AbraSilver Will Have a Construction-Ready Asset by End of Year
CEO.CA May 8, 2026 9:33
Summary
Salta province approved AbraSilver's Environmental Impact Assessment (the key mining permit), leaving only Catamarca's approval before a construction decision.
A definitive feasibility study with updated economics is due this quarter; the earlier study showed about $540 million in upfront capital.
The updated resource estimate grew measured and indicated silver 25% and gold 50% in ten months, reaching roughly 450 million silver-equivalent ounces.
Argentina's RIGI incentive regime (30-year fiscal stability, no export duties) adds over $1 billion in projected life-of-mine free cash flow.
Shallow oxide mineralization keeps mining costs low; CEO John Miniotis expects construction to start early next year once project financing is arranged.
Key points on AbraSilver Resource
- The CEO confirms that, as of the May 2026 interview, the company expects to make a production decision by the end of the year and to start construction early next year once project financing is in place.
- The project received its EIA approval from the province of Salta a few weeks before the interview, and the final Catamarca EIA approval is expected imminently, which the CEO says would fully de-risk environmental permitting.
- An updated mineral resource estimate puts the project at about 450 million ounces silver-equivalent, with measured-and-indicated silver up roughly 25% and gold up roughly 50% in the 10 months since the prior estimate of about 350 million ounces, and Phase 6 drilling still ongoing.
- The pre-feasibility study showed about $540 million US in upfront capital, payback in under a year, and an IRR approaching 100% at prices near the interview date; an updated definitive feasibility study is due later in the quarter.
- Under Argentina's RIGI regime, now officially approved, the company gets 30-year fiscal stability, elimination of export duties, a 25% instead of 35% tax rate, and no foreign-exchange restrictions; the CEO says the pre-feasibility study put the benefit at well over $1 billion of additional life-of-mine free cash flow.