Advance Metals Launches Major Diamond Drilling Campaign at High-Grade Mexican Silver Project
Advance Metals Limited (ASX:AVM) has commenced an aggressive 3,000-metre diamond drilling program at its wholly-owned Yoquivo Silver-Gold Project in Chihuahua, Mexico. The fully-funded exploration campaign targets extensions to existing high-grade mineralisation whilst testing multiple regional prospects that have returned exceptional surface grades up to 1,594g/t silver equivalent.
The drilling follows earlier success this year where Advance intersected multiple zones of high-grade silver-gold mineralisation, including standout results of 4.42m at 446g/t AgEq and a spectacular 1.11m at 2,063g/t AgEq. Furthermore, with a diamond rig now mobilised in the Pertenencia area, the company is positioned to significantly expand the current Foreign Estimate of 17.23 million ounces AgEq at 570g/t AgEq.
This Advance Metals diamond drilling campaign represents a pivotal moment for the company's strategic expansion into Mexican precious metals exploration. The systematic approach demonstrates management's commitment to unlocking substantial value through targeted exploration programmes.
Drilling Targets High-Value Extensions and New Discoveries
The current Advance Metals diamond drilling campaign focuses on two strategic objectives that could substantially increase Yoquivo's resource base. These targets have been carefully selected based on geological interpretation and surface sampling results that validate the exploration strategy.
Down-Dip Extensions at Pertenencia:
- Targeting depth extensions below successful holes YQ-25-001, 002, and 007
- Previous drilling confirmed significant potential for resource expansion
- Focus on lower-central portion of the proven vein system
Regional Exploration Targets:
- Multiple holes planned west of Pertenencia
- Testing newly identified high-grade vein structures southeast of the Dolar Vein system
- Surface rock chip samples returned grades up to 1,594g/t AgEq
The company's systematic approach builds on earlier drilling success that delivered impressive intercepts across multiple holes. In addition, the geological model supports continued mineralisation at depth and along strike.
| Hole | Intersection | Grade | Depth |
|---|---|---|---|
| YQ-25-001 | 4.42m | 446g/t AgEq | 126.58m |
| YQ-25-002 | 16.37m | 104g/t AgEq | 133.23m |
| YQ-25-007 | 4.87m | 544g/t AgEq | 310.76m |
These results demonstrate both the continuity and high-grade nature of mineralisation at Yoquivo. Consequently, they provide strong confidence for the current expansion drilling and support the geological interpretation underlying the drilling strategy.
Understanding Silver Equivalent: Why This Metric Matters
Silver equivalent (AgEq) provides investors with a standardised way to compare precious metal projects by converting all valuable metals into a single silver-equivalent value. At Yoquivo, the calculation incorporates both silver and gold grades using current metal prices and expected recovery rates.
The Yoquivo Formula:
- AgEq g/t = Ag g/t + (Au g/t × Au price/Ag price)
- Based on $1,860/oz gold and $24/oz silver prices
- Assumes 85% recovery for both metals
This metric is crucial because it allows investors to quickly assess the total value potential of mineralisation across different metal concentrations. For instance, at Yoquivo, where both silver and gold contribute to the economic value, silver equivalent provides a clearer picture of the project's true grade and scale.
The silver equivalent calculation becomes particularly important when evaluating epithermal vein systems like those at Yoquivo. However, precious metal ratios can vary significantly across different zones. By standardising these values, investors can better understand the economic potential of drill intercepts and compare results across different areas of the project.
How Silver Equivalent Impacts Valuation
Understanding silver equivalent calculations helps investors assess the true economic potential of exploration results. The Advance Metals diamond drilling campaign will generate numerous assay results that require this standardised metric for proper evaluation.
Furthermore, silver equivalent grades allow for direct comparison with other precious metal projects globally. This standardisation becomes essential when evaluating the competitive position of Yoquivo within the broader silver exploration landscape.
Parallel Resampling Program Unlocks Hidden Value
Alongside the new drilling campaign, Advance is conducting an extensive resampling program of previously untested historic core from Pertenencia. This initiative involves relogging and assaying several thousand samples from earlier drilling programs, with initial results already confirming significant additional value.
Early Resampling Success:
- First batch of assays received in November
- Grades up to 848g/t AgEq confirmed
- Demonstrates substantial upside from historic material
The resampling program represents a cost-effective way to extract maximum value from past exploration investments. In addition, it builds a more comprehensive geological understanding of the deposit whilst the primary drilling program progresses.
This systematic approach to historic data often reveals mineralisation that was previously overlooked or not adequately sampled during earlier exploration phases. Consequently, the resampling work provides immediate value enhancement opportunities alongside the longer-term drilling results.
The first batch of assays from our resampling work has confirmed the silver and gold upside from this material with grades of up to 848g/t AgEq, according to the company announcement.
Strategic Value of Historic Data Review
The resampling program demonstrates Advance Metals' thorough approach to asset optimisation. However, this work also provides critical geological insights that inform the ongoing drilling campaign and future exploration targeting.
Furthermore, the integration of historic and new data creates a more robust geological model. This enhanced understanding supports more precise drilling targets and improves the probability of discovering additional high-grade zones.
Timeline and Path to JORC Resource Upgrade
The current exploration strategy follows a clear pathway to value creation with defined milestones extending into early 2026. The Advance Metals diamond drilling campaign forms a crucial component of this strategic timeline.
Q4 2024 – Q1 2025:
- Complete 3,000m diamond drilling program
- Continue resampling of historic core material
- Receive and analyse all assay results
Early 2026:
- Updated geological model incorporating all new data
- JORC Resource Estimate upgrade
- Integration with fully funded Mexican silver-gold growth strategy
This timeline positions Advance to deliver a significantly expanded resource base within 12-15 months. For instance, the systematic approach to data collection and geological modelling aims to maximise the confidence level in any future resource estimate.
Furthermore, this timeline provides multiple value catalysts for investors to track whilst identifying additional exploration targets. The methodical execution reduces technical risk and enhances the probability of successful resource expansion.
What Investors Should Expect
The structured timeline provides clear milestones for monitoring progress and assessing value creation. However, investors should understand that exploration programs can face operational challenges that may affect timing.
In addition, the quality of results will ultimately determine the scale of resource upgrade potential. The current high-grade intercepts provide confidence, but broader mineralisation continuity requires confirmation through systematic drilling.
Investment Case: Why Yoquivo Stands Out in Mexican Silver
Advance Metals has assembled a compelling investment proposition in the Mexican silver space through its acquisition and development of Yoquivo. The project combines several factors that distinguish it from typical exploration plays, particularly with the current Advance Metals diamond drilling campaign underway.
Proven High-Grade Mineralisation:
- Current Foreign Estimate of 17.23 million ounces AgEq
- Exceptional grades averaging 570g/t AgEq
- Consistent intercepts across multiple drill holes
Exploration Upside Potential:
- Multiple untested regional targets identified
- Surface sampling confirms high-grade extensions
- Systematic drilling approach targeting known mineralisation
Strategic Advantages:
- 100% ownership with no joint venture complications
- Located in established mining jurisdiction
- Fully funded exploration programs
The combination of existing resources, proven grades, and clear expansion targets provides investors with both near-term catalysts and long-term growth potential. Furthermore, the location in one of Mexico's most prospective silver regions adds geological confidence to the exploration thesis.
Competitive Positioning in Silver Exploration
The Yoquivo project's high-grade characteristics set it apart from many silver exploration projects globally. However, the key differentiator lies in the combination of established resources with significant expansion potential.
Moreover, the fully funded status eliminates near-term dilution risks that often impact exploration companies. This financial strength allows management to execute the drilling program without compromising shareholder value through additional capital raises.
Regional Context: Chihuahua's Mining Heritage
The Yoquivo project is situated in southwestern Chihuahua, Mexico, a region with a long history of precious metals production. This geological setting is characterised by epithermal vein systems that have historically produced significant quantities of silver and gold throughout the district.
The regional geology consists of volcanic and sedimentary rocks that provide favourable conditions for precious metal mineralisation. For instance, similar geological settings in the broader Sierra Madre Occidental have hosted numerous world-class silver deposits.
Understanding this geological context is important for investors as it provides confidence in the mineralisation model. Furthermore, it highlights the potential for discovery of additional vein systems within the broader project area, supporting the rationale for the current Advance Metals diamond drilling campaign.
Geological Advantages of the Setting
The epithermal environment at Yoquivo represents an optimal setting for high-grade precious metal mineralisation. However, the structural controls and alteration patterns provide clear exploration vectors for expanding the known resource base.
In addition, the regional prospectivity suggests potential for district-scale discoveries beyond the current resource areas. The systematic exploration approach positions Advance Metals to capitalise on these broader opportunities whilst developing the core Yoquivo resource.
Why Investors Should Track Advance Metals
Advance Metals has positioned itself at an inflection point where successful execution of the current drilling program could substantially increase the company's asset base and market valuation. Several factors make this an opportune time for investor attention, particularly with the Advance Metals diamond drilling campaign generating near-term catalysts.
Immediate Catalysts:
- 3,000m drilling program underway with results expected through Q1 2025
- Historic core resampling providing near-term value adds
- Multiple high-priority targets being tested simultaneously
Medium-Term Value Drivers:
- JORC Resource upgrade targeted for early 2026
- Potential for significant resource expansion at depth and regionally
- Strategic position in Mexican silver sector
Operational Strengths:
- Experienced management team with proven track record
- Fully funded exploration programs eliminating dilution risk
- Systematic exploration approach maximising success probability
The current drilling campaign represents a pivotal moment for Advance Metals. Consequently, there is potential to transform Yoquivo from a promising silver project into a substantial resource base that could attract significant industry attention.
Furthermore, the combination of immediate drilling results and medium-term resource upgrade potential provides multiple opportunities for value realisation. This dual catalyst approach reduces investment risk whilst maintaining significant upside potential.
Key Metrics for Investor Evaluation
| Key Investment Metrics | Current Status |
|---|---|
| Resource Estimate | 17.23Moz AgEq at 570g/t |
| Drilling Program | 3,000m underway |
| Funding Status | Fully funded |
| Ownership | 100% |
| Target Completion | Early 2026 |
Investment Takeaway: Advance Metals has established a strong foundation at Yoquivo with proven high-grade mineralisation and multiple expansion targets. With an aggressive drilling program now underway and a clear pathway to resource growth, investors should monitor developments closely as the company works toward a major resource upgrade in 2026.
The systematic approach to exploration, combined with the high-grade nature of existing intersections, positions Advance Metals favourably. However, the potential for significant resource expansion creates a compelling opportunity in the Mexican precious metals sector.
In addition, investors seeking exposure to high-grade silver-gold projects with clear development pathways will find the current Advance Metals diamond drilling campaign particularly noteworthy. The combination of immediate catalysts and strategic positioning provides multiple avenues for value creation over the coming months.
Could Advance Metals Transform Yoquivo Into a Major Silver Discovery?
With a fully funded 3,000-metre diamond drilling campaign now underway and historic core resampling delivering grades up to 848g/t AgEq, Advance Metals is positioned to potentially deliver significant resource growth at its wholly-owned Yoquivo project. The combination of proven high-grade mineralisation, multiple expansion targets, and a clear pathway to JORC resource upgrade in early 2026 presents compelling catalysts for investors to monitor. To explore the investment potential and track progress on this aggressive exploration programme targeting extensions to the current 17.23 million ounce AgEq resource, visit the Advance Metals investor centre.
