Full Ownership Secured for High-Grade Silver-Gold Project in Argentina

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AbraSilver Resource Corp. (ABRA:TSX; ABBRF:OTCQX) has completed a key financial milestone by making the final property payment of US$6.85 million to EMX Royalty Corp., securing full ownership of the Diablillos silver-gold project in Salta Province, Argentina. The payment, originally due by July 31, 2025, was made ahead of schedule and reflects a reduced obligation from the originally anticipated US$7.0 million. This transaction fulfills all obligations under the amended share purchase agreement dated March 21, 2017.

With this payment, AbraSilver now holds 100 percent of the Diablillos project, a significant development in its ongoing efforts to advance toward production. John Miniotis, President and CEO of AbraSilver, stated in a company news release, "The completion of this final payment marks a key milestone for AbraSilver. By making this payment early, we have further strengthened our financial position while maintaining our focus on rapidly advancing the Diablillos project toward production."

EMX's royalty interest in Diablillos originated from its 2021 acquisition of a portfolio of royalty interests and payments from SSR Mining Inc. and its subsidiaries. EMX continues to hold a 1.0 percent net smelter return (NSR) royalty on the project. A net smelter return royalty refers to a percentage of the revenue generated from the sale of minerals extracted from a project after deducting certain costs associated with processing and transportation.

The Diablillos project contains proven and probable reserves of 42.3 million tonnes grading 91 grams per tonne silver and 0.81 grams per tonne gold, for a total of 209 million silver-equivalent ounces. A December 2024 pre-feasibility study (PFS), based on prices of US$25.50 per ounce silver and US$2,050 per ounce gold, outlined a Net Present Value at a 5 percent discount rate (NPV5%) of US$747 million and an internal rate of return (IRR) of 28 percent, with a two-year payback period. The project's all-in-sustaining cost (AISC), which includes operating costs, royalties, sustaining capital, closure costs, and general and administrative expenses, was estimated at US$12.67 per silver-equivalent ounce.

EMX's retention of an NSR royalty ensures continued interest in the project's future performance as AbraSilver advances Diablillos through further development and exploration.

Silver Sector Dynamics: Undervalued Metal Faces Persistent Deficits Amid Industrial Demand Surge

The silver sector continued to demonstrate signs of tight supply and rising demand through early April, driven by both macroeconomic conditions and fundamental shifts in industrial consumption.

According to a March 30 article by Richard Mills on Ahead of the Herd, silver was expected to post a fifth consecutive annual supply deficit in 2025. The anticipated shortfall, estimated at 149 million ounces, followed four years of structural deficits and highlighted the ongoing mismatch between supply and demand.

Krauth also addressed the company's market performance, observing that AbraSilver shares had declined by over 30%, more than average but consistent with similar-stage peers. He concluded that this represented an attractive entry point, suggesting the stock had been "oversold" relative to its recent strong performance and ongoing progress.

In that same report, Mills emphasized silver's dual role as both an investment and industrial metal, with around 60 percent of total silver output used in sectors such as solar energy, electronics, and automotive manufacturing. Citing a study by Oxford Economics, he noted that "demand for industrial applications, jewelry production, and silverware fabrication is forecast to increase by 42% between 2023 and 2033."

On April 1, Christopher Lewis at FX Empire described the market as "very noisy" and "extraordinarily volatile under the best of times," though he indicated that silver appeared to have established support at US$33.33 and was attempting to regain bullish momentum.

By April 5, Ahead of the Herd reported that the gold-silver ratio had risen to 102, far above the historical average of 60. Mills reiterated that "silver is significantly undervalued relative to gold at current levels" and pointed to prior periods when silver outperformed following such imbalances. He added that in 2020, "silver's gain was double that of gold," and recent economic and geopolitical conditions were beginning to mirror those seen during that time.

Silver's recent market behavior echoed these historical patterns. Shad Marquitz of Excelsior Prosperity wrote on April 14 that silver futures reached a multi-year high of US$35.50 on March 27 but failed to hold that level due to market volatility spurred by tariff announcements. "Silver's highest daily close last year was on October 21 at US$35.04," he explained, adding that recent trading saw "silver futures close at $31.91 on the May contract," indicating renewed upward momentum.

Despite the price action, investor enthusiasm for silver equities remained tepid. Marquitz observed that "the SILJ made another lower high only making it to $12.98" during silver's March rally - despite prices reaching the highest level in over a decade - highlighting the lack of speculative fervor in the sector.

Positive Outlook on AbraSilver's Expansion and Drilling Success

On April 9, Peter Krauth of The Gold Advisor provided a favorable assessment of AbraSilver Resource Corp. following the company's latest Phase IV drill results from the Diablillos project in Salta, Argentina. Krauth noted that "the results were superb, with numerous high-grade silver intercepts," highlighting the significance of assays from step-out holes at both the JAC Extension and Oculto Northeast zones. He emphasized that many of these intercepts were located outside the current conceptual open pit, suggesting potential for a larger resource in the upcoming mid-2025 estimate.

According to Krauth, standout results included Hole DDH 24-084, which intersected 63.5 meters grading 190 grams per tonne (g/t) silver, including 9.0 meters at 341 g/t silver. Additional intercepts, such as 70.0 meters at 147 g/t silver and 47.0 meters at 169 g/t silver, were also cited as contributing to expectations for a positive impact on the resource update that will underpin the company's Definitive Feasibility Study.

Krauth stated that these results demonstrate that "silver mineralization extends farther south and southwest of the current pit outline" and described the intercepts as both wide and shallow, further enhancing their economic relevance. He also highlighted the significance of hole DDH 24-074, which confirmed gold-dominant mineralization outside the existing Oculto resource boundary, indicating further upside potential.

Discussing ongoing exploration, Krauth reported that AbraSilver had commenced its 20,000-meter Phase V program, targeting both the Oculto-JAC epithermal district and the Cerro Viejo gold prospect. He quoted the company's Chief Geologist, Dave O'Connor, who remarked, "The continuity and consistency of the near-surface silver mineralization we are seeing south of the JAC open pit is quite remarkable." O'Connor added that the strong results across multiple zones and the number of remaining untested targets would make Phase V a "key role in unlocking further upside across the broader Diablillos system."

Krauth also addressed the company's market performance, observing that AbraSilver shares had declined by over 30%, more than average but consistent with similar-stage peers. He concluded that this represented an attractive entry point, suggesting the stock had been "oversold" relative to its recent strong performance and ongoing progress.

Momentum Ahead: What's Driving AbraSilver's Next Phase

With the Diablillos project now fully secured, AbraSilver is positioned to move decisively into its next development phase. The company is currently executing a 20,000-meter Phase V drill program aimed at expanding high-grade mineralization across several targets, including the Oculto-JAC epithermal district and the largely unexplored Cerro Viejo gold zone. Initial drill results from Cerro Viejo have already intersected 36.0 meters at 1.91 grams per tonne gold, including a 5.0-meter section at 7.22 grams per tonne gold, starting just 87 meters downhole. 

The company has highlighted a number of key upcoming catalysts over the next 12 months in its April 20225 Investor Presentation. These include the expected approval of its Environmental Impact Assessment (EIA), application and potential qualification for Argentina's RIGI (Regimen de Incentivos para Grandes Inversiones) tax incentive program, and the completion of a Definitive Feasibility Study. The RIGI program could offer significant fiscal advantages for Diablillos, including a reduced corporate tax rate of 25 percent, zero export duties, accelerated depreciation, and 30 years of stability in taxation and customs policy. Total potential savings under RIGI are estimated at approximately US$430 million.

AbraSilver is currently fully funded to make a construction decision before the end of 2026, with an estimated CA$65 million in cash and no outstanding warrants. Strategic shareholders, including Central Puerto, Eric Sprott, and Kinross Gold, collectively own approximately 25 percent of the company's shares, signaling strong insider and institutional support.

In addition to Diablillos, AbraSilver maintains an option to acquire the large-scale La Coipita copper-gold project in San Juan, Argentina. Exploration at La Coipita is currently being conducted by Teck Resources under an agreement that allows Teck to earn up to an 80 percent interest by funding US$20 million in exploration over five years. Initial drill results from this program are anticipated in the second quarter of 2025.

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.