Advance Metals Commences High-Grade Gavilanes Silver Project Drilling in Mexico

Advance Metals Puts the Drill to Work at Gavilanes — A High-Grade Mexican Silver System Steps Into the Spotlight

Advance Metals Limited (ASX: AVM) has commenced its maiden diamond drilling program at the 100%-owned Gavilanes Silver Project in Durango, Mexico — a project already underpinned by a substantial Foreign Estimate and a track record of exceptional shallow silver grades from previous explorers. With up to 4,500 metres of drilling across 15 to 18 holes now underway, the Advance Metals Gavilanes silver project drilling in Mexico is entering a decisive exploration phase that could deliver meaningful news flow throughout 2025 and set the stage for a planned JORC Resource upgrade.

A Silver System That Demands Attention

Gavilanes is not a blank canvas. Previous explorers drilled 48 diamond holes totalling 9,667.9 metres across the project, establishing a north-south mineralised trend spanning more than 700 metres. That work yielded a Foreign Estimate of 2.83Mt at 246g/t AgEq, containing 22.4Moz AgEq — a meaningful inventory by any standard, and one that has never been tested by Advance under its own technical program.

Crucially, high-grade mineralisation remains open at depth and along strike in multiple directions. That open-ended geometry is precisely what Advance's technical team is now targeting.

"Gavilanes already hosts a substantial high-grade Foreign Estimate and previous drilling has returned exceptional silver grades from shallow depths. Our maiden program is designed to test extensions to the known mineralisation, assess new discovery targets and generate the data required to support a planned JORC Resource upgrade later this year."

— Dr Adam McKinnon, Managing Director & CEO, Advance Metals Limited

What Previous Drilling Has Already Delivered

The intercepts from prior exploration campaigns at Gavilanes are genuinely striking. The grades recorded — at shallow depths — reflect a high-grade epithermal silver system with real geological substance.

These grades are consistently high, largely shallow, and spread across a mineralised corridor — a combination that supports the geological case for further resource growth at depth and along strike.

The first Advance drill hole, GV-26-001, has been positioned to target mineralisation down dip to the west of SCHN-12 — one of the most significant holes in the database. SCHN-12 itself contains a contiguous mineralised zone exceeding 80 metres of downhole length, including 7m at 507 g/t Ag, 6.3m at 2,016 g/t Ag, and 4.3m at 1,279 g/t Ag.

Understanding the Program's Three-Part Structure

The Gavilanes exploration program is not a single-dimensional drill campaign. It has been designed to generate value across three complementary work streams simultaneously:

1. Depth and strike extensions to known mineralisation — The majority of drilling targets down-dip and along-strike extensions to the existing Foreign Estimate, where open mineralisation offers the strongest probability of resource growth.

2. New discovery targets — Drilling is also planned at the El Nopal prospect to the southeast, and the La Cruz and La Tuna prospects to the west. These peripheral targets sit outside the current Foreign Estimate footprint and carry genuine discovery potential.

3. Historic core resampling — A review of previous drilling has identified unassayed core at Gavilanes, mirroring a strategy Advance applied successfully at Yoquivo. A targeted resampling program is set to commence over the coming weeks, providing a cost-effective route to generating additional geological and assay data.

This multi-pronged approach is designed to maximise the volume and quality of data ahead of the planned JORC Resource conversion — and to maintain consistent news flow while drilling progresses.

What Is a "Foreign Estimate" — and Why Does It Matter?

For investors unfamiliar with resource reporting standards, the distinction between a Foreign Estimate and a JORC Mineral Resource is an important one.

A Foreign Estimate is a resource estimate prepared under a different reporting code — in Gavilanes' case, the Canadian NI 43-101 standard. While this estimate (22.4Moz AgEq at 246 g/t AgEq) represents the work of qualified technical professionals, it has not yet been reviewed and validated by an Australian Competent Person under the 2012 JORC Code. Under ASX Listing Rules, it cannot be treated as a confirmed JORC Mineral Resource until that validation work is completed.

Why Does This Matter to Investors?

A Foreign Estimate is best understood as a working estimate of mineralisation that provides a reasonable starting point — but its conversion to a JORC-compliant resource requires additional work, verification, and independent sign-off. For Advance, the maiden drilling program and historic core resampling are the tools being used to generate the data needed for that conversion. A successful JORC upgrade would represent a material de-risking milestone for the project and is a key catalyst for investors to monitor.

Silver Equivalent (AgEq) explained: Silver Equivalent is a way of expressing the total value of multiple metals found in mineralisation. The Gavilanes Foreign Estimate includes silver, gold, copper, lead, and zinc, all converted to a single silver equivalent figure using assumed prices and metallurgical recovery rates. This approach allows investors to understand the total metal value in simplified terms, though actual economic value depends on successful extraction of all metals included in the calculation.

Gavilanes in the Context of Advance's Mexican Silver Strategy

Gavilanes does not sit in isolation. It is the next priority asset in Advance's deliberately constructed Mexican silver portfolio — a strategy that has already delivered a concrete proof point.

In April 2025, Advance reported a maiden 33Moz AgEq JORC Mineral Resource at its Yoquivo Silver Project. That result demonstrated the company's capacity to systematically move a project from acquisition through to JORC-compliant resource definition. Advance is now applying the same framework at Gavilanes, consequently reinforcing the strength of its overall silver growth strategy.

The strategic logic is straightforward: build a portfolio of high-grade Mexican silver assets, systematically advance each through exploration and resource definition, and generate a consolidated base of JORC-compliant inventory that reflects the true scale of the company's silver holdings.

"Following the successful delivery of our maiden 33Moz AgEq JORC Resource at Yoquivo, we are now applying the same disciplined and systematic approach at Gavilanes, combining targeted diamond drilling with a review and sampling of historic core to unlock value from another high grade Mexican silver system."

— Dr Adam McKinnon, Managing Director & CEO, Advance Metals Limited

Understanding Epithermal Silver Systems

Gavilanes is classified as an epithermal silver system — a specific type of mineralisation that forms when hot, metal-rich fluids from deep underground rise and deposit metals in fractures and veins near the Earth's surface. These systems are prized by exploration companies because they can host high-grade silver mineralisation in relatively shallow, easily accessible deposits.

Epithermal systems typically form in volcanic environments and are characterised by:

• High-grade silver with associated gold — often found together in these systems
• Shallow formation depth — making them easier and cheaper to explore and potentially mine
• Vein-hosted mineralisation — silver occurs in distinct zones that can be targeted by drilling
• Gangue minerals — associated minerals like quartz that help geologists identify productive zones

Furthermore, Mexico hosts some of the world's most significant epithermal silver systems, with the country ranking as the world's largest silver producer. The geological setting at Gavilanes shares characteristics with other productive Mexican silver districts, supporting the technical rationale for continued exploration.

Upcoming Catalysts and Timeline

The Advance Metals Gavilanes silver project drilling in Mexico is structured to generate a sequence of news flow over the remainder of 2025 and into 2026. Key milestones to monitor include:

The program's 15 to 18 holes will be spread across both resource extension targets and peripheral prospects, meaning there are multiple windows for material results throughout the drilling campaign.

The Investment Case: Why Gavilanes Is Worth Watching

Several factors combine to make Gavilanes a compelling near-term catalyst for Advance:

High-grade system with proven intercepts. Previous drilling has already demonstrated that exceptional grades — including multiple intercepts above 500 g/t Ag at shallow depths — exist across the project. The system's credentials are well-established.

Mineralisation remains open. The existing Foreign Estimate covers a 700-metre trend, with mineralisation confirmed as open at depth and along strike. That geometry provides a clear mandate for the drilling program and a credible pathway to resource growth.

A proven blueprint. Advance's success in taking Yoquivo from acquisition to a 33Moz AgEq JORC Resource demonstrates that the team has the technical methodology and execution capability to repeat the process.

Low-cost data generation running in parallel. The historic core resampling program adds an additional data stream alongside drilling without proportional additional cost — a capital-efficient approach to resource definition.

Clear, near-term JORC conversion target. The program has been explicitly designed to support a JORC Resource upgrade at Gavilanes later in 2026. That milestone, if achieved, would represent a material de-risking event and a meaningful addition to the company's JORC-compliant inventory.

Key Technical Terms Explained

What Is Diamond Drilling?

Diamond Drilling is a drilling method using a rotating diamond-tipped drill bit to extract a continuous cylindrical core of rock for geological analysis and assay sampling. This provides more detailed geological information than other drilling methods.

What Does "Down-Dip" Mean?

Down-dip refers to the direction in which a mineralised zone descends below the surface — drilling down-dip tests whether mineralisation continues deeper into the earth.

Other Key Terms

Strike Extension: Mineralisation that extends laterally (horizontally) beyond the boundaries of a currently defined resource or estimate.

g/t Ag: Grams of silver per tonne of rock — the standard unit for expressing silver grade. For context, grades above 100 g/t Ag are generally considered high-grade.

Assay: The chemical analysis of rock samples to determine metal content and grade.

Core Sampling: The process of taking portions of drill core for laboratory analysis to determine metal grades and geological characteristics.

Key Takeaway:

The Advance Metals Gavilanes silver project drilling in Mexico has positioned the company as a systematic builder of high-grade Mexican silver assets. With a Foreign Estimate of 22.4Moz AgEq already in place, exceptional historic intercepts confirmed at shallow depths, a multi-target drilling program underway, and a JORC Resource upgrade planned for 2026, Gavilanes represents a well-defined near-term catalyst sequence for investors tracking AVM's silver growth story.

Ready to Explore the Advance Metals Investment Case?

Advance Metals (ASX: AVM) is systematically building one of the most compelling high-grade silver portfolios in Mexico — with a maiden JORC Resource already delivered at Yoquivo and drilling now underway at Gavilanes, where a 22.4Moz AgEq Foreign Estimate and exceptional historic intercepts provide a strong foundation for resource growth. For investors looking to understand the full scope of AVM's silver strategy, project pipeline, and upcoming catalysts, visit the Advance Metals investor page to find out more.