Mining Companies Discover Massive Breakthroughs in Argentina

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Argentina is rapidly emerging as a prime destination for resource investments, distinguishing itself among the resource-rich nations of South America.

Regardless of opinions about the unconventional President Javier Milei, who assumed office following a decisive victory in December 2023, his economic policies have undeniably fostered a more vibrant and investor-friendly climate, reported Bevis Yeo for Stockhead on July 25.

This shift includes initiatives like the Large Investment Incentive Regime (RIGI), which provides tax, customs, and exchange rate incentives for investments exceeding US$200 million. A notable project benefiting from this policy is Rio Tinto’s US$2.5 billion Rincon venture in the Rincón Salt Flat, Salta, poised to establish a facility producing up to 60,000 tpa of battery-grade lithium carbonate. This development has caught the attention of other mining companies.

"Argentina is really positioning itself as a top-tier mining destination, a status that was not recognized a decade ago," Aaron Revelle, managing director of Pursuit Minerals (ASX:PUR), told Stockhead. "Under Milei's leadership, the country has become more open, initially with reforms in the oil and gas sectors and now extending to mining."

Revelle also highlighted the 30-year Fiscal Stability Guarantee provided under the Mining Investment Act, which spans from exploration to project maturity, significantly bolstering long-term investment security.

"With strong backing from the IMF, Argentina is now seen as a highly favorable mining location," Revelle added. "Despite his eccentricities, Milei is quite popular, particularly in Latin America. He's demonstrating that Argentina is moving away from traditional Peronist governance. People are seeking employment, lower taxes, and reduced living costs, and Milei"s policies seem to be resonating well."

While Milei has played a significant role, Argentina's rise as a mining powerhouse predates his administration, Yeo reported. Since 2018, it has been one of the top three performers in the region, consistently outshining both Chile and Bolivia, the other members of the renowned Lithium Triangle, due in part to its appealing tax regulations. This favorable environment has led to a 77.1% increase in exploration expenditures from 2021 to 2023, reaching US$427 million.

"Argentina possesses the world's third-largest lithium reserves, situated within the celebrated lithium triangle that includes Chile and Bolivia," Revelle noted. "The country is also seeing significant developments in copper, with major projects like Taca Taca in Salta and the Filo del Sol project in San Juan. Additionally, there are significant gold deposits, such as the Cerro Negro, a top-tier Newmont deposit in Santa Cruz."

Country Aims to Invigorate Mining Sector

Under Milei's libertarian leadership, Argentina aims to invigorate its mining sector to attract crucial foreign investment and sustain economic stability amid severe inflation, reported Lucila Sigal for Reuters on May 20.

As the world's fourth-largest lithium supplier, Argentina, along with Chile and Bolivia, forms the vital "Lithium Triangle," which harbors the largest global reserves of the metal essential for electronics, electric vehicles, and other critical technologies.

Argentina also exports significant quantities of gold and silver and is developing major copper projects, though none are currently operational. Other companies that have submitted applications under the RIGI program include China's Ganfeng, Canada's McEwen Copper, and South Korea's Posco. Of these submissions, five pertain to lithium projects, while the others focus on gold and copper, respectively. However, only Rio Tinto's project has received approval, despite regulations stipulating a decision within a maximum of 45 working days.

Industry insiders suggest that the government did not intend the delays, attributing them to intricate approval processes involving multiple state departments and premature applications by some companies that failed to meet the necessary criteria. Reuters reached out to several state agencies for comment, but there was no immediate response.

The RIGI framework is designed to offer tax and customs advantages, access to international arbitration in disputes, and long-term stability plans. Last year, Argentina's mineral exports totaled US$4.8 billion, predominantly from gold, followed by silver and lithium shipments.

Mining Exports Rising

Argentina's mining exports are expected to exceed US$5 billion in 2025, a notable rise from US$4.6 billion in 2024, as reported by the Argentine Chamber of Mining Companies (CAEM), Matthew Cohen wrote for IntelliNews on July 22.

Despite challenges in areas such as lithium, the sector is showing robust growth, bolstered by strong outputs in gold, copper, silver, and other minerals. "This year (mining exports) could be above US$5 billion or US$5.2 (billion)," Roberto Cacciola, president of CAEM, told Reuters, according to Cohen's report.

The anticipated growth is largely due to surging gold prices, expected to compensate for the falling prices of lithium, even as the production of lithium continues to grow.

Data from the National Mining Secretariat reveals that gold led the 2024 export figures with US$3.14 billion, accounting for 68% of the total, followed by silver at US$641 million (14%) and lithium at US$631 million (13.6%). While gold and silver outputs are projected to stabilize or slightly decrease due to aging mining operations, lithium production is set to rise.

Lithium exports are forecasted to hit nearly US$950 million in 2025, marking a 44% increase year-over-year, driven by increased production and the initiation of new projects.

This optimistic forecast is a boon for Milei's government, which has made mining sector expansion a cornerstone of the country's broader economic revival plan. The administration has been actively enticing investments aimed at attracting major global mining firms. Looking to invest? Here are some possibilities.

Argenta Silver Corp.

Argenta Silver Corp. (AGAG:TSX.V; AGAGF:OTCQB) recently unveiled the initial assay results from its 2025 winter diamond drilling campaign at the wholly-owned El Quevar Project in Salta Province, Argentina.

The company highlighted several extensive, high-grade silver findings from three drill holes, alongside robust outcomes from re-assaying historical drill cores and conducting surface rock sampling in previously unexplored sections of the property.

Hole QVD-410 showcased 533 grams per tonne (g/t) silver across 20.2 meters, including a segment with 1,320 g/t silver over 4 meters and a peak sample of 3,549 g/t silver over 1 meter. Hole QVD-409 reported 309 g/t silver over 26 meters, with a section containing 713 g/t over 8.25 meters. Additionally, the step-out hole QVD-408 revealed 112 g/t silver over 19.2 meters, extending the known mineralization by 50 meters to the southeast.

Joaquin Marias, president and chief executive officer, said, "With assays returning 533 g/t silver over 20.2 meters in a drill intercept, a surface rock-chip sample topping 20,000 g/t silver and legacy core that has been sampled for the first time returning positive high-grade silver results, we've only just begun to unlock the true potential of this high-grade silver system."

The El Quevar Project currently holds an indicated mineral resource of 45.3 million ounces silver (Moz Ag) from 2.93 million tonnes grading 482 g/t Ag, and an inferred resource of 4.1 Moz from 0.31 million tonnes grading 417 g/t Ag.

The property spans 57,000 hectares and is largely underexplored, with less than 3% subjected to modern exploration techniques. The infrastructure includes a fully operational camp for 100 workers, over 60 kilometers of internal roads, and proximity to essential amenities like a national road, a railroad, a gas pipeline, and a high-voltage power line.

On July 21, Peter Krauth of Silver Advisor provided a detailed analysis of Argenta Silver. He remarked that the company "just dropped a monster set of drill results," highlighting hole QVD-410, which intersected 20.2 meters grading 533 g/t Ag, including "a scorching hot 1-meter hit grading 3,549 g/t silver."

He noted that "anything over 400 g/t silver is typically considered bonanza-grade nowadays," placing Argenta's findings among the highest-grade intercepts in the industry.

Krauth also emphasized the importance of step-out and confirmation drilling, noting that hole QVD-409 returned "a solid 309 g/t over 26 meters," including 713 g/t over 8.25 meters and 1,169 g/t over a 2.50-meter subinterval. He described QVD-408 as "a step-out hole drilled a mere 50 meters southeast of the known resource," which still yielded 112 g/t silver over 19.20 meters. In addition to the drill data, Krauth referenced surface grab samples, including one that exceeded the upper detection limit of 20,000 g/t silver, with others grading as high as 16,145 g/t and 6,004 g/t. He also underscored the resource expansion potential linked to 66,000 meters of historical core that remain unassayed, where preliminary re-sampling returned up to 882 g/t silver over 1.00 meter.

He concluded that the project's 45.3 Moz Ag resource "may just be the tip of the iceberg for El Quevar." He characterized the early-stage drill results as "a textbook example of early-stage exploration success" and stated, "I remain full weight in AGAG," citing the company's

According to Refinitiv, management and insiders collectively hold 17% of Argenta Silver's shares and institutions hold 1%. The top shareholders are Frank Giustra (12.88%), Thomas Humphreys (2.33%), and Joaquin Marias (0.26%). The remaining 82% of shares are held by retail investors. No institutional holdings have been reported.

Argenta Silver has 198.37 million shares outstanding and 167.2 million in free float. As of April 2025, the company had a market capitalization of approximately CA$92.48 million. Its shares have traded between CA$0.18 and CA$0.51 over the past year.

AbraSilver Resource Corp.

AbraSilver Resource Corp. (ABRA:TSX; ABBRF:OTCQX) recently announced a groundbreaking gold discovery at its Diablillos project in Salta Province, Argentina. This significant find was made in step-out hole DDH 25-024, which is part of the company's ongoing Phase V exploration program aimed at extending the Oculto deposit. The company highlighted an impressive section of 31 meters yielding 10 g/t gold (Au) and 16 g/t Ag, which included a high-grade stretch of 6 meters at 41.9 g/t Au and 22 g/t Ag. Additionally, another segment within the same drill hole revealed 13 meters at 307 g/t Ag, including 8 meters at 446 g/t Ag. These assays were presented uncut and undiluted, with true widths yet to be determined.

Since acquiring the Diablillos project in 2016, AbraSilver has conducted approximately 150,000 meters of drilling across its 15 contiguous concessions. The site is known for its epithermal silver-gold mineralization, primarily located in near-surface deposits like Oculto, JAC, Sombra, and Laderas.

The latest drilling results, particularly east of the existing Oculto open-pit boundary, suggest that high-grade mineralization extends further along strike and at depth.

"This extremely impressive hole confirms that the deeper gold zone extends beyond the known mineralized boundary at Oculto," said Chief Geologist Dave O'Connor in a press release. "Our team will immediately commence a systematic drilling program in the area to follow up on this robust initial result."

The Diablillos project recently reported an updated Mineral Resource Estimate, with Measured and Indicated Resources totaling 104 million tonnes grading 59 g/t Ag and 0.51 g/t Au, totaling 199 Moz Ag and 1.7 Moz Au.

A pre-feasibility study from December 2024, based on silver prices of US$25.50/oz and gold prices of US$2,050/oz, projected a Net Present Value at a 5% discount (NPV5%) of US$747 million with an after-tax internal rate of return (IRR) of 28%.

The operation is anticipated to have a 14-year lifespan, with an average annual production of 13.4 million silver-equivalent ounces and an all-in sustaining cost (AISC) of US$12.67/oz AgEq.

On May 2, Don DeMarco of National Bank of Canada revisited AbraSilver's Diablillos project, reaffirming his Outperform rating and a target price of CA$5.75. At that time, shares were trading around CA$3.06, suggesting an 88% potential return.

DeMarco praised Argentina's improving investment climate under Milei, particularly noting the benefits of RIGI. "Our Outperform thesis remains unchanged," he stated, citing the substantial Measured and Indicated resource base, promising high-grade targets like JAC, and increased mergers and acquisitions appeal.

Following the final assay results from Phase IV drilling on May 5, DeMarco described the findings as "splashy infill intercepts over wide intervals with implications for resource derisking," highlighting significant intercepts such as 65 meters grading 161.6 g/t Ag and 63 meters grading 138.6 g/t Ag. Despite some variability in average grades, he affirmed the ongoing project derisking and maintained the CA$5.75 target.

Also on May 5, Eric Winmill of Scotiabank responded to the Phase IV drill results, viewing them positively for AbraSilver's stock, given the potential for resource expansion near planned mining areas and infrastructure. Winmill reiterated an Outperform rating with a CA$5.50 target price, reflecting an 85% return from the then-current trading price of CA$2.98.

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

Top shareholders include 2176423 Ontario Ltd. with 8.65%, Mirae Asset Global Investments LLC with 2.65%, Tidal Investments LLC with 1%, SSI Asset Management AG with 0.98%, and Robert John Bruggeman with 0.81%, according to Refinitiv.

AbraSilver has 152.55 million shares outstanding. Its market cap is CA$816.75 million. Its 52-week range is CA$2.04–6.15 per share.

Orestone Mining Corp.

Orestone Mining Corp. (ORS:TSX.V) announced in March that it has successfully completed a sampling program at its Francisca property, which is situated in the Salta Province of northwestern Argentina, approximately 80 kilometers northwest of Salta city. Orestone is exploring the potential for an oxide gold deposit that could be developed using open pit mining methods and processed through heap leach gold recovery techniques.

In total, 38 check samples were collected; 20 from the South gold zone and 18 from the North gold zone and additional areas. The South gold zone features a significantly altered quartz stockwork that spans a strike length of 500 meters and varies in width from 50 to 100 meters. From the South zone, 11 of the 20 samples registered gold concentrations exceeding 6 g/t, while eight samples showed gold assays ranging from 0.36 to 4.5 g/t.

In the North gold zone, which is characterized by a quartz manganese stockwork, 13 samples were collected with gold values ranging from 0.01 to 21.7 g/t, averaging 0.38 g/t gold when excluding two high-grade samples that assayed at 9.4 and 21.7 g/t gold.

Recent sampling reinforced the high-grade nature of the South gold zone, with 20 samples showing values ranging from 0.03 to 33 g/t gold and 2.0 to 160 g/t silver, averaging 5.78 g/t gold and 29.2 g/t silver (gold grades capped at 10 g/t and silver grades capped at 60 g/t).

Chief Executive Officer David Hottman said, "The Francisca property encompasses a substantial gold system identified during a period when gold prices were historically low, and it has not undergone significant exploration for nearly two decades. The results from our recent sampling align well with historical data. Our objective is to delineate an oxide gold deposit suitable for open-pit mining and conducive to cost-effective heap leach gold recovery methods. We will provide more details on our exploration plans shortly.”

Orestone, headquartered in Vancouver, British Columbia, is a mineral exploration company with a portfolio that includes exposure to gold, silver, and copper in Canada and Argentina. The company's near-term focus at the Francisca gold property is to define an oxide gold deposit that can be mined by open-pit methods and treated using low-cost heap leach gold recovery.

Orestone’s flagship asset remains the 100%-owned Captain gold-copper project in North Central BC, which hosts a large gold-dominant porphyry system; it is permitted and drill-ready.

In early July, Ahead of the Herd editor and publisher Rick Mills and 321gold founder Bob Moriarty discussed the performance of precious metals.

ORS was at CA$0.055 on June 18, by the time the article was published, the stock had jumped significantly.

"Now it's 10.5 cents," Moriarty told Mills. "I maintain that profitable investing means buying undervalued assets and selling when they become expensive. We've both participated in that placement at approximately 2.5 cents. We've discussed this opportunity for months, primarily because it was undervalued."

Moriarty continued, "After our interview with Quinton Hennigh last week, interest increased substantially, driving the stock from CA$0.08 to CA$0.11 within three days. These sub-CA$0.10 stocks can deliver exceptional percentage returns."

According to Refinitiv, about 9% of the company is owned by insiders and management and about 11% is owned by institutions. The rest is retail.

Refinitiv reported the company's top investors as Crescat Capital LLC with 11.05%, the CEO Hottman with 3.41%, Gary Dale Nordin with 1.87%, James E. Anderson with 1.71%, and William Douglas Bruce Winfield with 1.59%.

Its market cap is CA$6.73 million with 78.99 million shares outstanding. It trades in a 52-week range of CA$0.02 and CA$0.11.

McEwen Mining Inc.

McEwen Mining Inc. (MUX:TSX; MUX:NYSE ), which also has two major projects in Argentina, on July 28 announced that it had signed a binding letter of intent (LOI) to acquire all of the issued and outstanding shares of Canadian Gold Corp.

Upon completion, Canadian Gold would operate as a wholly owned subsidiary of McEwen.

The primary asset of Canadian Gold is its 100% ownership of the Tartan Mine in Manitoba, Canada. This high-grade, formerly producing mine boasts existing infrastructure and significant exploration potential. Additionally, Canadian Gold owns 100% of the greenfield exploration properties at the Hammond Reef and Malartic South projects, located near major gold mines and development projects in Ontario and Quebec.

"I am enthusiastic about the Tartan Mine for several reasons," Chairman and Chief Owner of McEwen Inc. said. "First, it is a high-grade gold deposit with strong exploration potential in Canada. Second, the existing infrastructure, including the mine ramp, roads, and power, provides an opportunity to restart operations within a relatively short timeframe. Third, Manitoba stands out as one of the world's premier mining jurisdictions, offering a skilled workforce, low-cost renewable energy, and attractive mining tax credits. Additionally, the Tartan Mine shares many similarities with our Fox Complex (in Ontario), enabling us to leverage our internal expertise and resources to maximize its potential."

Situated in the Santa Cruz province of Argentina, the company's San José silver-gold mine is located 350 kilometers southwest of Comodoro Rivadavia, which serves as the main gateway to the mine and provides regular air connections to Buenos Aires. Positioned in the northwest section of the Deseado Massif region, the San José mine is just 20 kilometers north of Newmont's Cerro Negro mine.

The mining property of San José spans 260,000 ha and includes 141 mining concessions, which surround the Cerro Negro area. Operational since 2007, San José is a high-grade underground mine producing gold and silver, jointly managed by McEwen, holding a 49% stake, and Hochschild Mining, which owns a 51% interest.

Its other Argentina property, Los Azules, is a well-developed porphyry copper exploration initiative situated in the mining-friendly San Juan province. The project is roughly 80 kilometers west-northwest of the town of Calingasta and 6 kilometers east of the Chilean border, positioned at an elevation of 3,500 meters in the Andes Mountains.

Los Azules represents a substantial high-grade open-pit copper venture with considerable potential for expansion, the company said. As per the updated Preliminary Economic Assessment (PEA) conducted in 2023, Los Azules is expected to yield an average of 322 million pounds of copper cathode each year throughout a 27-year Life of Mine (LOM).

In a piece on July 7, John Newell of Newell & Associates said McEwen "may be one of the most overlooked dual commodity (plays) in the market today."

"With gold at all-time highs and copper entering a structural bull market, McEwen offers a compelling combination of technical

breakout potential and strategic asset value through its stake in the world-class Los Azules copper project in Argentina," Newell wrote. "Recent technical signals confirm that upside targets are activating. Fundamental developments, including permitting success, ESG leadership, and investment from major players, point to an imminent revaluation. The market has yet to catch up."

Newell pointed to "near-identical" fractal patterns forming repeatedly in the company's chart.

"These are not just lines on a chart," he wrote. They reflect real market behavior repeating under similar conditions, price consolidation, volume surges, and strong macro tailwinds."

According to the company, McEwen owns 15% of the company, institutions own 31%, and the rest is retail.

Refinitiv reported that some of those top institutional companies include Van Eck Associates Corp. with 3.53%, Mirae Asset Global Investments LLC with 2.19%, State Street Global Advisors with 2.18%, and Dimensional Fund Advisors LP with 1.72%.

The company's market cap is US$550.13 million with 53.99 million shares outstanding. It trades in a 52-week range of US$6.38 and US$11.80.