AbraSilver Resource – Key Takeaways From The Definitive Feasibility Study and Future Value Drivers

John Miniotis, President and CEO of AbraSilver Resource Corp (TSX: ABRA) (OTCQX: ABBRF), joins me to review the news out June 22nd, announcing the Definitive Feasibility Study (“DFS) on the Company’s wholly owned Diablillos property in Argentina. We look at the multiple value levers the company has to pull on for a rerating higher, once the upcoming Phase 2 economics study incorporates the heap leach or higher throughput rates, in addition to all exploration and resource expansion potential and upside present if rerated higher to peer comparable metrics. In May the company released an updated Mineral Resource Estimate (“MRE”), which demonstrated significant growth across the Project, with Measured & Indicated (“M&I”) resources now totaling 232 million tonnes (“Mt”), containing approximately 248 million ounces (“Moz”) of #silver and 2.54 Moz of #gold (454 Moz silver-equivalent “AgEq”). For the first time ever, the DFS released this week includes the Project reserves as proven and probable ounces. • Increased Proven and Probable Mineral Reserves of 77.9 Mt grading 146 g/t Ag Eq, containing 183 Moz Ag and 1.8 Moz Au (366 Moz AgEq), estimated from an open pit optimized using metal prices of $29.50/oz Ag and $2,800/oz Au. The DFS positions Diablillos as one of the world's premier undeveloped silver-gold projects, based on a stand-alone 9,000 tonnes per day (“tpd”) processing operation that delivers robust economics, high early #production levels and low operating costs. DFS Study Highlights: • After-tax NPV5% of $3.0 billion (CAD$ 4.2 billion), 41.9% IRR and 1.7-year payback at base-case metal prices. o At spot prices1, after-tax NPV5% increases to $4.8 billion (CAD$6.7 billion) with an IRR of 56.5% and payback of 1.4 years. • Average annual production of 20 Moz silver equivalent (“AgEq”) during the first five years of full mine production, comprised of 14 Moz Ag and 89 koz Au; o Average life-of-mine (“LOM”) annual production of 10 Moz AgEq, comprised of 5.9 Moz Ag and 62 koz Au over a 25-year life of mine (“LOM”). • Low All-in Sustaining Cash Costs (“AISC”)2 of $20/oz AgEq over the LOM – positioning Diablillos among the lowest-cost primary silver projects globally. • Initial capital expenditures of $722 million (including $98 million contingency) with subsequent sustaining capital of $520 million funded through operating cash flow. • Compelling after-tax NPV-to-Capex ratio of 4.2x, highlighting the Project’s robust project economics and strong value generation potential. • Increased Proven and Probable Mineral Reserves of 77.9 Mt grading 146 g/t Ag Eq, containing 183 Moz Ag and 1.8 Moz Au (366 Moz AgEq), estimated from an open pit optimized using metal prices of $29.50/oz Ag and $2,800/oz Au. • First production targeted before year-end 2029, subject to a final investment decision (“FID”) expected in Q2 2027. • Multiple opportunities exist to further enhance Project value beyond the DFS, including: o A Phase 2 heap leach expansion to process lower grade mineralized material that would provide incremental gold and silver production, with results from a Preliminary Economic Assessment (the “Heap Leach PEA”) expected before the end of June 2026; o Potential future plant throughput expansion to increase annual silver and gold production; and o Continued #exploration success across the broader Diablillos district • Enhanced TSF incorporates a downstream waste rock buttress design, to eliminate credible failure risk while reducing haulage costs and dust generation. • Grid power connection planned in Year 3, reducing both operating costs and carbon emissions. • The Company has already received approval of the Environmental Impact Assessment (EIA) from the Government of Salta Province in Argentina, and should have the final permit approved from the Catamarca Province imminently. • In full disclosure, Shad is a shareholder of AbraSilver Resource Corp at the time of this recording and may choose to buy or sell more shares at any time. . . Click below to follow the latest news from AbraSilver Resource Corp: https://www.abrasilver.com/news-relea... . . Visit our new Substack for a summary of this interview - https://kereport.substack.com/ . Click here to follow Shad's market commentary on Substack: https://excelsiorprosperity.substack.... . Listen to the podcast on our website: https://www.kereport.com/ Subscribe to our Podcast on Spotify: https://rebrand.ly/Spotify_subscribe . . Follow us on social media: 🔗   / thekereport   . . Investment disclaimer: This content is for informational and educational purposes only and does not constitute investment advice, an offer, or a solicitation to buy or sell any security. Investing in equities and commodities involves risk, including the possible loss of principal. Do your own research and consult a licensed financial advisor before making any investment decisions. Guests and hosts may own shares in companies mentioned.