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    AbraSilver’s Diablillos drilling: pit expansion and capex lens for mine planners

    July 14, 2026|

    Reviewed by Joe Ashwell

    AbraSilver’s Diablillos drilling: pit expansion and capex lens for mine planners

    First reported on MINING.com

    30 Second Briefing

    AbraSilver Resource reports new drilling at the Diablillos silver-gold project in Salta province, with standout hole DDH-26-036 at Oculto West cutting 109 m from 114 m depth grading 221.2 g/t Ag and 0.72 g/t Au, including 14 m at 580 g/t Ag and 0.23 g/t Au in previously untested ground beyond the DFS pit shell. A second key intercept, DDH-26-022, returned 63 m at 32.8 g/t Ag from 60 m, including 11 m at 101.4 g/t Ag beneath the conceptual open pit, pointing to potential pit deepening and resource expansion. The DFS currently outlines 232 Mt measured and indicated at 33 g/t Ag and 0.34 g/t Au (248.1 Moz Ag, 2.5 Moz Au), with $722 million initial capex and planned first production by end-2029 under Argentina’s 30-year RIGI tax regime.

    Technical Brief

    • Diablillos hosts a high-sulphidation epithermal silver-gold system at the Oculto deposit, drilled >170,000 m.
    • Recent holes followed several weeks of geotechnical and condemnation drilling to de-risk infrastructure siting.
    • The project lies ~160 km south of Salta city in northwestern Argentina, affecting logistics and power access.
    • Inferred resources stand at 49.3 Mt at 12 g/t Ag and 0.26 g/t Au (18.4 Moz Ag, 420 koz Au).
    • DFS economics indicate an after-tax NPV of ~$3 billion and 42% IRR with a 1.7-year payback.
    • Initial capex totals $722 million, including a $98 million contingency, with $520 million sustaining funded from cash flow.
    • Planned output averages 20 Moz AgEq/y in the first 5 years, then 10 Moz AgEq/y over 25 years.
    • RIGI regime grants 30-year stability: corporate tax cut to 25%, export duties removed, accelerated depreciation on plant.

    Our Take

    With Diablillos’ DFS already showing an after-tax NPV of about US$3 billion and a 42% IRR (per our 23 June 2026 coverage), incremental ounces from the Oculto West, Cerro Viejo and JAC-Oculto trend drilling could materially extend the 25-year mine life rather than just lifting early-year throughput.

    AbraSilver Resource now features in our database both for Diablillos in Salta and the Teck-funded La Coipita copper-gold porphyry in San Juan, signalling that the company is evolving from a single-asset silver-gold story into a broader Argentina-focused precious and base metals platform.

    The combination of a US$722 million initial capex and Argentina’s RIGI incentives (locking in a lower 25% federal tax rate for up to 30 years) positions Diablillos competitively against other Latin American silver-gold projects in our coverage, where fiscal instability is often a key discount factor in valuation models.

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    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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