AVM hits 220g/t silver from project next to $14BN First Majestic Silver
Our Mexican silver Investment Advance Metals (ASX: AVM) just hit 33.9m of silver averaging 220g/t from its project next door to $14BN First Majestic Silver.
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Today's news is from Gavilanes - the highest-grade and least-drilled of the three, in western Durango, where drilling got underway recently.
AVM started a maiden ~4,500m diamond program there just last month, aiming to grow the system and convert that foreign estimate to JORC later this year.
This hole was drilled around 80m down-dip of a known high-grade historic intercept, so it's extending the system AVM is trying to grow, not just a reconfirmation.
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Here is a cross section showing that this hole was drilled at an angle confirming the extension:
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AVM confirmed that hole 2 is complete drilled further to the south and to a depth of 291m, with aim the aim to test for further extensions, along with hole 3 that is underway.
All up AVM expects the program to comprise of 15-18 diamond drilling holes for up to 4,500m.
Because these are diamond drilling holes, there is always a chance that if they like what they see in the core we will get to see it in an announcement prior to the results.
This type of drilling give the team a better idea of what they are hitting so the drill program can be tweaked depending on what they are seeing eg extend a hole if it appears to still be mineralised.
There was also some images of the core and drilling crew in action included:
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Today’s results came from one of AVM’s three assets which have a combined resource base of ~116M ounces of silver equivalent.
- Guadalupe y Calvo - 60.6Moz silver equivalent foreign resource estimate
- Yoquivo - 33Moz silver equivalent JORC resource
- Gavilanes (22.4M Oz silver equivalent foreign resource estimate averaging 246g/t)
The same playbook that just worked at Yoquivo
This is the same path AVM just walked at its Yoquivo project, where the maiden JORC resource came in at 33Moz AgEq.
This almost doubled the old foreign estimate, the opposite of the shrinkage the market is usually bracing for on conversions such as this.
We covered that resource announcement here:AVM: Announces 33 million ounces silver equivalent JORC resource (116 million ounces if you include the non-JORC foreign resource).
So now we wait for the coming drilling and results to see if its 22.4Moz foreign estimate behaves anything like Yoquivo's did on the way to JORC.
Near term, assays are pending from the second hole (GV-26-002, which tested the southern extension).
A third hole is currently in progress, with the full 15 to 18 hole program designed to feed a planned Gavilanes JORC resource targeted for early Q4 2026.
This is one hole on an early-stage project, the 22.4Moz is still a foreign estimate rather than JORC, so we need to see the results and conversion before we can start seriously making comparisons.
What we want to see next from AVM
AVM’s three silver projects in Mexico
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Here are the milestones we are tracking across the three projects AVM owns in Mexico:
Gavilanes
- 🔲 Sampling program on historic drillcore
- ✅ Target generation work ahead of drilling
- 🔄 Maiden drilling program
- 🔲 Maiden JORC resource (hopefully upgrading the 22.4M ounce silver equivalent resource)
Yoquivo:
- 🔲 Resource growth drilling at Yoquivo
- 🔲 Open-pit potential assessment
Guadalupe y Calvo (GyC)
- 🔲 Maiden drilling program, subject to permits and approvals.
- 🔲 Maiden JORC resource converting the 60.6M oz silver equivalent foreign estimate.
Victorian gold (Australia)
At AVM’s gold project in Victoria, we want to see more assay results from all of the drilling AVM’s done over the last few months.
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