AVM sampling uncovers new high grade silver zone

Our latest addition to the Portfolio Advance Metals (ASX: AVM) just put out some sampling results from one of its silver projects in Mexico.

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

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)

Today’s news came from Yoquivo, where AVM sampled rock chips with grades as high as 1,594g/t silver equivalent in a part of the project that has never been drilled before…

In fact, before today’s results the area hadn’t even been mapped before, despite the old underground workings in the region.

(Source)

So AVM has found potential extensions to its project, in a part of the project that no one had really touched before…

And the rock chips (as well as the underground historic workings) are indicating there could be something there.

Here is where today’s find sits relative to all the other drilling done on the project:

(Source)

AVM drilled the asset earlier this year and is also planning to convert the foreign resource estimate to a JORC compliant resource here too.

AVM also confirmed today that ~3,500m of previously unsampled core had now been cut and sampled with assays due in “late October”.

We are particularly looking forward to the results from those sample results because of just how much could have been missed…

Here are the current drilled out veins and all of the areas that were left unsampled (in purple), we are hoping to see those red veins get bigger once the results come back in October.

The project’s foreign resource estimate is 17.2M oz silver equivalent based on an average grade of 570g/t.

The foreign resource is based on ~70 diamond holes across three drill programs between 2020 and 2022, where previous drilling hit intercepts such as 0.4m at 21,447g/t silver and 0.3m at 7,480g/t silver...

(Source)

We think that an eventual JORC resource on this project could surprise to the upside, especially after the drill results from earlier this year and the assays that are coming from the drillcore that had never been assayed before.

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.

(Source)

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

(Source) (Source)

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

(Source)

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.