Advance Metals Accelerates Exploration at High-Grade Guadalupe y Calvo Gold-Silver Project
Advance Metals Limited (ASX: AVM) is ramping up activities at its recently acquired Guadalupe y Calvo (GyC) Gold-Silver Project in Chihuahua, Mexico, with technical teams already on site preparing for an initial drilling program that aims to expand the project's substantial existing resource base.
Major Gold-Silver Project Shows Significant Resource Potential
In a strategic acquisition completed in July 2025, Advance secured 100% ownership of the GyC Project from Canadian miner Endeavour Silver Corp. The project already hosts a Foreign Estimate resource of 9.50 million tonnes at 2.7g/t gold-equivalent (AuEq), containing approximately 816,000 ounces of AuEq or 60.6 million ounces of silver equivalent (AgEq).
This acquisition significantly strengthens Advance's precious metals portfolio in Mexico, with technical teams now working to upgrade the Foreign Estimate to JORC-compliant status in the coming weeks.
"Our team has moved quickly to advance the GyC Project since its acquisition. We've identified numerous opportunities to expand the existing resources and make potential new discoveries across the project area," commented Dr. Adam McKinnon, Managing Director and CEO of Advance Metals.
Exploration Program Taking Shape
Advance's technical team has completed initial site inspections focusing on:
- Access conditions assessment
- Examination of existing mine workings
- Evaluation of previous and potential new drill sites
- Early engagement with local community representatives
The company is now finalising its initial drilling program design, which will prioritise extensions to the known high-grade mineralisation in the Rosario-Nankin vein system that hosts the current Foreign Estimate.
A key focus will be the northwestern portion of the Rosario vein, which appears to have been offset by the La Bufa Fault. This area remains:
- Relatively poorly drilled to date
- Completely open along strike
- Open at depth
- A high-priority target for resource expansion
Regional Discovery Potential
Beyond the immediate resource area, Advance has identified significant regional exploration upside at GyC:
| Target Area | Location | Key Features |
|---|---|---|
| El Chapito | South | Kilometres of mapped prospective veining |
| San Carlos | North | Extensive vein systems with minimal previous exploration |
These areas feature mapped veins extending over a 7-8 kilometre strike length but have seen very little exploration compared to the Rosario-Nankin system, presenting substantial discovery potential.
Understanding Gold Equivalent Calculations in Mining Projects
Gold equivalent (AuEq) is a common metric used in the mining industry to express the combined value of multiple metals in terms of a single metal. At the GyC Project, this calculation helps investors understand the combined value of both gold and silver resources.
The AuEq calculation for GyC is based on:
- Preliminary leaching test work by previous owners
- Assumed gold price of US$1,700/oz
- Assumed silver price of US$23/oz
- Recovery rates of 95% for both metals based on test work
This translates to a formula of: AuEq g/t = Au g/t + (Ag g/t × Ag price/Au price)
For investors, understanding this calculation helps provide a clearer picture of the project's total value and allows for easier comparison with other precious metals projects.
What Makes Gold Equivalent Important for Investors?
Gold equivalent calculations serve several important purposes for investors evaluating mining projects:
Simplified Comparison: By converting multiple metals into a single metric, investors can more easily compare different projects and assess their relative value.
Resource Valuation: Gold equivalent provides a standardised way to understand the economic potential of a deposit, accounting for the different values of each metal.
Development Planning: Companies use gold equivalent calculations to prioritise which areas of a deposit to focus on first, targeting zones with the highest equivalent grades.
In the case of the GyC Project, the gold equivalent calculation incorporates both the gold and silver content, with silver converted to its gold equivalent value based on current metal prices and recovery rates. This gives investors a single figure representing the total precious metal content of the deposit.
Upcoming Milestones and Timeline
Advance has outlined several near-term activities at GyC:
- Finalisation of initial drilling program design
- Submission of required government approvals for drilling
- Continued community engagement
- Commencement of work to upgrade the Foreign Estimate to a JORC-compliant Resource
The company expects to provide further updates on the drilling program and resource upgrade work in the coming weeks.
Investment Thesis: Why GyC Matters
The GyC Project represents a significant value driver for Advance Metals for several reasons:
-
Substantial Existing Resource Base: The Foreign Estimate of 816,000 ounces AuEq (60.6 million ounces AgEq) provides a solid foundation.
-
High-Grade Potential: Previous drilling has confirmed high-grade gold and silver mineralisation.
-
Multiple Growth Pathways:
- Resource expansion at the known Rosario-Nankin veins
- Regional discovery potential at El Chapito and San Carlos
- Upgrading Foreign Estimate to JORC status to enhance market recognition
-
Rapid Development Timeline: Advance has moved quickly from acquisition to on-ground activities, demonstrating management's commitment to advancing the project.
Why Investors Should Follow Advance Metals
Advance Metals is positioning itself as an emerging precious metals developer with significant upside potential:
-
Growing Resource Base: The GyC acquisition has substantially increased the company's precious metals inventory, with the Foreign Estimate adding 60.6 million ounces of AgEq to Advance's Mexican portfolio.
-
Exploration Upside: The combination of resource expansion opportunities and regional discovery potential provides multiple pathways to growth.
-
Experienced Leadership: The technical team, led by Dr. Adam McKinnon, brings relevant expertise in the style of mineralisation, type of deposit under evaluation, and the associated activities being targeted.
-
Near-term Catalysts: The upcoming drilling program and resource upgrade work provide potential share price catalysts in the coming months.
-
Strategic Position in Mexico: The company is building a significant portfolio of precious metals projects in Mexico, a tier-1 mining jurisdiction.
With the GyC Project now advancing toward its initial exploration program and ongoing work to establish JORC-compliant resources across its Mexican portfolio, Advance Metals offers investors exposure to a growing precious metals company with multiple catalysts on the horizon.
The Significance of JORC Compliance
For investors not familiar with mining terminology, JORC compliance refers to resources reported according to the standards set by the Joint Ore Reserves Committee (JORC) Code. This Australian code establishes minimum standards for public reporting of mineral resources and ore reserves.
The upcoming upgrade of the GyC Foreign Estimate to JORC status represents an important milestone that:
- Provides increased confidence in the resource estimate
- Ensures the resource estimate meets internationally recognised standards
- Allows for more direct comparison with other Australian-listed mining companies
- Typically requires verification of existing data and potentially additional technical work
This process demonstrates Advance Metals' commitment to bringing its Mexican portfolio up to industry-leading reporting standards, providing investors with greater confidence in the company's resource base.
Ready to Explore This High-Grade Gold-Silver Opportunity?
To learn more about Advance Metals' promising Guadalupe y Calvo Gold-Silver Project in Mexico and how it could enhance your investment portfolio, visit Advance Metals' investor page today. Discover the company's growth strategy, resource potential and upcoming catalysts that could drive significant shareholder value in this emerging precious metals developer.
