Abra Silver 350 Million Silver Eq Ozs. | John Miniotis and Jimmy Connor

Abra Silver: Diablo Project Update - Detailed Summary

Key Concepts:

• Diablo Silver-Gold Project (Argentina): Abra Silver’s flagship project, poised to become a major primary silver producer.
• Riggy: A new Argentinian incentive program offering legal and fiscal stability for large investments, particularly beneficial for mining.
• Definitive Feasibility Study (DFS): The final technical blueprint for the project, crucial for securing financing and construction approval.
• Resource Estimate: An assessment of the quantity and quality of mineral deposits. Measured and Indicated resources are those with higher confidence.
• Capex: Capital Expenditure – the funds required for the initial construction of the mine.
• Throughput Rate: The amount of ore processed daily, a key factor in production capacity.
• Aulto & Jack Deposits: The primary ore bodies within the Diablo project, with Jack being particularly high-grade in silver.

1. Project Overview & Recent Progress

Abra Silver’s primary asset is the Diablo silver-gold project in Argentina, projected to be one of the world’s largest primary silver producers upon operation. The past year (2025) has seen significant progress, reflected in a stock price increase of over 300%. This progress signifies a transition from pure exploration to development, with a construction decision anticipated later in the year. The project currently boasts approximately 350 million ounces of silver equivalent, a figure that continues to grow with ongoing exploration. A new resource estimate, alongside the DFS, is expected next quarter (Q2).

2. Exploration Success & Resource Growth

The exploration team has consistently delivered positive results. A mid-year resource estimate update added approximately 100 million ounces of silver equivalent in the Measured and Indicated categories, based on one year of drilling. Abra Silver maintains one of the lowest discovery costs in the industry. Phase five drilling completed at the end of last year further increased the resource, with results incorporated into the upcoming DFS. The focus of the current Phase Six drilling (started January 2026) is to expand the margins of the Aulto and Jack deposits and evaluate other targets across the land package, utilizing 15,000 meters of drilling.

3. The Riggy Incentive Program & its Impact

The introduction of “Riggy,” Argentina’s new incentive regime for large investments, is described as a “game changer” for the country and particularly for the capital-intensive mining industry. Riggy provides 30 years of legal and fiscal stability, including:

• Reduced Tax Rate: From 35% to 25%.
• Elimination of Duties: Removal of export and import duties on equipment, gold, and silver.
• Removal of Foreign Exchange Restrictions: Addressing a historical hurdle for investment in Argentina.

Abra Silver expects Riggy approval by the end of the current quarter, unlocking billions of dollars in additional free cash flow at current spot prices. Numerous projects, totaling tens of billions of dollars, have already been approved under Riggy.

4. Development Timeline & Key Milestones

The development timeline is progressing towards a construction decision by the end of 2026, with initial production targeted for 2029. Key milestones include:

• Riggy Approval: Expected imminently (end of current quarter).
• Environmental Impact Assessment (EIA) Permits: Final stages of review, expected before the end of the current quarter. Submitted approximately a year ago.
• Definitive Feasibility Study (DFS): Finalization scheduled for Q2. This will serve as the blueprint for project financing and construction.
• Project Financing: Evaluation of debt financing, convertible securities, and potential streaming agreements.
• Construction Decision: Targeted for the end of 2026.

5. Pre-Feasibility Study Highlights & DFS Expectations

The December 2024 pre-feasibility study demonstrated the project’s viability, even with conservative commodity price assumptions ($25/oz silver, $2,000/oz gold). It showed a 2-year payback and a 30% after-tax Net Present Value (NPV). However, current commodity price consensus (approximately $40/oz silver, $3,300/oz gold) significantly improves the project’s economics, potentially yielding a >50% after-tax rate of return and a payback period of under one year.

The DFS will optimize the pre-feasibility study, maintaining the 9,000 tons per day throughput rate (as dictated by permitting) but incorporating a larger resource and reserve base. Optimization of the power supply is also underway, with a potential connection to grid power through Central Puerto, a major Argentinian utility company, offering significant cost savings.

6. Ore Body Characteristics & Mining Strategy

The ore body is near-surface, easily mineable via open pit methods, and consists of oxides. The Aulto deposit is roughly 50/50 silver and gold, while the Jack deposit is predominantly silver and high-grade. Jack has seen significant resource growth, increasing from 5 million tons to 13 million tons in recent estimates. The initial years of production will heavily rely on the high-grade, shallow Jack deposit, driving significant silver production.

7. Financial Considerations & Funding Plans

Abra Silver currently has a strong balance sheet with approximately $60 million Canadian in cash. This will fund the completion of the DFS, additional drilling, and early works construction activities. The estimated initial capital expenditure (Capex) is approximately $540 million US, with potential inflationary pressures being monitored. Funding options include debt financing, convertible securities, and streaming agreements.

8. Drilling Program Details & Future Exploration

Three drill rigs are currently operating on site. Phase Six drilling, initiated in January 2026, focuses on expanding the Aulto and Jack deposits and evaluating other targets across the property. The exploration team has a strong track record of successful resource growth at a low cost.

9. Notable Quotes

• “Diablo is truly emerging as a tier one primary silver asset.” – John
• “Riggy has been a total game changer for Argentina as a whole and especially for mining.” – John
• “We’re standing on the doorstep of a construction decision later this year.” – John

10. Synthesis & Main Takeaways

Abra Silver is rapidly advancing the Diablo project towards development, benefiting from a growing resource base, a favorable regulatory environment (Riggy), and strong financial position. The upcoming milestones – Riggy approval, EIA permits, and the DFS – represent significant catalysts for investor value. The project’s robust economics, particularly with current commodity prices, and the high-grade nature of the Jack deposit position Abra Silver for substantial silver production and profitability in the coming years. The company is transitioning from explorer to developer, with a clear path to production by 2029.