News Summary
On December 10, 2025, AbraSilver announced drill results from its Phase V program at the Diablillos project in Argentina. The headline result is from hole DDH-25-085, which intercepted a very wide interval of 274 metres grading 0.60 g/t gold, starting from a depth of 251 metres. This interval also contained associated copper and molybdenum mineralization at depth.
Management frames this discovery as a significant milestone, providing strong evidence for a vertically extensive mineralized system with the potential for an underlying porphyry system. The company’s President and CEO, John Miniotis, stated the results reinforce the view that the Oculto deposit “forms part of a much larger precious- and base-metal system.”
Operationally, the 60-hole Phase V drill program is nearing completion. A new 15,000-metre Phase VI program is planned to commence in January 2026, which will focus on both expanding the existing oxide resource and testing these new, deeper porphyry targets. The company also reiterated its plan to deliver an updated Mineral Resource Estimate (MRE) in the first half of 2026.
Material Impact
This news is material and positive for the company. While AbraSilver has consistently delivered strong drill results expanding its near-surface oxide resource, this release introduces a fundamentally new and potentially much larger dimension to the Diablillos project.
The primary positive impact comes from the strong indication of a porphyry system at depth. Porphyry deposits can be massive, district-scale systems and are highly sought after by major mining companies. This intercept, while not a “discovery hole” into a high-grade core, is a critical proof-of-concept. It validates the geological model and significantly expands the long-term exploration potential of the property well beyond the oxide cap that has been the focus to date. This long intercept (274m) of continuous gold mineralization, coupled with pathfinder elements like copper and molybdenum, suggests proximity to a large, fertile intrusive center.
This development must be viewed in the context of the company’s recent actions. AbraSilver is exceptionally well-funded following a C$48 million financing in October 2025, providing ample capital to aggressively pursue this new target without jeopardizing its existing work plans.
However, a critical perspective is required. The term “potential” is key; a porphyry has not been discovered, only indicated. Porphyry exploration is expensive, requiring deep and systematic drilling. The grades encountered so far (0.60 g/t Au) are moderate and would require significant scale to be economic in an underground or large open-pit scenario. Furthermore, this new target introduces complexity. The company is advancing a Definitive Feasibility Study (DFS) on a straightforward, high-margin oxide silver-gold project. A deep copper-gold porphyry is a completely different mining and processing proposition that could potentially delay or distract from the near-term production goal.
Despite these risks, the sheer scale implied by a potential porphyry system substantially elevates the project’s ultimate value proposition. It transforms the investment thesis from a single-asset development story into a district-scale exploration play with a well-defined, near-term development project on top. The news provides a strong fundamental underpinning for the stock’s recent price appreciation and sets up the upcoming Phase VI drill program as a major catalyst.
Catalysts
– RIGI Application Decision: A decision on the company’s application for Argentina’s Large Investment Incentive Regime (RIGI) is expected in early 2026. Approval would be a major de-risking event for the project’s fiscal and operational stability.
– Phase VI Drill Program: The launch of the 15,000-metre program in January 2026. Investors should watch for the allocation of metres between oxide resource expansion and deep porphyry targeting, as well as the first results from holes testing this new concept.
– Updated Mineral Resource Estimate (MRE): Scheduled for H1/2026. This will incorporate all the successful Phase IV and V oxide drilling and is expected to show substantial resource growth, underpinning the upcoming DFS.
– Definitive Feasibility Study (DFS): On track for completion in H1/2026. This will provide updated, detailed economics for the oxide project and will be a critical milestone on the path to a construction decision.
Materiality Conclusion
The announcement of a wide, deep gold intercept indicating a potential porphyry system is Material – Positive. It fundamentally alters the long-term outlook for the Diablillos project by introducing the possibility of a discovery with a far greater scale than the already-large oxide resource. This news provides a clear rationale for further exploration and potential for significant value creation.
