support the silver price, The Economic Times reported on March 6. Some are falling U.S. interest rates, ongoing geopolitical conflicts and the Trump Administration's trade policies.
Silver demand will continue to come from industrial applications, green technology, and retail investment, according to The Silver Institute.
"This year, industrial scrap will be the key growth driver, particularly changeouts in ethylene oxide catalysts," the institute added. "Jewelry and silverware recycling will also rise."
GoldSilver noted that by 2050, solar energy could account for 85−98% of the current global silver reserve. The automotive industry will play a big role in rising silver demand, too, in light of increasing vehicle sophistication, rising electrification of powertrains and ongoing investments in electric vehicle infrastructure like charging stations. GoldSilver Lead Analyst Alan Hibbard indicated he expects silver to hit US$40 per ounce (US$40/oz) this year and reach an all-time high of US$52.50 next year.
Silver Expert Peter Krauth, expects industrial demand for silver to set a new record this year of more than 700 Moz ounces, he wrote in Silver Advisor last month. New supply faces ongoing challenges that include falling grades and drawn out permitting and construction timelines. Low prices and economic concerns could lead to decreased production of silver as a byproduct. He predicted the overall deficit in the global silver supply will grow to 170−180 Moz this year.
Michael Oliver of Momentum Structural Analysis anticipates a surge in the silver price and a potential concurrent downturn in the stock market, he said in a recent interview, reported The Jerusalem Post on March 4. He opined that a material drop in the NASDAQ 100 would indicate the broader market was about to collapse, and this would set off a flight to silver and gold, both safe-haven assets.
"If we enter an acceleration phase in the net price of the monetary metals, we think we're also going to see silver outpace gold," added Oliver.
Further, he predicted that silver (and gold) producers will significantly outperform gold in the coming months. Because silver miners are undervalued now, he said, they present a compelling investment opportunity.
Various financial institutions' silver price forecast for 2025 ranges from US$29.50–40/oz, reported InvestingHaven last month. The firm itself predicted the silver price will touch US$49/oz this year, consolidate around US$50 next year, approach US$77 in 2027 and peak at US$82 in 2030.
"All leading indicators, chart patterns, and market dynamics are in favor of silver," InvestingHaven wrote. "We conclude that the price of silver will continue to mildly rise, combined with one or a few wildly bullish periods."
The Catalysts: Project Milestones
AbraSilver has multiple upcoming catalysts, all pertaining to Diablillos, Miniotis said at the Red Cloud event. This year, results will flow in from the phase five, 20,000m drill program that just commenced. In Q4/25, AbraSilver expects to receive environmental impact assessment permits.
Next year is notable for the completion of the definitive feasibility study, slated for H1, and an investment decision in H2. Having raised CA$58.5M earlier this year and with CA$70M in cash on the balance sheet, AbraSilver has sufficient funds for the work ahead, up to a construction decision, the company said.
Beyond this, analysts' estimated timeline for Diablillos is construction kick-off in Q3/26, mine start-up in late 2028, and first production in Q3/29.
"We consider AbraSilver to have above average potential to successfully transition from explorer to producer over the next few years," Curran wrote.
Stock Rated Buy, Outperform
Numerous analysts have favorable recommendations on AbraSilver and target prices, indicating a compelling upside.
Curran, in his most recent report, maintained his Buy rating and target price, implying about a 77% return from ABRA's share price at the time of this article.
Hallgarten & Co. Analyst Christopher Ecclestone noted in a March 1 portfolio update his Long rating and target price, the latter reflecting a 24% potential upside. In a previous research report, he described Diablillos "as one of the most important silver projects coming down the pike at a global level" due to several converging events and purported it likely will be acquired.
Streetwise Ownership Overview*
AbraSilver Resource Corp. (ABRA:TSX.V; ABBRF:OTCQX)
On March 11, Raymond James' Stanley reiterated his Outperform on ABRA and his target price indicating 48% uplift. These are identical to those of Scotiabank Analyst Eric Winmill, who also covers AbraSilver, the company noted.
Ownership and Share Structure
According to the AbraSilver, the top three shareholders are: Central Puerto with 9.9%, Eric Sprott with 8% and Kinross Gold with 4%.
Additionally, the top three insiders are CEO Miniotis with 1%, Director Hernan Zaballa with 0.83%, and Chairman and Director Robert Bruggeman with 0.86%. The top three institutional owners are Mirae Asset Global Investments at 1.90%, ETF Managers Group with 1.43%, and Tidal Investments at 1.22%.
The company has 152 million outstanding shares. Its market cap is CA$492 million. Its 52-week high and low are CA$3.58 and CA$1.30 per share, respectively.
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- 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.
- Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
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