AbraSilver Intersects 75 Metres of 2.44 g/t Gold and 106 g/t Silver at Oculto; 253 Metres of 0.54 g/t Gold at Oculto East

AbraSilver reports high-grade gold and silver intercepts, with key resource updates due in 2027.

What the company is saying

AbraSilver Resource Corp. (TSX:ABRA, OTCQX:ABBRF) is highlighting new assay results from two diamond drill holes (DDH-26-064 and DDH-26-063A) at the Oculto deposit, part of its Diablillos project in Argentina. The company frames these results as confirming the continuity of high-grade gold and silver mineralization within the planned open pit and extending the oxide gold zone eastward. President and CEO John Miniotis emphasizes the importance of these intercepts for the mine plan and future exploration targeting. The company states that three drill rigs remain active, the Phase VI exploration program is on track for completion by year-end, and an updated Mineral Resource estimate is expected in Q2 2027. AbraSilver also references the recent completion of a detailed CSAMT survey to optimize future drill targets and notes that a Heap Leach PEA will be released shortly. The tone is confident, focusing on technical progress and adherence to disclosed timelines, with no mention of delays or operational setbacks.

What the data suggests

The reported drill results are specific and robust: DDH-26-064 returned 75.0 m grading 2.44 g/t gold and 106 g/t silver in oxides, including 8.0 m at 5.94 g/t gold and 7.0 m at 7.97 g/t gold, plus a separate 5.0 m interval at 556 g/t silver. DDH-26-064 also intersected 16.5 m grading 1.50 g/t gold, 11 g/t silver, and 0.44% copper in sulphides. DDH-26-063A intersected 253.0 m grading 0.54 g/t gold and 10 g/t silver, including 4.0 m at 2.24 g/t gold. These intercepts are within or adjacent to the planned open pit, supporting the company's claim of mineralization continuity and potential eastward extension. The most recent Mineral Resource estimate (April 30, 2026) shows total oxide Measured & Indicated resources of 231,981,000 tonnes at 33 g/t silver and 0.34 g/t gold (61 g/t AgEq), containing 248,053,000 ounces of silver, 2,542,000 ounces of gold, and 454,127,000 ounces of silver equivalent. Proven and Probable Mineral Reserves (June 2026 DFS) are 77.9 Mt at 0.70 g/t gold and 73 g/t silver (146 g/t AgEq), containing 184 Moz of silver and 1.8 Moz of gold (366 Moz AgEq). The resource model uses a silver price of US$34.50/oz, gold price of US$3,200/oz, tank leach opex of US$32.30/t, and heap leach opex of US$7.00/t, with process recoveries of 86.6% for gold and 80.9% for silver (tank leach) and 74.3% for gold and 46.8% for silver (heap leach). Over 170,000 metres have been drilled to date. The data is technically comprehensive, but no new economic or period-over-period financials are included.

Analysis

The announcement provides detailed and specific technical results from two new drill holes, including grades, widths, and collar data, as well as updated Mineral Resource and Reserve figures with supporting assumptions. These are realised, factual disclosures typical of a late-stage exploration/development update. Forward-looking statements (updated resource estimate, Heap Leach PEA, and final construction decision) are clearly identified and appropriately caveated with expected timelines (Q2 2027), which are long-term relative to today's date. The tone is positive but not exaggerated, and the language is proportionate to the evidence presented. The capital intensity flag is set because the project involves significant future capital outlay (open pit, tank/heap leach processing) with benefits (production, cash flow) only expected after a construction decision in 2027. There is no narrative inflation or overstatement; the technical data is robust and the forward-looking claims are reasonable for the project stage.

Risk flags

• ●Execution risk is high due to the long timeline before any construction decision or production, with the next major milestones (resource update, Heap Leach PEA, and construction decision) not expected until Q2 2027. Delays or negative results from pending assays could impact project economics and schedule.
• ●Capital intensity is significant, as open pit mining and dual-process (tank and heap leach) operations require substantial upfront investment. The disclosed opex figures (US$32.30/t for tank leach, US$7.00/t for heap leach) and high metal price assumptions (US$34.50/oz silver, US$3,200/oz gold) mean project viability is sensitive to cost overruns or commodity price declines.
• ●Resource and reserve estimates are based on specific price and recovery assumptions that may not hold if market conditions change. The project's economics could be materially affected if realized prices or recoveries fall short of these assumptions.
• ●Exploration and geological risk remains, as the continuity and extent of mineralization between drill holes and in new target areas are not yet fully defined. The company acknowledges that further drilling is underway and that true widths for reported intercepts are not yet known.

Bottom line

AbraSilver's latest drill results at Diablillos demonstrate strong grades and widths for both gold and silver, supporting the case for a large, high-quality resource. The technical disclosure is detailed and credible, with clear timelines for the next major catalysts—an updated Mineral Resource estimate and Heap Leach PEA—expected in Q2 2027. However, all value realization is long-dated, with no near-term production or cash flow, and the project remains highly sensitive to execution, capital, and commodity price risks. Investors should focus on upcoming assay results, the scope and economics of the Heap Leach PEA, and whether the final construction decision in 2027 remains on track. The most important takeaway is that while the technical fundamentals are solid, the investment case depends on successful resource conversion and project de-risking over the next year.

Announcement summary

(TSX:ABRA) (OTCQX:ABBRF) AbraSilver Resource Corp. reported assay results from two additional diamond drill holes, DDH-26-064 and DDH-26-063A, at the Oculto deposit as part of the Phase VI exploration program at its wholly-owned Diablillos project in Argentina. DDH-26-064, drilled as an infill hole within the planned Oculto open pit, intersected 75.0 metres grading 2.44 g/t gold and 106 g/t silver in oxides, including 8.0 metres at 5.94 g/t gold and 7.0 metres at 7.97 g/t gold, as well as a separate silver-rich interval of 5.0 metres at 556 g/t silver. DDH-26-064 also intersected 16.5 metres grading 1.50 g/t gold, 11 g/t silver, and 0.44% copper in sulphides from 310.0 metres. DDH-26-063A, drilled further east, intersected 253.0 metres grading 0.54 g/t gold and 10 g/t silver in oxides, including 4.0 metres at 2.24 g/t gold. The results confirm the continuity of high-grade gold and silver mineralization within the planned open pit and extend the broad gold zone east of the Cross Breccia toward Oculto East. Three diamond drill rigs are currently active, and the Phase VI exploration program is on track to be completed by year-end, with an updated Mineral Resource estimate expected in Q2 2027. The most recent Mineral Resource estimate for Diablillos, as of April 30, 2026, reports total oxide Measured & Indicated resources of 231,981,000 tonnes grading 33 g/t silver and 0.34 g/t gold (61 g/t AgEq), containing 248,053,000 ounces of silver, 2,542,000 ounces of gold, and 454,127,000 ounces of silver equivalent. Proven and Probable Mineral Reserves, following the June 2026 DFS, are 77.9 Mt grading 0.70 g/t gold and 73 g/t silver (146 g/t AgEq), containing 184 Moz of silver and 1.8 Moz of gold (366 Moz AgEq). The Mineral Resource estimate uses a silver price of US$34.50/oz, a gold price of US$3,200/oz, tank leach process recovery of 86.6% for gold and 80.9% for silver, and heap leach process recovery of 74.3% for gold and 46.8% for silver. Open pit optimization was based on a total opex of US$32.30/t for tank leaching and US$7.00/t for heap leaching. Collar data for DDH-26-063A is UTM 720988/7199583, elevation 4,414 m, azimuth 180, dip -63, depth 371.0 m; for DDH-26-064, UTM 720340/7199340, elevation 4,311 m, azimuth 340, dip -60, depth 344.0 m. Over 170,000 metres have been drilled on the property to date. The Diablillos property comprises 15 contiguous and overlapping mineral concessions in the Puna region of Argentina, Salta Province, along the border with Catamarca Province. The company has also completed a detailed CSAMT survey over the Diablillos system to help prioritize and optimize future drill targets. Additional assay results are pending and will be reported as they become available. The updated Mineral Resource estimate and a Heap Leach PEA are expected to be released in Q2 2027. John Miniotis, President and CEO, stated that the results confirm the continuity of high-grade mineralization important to the mine plan and extend the oxide gold zone eastward, providing further exploration targets. The company remains on schedule for a final construction decision in Q2 2027.

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