AbraSilver Resource Corp. (ABRA:TSX; ABBRF:OTCQX) moved its shares from the TSX Venture Exchange to the Toronto Stock Exchange (TSX) where it began trading today, reported Beacon Securities Analyst Michael Curran in a Feb. 27 research note.
94% Return Implied
Beacon reiterated its Buy rating and CA$6 per share target price on the silver explorer, noted Curran. Given AbraSilver's current share price is about CA$3.10, the target suggests a potential return of 94%.
Better Economics Possible
Curran discussed the definitive feasibility study (DFS) AbraSilver is working on of its Diablillos silver-gold project in Argentina, which it expects to complete in H1/26. The DFS will evaluate some ways the project economics might be improved.
One is to incorporate results of the in-progress 20,000 meter (20,000m) drill program into the resource. Another is replacing/offsetting planned on-site diesel power generation with solar-diesel and/or connecting to the national grid. A third is adding a heap-leach component to the mine plan for processing lower-grade material.
Looking ahead, Beacon estimates start-up of the Diablillos mine will happen in late 2028, noted the analyst.
"We consider AbraSilver to have above average potential to successfully transition from explorer to producer over the next few years," wrote Curran.
Productive 2025 So Far
Curran recapped AbraSilver's major developments thus far this year in addition to its move to the TSX: an updated prefeasibility study (PFS), an equity raise and a drill result report.
The new Diablillos PFS outlined "a robust project" capable of producing an average of +7,500,000 ounces of silver per year over the mine's 14-year life, reported the analyst.
The company raised CA$58.5 million (CA$58.5M) in gross proceeds, noted Curran, through two private placements, one brokered that generated CA$30M and a second nonbrokered with two existing shareholders, Kinross Gold Corp. (K:TSX; KGC:NYSE) and Central Puerto SA, that raised CA$28.5M.
Curran relayed that AbraSilver's February report of Diablillos drill results were notable for the discovery of two new mineralized zones, Oculto East, about 600m east of the main Oculto resource, and Sombra, south of Oculto and east of JAC.
Highlights of this batch of results included:
- 24.5m of 107 g/t silver (Oculto East): hole DDH-24-058
- 22m of 2.78 g/t gold (Oculto East): hole DDH-24-064
- 23m of 55 g/t silver (Sombra): hole DDH-24-062
- 36m of 1.91 g/t gold (Cerro Viejo): hole DDH-24-056
- 81m of 0.25 g/t gold (Cerro Viejo): hole DDH-24-059
Cerro Viejo is 3.5 kilometers northeast of Oculto.
Other Stock Data
At the time of this research report, noted Curran, management and insiders own about 3% of AbraSilver.
The company has CA$65M in working capital and 153 million shares outstanding. Its market cap is CA$474M. Its 52-week range is CA$1.32−3.58 per share.
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