AVM hits highest silver grades yet at 4,120g/t silver

Our Mexican silver Investment Advance Metals (ASX: AVM) just hit its highest silver grade to date at its Gavilanes project in Mexico.

Gavilanes is the highest grade and least drilled of AVM's three silver projects in Mexico's Sierra Madre region:

1. Guadalupe y Calvo - 60.6Moz silver equivalent foreign resource estimate
2. Yoquivo - 33Moz silver equivalent JORC resource
3. Gavilanes - 22.4Moz silver equivalent foreign resource estimate at 246g/t

Hole 8 of the ongoing drill program was drilled below the high grade silver from hole 4, which was released around a month ago and it hit:

(source)

That 4,120g/t silver is the highest individual silver grade from any of AVM's drilling at Gavilanes so far.

(source)

Plus deeper in the same hole, AVM also hit 12m at 7.5% combined zinc and lead, including 5.3m at 14% combined which is the highest grade zinc-lead intersection from the project to date.

So on top of the silver, prior copper hits and also some gold, the base metals are also beginning to add to the story unfolding here.

The three southernmost holes also released today all hit gold as well, which suggests that the high grade structure trends further to the southwest.

(source)

Assays are pending for the next hole (hole 9), which is testing extensions to the west.

Metallurgical testwork has also started, assessing recoveries of silver, gold, copper, zinc and lead.

Gavilanes sits ~23km from $13BN First Majestic Silver's San Dimas mine, which has produced 745 million ounces of silver over its history.

All of these results will feed into a maiden JORC resource for Gavilanes, targeted for Q4 this year (hopefully with a nice upgrade to the 22.4Moz silver equivalent foreign estimate).

What we want to see next from AVM

Mexican silver projects

We want to see AVM drill out, convert its silver foreign resources into JORC compliance and then eventually increase the size of those resources.

Here are the milestones we are tracking across the three projects:

Yoquivo:

• 🔲 Resource growth drilling at Yoquivo
• 🔲 Open-pit potential assessment

Guadalupe y Calvo (GyC)

• 🔄 Drilling permits
• 🔲 Maiden drilling program, subject to permits and approvals.
• 🔲 Maiden JORC resource converting the 60.6M oz silver equivalent foreign estimate.

Gavilanes

• ✅ Sampling program on historic drillcore
• ✅ Maiden drilling program
• 🔄 Assay results - continuing to be released
• 🔲 Maiden JORC resource (hopefully upgrading the 22.4M ounce silver equivalent resource estimate)

(source) (source)

Victorian gold (Australia)

We also like AVM’s gold project - see our Deep Dive on the asset from our last AVM note here: We also like AVM’s Victorian gold exploration asset

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.