Andean Silver Progresses Cerro Bayo Silver-Gold Project in Chile's Historic Mining Hub

Strategic Positioning of Cerro Bayo in Chile's Established Silver District

Andean Silver’s primary asset, the Cerro Bayo silver-gold project, is located within one of South America’s most prominent silver-producing regions. Chile’s historic silver district has supported mining activities for centuries, offering a proven operational environment with established infrastructure, skilled labor, and regulatory frameworks familiar to international mining operators. This advantageous location provides operational benefits including proximity to transport networks, power supply, and essential services that facilitate both exploration and future production.

The project's placement in a historically productive silver district reduces exploration risk due to documented commercial silver mineralization. This geological precedent supports the potential scale and quality of mineralization at Cerro Bayo. Furthermore, the regulatory and community engagement frameworks in this established mining jurisdiction are well-developed, enhancing the project's development prospects. The strategic importance of this location was underscored as resource estimation efforts progressed through 2025 and into 2026.

Remarkable Resource Expansion: 60 Million Ounces Silver Equivalent Indicated Resource

A pivotal achievement for Andean Silver was the announcement on 30 June 2026 of an Indicated Resource totaling 60 million ounces silver equivalent. This represents a 230% increase over previous resource estimates, reflecting significant advancement in defining Cerro Bayo’s mineral endowment. The increase in the Indicated Resource category, which denotes higher geological confidence than Inferred Resources, indicates successful drilling campaigns and refined geological modelling conducted during 2024 and 2025.

This resource growth is notable not only for its size but also for the maintained or enhanced confidence in the estimate. The progression to the current 60 million ounce silver equivalent figure demonstrates the effectiveness of Andean Silver’s exploration strategy and the robust geological framework at Cerro Bayo. This expanded resource base underpins upcoming feasibility studies and preliminary economic assessments critical for advancing the project toward development decisions. Investors typically view such substantial resource growth as a positive indicator of project potential and management execution.

Comprehensive Exploration Results from Multi-Year Drilling Campaigns

The latest update consolidates exploration results from a series of announcements spanning December 2023 through July 2026. This sustained, systematic exploration program highlights Andean Silver’s commitment to resource definition and geological understanding at Cerro Bayo. Drilling campaigns conducted in December 2023, March 2024, April 2024, May 2024, July 2024, August 2024, September 2024, October 2024, December 2024, January 2025, February 2025, March 2025, June 2025, August 2025, October 2025, December 2025, and early to mid-2026 have contributed to the evolving geological model.

This continuous stream of exploration data reflects an active field program aimed at expanding mineralization zones and upgrading resource classifications. The disciplined exploration schedule across multiple seasons and campaigns demonstrates effective capital allocation and operational planning. Each announcement has added valuable data culminating in the 60 million ounce silver equivalent Indicated Resource estimate released in June 2026. The consistent updates have maintained project visibility within the investment community, offering regular insights into progress toward development.

Adherence to JORC Code for Transparent Resource Reporting

Andean Silver reports its mineral resources in compliance with the Joint Ore Reserves Committee’s Australasian Code for Reporting of Mineral Resources and Ore Reserves (JORC Code). This mandatory framework for ASX-listed companies ensures resource estimates are presented with consistent, internationally recognized standards, providing transparency and comparability for investors. The 60 million ounce silver equivalent Indicated Resource and associated classifications have been evaluated using established methodologies aligned with best practices in the mining industry.

Investors should note that while the company’s estimates comply with JORC standards, these may not be directly comparable to resource estimates under other regulatory regimes such as Canada’s NI 43-101 or the U.S. SEC guidelines. This distinction is important for international stakeholders assessing Cerro Bayo relative to other global silver projects. Andean Silver’s commitment to JORC compliance aligns with ASX Listing Rules and offers a familiar reporting standard for institutional investors and analysts.

Advancing Project Development and Feasibility Study Timeline

With the expanded Indicated Resource base, Andean Silver is positioned to progress Cerro Bayo into subsequent evaluation and development phases. The typical project progression involves moving from resource definition to preliminary economic assessment (PEA), followed by prefeasibility and feasibility studies. These assessments evaluate the technical and economic viability of developing the resource into a producing mine and inform management and board decisions.

The geological foundation established through exploration in 2024 and 2025 supports these next steps. Investors generally focus on resource quality, exploration upside, and capital efficiency during this phase. Cerro Bayo benefits from Chile’s stable mining regulatory environment and existing infrastructure. Upcoming milestones to monitor include PEA commencement or completion, resource classification updates from further drilling, and progress in permitting and community engagement.

Silver-Gold Commodity Exposure and Economic Implications

Cerro Bayo’s classification as a silver-gold project means its economic value derives from both metals, reported as silver equivalent ounces. This dual exposure diversifies precious metals risk, with project economics sensitive to fluctuations in silver and gold prices. Silver prices are influenced by industrial demand (notably electronics and solar), investment demand, and macroeconomic factors, while gold prices are primarily driven by investment demand, currency movements, and economic sentiment. Reporting resource estimates in silver equivalent ounces consolidates both metals’ contributions to project value.

The relative silver and gold proportions affect the project’s price sensitivity profile. Silver typically represents a larger tonnage at lower prices compared to gold. This commodity mix is crucial for investors assessing project economics and market exposure. Precious metals price movements can significantly impact Cerro Bayo’s economic attractiveness and influence development timing. Early-stage precious metals developers aim to advance projects during favorable commodity price cycles to ensure positive economic returns.

Capital Needs and Funding Strategy for Project Advancement

Andean Silver’s update includes forward-looking statements acknowledging the need for additional funding to support ongoing exploration, resource drilling, and engineering and environmental studies required for project advancement. Early-stage precious metals companies commonly finance activities through equity raises, operational cash flow if available, and partnerships or joint ventures with larger miners or institutional investors.

The company’s capital-raising capability depends on market perceptions of project quality, management execution, and commodity price outlook. The 230% increase in Indicated Resource announced in June 2026 strengthens the funding narrative by demonstrating exploration success and a larger resource base for economic studies. Investors should watch for announcements on capital raises, partnerships, or strategic alternatives, as these typically precede major project development phases. The company’s forward-looking statements appropriately highlight funding as a key factor influencing development timelines.

Regulatory, Environmental, and Title Risks in Chilean Mining Operations

Forward-looking statements also identify risks related to regulatory restrictions, environmental compliance, and potential title disputes. Although Chile is recognized for stable mining regulations and established environmental approval processes, mining projects must comply with increasingly stringent environmental legislation. Environmental assessments and approvals are critical prerequisites for transitioning from exploration to development, with timing and costs materially affecting project economics.

Mining rights in Chile are governed by the Chilean mining code and related regulations. While Andean Silver’s exploration likely occurs within granted concessions, the legal security of these rights is vital for long-term development. Changes in Chilean mining laws, environmental regulations, or disputes with indigenous or local communities regarding land use could materially impact the project’s development. These regulatory and social risks are inherent to South American mining ventures and are important considerations for investors evaluating project risk profiles.

Commodity Price Volatility and Its Influence on Project Viability

Andean Silver’s update emphasizes that commodity price volatility is a significant risk factor affecting project outcomes. Silver and gold prices fluctuate based on global supply-demand dynamics, investment sentiment, macroeconomic conditions, and currency movements. Extended periods of low precious metals prices can render exploration projects uneconomical, causing delays or reduced capital expenditure.

The economic viability of Cerro Bayo depends on achieving positive returns when development and operating costs are weighed against projected revenues at assumed commodity prices in feasibility studies. Historically, silver prices have ranged from approximately USD 12 to over USD 48 per ounce, with gold prices exhibiting even greater variability. For an early-stage developer like Andean Silver, advancing the project during favorable commodity price environments is critical, while maintaining flexibility to adjust timelines if market conditions change. The company’s exploration progress and resource growth remain valuable regardless of short-term price fluctuations, but final development decisions will be heavily influenced by metals prices at the time of investment.