Andean Boosts Cerro Bayo's Silver Equivalent Ounces by 80 Percent in New Resource Estimate

Andean Silver (ASX:ASL) published an updated resource estimate for its Chile-based Cerro Bayo silver-gold project on Tuesday (September 10), saying silver equivalent ounces have increased by 80 percent.

The resource now stands at 8.3 million tonnes at 342 grams per tonne silver equivalent, which equates to 91 million silver equivalent ounces. In addition to the 80 percent boost in silver equivalent ounces, that's a 64 percent increase in tonnes compared to the previous estimate, which was published in March of this year.

“The updated Resource establishes Cerro Bayo as an outstanding silver asset with genuine scale and high grades,” said CEO Tim Laneyrie, noting that Andean has nearly quadrupled the asset's resource since acquiring it.

The company said the average depth of the resource is less than 300 metres, also stating that significant mining infrastructure is already established at the site. Cerro Bayo is made up of the previously operating Cerro Bayo and Laguna Verde mine complexes, and both of these are included in Andean's new resource estimate.

Also included are underground resources at Lourdes, Marcela and Cerro Bayo that are within the immediate historic Cerro Bayo mine complex; Raul and Guanaco, the other more regional prospects, are encompassed as well.

Not included are drill results and high-grade silver and gold mineralisation intersected since Andean acquired the project. This data will be added in an updated resource estimate planned for release in early 2025.

“The mineralisation remains completely open and we have a pipeline of greenfields targets to drill. This all points to compelling potential for upgrades and further value creation for our shareholders,” Laneyrie said.

Located in Chile’s Aysen region, Cerro Bayo produced over 100 million silver equivalent ounces from 1995 to June 2017. It occupies the western margin of Deseado Massif, a globally recognised epithermal gold-silver province.

Andean's drilling at the project is ongoing.

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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.