Andean Silver (ASX: ASL) presented an update on its Cerro Bayo gold-silver project in Chile’s Deseado Massif at the Resources Rising Stars Gold Coast Conference on Thursday, highlighting a recent resource upgrade, existing infrastructure and a timeline targeting full restart by 2028.
The company delivered an updated mineral resource estimate in July showing 136 million ounces of silver equivalent, comprising 55 million ounces of contained silver and 1 million ounces of gold. Management said the district-scale potential, including greenfield areas, could exceed 230 million ounces. Nearly 100 million ounces of silver equivalent were produced historically over 25 years before operations ceased.
"This day 12 months ago, silver price was still below $40 US an ounce. Today, it is just under $70 US an ounce," Andean Silver told attendees. The company noted the project was originally developed and operated during a period of sub-$10 silver prices.
Andean Silver described Cerro Bayo as a brownfield restart. Infrastructure already includes a process plant on warm idle, a diesel-powered power station, a functional tailings dam, an on-site assay laboratory with three-to-five-day turnaround times, and six portal accesses to underground workings. Environmental impact approvals and extraction permits are in place.
The company has been actively drilling, running six rigs at roughly 4,000 meters per month. Exploration Manager Alex Forster said the target is to move more than 70% of the resource into the indicated classification. Drilling at the Droughtmaster and Sinter Hill corridor and the Guanaco system is planned for later this year.
Recent results included 2.4 meters at 15,500 grams per ton silver equivalent at the Tema and Trinidad discoveries, and 1.3 kilometers of strike length above 400 grams per ton silver equivalent at Coyita Underground. High-grade rock chip samples of 62,600 grams per ton were returned at the Juanita prospect. The permitted Guanaco complex features a slot-cut open pit and mapped vein systems, while the 8-kilometer Droughtmaster-Sinter Hill corridor is currently being permitted.
At full production, Cerro Bayo is expected to yield approximately 11,000 tons of concentrate annually at around 1.5% silver content and 120 to 150 grams per ton. Concentrate will be transported roughly 200 kilometers to the port of Chacabuco by ferry and road, with shipments historically routed through Antofagasta to Asian markets. The project would operate on a drive-in, drive-out basis employing about 500 workers from a local population of 4,500.
A scoping study is targeted for early next year, with feasibility work continuing through 2027. Early works on the mill are fully funded and ready to begin, with ramp-up planned through 2027.
Andean Silver was added to the GDXJ index in March. The company cited support from investors including Eric Sprott’s group, Equinox, Rob Cohen at 1832 Asset Management and Rick Rule. Neighboring operations on the Argentine side of the Santa Cruz province border include Hochschild, Newmont, Anglo American, Pan American and AngloGold.
