Andean Silver (ASX:ASL) reported a 230% lift in the indicated resource at its Cerro Bayo silver-gold project in Chile, according to a Tuesday Australian bourse filing.
The total mineral resource estimate expanded to 20 million tonnes at 211 grams per tonne (g/t) silver equivalent for 136 million ounces silver equivalent, up 86% in total tonnes and 23% in total silver equivalent ounces
The company said the updated mineral resource estimate is based on conservative metal prices of $45 per ounce silver and $3,500 per ounce gold, well below current spot prices of $63 per ounce and $4,100 per ounce, respectively.
An upcoming 60,000-meter resource drilling program is designed to continue targeting areas within the economic mine plan to convert to measured and indicated resource categories, focused on the near-mine Laguna Verde district, and will be used to further de-risk the resource and update geotechnical and metallurgical data ahead of the feasibility study, the filing added.
The first resource growth drilling program at the Cerro Bayo district in 20 years is set to commence in the third quarter of 2026, targeting the Marcela, Guanaco, and Cerro Bayo resource corridors, it added.
Andean Silver's shares shed about 1% in recent Tuesday trade.