AVM starts drilling high grade Mexican silver project

Our silver and gold Investment Advance Metals (ASX: AVM) just kicked off its first drill program on its Gavilanes project in Mexico.

AVM has three assets in Mexico:

• Guadalupe y Calvo (60.6M oz silver equivalent foreign resource estimate)
  
• Yoquivo (33M Oz JORC Mineral Resource announced in April)
  
• Gavilanes (22.4M Oz silver equivalent foreign resource estimate)
  

The drilling underway now is at the Gavilanes asset - the highest grade of the three.

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We like the asset because the project has a foreign resource estimate of 22.4M oz of silver equivalent at an average 246g/t silver equivalent grade.

Of AVM’s 3 Mexican silver projects, this project has had by far the least amount of drilling done on it.

Which means there is a lot that can go right on this with some more drilling... i.e, there’s a fair bit of upside here that is harder to predict.

To date, drilling has only tested ~0.2km^2 of the project area while the ~15km^2 of KNOWN veins are undrilled.

The kicker for this project is its proximity to an existing mine owned by $13BN First Majestic Silver.

Right now, the project as it sits might not be big enough to become a standalone development asset BUT even if the resource stays where it is today, it could make for good feedstock to a much larger company's operations.

First Majestic’s San Dimas Tayoltita mine (134Moz of silver) sits ~23km northeast of this project.

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This project is one of those that you just never know how big it might be, until AVM drills it out.

What we do know is that the bigger the project gets, the more likely it becomes that a major like First Majestic starts to take notice.

Now we wait to see IF AVM can grow the existing resource on the project with its up to 4,500m diamond drill program.

AVM is targeting a JORC resource on the project “later this year”.

And we saw how well AVM’s maiden JORC form foreign resource conversion went at Yoquivo, going from a 17.2M Oz silver equivalent foreign resource estimate to 33M Oz JORC Mineral Resource.

We covered that in our latest AVM article here: AVM: Announces 33 million ounces silver equivalent JORC resource (116 million ounces if you include the non-JORC foreign resource)

Fingers crossed we see some big high grade hits in these parts of the project:

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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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