350 Moz Silver Project Accelerates as AbraSilver Prepares Q1 2026 FS

Here's a detailed summary of the YouTube video transcript:

Key Concepts:

• Diablo Silver Gold Project: Abra Silver's flagship project in Salta, Argentina, characterized by a large, near-surface, open-pit, oxide resource.
• Rigy Tax and Legal Stability Regime: A new Argentine government incentive program offering tax and foreign exchange stability for large-scale investments.
• Feasibility Study (FS): A comprehensive study to determine the economic viability of a mining project, expected from Abra Silver by Q1 2026.
• Pre-Feasibility Study (PFS): An earlier-stage study providing a preliminary assessment of project economics.
• Capital Expenditure (Capex): The estimated cost to build a mine.
• Resource Estimate: The quantity and grade of mineralization in a deposit.
• Exploration Upside: The potential for further discoveries and resource expansion.
• Foreign Exchange Restrictions: Government controls on moving money out of a country.
• Final Investment Decision (FID): The formal decision to proceed with project construction.
• Environmental Impact Assessment (EIA): A study to assess the environmental effects of a project.

Abra Silver's Diablo Project and the Rigy Regime

John Miniotis, CEO of Abra Silver, discusses the significant advancements at their Diablo silver-gold project in Salta, Argentina. The project boasts a substantial resource of approximately 350 million ounces on a silver equivalent basis, characterized by its near-surface, open-pit, and oxide nature, positioning it as one of the largest primary silver projects globally.

A major development is Abra Silver's application for Argentina's Rigy tax and legal stability regime. This regime, enacted in 2024 by President Milei, aims to attract large-scale investments (over $200 million) by offering a 30-year stability agreement. Key benefits include:

• Reduced Tax Rate: A decrease from the standard 35% to 25% for 30 years.
• Elimination of Export Duties: Historically 8% for gold and 4.5% for silver, these are now zero for 30 years.
• Removal of Foreign Exchange Restrictions: This is a critical incentive, allowing companies to retain US dollar proceeds abroad without needing to repatriate them into pesos. This significantly simplifies profit repatriation and reduces currency risk.

The Rigy regime is a short-term stimulus, expiring in July 2026. Abra Silver applied in November and expects approval in Q1 2025. To qualify, a minimum of $80 million must be spent within two years of approval, demonstrating active investment. Miniotis estimates the value of tax and export duty savings alone to be over $1 billion USD for their project, based on current commodity prices and an outdated PFS, with the actual value expected to be higher with the current resource estimate. This regime is described as a "game-changer," simplifying the project and greatly improving its economics.

Feasibility Study and Project Economics

The feasibility study (FS) for the Diablo project is on schedule for completion by the end of Q1 2026, with engineering approximately 70-75% complete. WSP is leading the study. The FS is expected to confirm the project's viability for construction.

While the plant throughput rate will remain at 9,000 tons per day, the FS will be based on a significantly larger resource estimate of 350 million ounces silver equivalent, a 35% increase from the PFS estimate of 255 million ounces. This increase is largely due to the new, high-grade, shallow "Jack" deposit, which is expected to boost early-year production and improve payback periods.

The estimated Capex from the PFS was approximately $540 million USD. Despite this significant figure, the payback period at current spot prices is estimated at around 9 months, with the new mine plan expected to further shorten this to months rather than years. This short payback period opens up various financing options.

Financing Strategy and Board Strengthening

Abra Silver is exploring multiple financing avenues, including:

• Convertible Notes: Similar to Vizla Silver's recent $300 million issuance.
• Traditional Debt Financing: Standard loan options.
• Streaming Agreements: Particularly on the gold component, given the project's significant gold ounces in oxide.
• Equity: Potential for further share issuance.

To aid in evaluating these financing alternatives, Abra Silver has strengthened its board by appointing Marie Inkster as Chair. Inkster brings extensive experience in project financing and mine development from her time at London Mining.

The company aims to have a financing package in place by mid-2026, with a conservative schedule extending to the end of Q3 2026.

Upcoming Catalysts and Timeline

Abra Silver has a series of key catalysts anticipated in the coming months:

• EIA Permit Approval: Expected by late 2025 or early January 2026.
• Rigy Approval: Anticipated in February 2026.
• Feasibility Study Announcement: End of Q1 2026.
• Final Investment Decision (FID): Targeted around mid-2026, with a conservative schedule extending to the end of Q3 2026.
• Construction Start: Following FID, with a projected 2.5-year construction timeline, leading to production in 2029.

Financial Position and Early Works

Abra Silver is currently well-financed, with over $65 million in cash and no debt. This provides sufficient funding for all of 2026 and allows for the commencement of early works construction activities, such as ordering long-lead time items and expanding the on-site camp, without requiring additional financing in the immediate term.

Political and Economic Context in Argentina

The interview highlights the supportive stance of President Javier Milei's administration towards the mining sector, viewing it as a crucial tool for economic recovery. The recent midterm election success for Milei's party is seen as potentially paving the way for further positive reforms. The Rigy regime's success, with over $15 billion in new projects approved in the last 12 months, is cited as evidence of the administration's economic effectiveness and its ability to attract significant investment. The 30-year stability agreement under Rigy provides long-term certainty for investors, extending beyond the current presidential term.

Exploration Upside and Future Growth

Despite advancing towards construction, Abra Silver continues to pursue exploration at Diablo. The project remains open for 2 kilometers along strike, in both directions, and at depth. Recent drilling has intersected high-grade gold intercepts outside the current pit outline at the "Akulto East" deposit, including a notable intercept of "over 30m of 10 g of gold in oxides." The cutoff grade is 0.3 g/t, making these intercepts highly profitable.

Exploration is also ongoing at the "Jack" deposit (high-grade silver) and at depth, where high-grade gold and copper intercepts in sulfides have been encountered.

The company is considering scenarios for doubling throughput to 18,000 tons per day, which would position Diablo as the largest silver mine globally. This expansion potential, coupled with the ongoing resource growth, offers significant long-term upside.

M&A Landscape and Company Future

Miniotis acknowledges the scarcity of high-quality, large-scale, advanced-stage primary silver projects globally, placing Abra Silver in a strong position. While acknowledging that transactions in the mining sector often occur once projects are built and operating, he believes that as Abra Silver continues to de-risk Diablo and advance it towards production, its valuation will increase. The company is open to discussions regarding potential M&A at the appropriate time but remains focused on advancing the project independently. The scarcity of single-asset silver producers is noted, with many having already been acquired.

Outlook for 2026

By this time next year (2026), Abra Silver aims to have:

• Completed significant drilling, including deeper targets into sulfides and continued oxide resource growth.
• Updated resource estimates, with a material uptick expected upon the feasibility study announcement.
• Secured all necessary permits, including the EIA and Rigy approval.
• Announced the feasibility study.
• Finalized its financing package, making the project fully funded.
• Reached a Final Investment Decision (FID).
• Commenced construction activities.

The company anticipates production to commence in 2029.