Diablillos drilling reveals encouraging near-surface mineralization
Diablillos is one of Argentina's largest undeveloped precious-metals projects.
AbraSilver Resource reported promising results from five new drilling holes at its Diablillos project in Argentina, which could lead to resource growth beyond its feasibility study. The company's stock increased early in trading. Hole DDH 26-037 reached 27 meters, containing 4.6 grams of silver and 0.58 grams of gold per tonne, despite only a 23-meter depth.
Hole DDH 26-047 surpassed 9 meters, yielding 2.8 grams of silver and 0.29 grams of gold per tonne. Project chief geologist Dave O'Connor noted the continuity of shallow gold mineralization, beginning near the surface in multiple holes. AbraSilver has drilled over 170,000 meters at Diablillos since its initial exploration in January.
Two diamond drill rigs are currently active, with a third expected later this month. CEO John Miniotis called the results "encouraging," highlighting Cerro Viejo's potential as an exciting target in the broader district. The company recently acquired the Condoryacu property, where early drilling yielded 117 grams of silver and 18.7 grams of gold per tonne over 72 meters.
Diablillos is projected to have an after-tax NPV of $4.15 billion, a 42% internal rate of return, and a 1.7-year payback period.
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