AVM appoints former geologist from $1BN capped AbraSilver as chairman

Our silver and gold Investment Advance Metals (ASX: AVM) has appointed David O’Connor as its new chairman.

We like the appointment of David because he has previous experience in South America and especially in Mexico.

• Founder of Explorator Resources, which sold 51% of its El Espino Copper-Gold Project to Pucobre (Chile) for US$17M (amongst other parts) (source), before being acquired outright by them (source).
• Led exploration for Western Mining Corporation at the world-class Olympic Dam deposit.
• Chief Geologist at AbraSilver Resources (TSX: ABRA), where he helped grow the Diablillos Silver-Gold Project in Argentina from 129Moz to 350Moz silver.

AbraSilver now has a market cap over A$1 billion, with major shareholders including Eric Sprott and Kinross Gold.

David’s appointment strengthens Advance’s technical and strategic leadership as it advances its Mexican silver-gold portfolio.

AVM has three silver assets in Mexico with a combined ~100M silver ounces in foreign resources across 3 projects:

1. Guadalupe y Calvo (60.6M oz silver equivalent foreign resource estimate)
2. Yoquivo (17.2M Oz silver equivalent foreign resource estimate)
3. Gavilanes (22.4M Oz silver equivalent foreign resource estimate)

Inside the last 3 weeks AVM has:

1. Raised $13M from the likes of Jupiter Asset Management, Tribeca Investment Partners, Lowell Resources Fund & APAC Resources. (see our deep dive on that: AVM: We just increased our position (yep, after two weeks), AND
   
2. locked in exploration programs for all three projects, aiming to increase the combined resources to >200M ounces of silver equivalent. (we covered that news here), AND
   
3. Strengthened its team with an advisory board set up to focus on its Mexican silver assets, with 2 members appointed who have extensive experience operating in Mexico. (we covered that news here).

See why we Invested in AVM from our AVM launch note here: Our New Investment: Advance Metals (ASX: AVM)

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 🔄

AVM is currently drilling the Victorian gold asset, and we think the next hole could be the most material (if it comes in) for AVM’s current valuation.

Being the deepest hole, it is looking to see if the structure extends ~60-80m below known mineralisation.

IF we see a strong hit here, it could change the way the market values the asset.

(Source)

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

We are also looking forward to seeing the sampling results from the untested parts of AVM’s Yoquivo project in Mexico.

The old drilling hadn’t been completely tested in the past so we should see the results from this in the coming weeks (hopefully the gaps in the veins from the image below are also mineralised)

The company has detailed 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)