Uncovering high-quality silver equivalent assay results
Andean Silver (ASX: ASL) has revealed a major discovery of high-grade silver equivalent assays at the Cerro Bayo silver-gold project in Chile. The company’s initial drilling at the Pegaso 7 prospect, which is located 2 kilometers from the current resource and processing plant, has produced outstanding results. Assays have shown grades up to 4,649 grams per tonne silver equivalent (AgEq), representing a significant find for the company.
This finding emphasizes the potential of the Cerro Bayo project, showcasing the high-grade characteristics of the mineral deposits in the area. The impressive assay results are anticipated to boost the overall value of the project and draw more interest from investors.
Plans for expanding the Cerro Bayo resource
The recent discovery has led Andean Silver to contemplate expanding its resource base at Cerro Bayo. The company is assessing the possibility of extending its drilling program to better define the high-grade zones found at Pegaso 7. This strategic initiative aims to enhance the overall resource estimate and potentially increase the project’s production capacity.
Considering the closeness of Pegaso 7 to the already established resource and processing plant, the expansion could be carried out with relatively minimal additional capital costs. The inclusion of new high-grade zones into the present mining activities could increase operational efficiencies and boost the economic viability of the project.
The management team of Andean Silver is evaluating the logistical and financial impacts of the proposed expansion. Initial strategies involve further drilling campaigns, resource modeling, and feasibility studies to gain a thorough understanding of the new resource potential. Additionally, the company is exploring potential partnerships or joint ventures to accelerate the development process and distribute the financial load.
Investors will be keenly observing the advancement of these expansion initiatives, as their successful implementation could substantially boost Andean Silver’s market worth. The company’s proactive strategy in capitalizing on the recent discovery to augment its resource base highlights a dedication to enhancing shareholder value.
