Major Acquisition Expands Mexican Silver Portfolio
The Guadalupe y Calvo acquisition significantly enhances AVM's precious metals exposure with a Foreign Estimate of 816,000 ounces of gold equivalent (AuEq) at 2.7g/t Au, which translates to 60.6 million ounces of silver equivalent (AgEq). Notably, the project includes a high-grade underground component of 494,000 ounces AuEq at 5.0g/t Au.
The project is strategically located in Mexico's Sierra Madre Volcanic Belt, a premier precious metals region, and sits midway between AVM's existing Yoquivo Project in Chihuahua and Gavilanes Project in Durango. This geographical advantage allows the company to leverage its existing Mexican team, infrastructure, and expertise across all three assets.
"Reaching the 100Moz silver equivalent milestone positions AVM as a substantial player in Mexico's silver sector, which produces over 25% of global silver supply. The Advance Metals Guadalupe y Calvo acquisition provides us not only with significant additional silver resources but also substantial high-grade gold exposure at a time when both metals are experiencing strong market conditions." – Dr. Adam McKinnon, Managing Director and CEO of Advance Metals
Historic Production with Modern Exploration Potential
The Guadalupe y Calvo Project comes with an impressive historical production record, estimated at over 2 million ounces of gold and 31 million ounces of silver, with mining dating back to at least 1835. Modern exploration has been extensive, with 86,000 meters of resource definition and exploration drilling completed by previous operators.
The project's Foreign Estimate encompasses two main veins:
- The Rosario vein: Extends over 700-800 meters of strike with widths up to 60 meters
- The Nankin vein: Intersects with Rosario at depth, creating a broad zone of enhanced mineralization
Both structures remain open along strike and at depth, presenting significant exploration upside.
Favorable Transaction Structure
AVM has negotiated a four-year earn-in structure with a total consideration of US$4.0 million, including:
- US$1.5 million in cash payments
- US$1.5 million in AVM shares
- US$1.0 million in exploration expenditure
The structure is majority back-ended, with the largest payments occurring in Year 4, allowing AVM to systematically develop the project's value before major capital outlays. Upon completion of all earn-in requirements, AVM will own 100% of the project and grant Endeavour a 2% Net Smelter Return royalty.
Building a Substantial Mexican Silver Portfolio
With the addition of Guadalupe y Calvo, AVM's portfolio now includes three significant Mexican silver projects:
| Project | Foreign Estimate (AgEq) | Grade (AgEq) | Acquisition Announced |
|---|---|---|---|
| Yoquivo | 17.2 Moz | 570 g/t | October 2024 |
| Gavilanes | 22.4 Moz | 246 g/t | January 2025 |
| Guadalupe y Calvo | 60.6 Moz | 198 g/t | July 2025 |
| Total | 100.2 Moz | 235 g/t |
Multiple Value Creation Catalysts
AVM has outlined a clear pathway to create value from the Guadalupe y Calvo Project:
Near Term (12 months):
- Field evaluation and target confirmation leveraging existing data
- Validation drilling program of historic intersections
- Surface exploration across key vein trends
Medium Term (1 to 3 years):
- Resource conversion from Foreign Estimate to JORC-compliant status
- Resource expansion through step-out drilling
- Economic studies on high-grade underground component
- Regional consolidation opportunities
Investment Opportunity in a Strong Precious Metals Market
This acquisition comes at an opportune time with silver prices recently surging to over US$36 per ounce in 2025. Mexico continues to dominate global silver production, accounting for 25.2% of worldwide supply.
For investors, AVM now offers exposure to both silver and gold in a proven geological setting with established resources that reduce execution risk. The company's experienced management team, with proven Mexican operational expertise, has established a regional platform for further growth and consolidation in one of the world's premier precious metals regions.
As exploration activities progress across all three Mexican projects, investors can expect a steady flow of news in the coming months, including initial results from the ongoing drilling program at Yoquivo and the commencement of field evaluation at Guadalupe y Calvo.
Understanding Silver Equivalent Resources
Silver equivalent (AgEq) is a standardized way to express the combined value of different metals in terms of silver. For the Guadalupe y Calvo Project, the gold equivalent was derived based on leaching test work conducted by previous owners, using a gold-to-silver ratio of 73.91:1 with assumed recovery rates of 95% for both metals.
This reporting method allows investors to understand the total metal value across different projects with varying compositions of precious and base metals. AVM's 100 million ounce AgEq milestone represents a substantial resource base that positions the company as a significant player in the Mexican silver sector.
Why Investors Should Follow Advance Metals
With a total silver equivalent resource of over 100 million ounces, Advance Metals has established itself as a serious contender in Mexico's precious metals sector. The company offers several compelling advantages:
- Exposure to both silver and gold in one of the world's premier mining jurisdictions
- Multiple high-grade projects with established resources and exploration upside
- Strategic geographical positioning within Mexico's Sierra Madre Volcanic Belt
- Experienced management team with proven operational expertise in Mexico
- Disciplined acquisition strategy with favorable deal structures
- Clear pathway to value creation through exploration and resource development
As global demand for precious metals continues to strengthen, AVM's growing portfolio of high-grade silver and gold assets positions the company for significant growth potential in the coming years.
Want to Capitalise on AVM's Growing Silver Portfolio?
Discover more about Advance Metals' strategic acquisition of the Guadalupe y Calvo Project and how it positions the company as a significant player in Mexico's precious metals sector with over 100 million ounces of silver equivalent resources. For detailed investor information and to stay updated on upcoming exploration results across AVM's expanding Mexican silver portfolio, visit their investor relations page today.
