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Andean Resources (ASX:ASL) has reported a significant increase in its mineral resource estimate (MRE) at the Cerro Bayo project, raising the total by 80% to 91 million ounces (Moz) of silver equivalent (AgEq). This boost in resource is set to further strengthen the company’s position within Chile’s Aysen Region.
The new MRE, which excludes data from ongoing drilling since Andean acquired the project, highlights the potential for future updates. The current resource is based on 8.3 million tonnes (Mt) of ore at an impressive grade of 342 grams per tonne (g/t) AgEq. The 80% increase in silver equivalent ounces correlates with a 64% rise in overall tonnage.
Cerro Bayo’s Expansion and High-Grade Ore
The updated resource covers both previously mined areas at Cerro Bayo and the Laguna Verde Mine Complexes, an area of particular interest. Andean Resources has also reported high-grade drill intersections from various parts of the project, including a standout 1-meter interval grading over 1,000g/t AgEq, consisting of 408g/t silver and 8.3g/t gold.
The mineralisation at Cerro Bayo remains open, with the company identifying several promising exploration targets. Drilling programs are set to expand, with rigs expected to continue exploration across these new areas.
Significant Growth Since Acquisition
Since acquiring the asset in early 2024, when the project had a JORC-compliant resource of 25Moz AgEq, Andean Resources has nearly quadrupled the size of its resource, adding an additional 66Moz at an average grade of 460g/t AgEq. This remarkable expansion underlines the project's rich potential and the company's strategic efforts to enhance its portfolio.
Exploration Continues with Pegaso 7 and Other Targets
Andean Resources’ drilling activities have produced outstanding results, particularly from the Pegaso 7 area, which lies outside the current mineral resource. The company has also discovered extensive mineralised veining through high-grade rock chip samples from multiple zones. These areas are earmarked for further drilling as part of the ongoing exploration and resource growth initiatives.
With Cerro Bayo's resource base growing rapidly and mineralisation still open at depth and along strike, Andean Resources is positioning itself for continued success in the region. The company’s efforts to expand the resource and explore new targets signal a promising future for the project and its contribution to silver and gold production in Chile.
