Highlights

  • Andean Silver (ASX:ASL) continues advancing the Cerro Bayo silver project in Chile.
  • The project hosts a reported resource of approximately 136 million ounces of silver equivalent.
  • A 60,000-metre drilling programme is underway to support resource growth.
  • A feasibility and restart study is targeted for mid-2027.

Andean Silver (ASX:ASL) continues progressing the Cerro Bayo silver project in Chile, supported by resource growth, ongoing drilling activities and favourable silver market conditions. The company’s shares were trading at AUD 2.78, up 13.47% on 21 August 2026.

The company is focused on advancing Cerro Bayo towards a potential restart pathway, with exploration activities aimed at expanding the resource base and improving confidence in the project’s development potential.

For investors assessing Andean Silver (ASX:ASL), the key areas of focus remain drilling results, resource growth, silver prices and progress towards the planned restart study.

What is happening with Andean Silver?

Andean Silver is developing the Cerro Bayo silver project located in Chilean Patagonia.

The project is a historic Mining district, and the company is focused on evaluating its potential for redevelopment through exploration, resource expansion and technical studies.

The company’s strategy is supported by a combination of high-grade drilling results, an expanded resource base and ongoing work towards a feasibility and restart study.

Latest company developments

Andean Silver is undertaking its largest drilling programme at Cerro Bayo in two decades, with four rigs operating as part of an approximately 60,000-metre district-wide campaign.

Recent drilling results have highlighted high-grade silver mineralisation.

At the Trinidad vein, the company reported an infill intercept of 1.4 metres at 25,340 grams per tonne silver equivalent.

Surface sampling at the Juanita exploration area also returned assays of up to 62,663 grams per tonne silver equivalent.

The company reported a mineral resource estimate in June 2026 of approximately 20 million tonnes at 211 grams per tonne silver equivalent, representing around 136 million ounces of silver equivalent.

The updated resource included a significant increase in the indicated category compared with the previous estimate.

Andean Silver is targeting completion of a feasibility and restart study by mid-2027, which is expected to provide further detail on the potential redevelopment pathway for Cerro Bayo.

What do the numbers say?

The key metrics for Andean Silver remain resource scale, exploration success and funding capacity.

The reported Cerro Bayo resource of approximately 136 million ounces of silver equivalent provides the foundation for the company’s development strategy.

The ongoing 60,000-metre drilling programme is aimed at extending mineralisation and improving resource confidence.

The company reported cash of approximately A$42.7 million as at June 2026, compared with A$53.4 million in March 2026, reflecting increased expenditure on exploration activities.

Andean Silver previously raised A$30 million through a Placement in December 2025 at A$1.85 per share.

The company has indicated that its existing funding position supports the planned restart study.

Silver prices remain another important factor, as higher silver prices can influence project Economics and investor sentiment towards development-stage silver companies.

What could drive the shares from here?

Further drilling results from the ongoing Cerro Bayo programme remain a key potential driver for Andean Silver (ASX:ASL).

Additional resource growth or improved confidence in mineralisation continuity could strengthen the development case.

The feasibility and restart study targeted for mid-2027 represents a major milestone, as a positive outcome could move the project closer to a potential production decision.

Continued strength in silver prices may also support project economics and broader market interest.

Progress towards development milestones while maintaining funding flexibility will remain important for investor confidence.

Risks investors should watch

Andean Silver remains exposed to development and exploration risks as it works towards a potential restart of Cerro Bayo.

The company is reliant on a single major project, creating concentration risk if technical, regulatory or operational challenges arise.

Silver price Volatility remains a key risk, as project economics are closely linked to Commodity prices.

While drilling results have been positive, individual high-grade intercepts do not necessarily represent the average grade or economic viability of the broader deposit.

The company may also face additional Capital requirements if exploration, studies or development activities expand beyond current expectations.

Chile-based operations introduce permitting, regulatory and jurisdictional considerations that may affect timelines.

Investor takeaway

Andean Silver (ASX:ASL) continues advancing the Cerro Bayo silver project with a combination of resource growth, high-grade drilling results and ongoing technical studies.

The company’s reported 136-million-ounce silver-equivalent resource, active drilling programme and planned restart study provide the foundation for its development strategy.

However, the company remains a development-stage silver explorer, with future value dependent on resource expansion, technical study outcomes, silver prices and successful progression towards a potential restart.