AbraSilver Drills Best Gold Intercept to Date at Oculto: 228 Metres Grading 1.79 g/t Gold In Oxides, Including 66 Metres at 4.04 g/t Gold

AbraSilver reports its best-ever gold intercept at Diablillos, but production remains years away.

What the company is saying

AbraSilver highlights a standout drill result from hole DDH-26-061 at the Oculto East target, framing it as the best gold intercept drilled to date at the Oculto deposit. The company emphasizes that this high-grade zone lies 50 metres below the current open pit design and outside the existing Mineral Resource, suggesting significant upside potential. Management, led by President and CEO John Miniotis, positions these results as reinforcing Oculto East as a priority target and underscores ongoing momentum with three rigs active and Phase VI drilling expected to finish by year-end. The tone is confident, with forward-looking statements about an imminent Heap Leach Preliminary Economic Assessment and a Final Investment Decision targeted for Q2 2027. The announcement also references strong prior results from DDH-25-024 and DDH-25-077 to bolster the narrative of a growing high-grade system. While the release is data-rich, it places more weight on technical progress and future milestones than on immediate economic outcomes.

What the data suggests

The disclosed drill intercept in DDH-26-061 is substantial: 228.0 metres grading 1.79 g/t gold and 12 g/t silver, including a 66.0-metre interval at 4.04 g/t gold and 19 g/t silver, and a core of 11.0 metres at 15.97 g/t gold and 48 g/t silver. These grades and widths are significant for oxide-hosted mineralization and exceed previously reported high-grade intervals at Oculto East. All intervals are reported as drilled widths, with true widths not yet determined. The high-grade zone is outside the current Mineral Resource, indicating potential for resource expansion but not yet translating to reserves. The company has completed approximately 13,500 metres of drilling in 51 holes under Phase VI since January 2026, plus 2,000 metres in condemnation drilling. The most recent Mineral Resource estimate (April 30, 2026) shows Tank Leach Oxides Measured & Indicated resources of 102,021,000 tonnes at 0.62 g/t gold and 65 g/t silver (212,728,000 oz silver, 2,039,000 oz gold, 389,359,000 oz AgEq), and Heap Leach Oxides Measured & Indicated of 129,960,000 tonnes at 0.12 g/t gold and 8 g/t silver (35,325,000 oz silver, 503,000 oz gold, 64,767,000 oz AgEq). Open pit optimization uses US$34.50/oz Ag, US$3,200/oz Au, with tank leaching opex of US$32.30/t and heap leaching opex of US$7.00/t. No economic study results are yet disclosed; the Heap Leach PEA is pending. The technical data is robust, but the value impact is contingent on future resource upgrades and economic analysis.

Analysis

The announcement provides detailed and credible technical results from recent drilling, including explicit intercepts and updated resource/reserve tables, which are strong for an exploration-stage update. However, the tone is notably upbeat, emphasizing 'best gold intercept drilled to date' and projecting significant future milestones (Heap Leach PEA, FID in Q2 2027, first production before year-end 2029) that are all long-dated. While the technical data is robust, the majority of the forward-looking claims (PEA, FID, production) are at least 1.5–3 years away, and no economic, capex, or profitability data is disclosed. The mention of 'engineering, procurement and early works activities ramping up' signals rising capital intensity, but with no immediate earnings or cash flow impact. The gap between narrative and evidence is moderate: the technical progress is real, but the implied near-term value creation is overstated given the long timeline and absence of economic studies or funding commitments.

Risk flags

• ●Resource expansion potential is based on a limited number of high-grade intercepts outside the current Mineral Resource, which may not prove continuous or economically extractable without further drilling and modelling.
• ●The project remains at a pre-development stage, with no completed Preliminary Economic Assessment for the Heap Leach expansion and no disclosed economic metrics such as NPV, IRR, or capex, making the ultimate viability and value of the project uncertain.
• ●All key milestones—updated Mineral Resource, Heap Leach PEA, Final Investment Decision, and first production—are long-dated, with first production not expected until late 2029, exposing the project to commodity price, permitting, and funding risks over several years.
• ●Capital intensity is flagged by the ramp-up of engineering, procurement, and early works activities, but no funding sources or financing plans are disclosed, increasing uncertainty about the company's ability to advance to construction and production.
• ●Operational execution risk is present, as the transition from exploration to development will require successful completion of technical studies, permitting, and infrastructure development in a remote region of Argentina.

Bottom line

AbraSilver's latest drill results at Diablillos, particularly the 228-metre intercept in DDH-26-061, are technically impressive and point to possible resource growth beneath the current pit. The company is progressing with drilling and technical studies, but all major value catalysts—including the Heap Leach PEA, updated resource estimate, and Final Investment Decision—are still months to years away. No economic analysis or funding details are yet available, and first production is not targeted until the end of 2029. While the technical upside is real, the investment case depends on future resource conversion, robust economics in the upcoming PEA, and the company's ability to secure financing and permits. The most important takeaway is that AbraSilver remains a high-potential, high-risk exploration story with a long runway to cash flow.

Announcement summary

(TSX:ABRA) (OTCQX:ABBRF) AbraSilver Resource Corp. reported assay results from four diamond drill holes at the Oculto East target, part of the ongoing Phase VI exploration program at its wholly-owned Diablillos project in Argentina. The standout hole, DDH-26-061, intersected 228.0 metres grading 1.79 g/t gold and 12 g/t silver from 101.0 m downhole, including 66.0 m at 4.04 g/t gold and 19 g/t silver from 263 m, and 11.0 m at 15.97 g/t gold and 48 g/t silver from 276 m. All intervals are oxide-hosted and the high-grade zone lies approximately 50 m below the current open pit design, outside the current Mineral Resource. Three diamond drill rigs are now active, with Phase VI exploration expected to be completed by year-end and an updated Mineral Resource estimate expected in Q2 2027. John Miniotis, President and CEO, stated that DDH-26-061 is the best gold intercept drilled to date at Oculto and demonstrates that oxide gold mineralization continues below the current open pit and beyond the current Mineral Resource. Earlier high-grade results from DDH-25-024 (31.0 m grading 9.96 g/t gold from 324.0 m, including 6.0 m at 41.89 g/t gold) and DDH-25-077 (8.5 m grading 13.81 g/t gold from 337.0 m) reinforce Oculto East as a priority target. Approximately 13,500 m have been completed in 51 diamond drill holes under Phase VI since January 2026, with an additional 2,000 m drilled in 13 condemnation holes for infrastructure siting. Drilling continues at Oculto West, Oculto East, the JAC-Oculto trend, Cerro Viejo, and the Condoryacu property. A detailed CSAMT survey is in progress over the Oculto mineralised system. The Heap Leach Preliminary Economic Assessment (PEA) is expected to be announced in the coming weeks, evaluating a Phase 2 heap leach expansion to process low-grade material currently classified as waste. Engineering, procurement, and early works activities for Phase 1 are ramping up, with a Final Investment Decision on Phase 1 scheduled for Q2 2027 and first production targeted before year-end 2029. Collar data for the four holes includes elevations of 4,473 m (DDH-26-051), 4,435 m (DDH-26-052), 4,480 m (DDH-26-058), and 4,328 m (DDH-26-061). Over 170,000 metres have been drilled on the Diablillos property to date. The most recent Mineral Resource estimate (as of April 30, 2026) shows, for Tank Leach Oxides, Measured & Indicated resources of 102,021,000 tonnes grading 0.62 g/t gold and 65 g/t silver, containing 212,728,000 oz silver and 2,039,000 oz gold (389,359,000 oz AgEq), and Inferred resources of 14,400,000 tonnes grading 0.57 g/t gold and 25 g/t silver, containing 11,468,000 oz silver and 262,000 oz gold (34,187,000 oz AgEq). For Heap Leach Oxides, Measured & Indicated resources are 129,960,000 tonnes grading 0.12 g/t gold and 8 g/t silver, containing 35,325,000 oz silver and 503,000 oz gold (64,767,000 oz AgEq), and Inferred resources of 34,947,000 tonnes grading 0.14 g/t gold and 6 g/t silver, containing 6,939,000 oz silver and 158,000 oz gold (16,153,000 oz AgEq). The Mineral Resource is reported inside a conceptual Whittle open pit shell using US$34.50/oz Ag price, US$3,200/oz Au price, 86.6% process recovery for Au, and 80.9% for Ag for tank leaching, and 74.3% for Au and 46.8% for Ag for heap leaching. Open pit optimization uses a dual-process approach with tank leaching opex of US$32.30/t and heap leaching opex of US$7.00/t. The Diablillos property comprises 15 contiguous and overlapping mineral concessions with year-round road access, and hosts Proven and Probable Mineral Reserves of 77.9 Mt grading 146 g/t AgEq, containing 184 Moz silver and 1.8 Moz gold (366 Moz AgEq) as of June 2026.

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