Explorer Continues To Strike Silver in Argentina's Salta Province

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AbraSilver Resource Corp. (ABRA:TSX; ABBRF:OTCQX) has released the final drill results from its Phase IV exploration program at the Diablillos silver-gold project in Salta Province, Argentina. The company reported multiple high-grade silver intercepts from the JAC Extension zone, located outside the boundaries of the current conceptual open pit design. These results will feed into an updated Mineral Resource estimate, anticipated in mid-2025, and form part of the ongoing Definitive Feasibility Study.

Among the most notable drill intercepts is Hole DDH 25-002, which returned 65.0 meters grading 162 grams per tonne (g/t) silver (Ag), including a subinterval of 12.0 meters at 405 g/t Ag. Hole DDH 25-005 intersected 63.0 meters at 139 g/t Ag, while DDH 25-012 reported 41.5 meters at 160 g/t Ag. All assays are uncut and undiluted and reflect drilled widths, not true widths.

"The latest drill results confirm the presence of strong silver grades over broad widths at shallow depths," said Chief Geologist Dave O'Connor in the news release. President and CEO John Miniotis added, "We are very pleased with the final results from our highly successful Phase IV program, which continue to demonstrate significant growth potential beyond the current open pit boundaries."

Phase IV drilling totalled 21,172 meters and focused on expanding mineralization at the JAC Extension zone. Mineralization remains open to the south and west. Phase V drilling is already underway, targeting several high-priority zones across the broader Diablillos property. Located in a region with established infrastructure and multiple adjacent mining projects, Diablillos comprises 15 contiguous concessions totaling significant mineralized acreage. Proven and Probable Reserves as of March 2024 stand at 42.3 million tonnes grading 91 g/t Ag and 0.81 g/t gold (Au), containing 123.5 million ounces of silver and 1.1 million ounces of gold.

Silver Sector Strengthening Amid Pressure and Upside Potential

Recent commentary and market analysis painted a complex picture for the silver sector in April, highlighting both structural constraints and signs of growing strength. On April 23, FX Empire emphasized that silver had resumed its upward pressure, particularly around the US$33 level.

"This is in a bit of a divergence from gold markets, which have seen quite a bit of negative pressure," wrote Christopher Lewis, who cited silver's dual role as both a precious and industrial metal. The article noted that silver's behavior near its 50-day exponential moving average (EMA) continued to attract trader attention, with sustained bullish momentum driving sentiment.

Raymond James analyst Craig Stanley reiterated a Buy rating on AbraSilver Resource Corp., assigning a price target of CA$5.00. 

On April 26, Kitco News published a report featuring Midas Touch Consulting's Florian Grummes, who stated that "silver is extremely undervalued" and suggested that the metal could reach between US$40 and US$50 in the coming months. Grummes also pointed to the gold-silver ratio as a critical indicator of valuation. "We know that in the earth it's 10 to 1. In production, it's 7 to 1. Yet the market is trading above 100 to 1," he said, arguing that silver had substantial room to close this historical disconnect.

On April 26, Technical Analyst Clive Maund described what he called a "pressure cooker" scenario in the silver market. He pointed to a surge in short positions as a potential catalyst, writing, "This situation cannot go on… the expanding gap between the physical price and the paper price make it untenable." Maund suggested that once market forces challenge the status quo, a rapid reversal could occur. He described the low level of retail participation as another signal that silver remained in an early-stage bull market, stating, "There is still hardly any retail interest in this market… the current low reading of the silver to gold ratio… means that this bull market is still in its early stages."

Analyst Highlights Continued Strength at AbraSilver

On April 15, Raymond James analyst Craig Stanley reiterated a Buy rating on AbraSilver Resource Corp., assigning a price target of CA$5.00. The company's shares had closed at US$2.28 the previous day. According to TipRanks, Stanley has a 52.43% success rate on recommended stocks and an average return of 9.8%, with his coverage including companies in the Basic Materials sector. AbraSilver held a Strong Buy consensus among analysts at the time, with an average price target of US$3.90, representing a potential 71.39% upside from the most recent closing price. Scotiabank also maintained a Buy rating in a report released one day earlier, setting a price target of CA$5.50.

Also on April 15, 2025, Beacon Securities analyst Michael Curran maintained a Buy rating on AbraSilver Resource Corp. and held a 12-month price target of CA$6.00, citing a 90% potential return. Curran emphasized that the Diablillos project showed "above average potential to successfully transition from explorer to producer," following a recent analyst site visit to the property in Argentina. He noted that the project's infrastructure requirements appeared manageable and highlighted strong exploration upside at emerging targets such as Sombra, Oculto East, and Cerro Viejo. Curran's valuation was based on a blended methodology using a target P/NAV multiple of 0.90x and forward P/CF analysis.

According to an April 29 report from Scotia Capital, analyst Eric Winmill reiterated a Sector Outperform rating with a CA$5.50 price target. Winmill viewed the conclusion of Phase IV drilling at the JAC Extension as a positive development and highlighted several high-grade intercepts, including 65.0 meters at 162 g/t silver and 63.0 meters at 139 g/t silver. He stated, "We see potential for resource expansion based on drill success to date in areas located near planned mining areas and infrastructure." The firm also emphasized that AbraSilver shares were trading at a P/NAV5% of just 0.23x, well below sector averages.

National Bank Financial followed with its own positive assessment on April 29. In the report, analyst Don DeMarco maintained an Outperform rating and raised the target price to C$5.75, citing "splashy infill intercepts over wide intervals with readthrough for resource de-risking." He highlighted Hole DDH-25-002's 65-meter intercept at 161.6 g/t silver and noted that Phase V drilling was underway, with mineralization remaining open to the south and west. DeMarco concluded that the company's investment case was supported by "a large silver/gold M&I resource base, near-surface high-grade silver in the JAC deposit, prospective exploration upside and heightened M&A appeal."

Two weeks later, on April 30, Peter Krauth of Silver Stock Investor released a favorable assessment of AbraSilver Resource Corp., citing strong exploration progress at both its Diablillos and La Coipita projects in Argentina. He described the recent silver results from Diablillos as "robust grades for an open pit," emphasizing their location outside the current conceptual pit limits and the significance of their near-surface, wide-width intercepts. According to Krauth, "These are the last assays from the Phase IV exploration campaign . . . and the team will be including them in the upcoming mid-2025 updated resource estimate."

Krauth pointed to specific intervals such as Hole DDH 25-002, which returned 65.0 meters at 162 grams per tonne silver, including 12.0 meters at 405 g/t silver, and Hole DDH 25-005, which intersected 63.0 meters at 139 g/t silver. He noted that mineralization remained open to the south and west and that Phase V drilling had already begun, targeting several high-priority zones.

In addition to Diablillos, Krauth also discussed new developments at AbraSilver's La Coipita copper-gold-molybdenum project. He called the results from Hole DDH-LC25-006 "a discovery," highlighting a 621-meter interval grading 0.38% copper, 0.07 g/t gold, and 62 ppm molybdenum. This interval included a high-grade section of 114 meters grading 0.70% copper and another 20 meters at 1.03% copper. Krauth stated, "At 621m of 0.38% copper overall, this is big, and it could be massive."

He further noted that additional drill holes were underway and could confirm the scale of the mineralized system. While emphasizing the early stage of the discovery, Krauth concluded that AbraSilver continued to offer significant growth potential. "ABRA shares are up about 26% this year, but continue to look cheap given the growth potential they keep proving up," he wrote, calling the stock "attractive on weakness."

Pathway to Value: Key Catalysts and Growth Drivers

As outlined in its investor presentation, AbraSilver's development plans at Diablillos are supported by strong project economics, a robust resource base, and a clear roadmap for growth. According to the December 2024 pre-feasibility study, the project carries a Net Present Value (NPV) of US$747 million at a 5% discount rate, based on base-case metal prices of US$25.50 per ounce silver and US$2,050 per ounce gold. The projected internal rate of return is 28% with a 2-year payback period. The average all-in sustaining cost (AISC) over the life-of-mine is US$12.67 per silver-equivalent ounce (AgEq), significantly below industry peer averages.

Current work includes a fully funded 20,000-meter Phase V drill program focused on expanding resources at the Oculto-JAC district and evaluating the Cerro Viejo gold target located 4 kilometers northeast of Oculto. Cerro Viejo's first drill hole intersected 36.0 meters at 1.91 g/t Au, including 5.0 meters at 7.22 g/t Au, and the zone remains largely untested.

The company is also preparing to leverage Argentina's new RIGI investment incentive regime, which offers significant tax and export duty savings for large-scale mining projects. Diablillos is eligible for these benefits, with the company estimating total savings of approximately US$430 million if the full RIGI package is utilized.

With a track record of resource growth—doubling measured and indicated resources since 2020 at a low discovery cost of US$0.11 per ounce AgEq, AbraSilver continues to build scale at Diablillos. The company's development timeline remains aligned with key upcoming milestones, including environmental permitting, resource updates, and the completion of a Definitive Feasibility Study.

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$456M. Its 52-week range is CA$1.33–3.58 per share.