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Diablillos is a 7,919 ha property located in the Argentine Puna region, which is the southern extension of the Altiplano of southern Peru, Bolivia, and northern Chile. It is a high plateau, separating the Cordillera Oriental to the east from the Andean Cordillera (Cordillera Occidental) to the west. Other major deposits in this region include Taca Taca, Escondida, and Pirquitas.

There are currently seven known mineralized zones on the Diablillos property, with the Oculto zone being the most important and the best explored. Oculto is a high-sulphidation epithermal silver-gold deposit derived from remnant hot springs activity following Tertiary-age local magmatic and volcanic activity with strong supergene overprinting.

Ownership 100% AbraSilver
Remaining payment of US$7M due to SSR in 2025
Geology High-sulphidation epithermal silver-gold deposit
Location Salta Province, Argentina
Approx. 160 km southwest of city of Salta, along border between Provinces of Salta and Catamarca
Elevation Between 4,100 to 4,650 MASL
Nearby Projects in Salta Lindero (Fortuna Silver)
Taca Taca (First Quantum)
Rio Grande (Aldebaran)
El Quevar (Golden Minerals)
Drilling to Date Approx. 90,000m with expenditures of +US$35 million
Stage PEA completed in 2018.
After-tax IRR of 30.2% and NPV 7.5% of US$212M (at $20/oz Ag and $1,300/oz Au)
Category Deposit Tonnage
Contained Ag
(000 oz)
Contained Au
(000 oz)
Indicated Oculto 26,850 93.0 0.85 80,300 732
  Fantasma 200 98.3 - 650 -
Total 27,100 93.1 0.84 80,940 732
Inferred Oculto 1,000 46.8 0.89 1,510 29
Fantasma 80 75.3 - 190 -
Total 1,100 48.8 0.83 1,690 29
  1. CIM (2014) definitions were followed for Mineral Resources.
  2. Mineral Resources are estimated at a cut-off grade of 40 g/t AgEq for Oculto and 40 g/t Ag for Fantasma.
  3. Mineral Resources are estimated using long-term metal prices of US$1,500/oz Au and US$23/oz Ag.
  4. Average bulk density is 2.22 t/m3 for the Indicated category and 2.29 t/m3 for Inferred for Oculto and 2.00 t/ m3 for both Indicated and Inferred categories for Fantasma.
  5. The estimate is constrained by a pit shell for both Oculto and Fantasma.
  6. Numbers may not add due to rounding.

Qualified Person

Mineral Resources: The Mineral Resources disclosed have been estimated by Mr. David Rennie, P. Eng., an employee of RPA and independent of AbraSilver. By virtue of his education and relevant experience, Mr. Rennie is a "Qualified Persons" for the purpose of National Instrument 43-101. The Mineral Resources have been classified in accordance with CIM Definition Standards for Mineral Resources and Mineral Reserves.

AbraSilver has completed the very successful Phase I exploration program, consisting of approximately 15,000 metres on the Oculto deposit. The Company intersected multiple high-grade zones of silver, gold and copper and successfully achieved all three of its top priorities with the drill program, namely:

  • Identify additional gold resources in the deeper oxide gold zone;
  • Extend silver-gold mineralization northeast of the Whittle Pit boundary;
  • Define a shallow gold zone (from surface to ~100m depth) which would benefit early open pit mining operations.

In total, the Phase I drill program had a high-grade hit rate of approximately 90% of the drill holes intersecting high-grade mineralization over significant widths. See the detailed Drill Results Table for Phase I here. The program, included several world-class drill intercepts including:

Drill Hole From
Type Interval
Silver Equiv
Gold Equiv
DDH-19-002 137.5 155 Oxides 17.5 603.9 0.1 - 611.4 8.15
DDH-19-002 250 257 Oxides 7 202.1 20.6 - 1,750.1 23.33
DDH-20-001 275 290 Sulphides 15 658.0 2.35 5.10 1,358.8 18.12
DDH-20-009 171 254 Oxides 83 289.4 1.45 - 398.2 5.31
DDH-20-010A 210 257 Oxides 47.0 96.3 3.37 - 349.1 4.65
DDH-20-026 130 195 Oxides 65 150.6 1.88 - 291.6 3.89
DDH-20-026 175 189 Oxides 14 236.0 6.73 - 740.8 9.88
DDH-20-027 141 244 Oxides 103 388.6 1.70 - 516.1 6.88
DDH-20-027 163 180 Oxides 17 1,466.7 0.55 - 1,507.9 20.11
DDH-21-003 106 142 Oxides 36 370.2 0.39 - 399.1 5.32
DDH-21-009 208 283 Oxides 75 166.7 2.24 - 334.7 4.46
DDH-21-012 134 238 Oxides 104 216.2 2.21 - 382.0 5.09

The Company is currently conducting its Phase II exploration program, which will consist of a minimum of 10,000 metres of diamond drilling. The Phase II drill program will focus on the following priority targets:

  • Oculto Northeast extension: Several previous drill holes in the Oculto Northeast zone intersected substantial gold values, which are not included in the current resource. It is expected that the Whittle Pit on the main Oculto deposit could be expanded in this direction to incorporate additional high-grade resources.
  • Laderas Zone: The Laderas Zone is located approximately 500 metres north of Oculto deposit on the Diablilllos property. Previous shallow drilling at Laderas intersected significant gold and copper intercepts over broad widths.
  • The Northern Arc: The Northern Arc contains a cluster of prospects that lies approximately three to four kilometres north-northeast of the centre of the Oculto deposit. All have near surface, high grade gold intercepts in epithermal mineralisation similar in style to Oculto, with potential for shallow resources that could be trucked to a future treatment plant at Oculto. The Cerro Viejo area shows potential for porphyry mineralization.

All dollar amounts refer to US dollars.

Pre-Tax Net Present Value ("NPV")7.5% US$368 Million
Pre-Tax Internal Rate of Return ("IRR") and Payback 40.7% and 2.9 years
After-Tax NPV7.5% US$212 Million
After-Tax IRR and Payback 30.2% and 3.1 years
Average Head Grade 125.1 g/t Ag and 0.72 g/t Au
Average Annual Production 9.8 Moz AgEq or 136,000 oz AuEq
Mine Life 8 years
Average All-in Sustaining Cost per Ounce Produced $7.52/AgEq oz or $542/AuEq oz
Initial Capital $293 Million
Metal Price Assumptions Ag: $20.00/oz and Au: $1,300/oz
Calculated Metal Net Smelter Return ("NSR") Values Ag: $15.20/oz and Au: $1,097/oz

The PEA is preliminary in nature and includes inferred mineral resources that are too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that PEA results will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Technical Report on the Diablillos Project, Salta Province, Argentina, dated April 16, 2018, was prepared by RPA Inc., and is available on The scientific and technical information with respect to the PEA has been reviewed and approved by Scott Ladd, P.Eng. and David Rennie, P.Eng. of RPA, and Gerry Neeling, FAusIMM of GRES, each of whom is an independent "qualified person" under National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI-43-101").

View NI 43-101 Technical Report

PEA Sensitivity to Silver Price

Silver Price (US$/oz Ag) After-Tax NPV7.5% (US$) After-Tax IRR After-Tax Pay Back
$16/oz Ag $108 Million 20.3% 3.7 Years
$18/oz Ag $153 Million 25.3% 3.4 Years
$20/oz Ag $197 Million 30.2% 3.1 Years
$22/oz Ag $241 Million 34.9% 3.0 Years
$24/oz Ag $285 Million 39.5% 2.8 Years

Over US$35 million has been spent on exploration at Diablillos totalling approximately 90,000 meters of drilling in over 400 holes.

Year Operator Description
1983 Secretaría de Minería de la Nación 1,409 rock chip samples (includes 190 outcrop and 271 slope debris samples from Diablillos Sur)
1984 - 1987 Shell C.A.R.S A Rock geochemical survey; three Winkie drill holes
1987 Ophir Partnership 37 rotary drill holes (approximately 30 m deep) in the Corderos, Pedernales, Laderas, and Jasperoide areas
1989 - 1991 BHP Geological mapping (1:1,000 to 1:7,500 scale); 380 rock chip samples; 1,200 m of bulldozer trenches; 55 air RC holes (6,833 m)
1993 Pacific Rim Mining Corporation Five diamond drill holes (1,001.8 m) in the Oculto Zone
1994 Pacific Rim Mining Corporation 148 km of chain and compass grid; geological mapping; 122 line-km of ground magnetic survey; 34 line-km of induced polarization (IP) survey; 213 hand auger samples; 2.5 km of trenching; 250+ rock chip samples; 12 diamond drill holes (2,013.9 m)
1996 - 1997 Barrick Gold Corp Geological mapping; surface sampling; RC drilling; CSAMT survey; mag survey; environmental impact study; metallurgical test work
2003 Pacific Rim Mining Corporation
(for Silver Standard)
20 diamond drill holes (3,046 m)
2005 Pacific Rim Mining Corporation
(for Silver Standard)
Five diamond drill holes each at Renacuajo and Alpaca
2007 Pacific Rim Mining Corporation
(for Silver Standard)
45 diamond drill holes (9,600 m) on Oculto; one hole (203 m) at Laderos; three holes (unknown length) at Pedernales; five holes (unknown length) at Los Corderos; four HQ-size diamond drill holes sampled for metallurgical tests
2008 Pacific Rim Mining Corporation
(for Silver Standard)
52 diamond drill holes (7,910 m), three of these for geotechnical studies; additional metallurgical studies
2011 - 2012 Silver Standard Resources Inc. Internal Preliminary Economic Assessment, rock chip sampling, 1,684 m diamond drilling
2016 - Present AbraSilver acquired property from Silver Standard Resources PEA on open pit scenario completed in 2018.

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