Highlights

  • Maiden RC drilling at Cerro Chacón confirmed a low-sulphidation epithermal gold-silver system extending across approximately 10 km² at the Toro Hosco prospect.
  • Best drill results included 1 metre at 2.75 g/t gold and 1 metre at 456.67 g/t silver, supporting historical surface sampling results.
  • The company is evaluating deeper drilling targets while advancing structural studies, geophysics interpretation, and additional geochemical programs.

Piche Resources Limited (ASX:PR2) has delivered a significant exploration update from its Cerro Chacón Gold Project in Argentina, with maiden reverse circulation (RC) drilling confirming the presence of a low-sulphidation epithermal gold-silver system across a substantial mineralised corridor.

The completion of the company's first drilling campaign represents an important milestone for Piche Resources as it seeks to advance exploration across one of its flagship assets in the Chubut Province. The latest results provide geological confirmation of mineralisation identified through surface sampling programs and support the company's evolving exploration model for the project.

For investors, the announcement is notable because it moves Cerro Chacón beyond surface exploration and into a drill-tested stage, providing additional data that can be used to refine future targeting and assess the scale of the mineralised system.

Maiden RC Program Provides First Subsurface Confirmation

The Cerro Chacón drilling campaign consisted of 53 RC holes for a total of 5,911 metres across three key prospects: Chacón Grid, La Javiela, and Toro Hosco.

The latest announcement covers the final 10 holes completed at Toro Hosco and La Javiela, representing 1,031 metres of drilling. Assays have now been received for all holes within the maiden campaign.

The results confirmed the presence of a low-sulphidation epithermal gold-silver system, a deposit style commonly associated with major precious metal districts globally. Such systems are often characterised by structurally controlled mineralisation hosted within quartz veins, breccias, and altered volcanic rocks.

At Toro Hosco, nine drill holes were completed and all returned gold and/or silver mineralisation. The consistency of mineralisation across multiple drill holes provides evidence that the system extends across a broad area rather than being confined to isolated occurrences.

According to the company, the mineralised footprint currently covers approximately 10 square kilometres, measuring around 2.5 kilometres by 4 kilometres.

Key Drill Intercepts Highlight Gold and Silver Potential

Several drill intersections stood out within the latest results.

The highest gold assay was returned from hole THRC002, which intersected 1 metre grading 2.75 grams per tonne (g/t) gold at a depth of 16 metres. The same hole also contained broader intervals of anomalous gold and silver mineralisation.

Silver results were particularly notable in hole THRC006, which intersected 1 metre grading 456.67 g/t silver at a depth of 62 metres. The hole also returned a broader mineralised interval of 7 metres averaging 123.55 g/t silver.

Additional encouraging results included hole THRC007, which intersected 1 metre grading 1.49 g/t gold and 68.23 g/t silver, while hole THRC001 returned a 16-metre interval averaging 0.14 g/t gold and 3.74 g/t silver.

Although the reported grades are relatively narrow in width, management believes they support the interpretation of an active epithermal system and may represent portions of a broader mineralised framework that remains only partially tested.

Surface Sampling Results Gain Further Validation

One of the more important outcomes from the drilling campaign is the correlation between drill results and previously reported surface geochemistry.

Prior rock-chip sampling at Toro Hosco returned values of up to 15.77 g/t gold and 761 g/t silver. The latest drilling results demonstrate that precious metal mineralisation identified at surface continues into the subsurface environment.

This relationship between surface anomalies and drilling outcomes is often a key consideration during early-stage exploration. Successful validation can increase confidence in geochemical targeting methods and improve the efficiency of future drill campaigns.

The consistency between drilling and surface sampling also supports the company's view that the mineralised corridor extends beyond the areas tested during the maiden program.

La Javiela Results Remain Inconclusive

While Toro Hosco delivered encouraging results, the outcome at La Javiela was less definitive.

The single drill hole completed at the prospect, LJRC001, was terminated before reaching its intended target depth because of operational challenges encountered during drilling. Consequently, the planned geological structure was not intersected.

The hole returned only minor gold values, including 4 metres grading 0.02 g/t gold. However, management emphasized that the result should not be interpreted as a failed target because the hole did not adequately test the intended structure.

Future exploration may revisit La Javiela after additional geological studies and target refinement are completed.

Geological Model Continues to Evolve

The company believes the drilling results support its broader geological interpretation of Cerro Chacón as a structurally controlled epithermal gold-silver system.

The project lies within Argentina's Deseado Massif, a region known for hosting significant precious metals deposits. Geological observations indicate that mineralisation is associated with a north-northwest-trending structural corridor extending through multiple prospect areas.

Piche has identified a continuous 14-kilometre mineralised corridor linking Chacón Grid, La Javiela, and Toro Hosco. This corridor is defined by gold, silver, and pathfinder geochemical anomalies supported by geological mapping and geophysical surveys.

Management also noted that elevated silver values encountered in deeper drilling may reflect vertical metal zonation within the epithermal system. Such zonation patterns can be useful in identifying higher-temperature portions of a mineral system that may host stronger gold mineralisation at depth.

Next Phase Focused on Deeper Targets

With the maiden drilling campaign complete, the company is shifting attention toward target generation and deeper exploration opportunities.

A comprehensive review of structural controls is underway using drilling data, geological observations, and geochemical information. The objective is to identify the most prospective zones for future drilling.

Piche also plans to re-evaluate existing geophysical datasets and extend magnetic surveys across Toro Hosco to improve structural understanding. Additional soil sampling and rock-chip programs are planned to close data gaps within the broader mineralised corridor.

Multi-element geochemical datasets are being analysed to identify pathfinder signatures that may help vector exploration toward higher-grade zones.

Importantly, management is now assessing deeper drilling opportunities designed to test areas that may represent the core of the epithermal system. These deeper targets could become a primary focus of future exploration programs.

Conclusion

Piche Resources has achieved an important milestone at Cerro Chacón with maiden drilling confirming the existence of a large low-sulphidation epithermal gold-silver system. While the drilling remains at an early exploration stage, the results validate previous surface sampling and support the company's interpretation of a district-scale mineralised corridor extending approximately 14 kilometres. The confirmation of gold and silver mineralisation across multiple prospects, combined with plans for deeper drilling and expanded targeting, positions Cerro Chacón as a key asset within Piche Resources' exploration portfolio. Investors are likely to focus on upcoming structural studies, geophysical reinterpretation, and future drill campaigns aimed at testing higher-grade zones at depth.