Advance Metals Strikes High-Grade Silver at Gavilanes Project, Mexico

Advance Metals Strikes High-Grade Silver in Maiden Gavilanes Drill Hole, Setting the Stage for a Major Resource Upgrade

Advance Metals Limited (ASX: AVM) has delivered a standout first result from its maiden diamond drilling program at the 100%-owned Gavilanes Silver Project in western Durango, Mexico. The Advance Metals high grade silver drill results at Gavilanes project Mexico represent a significant milestone, with inaugural hole GV-26-001 intersecting a broad zone of high-grade silver mineralisation — 33.9 metres at 220g/t Ag from 117.6 metres depth, including a high-grade core of 6.2 metres at 718g/t Ag from 133 metres.

The result validates the company's targeted drill strategy and signals meaningful growth potential for a project already hosting a substantial Foreign Estimate of 22.4 million ounces of silver equivalent at 246g/t AgEq.

With two additional holes completed or in progress and a full program of 15 to 18 holes for up to 4,500 metres underway, Advance Metals is moving with purpose toward a JORC Mineral Resource upgrade targeted for early Q4 CY2026.

The Headline Number: What GV-26-001 Actually Returned

The first hole was drilled 80 metres down-dip from a previously known high-grade zone in historic hole SCHN-122, targeting extensions to the Descubridora structure — the central feature of the Gavilanes system. The result was a broad, continuous zone of silver mineralisation that exceeded expectations in both width and grade.

A notable feature of the hole is the character of mineralisation at depth. Deeper intercepts show a transition toward a more polymetallic signature — higher concentrations of copper, lead, and zinc alongside strong silver — with peak assay grades reaching 0.9 metres at 467g/t Ag, 0.6g/t Au, 1.4% Cu, 1.4% Pb, and 2.1% Zn from 169 metres.

This style of mineralisation is associated with breccia zones and structural complexity typical of the deposit type, and consequently adds further commodity breadth to the project's overall value profile.

What Does the CEO Make of These Results?

Managing Director & CEO Dr Adam McKinnon commented:

"This is an excellent first result from our maiden drilling program at Gavilanes and provides early validation of the strategy we outlined when drilling commenced in May. GV-26-001 has intersected a broad zone of high grade silver mineralisation, including 6.2m at 718g/t Ag, in an area where we are targeting extensions to the known high grade system. Gavilanes already hosts a substantial high grade Foreign Estimate, and these first assays strengthen our confidence in the project's potential to support a planned JORC Resource upgrade later this year."

Understanding the Geology: What Makes Gavilanes Tick

What Is a Low- to Intermediate-Sulphidation Epithermal Deposit?

Gavilanes is classified as a low- to intermediate-sulphidation epithermal silver-gold system — one of the most economically significant deposit styles for precious metals globally. These deposits form when hydrothermal fluids (hot, mineralised water) circulate through fractures and breccia zones in volcanic rocks at relatively shallow crustal depths, depositing silver, gold, and base metals as the fluids cool.

Why Does This Matter for Investors?

• These systems are known to host high-grade, narrow-to-moderate width veins that can be amenable to selective, lower-cost mining methods
• The Sierra Madre Occidental belt in western Mexico — where Gavilanes sits — is one of the world's most prolific silver-producing regions, hosting numerous world-class deposits
• The structural complexity seen in GV-26-001, including breccia zones and hydrothermal alteration, is considered consistent with the deposit style that hosts the known Foreign Estimate

Glossary of Key Terms

• AgEq (Silver Equivalent): A combined grade figure that converts gold, copper, lead, and zinc into a silver-equivalent value using metal prices and recovery assumptions, allowing a single number to represent total metal content
• Foreign Estimate: A mineral estimate prepared under an international reporting standard (in this case Canada's NI 43-101) that has not yet been independently verified to JORC Code standards. It is not a JORC Mineral Resource
• JORC Mineral Resource: An estimate of the quantity and grade of mineralisation that meets the standards of the Australasian Code for Reporting of Mineral Resources and Ore Reserves — the benchmark standard for ASX-listed companies
• Epithermal: Refers to ore deposits formed at shallow depths (typically less than 1.5 km) from low-temperature hydrothermal fluids
• NQ Core: A diamond drill core size with a diameter of 47.6 millimetres, commonly used in resource-stage drilling programs

A Strong Starting Point: The Existing Foreign Estimate

Before a single new hole was drilled, Gavilanes already carried meaningful scale. The project hosts a Foreign Estimate (NI 43-101 standard) of:

This Foreign Estimate is not yet compliant with the 2012 JORC Code, and a Competent Person has not completed sufficient work to classify it as a JORC Mineral Resource or Ore Reserve. It is uncertain that following evaluation and further exploration work the Foreign Estimate will be able to be reported as Mineral Resources or Ore Reserves in accordance with the JORC Code 2012.

However, the scale and grade of this estimate provide important context for the ambition of the current drilling program — which is explicitly designed to support a JORC-compliant upgrade. Furthermore, the deposit sits within eleven mining concessions covering 13,594 hectares, with concession tenures extending in many cases to the 2050s and 2060s, providing long-term security of tenure for the program ahead.

What's Coming Next: A Clear Pathway to Resource Growth

The program is well advanced and the news pipeline is active. Key milestones on the near-term horizon include:

1. Assay results from GV-26-002 — completed to 291 metres, targeting the southern extension of the Descubridora structure. Results pending.
2. Completion of GV-26-003 — currently drilling to a proposed 350 metres on the same drill section, targeting further extensional mineralisation.
3. Continued drilling across the full program of 15 to 18 holes for up to 4,500 metres.
4. Historic core sampling — review and sampling of previously drilled core to generate additional geological and assay data at low cost.
5. Updated geological model — incorporating lithological, structural, and geochemical data from all new holes.
6. JORC Mineral Resource upgrade — targeted for completion in early Q4 CY2026, underpinned by the full drilling dataset and updated model.
7. Exploration beyond the known system — testing priority targets outside the current Foreign Estimate area to assess the broader-scale potential of Gavilanes.

Placing Gavilanes in the Bigger Picture: A Two-Project Mexican Growth Story

The Gavilanes result does not sit in isolation. Dr McKinnon's comments drew a direct line between this project and the company's broader Mexican portfolio, referencing a "highly successful drilling program at the Yoquivo Project, where the endowment has doubled to 33Moz silver-equivalent."

This positions Advance Metals as a company executing across two advancing silver projects simultaneously, with a combined portfolio that the company describes as presenting "an unparalleled growth and development opportunity." Both projects are now generating active news flow, and the pathway to upgraded, JORC-compliant resources across both assets is being actively prosecuted.

The combination of Gavilanes' geological scale (22.4Moz AgEq Foreign Estimate), the high-grade nature of first-drill results (220g/t over nearly 34 metres), and the polymetallic deepening of mineralisation at depth all contribute to a project profile that is clearly at an inflection point. The Advance Metals high grade silver drill results at Gavilanes project Mexico therefore reinforce a portfolio narrative that is becoming increasingly compelling.

Why Investors Should Keep a Close Watch on AVM

Advance Metals enters the second half of 2026 with a combination of catalysts, assets, and operational momentum that warrants close investor attention:

• Proven high-grade mineralisation: First hole at Gavilanes confirms broad, high-grade silver over 33.9 metres — well beyond typical early-stage confirmation results
• Multiple near-term assay catalysts: GV-26-002 assays and GV-26-003 progress represent two near-term data points that could further expand the known system
• Clear resource upgrade target: A defined JORC Mineral Resource for Gavilanes is targeted by early Q4 CY2026, providing a concrete value-creation milestone
• Scale of existing Foreign Estimate: A 22.4Moz AgEq starting point at 246g/t AgEq provides a substantial base from which a JORC-compliant resource could be built
• Dual-project portfolio: The Yoquivo project's reported 33Moz AgEq endowment adds further scale to the company's overall silver inventory
• 100% ownership: Gavilanes is wholly owned, with no dilution from joint venture partners on the project's upside
• Established tenure: Concessions in good standing covering 13,594 hectares with multi-decade validity

In summary, the Advance Metals high grade silver drill results at Gavilanes project Mexico have firmly established this asset as one to watch. With further assay results imminent and a JORC resource upgrade on the horizon, AVM presents a period of high-frequency, potentially value-defining news flow.

Key Takeaway:

Advance Metals (ASX: AVM) has delivered a compelling first result from its maiden Gavilanes drill program — broad, high-grade silver with a growing polymetallic signature at depth — against the backdrop of a substantial existing Foreign Estimate. With multiple assay results pending, a 15–18 hole program underway, and a JORC Mineral Resource upgrade targeted for early Q4 CY2026, the company is entering a period of significant news flow. For investors tracking silver exploration on the ASX, AVM's dual-project Mexican portfolio deserves a position on the watchlist.

Want to Know More About Advance Metals and Its High-Grade Silver Projects?

Advance Metals (ASX: AVM) is advancing two high-grade silver projects in Mexico simultaneously, with maiden drilling at Gavilanes already delivering standout results and a JORC Mineral Resource upgrade firmly in the company's sights for early Q4 CY2026. With multiple assay results pending, a 15–18 hole drill program underway, and a combined portfolio approaching significant silver scale, the company is entering a period of potentially value-defining news flow. Investors looking to stay ahead of upcoming catalysts and learn more about AVM's projects and investment case can visit the Advance Metals investor page for the latest updates.