Advance Metals (ASX:AVM) is expanding its already sizeable reach in Mexico, securing an earn-in agreement with Canadian explorer Endeavour Silver Corp that will see it take control of the Guadalupe y Calvo Gold-Silver Project by 2029.
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The $4 million deal is drawn up to include payment stages: Advance will pay $100,000 in cash and shares this week; the remaining $3.9M is due in four parts by 2028.
The GyC project pinged on Advance’s radar thanks to its location on the “prolific” Sierra Madre Volcanic Belt in southwestern Chihuahua, 245 kilometres from the Australian explorer’s already-humming Yoquivo dig site.
The project, which Advance will acquire by 2029 at the latest through its earn-in deal with Endeavour, has historically produced over 2Moz gold and 31Moz silver and includes 86K metres of resource definition and exploration.
“The acquisition of Guadalupe y Calvo is transformational for Advance Metals,” the company’s managing director, Adam McKinnon, said today.
“This takes the company’s endowment in Mexico to over 100Moz silver-equivalent across three high-quality projects… [leaving] Advance positioned as the largest ASX participants in the silver-gold exploration and development space in Mexico, with enormous upside potential for all three of our projects.”
The other two Advance projects in the region are Yuquivo and Gavilanes. GyC is “conveniently” situated right between the two, and was an important buy because it adds gold to the company’s expanding Mexican slate.
Recent drilling already picked up strong intersections, including nine metres at 4.7 grams per tonne gold and 85 grams per tonne silver from 13 metres. An Indicated and Inferred MRE last recorded for GyC in 2021 compromised 9.5Mt at 2.7 g/t gold-equivalent containing 816Koz AuEq (60.6 Moz AgEq).
“Along with silver, GyC adds high-grade gold to our portfolio at a time of very strong demand prices for both metals,” Mr McKinnon explained.
“The company finds itself in a fantastic position to leverage off its operating expertise, existing infrastructure, and established team in Mexico… with Yuquivo to the north, Gavilanes to the south, and GyC at the mid-point.”
Adding to the interest was the fact that Mithril Silver and Gold (ASX:MTH) has been operating in the same area, at the Copalquin Gold-Silver Project just 80 kilometres away, for some time now; it’s had several high-grade finds, most recently uncovering numerous high-grade veins at the Mexico dig.
AVM opened at 4.2cps this morning before instantly jumping +4.7%.
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