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TICKERS: ABRA; ABBRF

New Drill Program Underway With Major Discovery Potential

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AbraSilver Resource Corp. (ABRA:TSX; ABBRF:OTCQX) has begun an additional 20,000 metre drill program at its Diablillos project in Argentina to further expand and upgrade its resource. Strong early results hint at a major discovery.

AbraSilver Resource Corp. (ABRA:TSX; ABBRF:OTCQX) has commenced a 20,000-meter diamond drilling campaign at its 100%-owned Diablillos silver-gold project in Salta Province, Argentina. The fully funded Phase V program will build on the results of the company's Phase IV drilling, which identified multiple zones of high-grade silver and gold mineralization within the broader Diablillos land package.

The campaign, expected to run through December 2025, will employ three drill rigs targeting approximately 90 holes. The program will include both infill and step-out drilling to expand and upgrade the existing Mineral Resource estimate. According to the company, an updated Mineral Resource estimate is anticipated in mid-2025. The campaign will also include condemnation drilling as part of the Definitive Feasibility Study currently underway.

Drilling will focus on several high-priority targets within the Oculto-JAC epithermal district, including the JAC South extension, Sombra zone, Oculto East, and Oculto Northeast, as well as the Cerro Viejo target within the northeast epithermal-porphyry complex, located approximately 4 km from the main Oculto deposit. At Cerro Viejo, drill hole DDH 24-056 returned 36.0 meters grading 1.91 g/t gold, including 5.0 meters at 7.22 g/t gold from a depth of 87 meters.

Dave O'Connor, Chief Geologist, stated in a company news release,  "The Phase V program is designed to systematically expand our known mineralized zones and assess new, high-potential exploration targets." He added that Cerro Viejo "has the potential to become a major discovery within the Diablillos district."

The Diablillos property hosts a Proven and Probable Mineral Reserve totaling 42.3 million tonnes at an average grade of 91 g/t silver and 0.81 g/t gold, containing 123.5 million ounces of silver and 1.1 million ounces of gold. The most recent estimate was completed on March 7, 2024, and prepared in accordance with Canadian Institute of Mining (CIM) standards.

According to the December 2024 pre-feasibility study (PFS), the Diablillos project has a Net Present Value (NPV) of US$747 million at a 5% discount rate, with a 28% internal rate of return (IRR) and a projected payback period of 2.0 years, based on commodity prices of US$25.50/oz silver and US$2,050/oz gold. The mine plan outlines an average annual production of 13.4 million silver-equivalent ounces over the first five years at an all-in-sustaining cost (AISC) of US$12.67/oz AgEq.

Infrastructure at the site is well developed, with road access, nearby power sources, and established water rights in place. The project benefits from Argentina's new RIGI (Incentive Regime for Large Investments), which includes corporate tax reductions, elimination of export duties, accelerated depreciation, and long-term fiscal stability.

Silver Reclaims Spotlight as Fundamentals and Market Forces Align

The silver sector gained renewed momentum in early 2025 as investor sentiment shifted sharply following a period of tax loss selling and undervaluation in late 2024. John Newell, writing on March 17, outlined both historical precedent and current conditions supporting silver's potential upside. He observed that past bull cycles had resulted in parabolic price increases, suggesting that silver, having hit US$35, could be "building momentum toward higher levels." Newell emphasized silver's dual role as both a store of value and industrial metal and cited several drivers of demand, including electronics, solar technology, and medical applications. He added, "Silver provides diversification benefits as it often moves independently from traditional asset classes," especially during periods of volatility and inflation.

On March 14, Raymond James analyst Craig Stanley reiterated his Outperform rating and CA$5 target price on the stock, which at the time implied a 60% return from the then-current trading price of approximately CA$3.13.

According to Shad Marquitz in a March 24 report for Excelsior Prosperity, many quality silver stocks had dropped around 40% from October highs while silver itself only fell 14%–15%, creating what he described as "a value arbitrage in the silver stocks."

He argued that this mispricing allowed "savvy investors that are paying attention" to capitalize on a rebound, which played out in the sector's Q1 rally.

Marquitz noted that while sentiment had temporarily soured, it quickly reversed as silver prices surged from US$32 to US$35 in late 2024, with renewed calls for US$50 silver.

By the time many investors had turned pessimistic in December, he said, "the end of tax loss selling season…was, once again, a buy the dip moment for silver equity investors."

Market tailwinds were also shaped by geopolitical and economic trends. On March 24, MarketWatch quoted Peter Spina of SilverSeek.com, who stated that silver "may soon steal the spotlight from gold's run to record highs." Spina highlighted an influx of physical silver into the U.S. in anticipation of potential tariffs, noting, "There is a real rush to get access to untaxed physical silver into the U.S. That places real pressures on existing supplies." He also pointed to the risk of short positions panicking, which could trigger "a true silver-squeeze scenario."

Additional technical and macroeconomic analysis underscored silver's favorable setup. On March 24, FX Empire reported that silver held above key support levels as the market awaited U.S. inflation data and central bank commentary. The article noted that silver was "trading above its 50-day moving average of US$32.01," which acted as a trend anchor. The author wrote that silver's broader uptrend remained intact, and "buyers [were] defending key levels despite broader uncertainty across financial markets."

Third-Party Analysis Highlights Value and Growth at Advanced Silver Project

On March 14, Raymond James analyst Craig Stanley reiterated his Outperform rating and CA$5 target price on the stock, which at the time implied a 60% return from the then-current trading price of approximately CA$3.13. He highlighted that new stepout drilling results from the company's Phase IV campaign would be included in the mid-2025 Mineral Resource estimate and pointed to strong assays across multiple zones, including 30 meters of 237 g/t silver and 22 meters of 168 g/t silver. Stanley stated, "Only five holes have been drilled to date at Sombra, where mineralization is covered by only approximately 40m of unconsolidated colluvium," suggesting the zone remains open and underexplored.

Three days later, on March 17, Stanley expanded on this view, calling Diablillos "one of the best-undeveloped silver projects not held by a producer." He noted that the project's updated prefeasibility study (PFS) outlined robust economics, including a US$747 million after-tax Net Present Value (5% discount rate), a 28% internal rate of return, and a projected two-year payback, based on base case prices of US$25.50/oz silver and US$2,050/oz gold. He also emphasized the positive impact of Argentina's new RIGI program, stating that AbraSilver could realize US$430 million in savings through reduced taxes, royalties, and export duties.

Stanley further noted that additional upside could come from variables not yet incorporated into Raymond James' model, such as updated drill data from the current 20,000-meter program, alternative power options, and a potential heap-leach circuit for low-grade material. He also acknowledged the strength of AbraSilver's leadership team and technical experts, noting CEO John Miniotis's prior experience and Chief Geologist David O'Connor's 40-year career, which included founding several public companies in South America.

Advancing Toward Development With Strong Financial Backing and Strategic Upside

AbraSilver is positioned to advance Diablillos toward a development decision by late 2026, supported by an estimated US$50 million in cash (converted from CA$70 million using an exchange rate of 1.40:1) and the backing of strategic shareholders holding approximately 25% of the company. The company's recent PFS outlines strong economics, and Diablillos compares favorably with producing primary silver mines globally in terms of both scale and costs.

The current Phase V drill program is a critical step in AbraSilver's strategy to expand the project's resource base and define new zones of mineralization. According to the company's February 2025 investor presentation, Diablillos' measured and indicated (M&I) resources have doubled since 2020, reaching 258 million silver-equivalent ounces at a discovery cost of just US$0.11/oz AgEq.

streetwise book logoStreetwise Ownership Overview*

AbraSilver Resource Corp. (ABRA:TSX; ABBRF:OTCQX)

*Share Structure as of 3/24/2025
Source: Refinitiv & AbraSilver

AbraSilver also anticipates securing environmental impact assessment (EIA) permits by year-end 2025, a milestone that will allow the project to proceed toward feasibility-stage development. The updated Mineral Resource estimate due mid-2025, combined with the results of the current drill program, may further improve the economics outlined in the December 2024 PFS.

In addition, AbraSilver's eligibility under Argentina's RIGI program could reduce lifetime tax and export duty liabilities by approximately US$430 million, provided the company commits 40% of the project's investment within two years of approval. This fiscal framework offers long-term stability, lower effective tax rates, and access to foreign exchange markets, improving overall investment conditions for large-scale mining projects like Diablillos.

Ownership and Share Structure

AbraSilver's major shareholders, reported Stanley, are insiders (management and board members) with 3%, Central Puerto SA with 9.9% and Kinross Gold Corp. (K:TSX; KGC:NYSE) with 4%. (In AbraSilver's recent CA$58.5M financing, Central Puerto invested CA$25M and Kinross invested CA$3M.)

AbraSilver has 152.7 million shares outstanding. Its market cap is CA$517M. Its 52-week range is CA$1.33–3.58 per share.


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Important Disclosures:

  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. 
  2. James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
  3.  This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

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