AVM aiming for 200M ounces of silver equivalent in Mexico

Our silver and gold Investment Advance Metals (ASX: AVM) just provided an update on the exploration strategy across its portfolio.

AVM has three silver assets in Mexico, which combined have ~100M silver ounces in foreign resources:

• Guadalupe y Calvo (60.6M oz silver equivalent foreign resource estimate)
• Yoquivo (17.2M Oz silver equivalent foreign resource estimate)
• Gavilanes (22.4M Oz silver equivalent foreign resource estimate)

Today, AVM said that it has now approved exploration programs - aiming for an upgrade to those resources toward ~200M ounces of silver equivalent across the three projects.

AVM will now run high resolution airborne LiDAR surveys over a combined 10,000 hectares on the three projects - the main aim being to map out each project in as much detail as possible and to locate any historic workings over the projects.

The LiDAR should show us if there was any historic underground mine shafts on the projects…

Having just raised $13M AVM is now planning to drill all three of its projects back to back:

• Yoquivo - This month
• Guadalupe y Calvo - 1st Quarter next year
• Gavilanes - 1st Half next year

More on the exploration programs across the three projects:

Yoquivo (17.2M Oz silver equivalent foreign resource estimate)

AVM expects to start diamond drilling at Yoquivo this month testing the newly mapped vein’s recently identified in rock chip sampling results.

Grades from those new areas were as high as 1,594g/t silver equivalent so drilling here should be interesting…

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The drilling will also follow up on the area’s AVM drilled earlier in the year:

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We also note AVM are currently re-assaying old drill cores that weren't previously assayed at this project, so we should get the results from that in the coming weeks/months too:

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Guadalupe y Calvo (60.6M oz silver equivalent foreign resource estimate)

AVM plans to be drilling here in Q1 of next year.

Drilling locations haven’t been finalised yet but AVM did say it could be drilling in and around the existing historic resource as well as the undrilled sections to the north of the historic resource:

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Drilling will also be collecting samples to undergo further met testing to aid in the further development of the project.

Also, AVM believes that the presence of a fault may lead to more mineralisation on the other side of it if the movement from the fault is allowed for, so will be followed up to test.

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The theory here is that mineralisation on the right of the image could be replicated on the other side of the fault at a deeper level due to movement along the fault line.

Gavilanes (22.4M Oz silver equivalent foreign resource estimate)

In H1 next year a drilling program at the remaining Gavilanes project is expected, where the company described this in the announcement today as having ‘significant discovery potential’.

AVM also describes this as the ‘most underexplored’ with the entire 10,000m historical drilling almost all within a small zone.

Here a LiDAR survey is planned to cover 6,000 hectares (the most of the 3 projects)

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After the results of the LiDAR date, AVM will be further mapping and sampling across the project to further evaluate targets ahead of the drilling program planned in H1 next year.

Similar to Yoquivo, AVM believes that there could be further upside from the prior drilling done here due to parts of the core not being sent for assay also.

Why we are Invested in AVM:

We published our Initiation Note on AVM on 19th September.

Here is a list of the 9 reasons why we Invested in AVM from our Initiation Note.

Check out the full note here for the deep dive on the reasons.

1. AVM has an estimated 100M ounces of silver equivalent resources. We think it can grow from here
2. AVM is undervalued relative to its silver peers on the ASX
3. We think silver could go on a ‘once in a generation’ run to new highs
4. Very few silver stocks on ASX
5. Mexico is a top silver and gold producer (and this is in a mature mining area)
6. Mexican silver projects are misunderstood on the ASX
7. AVM’s most recent acquisition adds scale to AVM’s portfolio
8. Exploration upside (three projects that haven’t been systematically drilled)
9. Victorian gold asset might justify AVM’s current valuation on its own

What’s next for AVM?

Assay results from AVM’s Victorian gold project 🔄

We said in our initiation note that we like AVM’s Victorian gold project a lot (especially with where the gold price is trading today).

We think that it could easily justify AVM’s current valuation (with some more exploration luck).

We noticed on Friday, AVM said that “outstanding assay results” were pending from that project and that they would be prepared for release this week.

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AVM has already hit some pretty strong results from this project:

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Next, we are hoping to see more of the same at depth in this part of the project:

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Sampling of old drillcore at the Yoquivo silver project in Mexico 🔄

As mentioned earlier we are also looking forward to the assaying of the untested drill cores found by the company.

The company has detailed today that results from this are due in late October and will be used along with the recent diamond drilling results to update the JORC Resource for the project.

(Source)