AbraSilver Diablillos DFS: project economics and capex lens for mine planners
Reviewed by Joe Ashwell
First reported on MINING.com
30 Second Briefing
A definitive feasibility study for AbraSilver Resource’s Diablillos silver-gold project in Salta province lifts after-tax NPV to about US$3 billion and IRR to 42%, assuming US$50/oz silver and US$3,650/oz gold, with payback cut to 1.7 years despite initial capex rising to US$722 million. The open-pit operation is planned as a 25-year mine producing 20 million silver-equivalent oz annually in the first five years, with life-of-mine AISC of US$20/oz placing it among the sector’s lowest-cost primary silver projects. Inclusion under Argentina’s 30-year RIGI regime, reducing corporate tax to 25% and eliminating export duties, materially strengthens project economics and financing prospects.
Technical Brief
- Initial capex is US$722 million, including a US$98 million contingency and higher pre-production spend.
- Sustaining capital totals US$520 million over life-of-mine, planned to be fully funded from operating cash flow.
- Final investment decision is targeted for Q2 2027, with first production aimed by end-2029, subject to permitting.
- Diablillos’ May resource: 232 Mt M&I at 33 g/t Ag and 0.34 g/t Au, plus 49.3 Mt inferred.
- Contained metal in M&I stands at 248.1 Moz Ag and 2.5 Moz Au; inferred adds 18.4 Moz Ag, 420 koz Au.
- Measured and indicated resources have more than tripled since 2020 at an average discovery cost of US$0.10/Ag-eq oz.
- Expansion options under review include heap-leach addition, higher plant throughput and enlarged tailings storage for future growth.
Our Take
With Diablillos in Salta now showing a US$3 billion after-tax NPV and the Teck-funded La Coipita copper-gold porphyry in San Juan delivering strong intercepts, AbraSilver is emerging in our coverage as one of the few juniors in Argentina with both a near-development precious metals asset and a separate large-scale copper exploration play.
The application of Argentina’s 30-year RIGI regime to Diablillos, alongside the reduced 25% corporate tax rate, suggests a more stable fiscal backdrop than many historic Argentine projects in our coverage, which may help offset investor concerns about country risk when weighing the higher initial capex of about US$722 million.
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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