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Andrew Todd
Advance Metals has dropped an impressive maiden mineral resource for its flagship Yoquivo silver-gold project in Mexico, confirming the high-grade, bulk mining potential of the recently acquired project.
The company tabled an initial inferred resource of 8.8 million tonnes grading 120 grams per tonne (g/t) silver equivalent for a substantial 33 million ounces, consisting of 23 million ounces of silver at 80g/t and 140,000 ounces of gold at 0.49g/t.
The resources lands less than 18 months after Advance acquired the project in the Mexican heartland of Chihuahua and validates the company’s belief that substantial ounces remain overlooked beyond the historically targeted high-grade veins at the old underground mine.
Management says the wide, continuous zones of silver mineralisation could underpin a low-cost, bulk-tonnage development pathway at the project by combining open-cut and underground mining methods.
Adding to the enticing numbers is Advance’s remarkably low discovery cost, with the 33-million-ounce resource arriving at just US$0.10 per ounce of silver equivalent – currently fetching about 750 times that in the metals market. The figure includes the project’s purchase price and all exploration costs to date, demonstrating the company’s savvy pickup in a booming precious metals market.
The bulk of the new resource, some 31 million ounces of silver equivalent, sits within the Pertenencia deposit, which extends from surface over a strike of more than 750 metres and reaches widths of up to 250 metres, with the remaining 2 million ounces at the nearby Esperanza deposit.
Notably, the mineralisation at both deposits remains open along strike and at depth, presenting a clear opportunity for further resource growth. The company has already identified multiple additional high-potential zones within the broader project area that are yet to be tested.
The news from Yoquivo comes as the company prepares to begin drilling at its Gavilanes silver project to the south, where it will follow a similar pathway to low-cost ounce expansion to deliver an upgraded JORC resource.
The latest maiden resource boosts Advance’s total silver-equivalent endowment in Mexico to a hefty 116 million ounces, underpinning the next steps in expanding its commanding precious metals portfolio.
The company has outlined a stretch target that, if successful, would lift that inventory to a jaw-dropping 200-million-ounce JORC-compliant resource, as silver and gold prices continue to hover near all-time highs.
With the resource now on the books, Advance is planning its next moves in the world-class Mexican silver jurisdiction. The company has a bevvy of high-priority targets for resource extension already in the works, as preliminary mining studies begin with a particular focus on bulk, low-cost potential.
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