AbraSilver’s $32M raise for Diablillos: capex and schedule lens for mine planners
Reviewed by Joe Ashwell
First reported on MINING.com
30 Second Briefing
AbraSilver Resource is raising C$45 million via a bought-deal of 3.06 million shares at C$14.70 to fund early works and long-lead equipment for the Diablillos silver-gold project in Salta, targeting a construction decision in 2027 and first production by end-2029. The definitive feasibility study outlines a 25-year open-pit operation with initial capex of US$722 million, after-tax NPV of about US$3 billion, 42% IRR, and average output of 20 million silver-equivalent oz. per year for the first five years. Recent drilling at Oculto West returned 109 metres at 221.2 g/t silver and 0.72 g/t gold from 114 metres, outside the current DFS mine plan, indicating potential resource expansion.
Technical Brief
- Hole DDH-26-036 at Oculto West intersected 109 m @ 221.2 g/t Ag, 0.72 g/t Au from 114 m.
- Included within that, 14 m graded 580 g/t Ag and 0.23 g/t Au from 135 m downhole.
- Mineralisation in DDH-26-036 occurs in a previously untested area, outside the current DFS pit shell.
- Measured and indicated resources: 232 Mt @ 33 g/t Ag and 0.34 g/t Au (248.1 Moz Ag, 2.5 Moz Au).
- Inferred resources: 49.3 Mt @ 12 g/t Ag and 0.26 g/t Au (18.4 Moz Ag, 420,000 oz Au).
- Diablillos has final environmental approval and is registered under Argentina’s Large Investment Incentive Regime (RIGI).
Our Take
With Teck Resources already funding drilling at the La Coipita copper-gold porphyry in San Juan (June 15 article), AbraSilver now has third-party capital exposure to both copper and precious metals in Argentina, which may make it a more attractive strategic target or JV counterparty than a single-asset silver-gold developer in Salta province alone.
In our coverage of Latin American silver-gold projects, few open-pit developments combine a 25-year mine life with a US$3 billion after-tax NPV and a sub-US$1 billion initial capex, placing Diablillos at the upper end of the project-quality spectrum and likely to draw comparison with established Andean district assets such as Veladero and Pascua Lama mentioned alongside it.
Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.
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