AbraSilver Resource Corp. reported additional assay results from its ongoing Phase V exploration program at the Diablillos project in Argentina.

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AbraSilver Resource Corp. (ABRA:TSX; ABBRF:OTCQX) reported additional assay results from its ongoing Phase V exploration program at the Diablillos project in Argentina. The latest drilling at the Oculto East zone continues to demonstrate extensions of near-surface, gold-dominant mineralization beyond the current mineral resource estimate.

Key intercepts include drill hole DDH 25-060A, which returned 60 meters grading 1.05 grams per tonne (g/t) gold from 230 meters downhole, including 17 meters at 2.83 g/t gold and 4 meters at 6.68 g/t gold. Hole DDH 25-067 intersected 16 meters grading 1.74 g/t gold with 17.3 g/t silver, while DDH 25-068 returned two intervals: 21 meters at 1.51 g/t gold with 49.5 g/t silver from 188 meters and 64 meters at 0.54 g/t gold with 19.8 g/t silver from 314 meters.

John Miniotis, President and CEO, stated in the news release, “These latest results demonstrate the continuity of mineralization well beyond the current open pit constrained Mineral Resource.” Chief Geologist Dave O’Connor added, “Gold mineralization extends further east than previously modeled,” emphasizing the significance of the new drill data.

The Oculto East zone is being prioritized in the Phase V drill campaign, with three rigs currently active. AbraSilver has already drilled over 150,000 meters across Diablillos, which hosts both epithermal and porphyry-style mineralization. The current resource includes 104 million tonnes in measured and indicated (M&I) resources grading 59 g/t silver and 0.51 g/t gold, representing 350 million silver-equivalent ounces.

Silver Balances Safe-Haven Appeal and Industrial Demand Amid Market Uncertainty

Silver prices hovered near US$38 per ounce through mid-August, supported by a blend of geopolitical concerns, monetary policy developments, and steady industrial consumption. On August 18, FXStreet reported silver trading at US$38.12 per troy ounce, marking a 0.28% daily increase and a 31.94% gain year-to-date. The publication attributed this strength to silver’s dual role in the market, noting its appeal as both a safe-haven asset and a critical component in industrial sectors such as electronics and solar energy. Silver’s high electrical conductivity, one of the highest among metals, was highlighted as a key factor in its continued industrial relevance.

On the same day, FX Leaders analyst Arslan Butt observed that silver remained around US$38.10 per ounce following what he described as “a wild ride,” driven in part by falling U.S. Treasury yields and renewed attention to geopolitical negotiations in Eastern Europe. Butt emphasized silver’s tendency to mirror gold during times of financial or political stress, while also benefiting from periods of economic expansion due to its industrial uses. He noted that expectations of a more dovish U.S. Federal Reserve stance had increased investor interest in non-yielding metals like silver.

Tim Waterer, a market strategist at KCM Trade, added that silver appeared to have firm buying support near US$37.50, suggesting continued demand from value-oriented investors.

Offering a broader historical context, investor PauloMacro compared the current silver environment to the commodities cycle of the early 2000s. Writing on August 19, he described silver’s past rally during that period as a formative event in commodity investing, drawing parallels to the recent momentum in uranium markets. His commentary framed silver as an example of how investor sentiment and macroeconomic shifts can revive interest in long-overlooked metals.

By August 22, Arslan Ali of FXEmpire reported that silver had posted modest gains, buoyed by safe-haven flows amid continued geopolitical and policy-related uncertainty. Market analysts pointed to tensions in Eastern Europe and Federal Reserve policy discussions as contributing factors. Despite a stronger U.S. dollar, silver held firm, with analysts underscoring its ability to attract capital due to its dual identity as both an industrial and safe-haven asset.

Analyst Report Highlights Significant Resource Expansion at Diablillos

On July 30, Peter Krauth of The Gold Advisor published an analysis of AbraSilver Resource Corp. following the release of its updated Mineral Resource estimate for the Diablillos project in Argentina. Krauth pointed to a 92 million ounce year-over-year increase in measured and indicated silver-equivalent (AgEq) resources, bringing the total to 350 million ounces AgEq. He described the update as a major jump, noting the inclusion of 199 million ounces of silver within the total estimate.

Even when isolating the tank leach resource from the newly introduced heap leach category, Krauth reported that AbraSilver saw a 25% increase in contained silver and a 27% increase in silver-equivalent ounces compared to the November 2023 estimate. Much of this expansion was attributed to ongoing drilling success at the JAC zone, where tonnage rose by 148% and contained silver by 70%.

The report also cited recent high-grade gold intercepts at the Oculto deposit, including a 31-meter interval grading 10.0 grams per tonne (g/t) gold, with a six-meter section returning 41.9 g/t gold. Krauth emphasized the potential economic advantage of this shallow, oxide-hosted mineralization due to its favorable processing characteristics and potential impact on sustaining costs.

According to the analysis, the scale and grade of the updated resource elevate Diablillos to what Krauth described as a globally significant asset. He noted that AbraSilver continues to advance the project toward a Definitive Feasibility Study and regulatory approvals. The Gold Advisor maintained its full portfolio weighting for the company within its Silver Advisor model, citing continued resource growth and project advancement.

Drilling Deeper, Aiming Higher: What’s Next for Diablillos

AbraSilver continues to advance Diablillos toward a final investment decision, targeting the second half of 2026. As outlined in the company's investor presentation, key near-term catalysts include completion of the Definitive Feasibility Study (DFS), environmental impact assessment (EIA) approval, and the potential application for RIGI, Argentina’s new incentive regime for large-scale mining projects.

The company’s Phase V drill program spans 20,000 meters and remains focused on expanding the Oculto East zone. Diablillos is fully eligible for RIGI, which offers fiscal benefits such as reduced tax rates, elimination of export duties, and accelerated depreciation, potentially resulting in US$430 million in savings over the life of mine.

AbraSilver has reported that Diablillos is expected to produce an average of 13.4 million silver-equivalent ounces per year, with an average all-in sustaining cost (AISC) of US$12.67 per ounce and a projected net present value (NPV) of US$747 million at a 5% discount rate under base case assumptions.

The company is also evaluating deep drilling at the Cerro Blanco porphyry target located 4 km northeast of Oculto, which could add copper-gold potential to the existing silver-gold resource. With strategic shareholders holding approximately 25% ownership and a strong cash position of CA$42 million as of June 30, AbraSilver reported it is fully funded through the upcoming DFS milestone.

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$810M. Its 52-week range is CA$2.06–6.15 per share.