Geomechanics.io

  • Free Tools
Sign UpLog In

Geomechanics.io

Geomechanics, Streamlined.

© 2026 Geomechanics.io. All rights reserved.

Geomechanics.io

CMRR-ioGEODB-ioHYDROGEO-ioQCDB-ioFree Tools & CalculatorsBlogLatest Industry News

Industries

MiningConstructionTunnelling

Company

Terms of UsePrivacy PolicyLinkedIn
    Projects
    Contract Award

    AbraSilver Diablillos DFS: project economics and capex lens for mine planners

    June 24, 2026|

    Reviewed by Joe Ashwell

    AbraSilver Diablillos DFS: project economics and capex lens for mine planners

    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.

    Geotechnical Software for Modern Teams

    Centralise site data, logs, and lab results with GEODB-io, CMRR-io, and HYDROGEO-io.

    No credit card required.

    • Save and export unlimited calculations
    • Advanced data visualisation
    • Generate professional PDF reports
    • Cloud storage for all your projects

    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.

    Related Articles

    Flexco conveyor reliability tools: key maintenance takeaways for coal mines
    Mining
    about 2 hours ago

    Flexco conveyor reliability tools: key maintenance takeaways for coal mines

    Flexco is using the Queensland Mining & Engineering Exhibition in Mackay to showcase next‑generation conveyor reliability tools for coal operations facing tighter maintenance windows and labour shortages. The company is focusing on fast-install belt cleaners, condition‑monitoring hardware and data platforms that allow remote inspection of idlers, pulleys and splices without shutting down production. For mine operators, the pitch is higher conveyor availability on long overland and plant belts, reduced manual belt-walks, and more predictable shutdown planning in high‑throughput Queensland coal plants.

    Mining
    about 2 hours ago

    Tía María Komatsu AHS trucks: haul road and traffic design notes for mine engineers

    Southern Copper’s Tía María greenfield copper project in Arequipa will be the first mine in Peru to operate Komatsu autonomous haulage system (AHS) trucks, supplied and supported by Komatsu-Mitsui. CEO Julio Molina told Día1 de El Comercio that the deployment will use Komatsu’s state-of-the-art AHS platform, signalling a shift towards driverless haul fleets in the country’s large open pits. The move will require detailed redesign of haul roads, traffic management and dispatch systems to meet AHS requirements for berms, gradients and separation from manned equipment.

    Aclara’s Penco rare earths approval: project economics and design notes for engineers
    Mining
    about 3 hours ago

    Aclara’s Penco rare earths approval: project economics and design notes for engineers

    Aclara Resources has secured its Environmental Qualification Resolution for the Penco Module ionic clay rare earth project near Penco, 430 km south of Santiago, concluding a permitting process that ran for more than four years. The project is scoped to produce about 774 tonnes of rare earth oxides annually over 14 years, with a 2021 PEA outlining initial capital of $119 million, an after-tax NPV of $178 million at a 5% discount rate, a 23% IRR and a 4.7-year payback. Penco ore will ultimately feed Aclara’s planned commercial separation plant in Louisiana, supported by a Virginia Tech pilot facility producing both light and heavy rare earth oxides.

    Related Industries & Products

    Mining

    Geotechnical software solutions for mining operations including CMRR analysis, hydrogeological testing, and data management.

    CMRR-io

    Streamline coal mine roof stability assessments with our cloud-based CMRR software featuring automated calculations, multi-scenario analysis, and collaborative workflows.

    HYDROGEO-io

    Comprehensive hydrogeological testing platform for managing, analysing, and reporting on packer tests, lugeon values, and hydraulic conductivity assessments.

    GEODB-io

    Centralised geotechnical data management solution for storing, accessing, and analysing all your site investigation and material testing data.

    AllGeotechnicalMiningInfrastructureMaterialsHazardsEnvironmentalSoftwarePolicy