High-Grade Silver and Gold Discovery in Argentina's Premier Mining Province

• AbraSilver has been actively drilling at their flagship Diablillos project in Argentina, hitting high-grade silver and gold mineralization that is expected to significantly expand resources.
• An updated resource estimate incorporating the past 15 months of successful drilling is slated for release in July. This will feed into an updated PEA study.
• The exploration potential at Diablillos remains very high, with several additional targets yet to be drill tested on the property. Drilling will continue at a fast pace throughout the year.
• AbraSilver is fully funded through to a construction decision, with $18 million cash in the treasury. The company expects to continue unlocking value through exploration and advancing Diablillos towards production.
• Management believes AbraSilver remains significantly undervalued compared to the rising value of Diablillos, which has tier-1 asset potential. The market is not fully appreciating the quality and upside potential.

About AbraSilver Resource Corp

AbraSilver Resource Corp is a Canada-based precious metals exploration company focused on advancing their flagship Diablillos silver-gold project in the mining-friendly Salta province of Argentina. With over $18 million in the bank, AbraSilver is fully funded through a construction decision over the next 2 years.

The Diablillos project already hosts a large indicated resource of over 150 million ounces of silver equivalent, consisting of open-pittable, high-grade oxide silver and gold mineralization starting at surface. An updated preliminary economic assessment (PEA) study is expected in July 2022, which will incorporate 15 months of successful exploration drilling.

Interview with David O'Connor, Chief Geologist, & John Miniotis, CEO of AbraSilver Resource Corp.

Exploration Success Expanding Known Zones

AbraSilver's 15,000 meter Phase 1 drill program has consistently encountered high-grade intersections outside the existing resource model, especially at depth in the Oculto zone. The deep gold zone was an initial focus, with hits as high as 12.2 g/t gold over 70 meters.

Step-out drilling 200 meters from the current northeast pit limit also hit multiple zones grading over 300 g/t silver equivalent. Mineralization remains open to the northeast with follow-up drilling planned.

Several wide intercepts of 1-3 g/t gold were also drilled in the shallow gold zone, which was previously classified as waste. This could significantly reduce pre-stripping costs by over $100 million.

Updated Economics Expected in July

The upcoming PEA will utilize today's higher silver and gold prices, which alone could double the 2018 after-tax NPV of $330 million. It will also include the latest drill results and metallurgical data, which continue to expand the resource base and improve recoveries.

More high-grade mineralization is now expected to be included in mine plans rather than treated as waste rock. The project's lowest-quartile cash costs of around $7.50 per silver-equivalent ounce provide exceptional margin expansion potential at today’s prices.

Massive Exploration Upside Still Untested

Beyond the current resource, AbraSilver's extensive land package hosts numerous untested targets with strong surface mineralization. Phase 2 drilling will test the Northern Arc target, located 4 km north of the main Diablillos deposit.

Previous shallow holes hit high-grade gold here, with clear expansion potential. Multiple rigs will also follow up on the new northeast zone discovery and test other near-surface oxide gold targets across the property.

Conclusion

With improving economics, a fully funded 2-year plan, and massive exploration upside, AbraSilver offers investors exceptional leverage to rising precious metals prices. The company’s enterprise value of around $200 million seems modest compared to the project's potential billion-dollar valuation.

As upcoming catalysts like the updated resource and PEA demonstrate the scale of Diablillos, AbraSilver’s valuation discount should narrow. The project’s location in a premier Latin American mining jurisdiction only enhances the investment case. For risk-tolerant investors, AbraSilver could deliver outsized returns over the next 2 years.